Common use of INITIAL INTEREST Clause in Contracts

INITIAL INTEREST. Unless and until Pinnacle elects to be a Royalty Interest owner with respect to any Exploratory Prospect, it shall be deemed to be a Working Interest owner and will pay its share of all related costs (except seismic, geophysical and geological costs and other costs described in Section 2.2(b)) pursuant to the invoicing and payment procedures set forth in the Operating Agreement as if such agreement then applied to such Exploratory Prospect.