Exploration and Development Program and Security Sample Clauses
The 'Exploration and Development Program and Security' clause outlines the obligations of a party, typically a lessee or operator, to conduct exploration and development activities according to an agreed-upon work program and to provide financial security to guarantee performance. This clause usually requires the submission of a detailed plan for exploration and development, including timelines and milestones, and mandates the posting of a bond, letter of credit, or other security instrument to ensure compliance with these commitments. Its core function is to ensure that the party responsible for resource development follows through on its obligations and that the other party is protected against non-performance or abandonment of the project.
Exploration and Development Program and Security. Before Lessee commences exploration or development of Geothermal Resources on the Property, Lessee shall provide Landowner with reasonable advance notice of Lessee's exploration and development plans and copies of all submittals to all Federal, State and other agencies. Before Lessee commences production of Geothermal Resources on the Property, Lessee, at its sole cost, shall obtain and deliver to Landowner security far the performance of Lessee's reclamation obligations under this Agreement and under all applicable Governmental Regulations. Lessee shall cause Landowner to be named as an additional obligee of any security, whether a bond, certificate of deposit, letter of credit, state bond pooling security or surety. As a condition to Lessee's right to commence development activity on the Property, Landowner shall have the right to review and approve Lessee's proposed security. Lessee shall deliver to Landowner copies of Lessee's application for security together with all other documents filed or submitted by Lessee as a part of or with. Lessee's application for security.