Common use of Subsequent Exploratory Wells Clause in Contracts

Subsequent Exploratory Wells. If the proposed well is the second or subsequent Explo▇▇▇▇▇y Well to be drilled on the Lease, each Non-Participating Party shall be deemed to have relinquished its operating rights, along with its interest in production, in and to such Exploratory Well in the manner provided for in Section 12.2. Recoupment of costs shall be determined by Section 12.2 and the drilling of such well shall be governed by the provisions of Article 12; however, percentages under Section 12.2 shall be as follows:

Subsequent Exploratory Wells. If the proposed well is the second t▇▇ ▇▇cond or subsequent Explo▇▇▇▇▇y Exploratory Well to be drilled on the Lease, each Non-Participating Party shall be deemed to have relinquished its operating rights, along with its interest in production, in and to such Exploratory Well in the manner provided for in Section 12.2. Recoupment of costs shall be determined by Section 12.2 and the drilling of such well shall be governed by the provisions of Article 12; however, percentages under Section 12.2 shall be as follows: