Common use of Other Operations Clause in Contracts

Other Operations. Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand Dollars ($15,000.00) except in connection with the Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this Agreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish the Non-Operators an information copy thereof for any single project costing in excess of Fifteen Thousand Dollars ($15,000.00). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. which shall be governed exclusively by that Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or parties owning at least 100% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.

Other Operations. Without the consent of all parties, Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Twenty Five Thousand Dollars ($15,000.0025,000.00) except in connection with a well, the Sidetrackingdrilling reworking, Reworkingdeepening, Deepeningcompleting, Completingin completing, Recompleting or Plugging Back plugging back of a well that which has been previously authorized by or pursuant to this Agreementagreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE authority for expenditure (AFE) for its own use, Operator shall furnish the any Non-Operators Operator so requesting an information copy thereof for any single project costing in excess of Fifteen Twenty Five Thousand Dollars ($15,000.00). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (25,000) but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of less than the amount first set forth above in this Article VI.D. (except paragraph. E Rentals, Shut-In Well Payments cud Minimum Royalties: Rentals, shut-in connection with an operation well payments and minimum royalties which may be required under the terms of any lease shall be paid by the Operator and then billed to the Parties. In the event two or more parties own and have contributed interests in the same lease to this agreement, such parties may designate one of such parties to make said payments for and on behalf of all such parties. Any party may request, and shall be entitled to receive, proper evidence of all such payments. In the event of failure to make proper payment of any rental, shut-in well payment or minimum royalty through mistake or oversight where such payment is required to be proposed under Articles VI.B.1. continue the lease in force; any loss which results from such non-payment shall be governed exclusively by that Articles)borne in accordance with the provisions of Article IV.B.2. Operator shall deliver such proposal notify Non-Operator of the anticipated completion of a shut-in gas well, or the shutting in or return to all parties entitled to participate therein. If within thirty production of producing gas well, it least five (305) days thereof (excluding Saturday, Sunday arid legal holidays), or at the earliest opportunity permitted by circumstances, prior to taking such action, but assumes no liability for failure to do so. In the event of failure by Operator secures to so notify Non-Operator, the written consent loss of any party or parties owning at least 100% lease contributed hereto by Non-Operator for failure to make timely payments of the interests of any shut-in well payment shall be borne jointly by the parties entitled to participate in such operation, each party having hereto under the right to participate in such project shall be bound by the terms provisions of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposalArticle IV.B.3.

Other Operations. Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand Dollars $5,000.00____ ($15,000.00five thousand Dollars) except in connection with the drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this Agreementagreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish the any Non-Operators Operator so requesting an information copy thereof for any single project costing in excess of Fifteen Thousand Dollars $5,000.00 ($15,000.00five thousand Dollars). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. or VI.C.1. Option No. 2, which shall be governed exclusively by that be those Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or parties owning at least 100__% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.

Other Operations. Operator o The limit on operator’s single-project budget on a single project. o Minimum ownership percentage for consenting parties associated with other operations. “Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand Dollars ($15,000.00$ ) except in connection with the drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this Agreementagreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish the any Non-Operators Operator so requesting an information copy thereof for any single project costing in excess of Fifteen Thousand Dollars ($15,000.00$ ). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. or VI.C.1. Option No. 2, which shall be governed exclusively by that be those Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or parties owning at least 100% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.” • Drilling and Development (Continued)  F. Terminations of Operations o Minimum consenting parties percentage for commenced operation termination. “Upon the commencement of an operation for the drilling, Reworking, Sidetracking, Plugging Back, Deepening, testing, Completion or plugging of a well, including but not limited to the Initial Well, such operation shall not be terminated without consent of parties bearing % of the costs of such operation; provided, however, that in the event granite or other practically impenetrable substance or condition in the hole is encountered which renders further operations impractical, Operator may discontinue operations and give notice of such condition in the manner provided in Article VI.B.1, and the provisions of Article VI.B. or VI.E. shall thereafter apply to such operation, as appropriate.” • Drilling and Development (Continued)  G. Taking Production In-Kind o Select Option 1 or Option 2  Option 1 attaches a gas balancing agreement.

Other Operations. o The limit on operator’s single-project budget on a single project. o Minimum ownership percentage for consenting parties associated with other operations. ❑“Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand Dollars ($15,000.00$ ) except in connection with the drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this Agreementagreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish the any Non-Operators Operator so requesting an information copy thereof for any single project costing in excess of Fifteen Thousand Dollars ($15,000.00$ ). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. or VI.C.1. Option No. 2, which shall be governed exclusively by that be those Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or parties owning at least 100% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.” • Drilling and Development (Continued) ▪ F. Terminations of Operations o Minimum consenting parties percentage for commenced operation termination. ❑“Upon the commencement of an operation for the drilling, Reworking, Sidetracking, Plugging Back, Deepening, testing, Completion or plugging of a well, including but not limited to the Initial Well, such operation shall not be terminated without consent of parties bearing % of the costs of such operation; provided, however, that in the event granite or other practically impenetrable substance or condition in the hole is encountered which renders further operations impractical, Operator may discontinue operations and give notice of such condition in the manner provided in Article VI.B.1, and the provisions of Article VI.B. or VI.E. shall thereafter apply to such operation, as appropriate.” • Drilling and Development (Continued) ▪ G. Taking Production In-Kind o Select Option 1 or Option 2 ❑ Option 1 attaches a gas balancing agreement.

Other Operations. Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand Dollars ($15,000.00) except in connection with the Sidetracking, Reworking, Deepening, Completing, Recompleting or Plugging Back of a well that has been previously authorized by or pursuant to this Agreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property but Operator, as promptly as possible, shall report the emergency to the other parties. If Operator prepares an AFE for its own use, Operator shall furnish the Non-Operators an information copy thereof for any single project costing in excess of Fifteen Thousand Dollars ($$ 15,000.00). Any party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. which shall be governed exclusively by that Articles). Operator shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator secures the written consent of any party or parties owning at least 100% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.

Other Operations. Neither the Manager of Operations nor the Contract Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Thousand THIRTY THOUSAND Dollars ($15,000.0030,000.00) except in connection with the drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting Re-completing or Plugging Back of a well that has been previously authorized by or pursuant to this Agreementagreement; provided, however, that, in case of explosion, fire, flood or other sudden emergency, whether of the same of or different nature, Operator may take such steps and incur such expenses as in its opinion are required to deal with the emergency to safeguard life and property property, but the Manager of Operations, or the Contract Operator, as the case may be, shall report, as promptly as possible, shall report the emergency to the other parties. If Operator prepares MontCrest Energy, Inc. shall, with the use of cost data provided by the Manager of Operations, prepare an AFE for its own use, Operator and MontCrest Energy, Inc. shall furnish the any Non-Operators Operator an information copy thereof for any single project costing in excess of Fifteen Thousand THIRTY THOUSAND Dollars ($15,000.0030,000). Any party who has not relinquished its interest in a well shall have the right to propose that the Manager of Operations direct Contract Operator to perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx wells or to conduct additional work with respect to a well drilled drilxxx hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by separate agreement between the parties) reasonably parties)reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. V1.D. (except in connection with an operation required to be proposed under Articles VI.B.1V1.B.1. or V1.C.1. Option No. 2, which shall be governed exclusively by that those Articles). Operator The Manager of Operations shall deliver such proposal to all parties entitled to participate therein. If within thirty (30) days thereof Operator the Manager of Operations secures the written consent of any party two or more parties owning at least 10050% of the interests of the parties entitled to participate in such operation, each party having the right to participate in such project shall be bound by the terms of such proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such project pursuant to the terms of the proposal.

Other Operations. Operator shall not undertake any single project reasonably estimated to require an expenditure in excess of Fifteen Ten Thousand Dollars ($15,000.0010,000.00) except in connection with the Drilling, Sidetracking, Reworking, Deepening, Completing, Recompleting Recompleting, or Plugging Back of a well that has been previously authorized by or pursuant to the terms of this Agreement; provided, however, that, in case of explosion, fire, flood flood, or other sudden emergency, whether of the same of or different nature, Operator may take such all steps and incur such all expenses as as, in its opinion opinion, are required required, to deal with the emergency to safeguard life and property property, but Operator, as promptly as possible, shall report the emergency to the other partiesParties. If Operator prepares an AFE for its own use, Operator shall furnish the any Non-Operators Operator requesting it an information copy thereof of that AFE for any single project costing in excess of Fifteen Thousand Ten thousand Dollars ($15,000.0010,000). Any party Party who has not relinquished its interest in a well shall have the right to propose that Operator perform repair work or undertake the installation of artificial lift equipment or ancillary production facilities such as salt water disposal xxxxx or to conduct additional work with respect to a well drilled hereunder or other similar project (but not including the installation of gathering lines or other transportation or marketing facilities, the installation of which shall be governed by a separate agreement between the partiesParties) reasonably estimated to require an expenditure in excess of the amount first set forth above in this Article VI.D. (except in connection with an operation required to be proposed under Articles VI.B.1. (Drilling and Development; Subsequent Operations; Operations by Less Than All Parties) or VI.C.1. Option No. 2, [Drilling and Development; Subsequent Operations; Completion of Xxxxx; Reworking and Plugging Back] which shall be governed exclusively by that those Articles). Operator shall deliver such the proposal to all parties Parties entitled to participate thereinin them. If within thirty (30) days thereof after that time Operator secures the written consent of any party Party or parties Parties owning at least 10051% of the interests of the parties Parties entitled to participate in such the operation, each party Party having the right to participate in such the project shall be bound by the terms of such the proposal and shall be obligated to pay its proportionate share of the costs of the proposed project as if it had consented to such the project pursuant to the terms of the proposal.