Common use of Substitute Well Clause in Contracts

Substitute Well. If Operator discontinues drilling the Test Well before the depth requirement is satisfied because of encountering impenetrable substances, heaving shale, excessive salt, mechanical conditions, or because of other conditions which make further drilling impracticable and which Operator, after a diligent effort, is unable to overcome, Operator shall have the right, but not the obligation, to drill a Substitute Well in the same quarter section in which the discontinued well was located, provided the actual drilling of said Substitute Well is commenced not later than three hundred sixty-five (365) days after the abandonment of the discontinued well. The Substitute Well shall be drilled in the manner and to the depth specified for the Test Well. If the Substitute Well is commenced, drilled, production tested, and plugged and abandoned as herein provided, Operator shall be deemed to have complied with this Contract to the same extent as if the Test Well had been commenced, drilled, production tested, and plugged and abandoned in accordance herewith.

Substitute Well. If Operator discontinues drilling prior to reaching the Test Well before the depth requirement is satisfied because of encountering objective depth, impenetrable substances, heaving shale, excessive salt, mechanical conditions, or because of other conditions condition which make makes further drilling impracticable and which Operator, after a diligent effort, is unable to overcome, overcome Operator shall have the right, but not the obligation, obligation to drill a Substitute Well substitute well at a lawful location selected by it in the same quarter-quarter section in on which the discontinued well was is located, provided the actual drilling of said Substitute Well substitute well is commenced not later than three hundred sixty-five thirty (36530) days after the abandonment of the discontinued well. The Substitute Well substitute well shall be drilled in the manner and to the depth specified for the Test Welldiscontinued well. If the Substitute Well substitute well is commenced, drilled, production tested, and plugged and abandoned completed as herein provided, Operator shall be deemed to have complied with this Contract Agreement to the same extent as if the Test Well discontinued well had been commenced, drilled, production tested, and plugged and abandoned completed in accordance herewith. If Operator fails to drill a substitute well as provided above, Operator shall earn no interest in, to, or under such well. However, Operator may continue to drill any of the remaining Test Well▇ ▇▇▇ted on Exhibit "1" on the ten-ns as provided herein.