Common use of DRILLING OPERATIONS Clause in Contracts

DRILLING OPERATIONS. 4.1 CONTRACTOR'S STANDARD OF PERFORMANCE - CONTRACTOR warrants that all work will be performed safely and in good and workmanlike manner in accordance with accepted international oilfield practices and in compliance with all applicable laws, rules and regulations; that CONTRACTOR's equipment shall be in good working order and its personnel fully trained and capable of safely operating such equipment and performing services required herein for OPERATOR; that CONTRACTOR regularly conducts training and safety programs; that all materials, equipment, goods, supplies or manufactured articles furnished by CONTRACTOR in the performance of the work or services shall be of suitable quality and workmanship for their intended purposes, in accordance with specifications, and shall be free from defects; and that CONTRACTOR will not employ any employee whose employment violates applicable labor or other laws. CONTRACTOR further covenants, warrants and represents that all work performed by it hereunder shall be conducted in accordance with accepted international safety regulations (as used in the country of Colombia), environmental laws and regulations, precautions and procedures in effect as of the effective date and by employing the necessary protective equipment and devices described in the attached inventory. Any breach of this safety covenant shall be grounds for immediate termination of this Contract by Operator. 4.2 THE RIG - CONTRACTOR shall furnish its' MARL▇▇ ▇▇▇ 8 which is a complete drilling rig as described in Exhibit "B". CONTRACTOR shall operate the rig and ancillary equipment at eighty five (85) percent of manufacturer's rated operating specifications. Contractor shall provide 12,000 of new S-135 grade, 5" Drill Pipe, 1800 of 5" heavy weight Drill Pipe, rig conversions to operate with 5" Drill Pipe, a new top drive system with sufficient torque capacity to drill Operator's horizontal well▇, ▇▇g modifications (at OPERATOR's expense, the cost for which shall be amortized over the initial term of the contract) as necessary, to accommodate underbalanced drilling equipment (so long as any modifications are mutually agreed between OPERATOR and CONTRACTOR) and one additional mud pump independently powered and compatible with the existing drilling rig equipment. The Drilling Tubulars (Drill Pipe, Heavy Weight Drill Pipe, Collars, Cross-Overs, Stabilizers, Subs, etc.) will be subject to Exhibit E, "Tubular Standards". In special circumstances, at OPERATOR request, CONTRACTOR in its sole discretion may operate the rig and ancillary equipment at manufacturer's rated operating specifications. CONTRACTOR shall maintain the rig and ancillary equipment in good working order.

DRILLING OPERATIONS. 4.1 CONTRACTOR'S STANDARD OF PERFORMANCE - CONTRACTOR warrants that all work the operation and maintenance of Contractor's Equipment will be performed safely and in good and workmanlike manner in accordance with accepted international oilfield practices and in compliance with all applicable laws, rules and regulationsregulations in effect as of the effective date of this Contract; that CONTRACTOR's equipment shall be in good working order and its personnel fully trained and capable of safely operating such equipment and performing services required herein for OPERATOR; that CONTRACTOR regularly conducts training and safety programs; that all materials, equipment, goods, supplies or manufactured articles furnished by CONTRACTOR in the performance of the work or services shall be of suitable quality and workmanship for their intended purposes, in accordance with specifications, and shall be free from defects; and that CONTRACTOR will not employ any employee whose employment violates applicable labor or other laws. CONTRACTOR further covenants, warrants and represents that all work performed by it hereunder shall be conducted in accordance with accepted international safety regulations (as used in the country of Colombia), environmental laws and regulations, precautions and procedures in effect as of the effective date and by employing the necessary protective equipment and devices described in the attached inventory. Any breach of this safety covenant shall be grounds for immediate termination of this Contract by Operator. 4.2 THE RIG - CONTRACTOR shall furnish its' MARL▇▇ ▇▇▇ 8 its RIG 223 which is a complete drilling rig as described in Exhibit "B". CONTRACTOR shall operate the rig and ancillary equipment at eighty five ninety (8590) percent of manufacturer's rated operating specifications. Contractor shall provide 12,000 of new S-135 grade, 5" Drill Pipe, 1800 of 5" heavy weight Drill Pipe, rig conversions to operate with 5" Drill Pipe, a new top drive system with sufficient torque capacity to drill Operator's horizontal well▇, ▇▇g modifications (at OPERATOR's expense, the cost for which shall be amortized over the initial term of the contractincluding modifications to substructure) as necessary, necessary to accommodate underbalanced drilling equipment (so long as any modifications are mutually agreed between OPERATOR and CONTRACTOR) equipment, and one additional mud pump independently powered and compatible with the existing drilling rig equipment. The Drilling Tubulars (Drill Pipe, Heavy Weight Drill Pipe, Collars, Cross-Overs, Stabilizers, Subs, etc.) will be subject to Exhibit E, "Tubular Standards". In special circumstances, at OPERATOR request, CONTRACTOR in its sole discretion may operate the rig and ancillary equipment at manufacturer's rated operating specifications. CONTRACTOR shall maintain the rig and ancillary equipment in good working order.