Initial Drilling Operations Clause Samples

Initial Drilling Operations. Within 30 days after Operator’s receipt of the Turnkey Rate stated below in Section 4(c), Operator shall commence the drilling of the first well on the Contract Area at a well site to be determined by the mutual agreement of Operator and Owner and shall thereafter continue the drilling with due diligence to a depth of 2,000 feet below the surface or a depth sufficient to adequately test the ▇▇▇▇▇▇▇ B Formation to the extent the depth of the ▇▇▇▇▇▇▇ B Formation is shallower than 2,000 feet below the surface.