Common use of ADDITIONAL OPERATIONS Clause in Contracts

ADDITIONAL OPERATIONS. 9.1 Without the prior consent of the Non-Operator, no expenditure in excess of Ten Thousand Dollars ($10,000) shall be made relating to any Well in which Non-Operator has a working interest except the initial drilling and completion of such Well. 9.2 Notwithstanding the foregoing, the Operator shall be authorized, without being required to obtain the consent of the Non-Operator, in the case of explosion, fire, flood, or discharge or release of any hydrocarbon or other hazardous substance which requires immediate remediation, or other sudden emergency whether of the same or different nature, to take such steps and incur such expenses as in its opinion are required to deal with the emergency and to safeguard life and property. In such event, the Operator shall promptly notify the Non-Operator of the matter which gave rise to the expenditures made by the Operator and account to the Non-Operator for all such expenditures and such expenditures, once accounted for, shall be deemed to be an Operating Expense unless the matter which gave rise to the expenditure resulted from the negligence of the Operator. 9.3 Notwithstanding the foregoing, in the event that Operator shall propose to make an expenditure with respect to a Well in excess of the amount specified in Section 9.1 hereof and in the event that Non-Operator owns less than a fifty percent (50%) working interest in the Well, such proposed expenditure may nevertheless be made and any party advancing any funds attributable to the interest of Non-Operator may recoup an amount equal to two hundred percent (200%) of such funds from the Net Revenues of the Well attributable to the interest of Non-Operator before any further distributions shall be made from the Net Revenues of the Well to Non-Operator.