Common use of ACREAGE RELEASE Clause in Contracts

ACREAGE RELEASE. On or before the expiration of Option Period 2 as described in Section 3.2 above, McMoRan agrees to identify and release from this Agreement not less than forty percent (40%) of the balance of the Leases comprising the Contract Acreage as described on Exhibit "A" after deducting any Lease included in any Prospect drilled or committed to be drilled by McMoRan as provided herein and after taking into account the Leases and Contract Acreage released pursuant to Section 10.1 above and Sections 10.5 and 10.6 below. After release of this portion of the Contract Acreage, this Agreement shall only apply the remaining portion of the Contract Acreage and associated Leases not released.

ACREAGE RELEASE. On or before the expiration of Option Period 2 as 1as described in Section 3.2 above, McMoRan agrees to identify and release from this Agreement not less than forty twenty-five percent (4025%) of the balance of the Leases comprising the Contract Acreage as described on Exhibit "A" after deducting any Lease included in any Prospect drilled or committed to be drilled by McMoRan as provided herein and after taking into account the Leases and Contract Acreage or released pursuant to Section 10.1 above and Sections 10.5 and 10.6 belowhereof. After release of this portion of the Contract Acreage, this Agreement shall only apply to the remaining portion of the Contract Acreage and associated Leases not released.