Common use of Substitute Operator Clause in Contracts

Substitute Operator. Except as otherwise provided in Article 4.2.1 (Circumstances Under Which Operator Must Conduct a Non-Consent Operation), if the Operator becomes a Non-participating Party in a Non-consent Operation, the Participating Parties may approve the designation of any Participating Party as the substitute Operator by the vote of two (2) or more Participating Parties having fifty percent (50%) of the Participating Interests. The substitute Operator shall serve only (a) for the Non-consent Operation, (b) of the Lease affected by the Non-consent Operation, subject to these limitations, and (c) with the same authority, rights, obligations, and duties as the operator. If a Non-operator is the only Participating Party in a Non-consent Operation, then the Non-operator shall be designated as the substitute Operator for that Non-consent Operation, with no vote required, unless the Non-operator elects not to accept designation. No Non-operator shall ever be designated as a substitute Operator against its will. If a substitute Operator is not designated under the foregoing procedures, the Operator shall, upon the unanimous agreement of the Participating Parties and the Operator, conduct the Non-consent Operation on behalf of the Participating Parties and at the Participating Parties' sole cost and risk under Article 13 (Non-Consent Operations). 4.2.1. Circumstances Under Which the Operator Must Conduct a Non-Consent Operation. If: (A) a drilling rig is on location and the Operator becomes a Non-participating Party supplemental APE for an Exploratory Operation, or Development Operation; or, (B) the Operator becomes a Non-participating Party in an operation to be conducted from a Platform operated by the Operator, the Operator, as a Non-participating Party, conduct the Non-consent Operation on behalf of the Participating Parties and a, Participating Parties' sole cost and risk under Article 13 (Non-Consent Operations).

Substitute Operator. Except as otherwise provided in Article 4.2.1 (Circumstances Under Which Operator Must Conduct a Non-Consent Operation), if If the Operator becomes a Non-participating Participating Party in a Non-consent Consent Operation, any Participating Party may be selected by the Participating Parties may approve the designation of any Participating Party as a General Matter and designated as the substitute Operator by the vote of two (2) or more Participating Parties having fifty percent (50%) of the Participating Interests. The substitute Operator shall serve only (a) for the Non-consent OperationDesignated Prospect, (b) of the Lease affected by the Non-consent Operation, subject to these limitations, and (c) with the same authority, rights, obligations, obligations and duties as the operatorOperator, except when: (a) the drilling and other contracts for equipment and Facilities to be utilized on the Non-Consent Operation are not assignable; or (b) the operation is conducted from a Production System being operated by the Operator. If a Non-operator no substitute Operator is designated by the only Participating Party in a Non-consent OperationParties, then the Non-operator Operator, at its option, shall be designated as conduct such Non- Consent Operations at the substitute Operator for that Non-consent Operationsole risk, with no vote required, unless the Non-operator elects not to accept designation. No Non-operator shall ever be designated as a substitute Operator against its will. If a substitute Operator is not designated under the foregoing procedures, the Operator shall, upon the unanimous agreement Costs and expense of the Participating Parties and Parties. If the Operator, conduct the Operator conducts Non-consent Operation Consent Operations on behalf of the Participating Parties and at (when the Operator is a Non-Participating Party), the Operator shall furnish the Participating Parties' sole cost and risk under Article 13 (Non-Consent Operations). 4.2.1. Circumstances Under Which Parties an estimate of the Operator Must Conduct a Costs of the Non-Consent Operation. If: (A) a drilling rig is on location The Operator shall not be required to proceed with such Non-Consent Operations unless and until the Costs thereof have been advanced to it by the Participating Parties, to the end that the Operator becomes need not expend any of its own funds for such Non-Consent Operation. If a Non-participating Party supplemental APE for an Exploratory OperationConsent Operation conducted by a substitute Operator is completed or results in a producing well, or Development Operation; or, (B) said well shall be turned over to the Operator becomes a Non-participating Party in an operation to be conducted from a Platform operated by the Operator, the Operator, as a Non-participating Party, conduct the Non-consent Operation on behalf for future operations within thirty (30) days of the Participating Parties and a, Participating Parties' sole cost and risk under Article 13 (Non-Consent Operations)completion of such operations.