Right to Operate. Any Working Interest Owner that now has or hereafter acquires the right to drill for and produce oil, gas, or other minerals, from other than the Unitized Formation, shall have the right to do so notwithstanding this agreement or the Unit Agreement. In exercising the right, however, the Working Interest Owner shall exercise reasonable precaution to prevent unreasonable interference with Unit Operations. No Working Interest Owner shall produce Unitized Substances through any well drilled or operated by it. If any Working Interest Owner drills any well into or through the Unitized Formation, the Unitized Formation shall be protected in a manner satisfactory to Working Interest Owners so that the production of Unitized Substances will not adversely be affected.
Appears in 2 contracts
Sources: Unit Operating Agreement (Resaca Exploitation, Inc.), Unit Operating Agreement (Resaca Exploitation, Inc.)
Right to Operate. Any Working Interest Owner that now has or hereafter acquires the right to drill for and produce oil, gas, or other minerals, from strata above or below the Unit Area other than the Unitized Formation, shall have the right to do so notwithstanding this agreement Agreement or the Unit Agreement. In exercising the right, however, the such Working Interest Owner shall exercise reasonable precaution care to prevent unreasonable interference with Unit Operations. No Working Interest Owner other than Unit Operator shall produce Unitized Substances through any well drilled or operated by itSubstances. If any Working Interest Owner drills any well into or through the Unitized Formation, the Unitized Formation shall be protected in a manner satisfactory to Working Interest Owners Unit Operator so that the production of Unitized Substances will not adversely be affectedaffected adversely.
Appears in 1 contract
Sources: Unit Operating Agreement (Natural Gas Systems Inc/New)