Common use of Operating Procedure Clause in Contracts

Operating Procedure. 7.1 Upon each occurrence of earning by Farmee in a 6 section block of Farmout Lands (and as between Farmor and Farmee), such Farmout Lands and the related Title Documents (to the extend of such lands) will become subject to the Operating Procedure with Farmee being the initial Operator thereunder. Subject to Section 7.2, the Operating Procedure will govern all future joint operations of the Parties upon or with respect to such earned Farmout Lands and Title Documents. 7.2 Upon each occurrence of earning by Farmee in Farmout Lands governed by an Existing JOA, Farmor and Farmee shall take all necessary steps, using the Assignment Procedure, to have Farmee made a party to the Existing JOA for a 40% participating interest in respect of the earned Farmout Lands.