Common use of Deeper Drilling Clause in Contracts

Deeper Drilling. If a well is proposed to be drilled below the deepest producible zone penetrated by a Producible Well, any Party hereto may elect either; a) to participate in the well as proposed, or b) to participate in the well to the base of the deepest producible zone penetrated by a Producible Well. If a Party elects to participate in the proposed well to the base of the deepest producible zone penetrated by a Producible Well, such Party shall bear its proportionate part of the cost of such operations, including completion or abandonment, only to the depth to which such Party agreed to participate. In the event the well is completed below the depth to which such Party agreed to participate, all costs incurred in the operations for that portion of the well below the agreed depth shall be governed by the provisions of Section 10.3.2.