Common use of Substitute Well Clause in Contracts

Substitute Well. If, during the drilling of the well provided for herein, Farmee encounters a formation or other physical condition in the well which renders further drilling impractical, Farmee may promptly plug and abandon the well. Thereafter, Farmee shall, within sixty (60) days from the abandonment, have the option, but not the obligation, to commence the actual drilling of a substitute well at a legal location on the Lease within one hundred feet (100') from the location of the well for which it is substituted. GoEnergy, Inc. - Page 2 March 10, 2002 Any substitute well shall be commenced, drilled and otherwise prosecuted in accordance with all the provisions hereof and shall be treated as if it were the well for which it is substituted.