Multiple well requirements Sample Clauses

Multiple well requirements. Notwith- standing anything in this unit agreement to the contrary, except Section 25, UNAVOID- ABLE DELAY, ll xxxxx shall be drilled with not more than 6-months time elapsing between the completion of the first well and commencement of drilling operations for the second well and with not more than 6- months time elapsing between completion of the second well and the commencement of drilling operations for the third well, . . . re- gardless of whether a discovery has been made in any well drilled under this provi- sion. Both the initial well and the second well must be drilled in compliance with the above specified formation or depth require- ments in order to meet the dictates of this section; and the second well must be located a minimum of ll miles from the initial well in order to be accepted by the AO as the second unit test well, within the meaning of this section. The third test well shall be dili- gently drilled, at a location approved by the AO, to test the lll formation or to a depth of ll feet, whichever is the lesser, and must be located a minimum of ll miles from both the initial and the second test xxxxx. Nevertheless, in the event of the discovery of unitized substances in paying quantities by any well, this unit agreement shall not ter- minate for failure to complete the lll well program, but the unit area shall be con- tracted automatically, effective the first day of the month following the default, to elimi- nate by subdivisions (as defined in Section 2(e) hereof) all lands not then entitled to be in a participating area. 2 Until the establishment of a participating area, the failure to commence a well subse- quent to the drilling of the initial obligation well, or in the case of multiple well require- ments, if specified, subsequent to the drilling of those multiple xxxxx, as provided for in this (these) section(s), within the time al- lowed including any extension of time xxxxx- xx by the AO, shall cause this agreement to terminate automatically. Upon failure to continue drilling diligently any well other than the obligation well(s) commenced here- under, the AO may, after 15 days notice to the Unit Operator, declare this unit agree- ment terminated. Failure to commence drill- ing the initial obligation well, or the first of multiple obligation xxxxx, on time and to drill it diligently shall result in the unit agreement approval being declared invalid ab initio by the AO. In the case of multiple well of, or as requiring Unit Operator to...
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