Common use of CASING POINT ELECTION Clause in Contracts

CASING POINT ELECTION. a) At such time as an Exploratory Well been drilled to the objective depth asset forth in the notice, and has been logged and tested and copies of the logs and results furnished to each Participating Party, but before any production pipe has been set, Operator shall notify the Participating Parties by telephone or telecopy, setting forth Operator's recommendation with respect to further operations. Each Participating Party shall, within forty-eight (48) hours after receipt of such notice, notify Operator and the other Participating Parties by telephone (promptly confirmed in writing) or telecopy whether it accepts Operator's recommendation or make additional recommendations as to further operations with respect to such well. If additional recommendations are made, the Participating Parties shall have an additional twenty-four (24) hours to respond. Any party may request additional time beyond the herein specified time, in order to make an election; however, all costs associated to such standby rig time shall be at the expense of the Party or Parties requesting such additional time. The extension of additional time shall not exceed a forty-eight (48) hours period. b) Any recommendation concurred to by a majority of Participating Interests shall take precedence over any other proposal. In the event no recommendation receives such majority support, then the recommendation to be followed shall be determined as follows: 1) proposals to do additional testing, coring or logging. 2) proposals to attempt completions at the initial objective depth. 3) proposals to plug back and attempt completions in ascending order. 4) proposals to deepen the well. 5) proposals to sidetrack the well to another bottom hole location no deeper than the stratigraphic equivalent of the initial objective depth. 6) proposals to perform other operations. 7) proposals to temporarily abandon the well. 8) proposals to plug and abandon the well.

CASING POINT ELECTION. a) At such time Upon reaching Casing Point in any well drilled under the provisions of this Agreement (whether commenced as an Exploratory Well been drilled to or Development Operation), the objective depth asset forth in the notice, and has been logged and tested and copies of the logs and results furnished to each Participating Party, but before any production pipe has been set, Operator shall immediately notify the other Participating Parties in writing and delivered by telephone personal messenger, or telecopyby fax, setting forth Operator's recommendation with respect its recommendations as to further operationsoperations thereon. Each Participating Party shallParty, within forty-eight (48) hours after receipt of such noticenotice and all available logs and test results, notify shall advise the Operator and the other Participating Parties by telephone with written confirmation sent within twenty-four (promptly confirmed 24) hours, or by fax, or in writing) or telecopy writing whether it accepts Operator's recommendation or make makes additional recommendations as to further operations with respect to such well. If additional recommendations are made, the Participating Parties shall have an additional twenty-four (24) hours to respond. If all Participating Parties elect to abandon the well at that point, it shall be plugged and abandoned at their joint cost and expense. Any party Party may request in writing up to forty-eight (48) hours of additional time beyond the herein specified time, time in order to make an election; however, all costs associated to such standby rig time shall be at the expense of the Party or Parties requesting such additional time. The extension If less than all, but one (1) or more Participating Parties owning twenty-five percent (25%) or more in interest in the well elect to conduct a specific operation, other than plugging and abandoning the well, the Parties so electing shall conduct such operation as a Non-Consent Operation under the provisions of additional Article 13. If at any time shall not exceed a forty-eight (48) hours period. b) Any recommendation concurred there is more than one operation proposed in connection with any Well subject to by a majority of Participating Interests shall take precedence over any other proposal. In this Agreement, and in the event no recommendation one proposed operation receives such majority supportthe approval of one (1) or more Participating Parties owning fifty percent (50%) or more in interest in the well, then unless all Participating Parties agree on the recommendation to be followed sequence of such operations, such operations shall be determined as followsproposed and conducted (with no minimum party's percentage approval necessary) in the following order of priority: 1(a) proposals to do additional testing, coring or logging. 2(b) proposals to attempt completions at in the initial objective depthzone, in ascending order. 3(c) proposals to plug back and attempt completions completions, in ascending order. 4(d) proposals to sidetrack to original objective depth. (e) proposals to deepen the wellWell, in descending order. 5(f) proposals to sidetrack the well Well to another bottom hole location no deeper than the stratigraphic equivalent of the initial objective deptha new objective. 6(g) proposals to perform other operations. 7(h) proposals to temporarily plug and abandon Well. If the well. 8) proposals Operation is other than to plug and abandon the wellWell, such further Operation shall be conducted as a Non-Consent Operation under the provision of Article 13, and if the well is subsequently abandoned as a dry hole, then the Non-Participating Party as to such further Operation shall bear its proportionate part of what would otherwise have been the cost of plugging and abandoning the Well at the initial objective depth.