Common use of Selection of Successor Operator Clause in Contracts

Selection of Successor Operator. Upon the resignation or removal of Operator under any provision of this Agreement, a successor operator shall be selected by the Parties. The successor operator shall be selected from the Parties owning an interest in the Oil & Gas Leases at the time such successor operator is selected. Prior to such time that a total sum of $2,000,000.00 is expended in connection with operations hereunder, the successor operator shall be selected by the affirmative vote of two (2) or more Parties whose combined interests constitute a majority in interest based on ownership as shown in Exhibit A; provided, however, that if there is only one (1) Party other than Operator, the affirmative vote of such Party shall be sufficient to select a new operator; and further provided, that if Operator, after it has been removed or is deemed to have resigned, fails to vote or votes only to succeed itself, the successor operator shall be selected by the affirmative vote of the Party or Parties owning a majority in interest based on ownership as shown in Exhibit A that remains after excluding the voting interest of Operator that was removed or resigned. On and after such time that a total sum of $2,000,000.00 is expended in connection with operations hereunder, the successor operator shall be selected by the affirmative vote of Parties owning a majority in interest based on ownership as shown in Exhibit A; provided, however, that if Operator, after it has been removed or is deemed to have resigned, fails to vote or votes only to succeed itself, the successor operator shall be selected by the affirmative vote of the Party or Parties owning a majority in interest based on ownership as shown in Exhibit A that remains after excluding the voting interest of Operator that was removed or resigned. Operator shall promptly deliver to the successor operator all records and data relating to the operations conducted by Operator to the extent such records and data are not already in the possession of the successor operator. Any cost of obtaining or copying Operator’s records and data shall be charged to the joint account.