Deepening Clause Samples
The Deepening clause defines the rights and obligations related to the expansion or extension of a project, service, or contractual scope beyond its original terms. Typically, this clause outlines the process by which additional work, resources, or responsibilities can be incorporated, such as through mutual agreement or specified triggers. For example, it may allow for the addition of new deliverables or the extension of timelines if certain conditions are met. The core function of the Deepening clause is to provide a structured mechanism for adapting the contract to evolving needs, thereby ensuring flexibility while maintaining clear boundaries and expectations for both parties.
Deepening. If less than all the parties elect to participate in a Sidetracking, or Deepening operation proposed pursuant to Article VI.B.1., the interest relinquished by the Non-Consenting Parties to the Consenting Parties under Article VI.B.2. shall relate only and be limited to the lesser of (i) the total depth actually drilled or (ii) the objective depth or Zone of which the parties were given notice under Article VI.B.1. (“Initial Objective”). Such well shall not be Deepened beyond the Initial Objective without first complying with this Article to afford the Non-Consenting Parties the opportunity to participate in the Deepening operation.
Deepening. If less than all the Parties elect to participate in a drilling, Sidetracking, or Deepening operation proposed pursuant to Article VI.B.1, the interest relinquished by the Non-Consenting Parties to the Consenting Parties under Article VI.B.2 shall relate only and be limited to the lesser of (i) the total depth actually drilled, or (ii) the objective depth or Zone of which the Parties were given notice under Article VI.B.1 (“Initial Objective”). The well shall not be Deepened beyond the Initial Objective without first complying with this Article VI to afford the Non-Consenting Parties the opportunity to participate in the Deepening operation. If any Consenting Party desires to drill or Deepen a Non-Consent Well to a depth below the Initial Objective, then the Party shall give notice, complying with the requirements of Article VI.B.1, to all Parties (including Non-Consenting Parties). Then, Articles VI.B.1 and 2 shall apply and all Parties receiving the notice shall have the right to participate or not participate in the Deepening of the well pursuant to Articles VI.B.1 and 2. If a Deepening operation is approved pursuant to those provisions, and if any Non-Consenting Party elects to participate in the Deepening operation, the Non-Consenting Party shall pay or make reimbursement (as the case may be) of the following costs and expenses:
(a) If the proposal to Deepen is made prior to the Completion of a well as a well capable of producing in paying quantities, the Non-Consenting Party shall pay (or reimburse Consenting Parties for, as the case may be) that share of costs and expenses incurred in connection with the drilling of the well from the surface to the Initial Objective which Non-Consenting Party would have paid had the Non-Consenting Party agreed to participate, plus the Non-Consenting Party’s share of the cost of Deepening and of participating in any further operations on the well in accordance with the other provisions of this Agreement; provided, however, all costs for testing and Completion or attempted Completion of the well incurred by Consenting Parties prior to the point of actual operations to Deepen beyond the Initial Objective shall be for the sole account of Consenting Parties.
(b) If the proposal is made for a Non-Consent Well that has been previously Completed as a well capable of producing in paying quantities, but is no longer capable of producing in paying quantities, the Non-Consenting Party shall pay (or reimburse Consenting Parties ...
Deepening. If less than all the Parties elect to participate in a Drilling, Sidetracking, or Deepening operation proposed pursuant to Article VI.B.1. (