Common use of Contract Application Clause in Contracts

Contract Application. 1. 1Application in General This Agreement governs the rights and obligations of the Parties relating, without limitation, to the exploration, appraisal, development, operation, production, treatment, gathering, and storage of Hydrocarbons. This Agreement does not apply to the fabrication, installation or operation of Export Pipelines. 1. 2Application to the Contract Area This Agreement applies to the entire Contract Area. Unless otherwise provided in this Agreement, all the rights and obligations in and under the Leases comprising the Contract Area, all property and rights acquired pursuant to this Agreement, and all Hydrocarbons are owned by the Parties according to their respective Working Interest or Participating Interest Share, as applicable. 1. 3Preparation and Effect of Future Unit Operating Agreements If unitization is approved by DOI with respect to one or more Leases covered by this Agreement, the unitized acreage will be governed by a unit operating agreement (“UOA”), incorporating identical terms and conditions (mutatis mutandis) contained in this Agreement (unless clearly inappropriate or if in conflict with the terms and conditions in the applicable unit agreement). The Operator will promptly prepare the UOA, and Exhibit “A” will be revised by the Operator in accordance with Section 1.3.2 (Unitization and Creation of a New Contract Area) to reflect the change from this Agreement to the UOA. Upon receipt of the UOA, the Parties shall promptly execute and deliver the UOA to the Operator so that the Operator may include the fully executed UOA with the other materials it must file with the Regional Supervisor (as defined in 30 CFR) under 30 CFR §250.1303(c); however, failure to timely execute the UOA within the aforementioned time period will not affect the enforceability nor effectiveness of the UOA as between the Parties.