Initial Xxxxx Sample Clauses

Initial Xxxxx. Those Xxxxx identified on Exhibit “C” shall be deemed “Initial Xxxxx” under this Agreement. All other Xxxxx within the Dedicated Area, whether already drilled and connected or newly proposed, shall be deemed a “Subsequent Well” under this Agreement. Initial Xxxxx shall be subject to the gathering fees set forth in Section 6.1(a) and the terms of Article VI.

Initial Xxxxx. There shall be no non-consent election applicable as to the first well drilled in each Prospect Area. In the event that the parties disagree as to the proposed location of such initial well, the parties agree to negotiate in good faith to determine a mutually acceptable location.

Initial Xxxxx. Buyer shall proceed with due diligence to install, at its expense, all facilities at and downstream of the Delivery Point which are necessary to receive Gas from Seller. All such Delivery Point and downstream facilities will be owned and operated by Buyer at its expense. Seller shall proceed with due diligence to install, at its expense, all facilities upstream of the Delivery Point which are necessary to connect any Gas to Buyer’s system. All such upstream facilities will be owned and operated by Seller at its expense.

Initial Xxxxx. Within thirty (30) days after the Effective Date, NGS shall propose, in writing, to EnerVest either the drilling or re-entry operations of an initial well to be located within each of initial three Prospects and the two offsetting well Prospects (the “Prospect Proposal”). The Prospect Proposal shall contain the proposed location of the initial well in each Prospect, the objective depths and formations (as set forth in Exhibit A) for the initial well in each Prospect, an Authority for Expenditure (“AFE”) outlining the estimated dryhole and completion costs of the initial test well in the initial three Prospects and two offsetting well Prospects, and the proposed order in which the Prospects will be drilled. The Parties shall jointly determine the location of each drilling or re-entry operation; however, NGS shall have sole discretion to determine the order in which the Prospects will be drilled. The first two xxxxx in which either the drilling or re-entry operations are to be conducted as provided in the Prospect Proposal shall hereinafter be referred to as the “First Well” and the “Second Well”, and collectively as the “Initial Xxxxx,” and the Prospects in which the operations for the Initial Xxxxx are to be conducted shall hereinafter be referred to as the “Initial Prospects.” While NGS expects that the First Well and the Second Well will be drilled sequentially, it may be necessary to utilize a drilling rig with different capacity for the Second Well, the availability of which cannot be determined until such drilling contract is executed. EnerVest shall within thirty (30) days after receipt of the Prospect Proposal execute and return to NGS the AFEs for the Initial Xxxxx and payment of EnerVest’s Cost Bearing Interest (as hereinafter defined) share of the estimated AFE costs of the Initial Xxxxx; however, the time period set forth herein shall not begin until EnerVest approves in writing the specific terms of each AFE proposed under this Agreement. EnerVest shall give its approval or disapproval of any particular AFE within five (5) business days of its receipt from NGS. It is understood and agreed between the Parties that an AFE is an estimate of the costs associated with the proposed operation; however, the Parties agree to pay one hundred percent (100%) of their Working Interest (as hereinafter defined) of all costs relating to the proposed operations for any costs incurred in excess of one hundred twenty-five percent (125%) of the well-specific AFE. ...