Common use of Contract Operations Clause in Contracts

Contract Operations. If an earning well is drilled from, and completed for production on, an existing Chevron solely own platform under a Chevron farmout of its interest to Company in any Primary or Additional Opportunities Prospect, then, while Chevron is operating that platform during the time that Chevron has no working interest the well, and to the extent that the conditions of the well, the well's production and the well's equipment a acceptable to Chevron, the well will be operated as follows: (a) Chevron shall perform routine operations of, and perform, arrange or procure repairs, maintenance, materials, parts, supplies, chemicals, and annual inspections for, the well and the well's equipment, and Chevron shall invoice Company for, and Company shall reimburse Chevron for, Company's working interest share of the applicable costs, expenses and overhead and the terms of that certain Accounting Procedure, which is attached as Exhibit "C" to that certain Operating Agreement, which is attached as Exhibit "E" to this Agreement; (b) Any individual project exceeding a gross charge of Twenty Five Thousand Dollars ($25,000) for the well or the well's equipment shall be subject to prior written approval by Company and the other working interest owner(s) therein, and Company and those other working interest owners may elect for one (1) of them to perform any such project in excess of Twenty Five Thousand Dollars ($25,000) gross charge at their sole cost, risk and expense, provided that the project applies solely to that earning well or that earning well's equipment and that the project is accomplished to Chevron satisfaction; (c) The terms and conditions of the Processing Agreement, if any, for processing the well production pursuant to Article 13.1 shall additionally apply.