Common use of Title Examination Clause in Contracts

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operations. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leases. Each party contributing Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” shall be borne by the Parties in the proportion that their working interests appear in Exhibit “A.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Oil and Gas Interests contributed by the parties. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite has been examined as above provided, and (2) the title has been accepted by all of the Parties.

Appears in 4 contracts

Samples: Operating Agreement (Vanguard Natural Resources, LLC), Operating Agreement (Vanguard Natural Resources, LLC), Operating Agreement (Vanguard Natural Resources, LLC)

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Title Examination. Title examination Examination shall be made either on the Drillsite drillsite of any proposed a subject well prior to commencement of drilling operations. The opinion will include or upon the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leases. Each party contributing Oil and Gas Interests lease(s) to be included in the Drillsite drilling unit around such well on a complete abstract record furnished to an outside attorney employed by Operator for this purpose, and the title to any such lease or Drilling Unitleases and the fee title of the lessors therein must be approved by the examining attorney and accepted by the Operator prior to the commencement of drilling operations on any well drilled hereunder; however, if appropriatein the event any well drilled hereunder is completed as a commercial producer and the lease on which the well is located is pooled or unitized with other leases to form either a declared unit or a spacing unit designated by a governmental authority, Operator shall furnish examine the title to the lease(s) and land included in said unit on an abstract certified to a date subsequent to the date on which such well was completed. A good faith effort shall be made by the Operator all abstracts (including federal to satisfy the examining attorney's title requirements covering the drillsite tract, or any lease status reports), title opinions, title papers or leases covered hereby and curative material included in its possession free of chargea declared unit or spacing unit designated by a governmental authority. All such title information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, title shall be obtained by the Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each party. Costs All costs incurred by Operator in procuring abstracts, abstracts and fees paid outside attorneys for title examination (including preliminaryoriginal, supplemental, shut-in royalty opinions supplemental and division order title opinions) , and other direct charges the cost of satisfying any title requirements or curing any title defects, insofar as provided in Exhibit “C” such costs relate to leases or land covered by this operating agreement, including the filing of a lawsuit if deemed necessary by operator's attorney to cure a title defect or to obtain a lease, shall be charged to the joint account and borne by the Parties Non-Operators in the proportion that their working interests appear in Exhibit “A.” each Non-Operator shall make no charge for services rendered by its staff attorneys is responsible f or other personnel in the performance payment of the above functions. Operator shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Oil and Gas Interests contributed by the partiesall costs. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders orders. B. Failure of Title: If after all titles are accepted and approved, any oil and gas interest or any other orders necessary lease, or appropriate interest therein, be lost through failure of title, which loss results in a reduction of interest from that shown on Annex "I", such loss or losses shall be regarded as joint losses and shall be borne by the Operator and Non-Operators in proportion to their respective interests in the conduct of operations hereunderContract Area. This There shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by be no monetary liability against the Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, its employees or agents resulting from such loss nor shall there be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys any change or other personnel adjustment in the performance interests of the above functions. No well shall be drilled on parties in the remaining portion of the Contract Area until after (1) the title to the Drillsite has been examined as above provided, and (2) the title has been accepted by all of the Parties.Area. C.

Appears in 2 contracts

Samples: Operating Agreement (ReoStar Energy CORP), Joint Operating Agreement (ReoStar Energy CORP)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesOil and Gas Leases. Each party Party contributing Oil and Gas Interests Leases to be included in the Drillsite or the Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the partiesParties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” B shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as those interests appear in Exhibit “A.” A. Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each Party shall be responsible for securing obtaining curative matter and pooling amendments or agreements required in connection with its interests in the Oil and Gas Interests Leases contributed in whole or in part by the partiesthat Party. Operator shall be responsible for the preparation preparing and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of obtaining spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunderunder this Agreement. This shall not prevent any party Party from appearing on its own behalf at such any hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, Agreement shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” B. Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on in the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above providedprovided above, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in the well.

Appears in 2 contracts

Samples: Operating Agreement (American Liberty Petroleum Corp.), Operating Agreement (American Liberty Petroleum Corp.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as those interests appear in Exhibit “A.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiesparty. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunderunder this Agreement. This shall not prevent any party from appearing on its own behalf at such any hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, Agreement shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above providedprovided above, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in the well.

Appears in 2 contracts

Samples: Golden Lane Participation Agreement (New Source Energy Partners L.P.), Golden Lane Participation Agreement (New Source Energy Corp)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties request or Operator elects, the title shall be examined on the entire Drilling Unit, or maximum anticipated Drilling Unit of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty royalty, and any other payments out of production payments under the applicable leasesLeases. Each party Party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers papers, and curative material in its possession possession, free of charge. All such information not in the possession of or made available to Operator by the partiesParties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions opinions, and division order title opinions) and other direct charges as provided in Exhibit “C” shall be borne by the Drilling Parties in the proportion that the interest of each Drilling Party bears to the total interest of all Drilling Parties as their working interests appear in Exhibit “A.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above these functions. Operator Each Party shall be responsible for securing curative matter matters and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiesParty. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunderunder the terms of this Agreement. This shall not prevent any party Party from appearing on its own behalf at such any hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, Agreement shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after after: (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above providedprovided for above; and, and (2) the title has been approved by the examining attorney or accepted by all of the PartiesDrilling Parties in the well.

Appears in 1 contract

Samples: Operating Agreement (West Texas Resources, Inc.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operations. operations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title tide opinions, title tide papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title tide to be examined by attorneys on its staff or by outside attorneys. Copies of all title tide opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” C shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Pxxxx bears to the total interest of all Drilling Parties as such interests appear in Exhibit “A.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiessuch party. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization communilization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreementagreement, shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above provided, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in such well.

Appears in 1 contract

Samples: Operating Agreement (American Standard Energy Corp.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as such interests appear in Exhibit “A.” A”. Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiessuch party. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreementagreement, shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite has been examined as above provided, and (2) the title has been accepted by all of the Parties.

Appears in 1 contract

Samples: Operating Agreement (Belden & Blake Corp /Oh/)

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Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit "C" shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as such interests appear in Exhibit "A." Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiessuch party. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreementagreement, shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit "C." Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above provided, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in such well.

Appears in 1 contract

Samples: Operating Agreement (Explortex Energy Inc.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well or on the entire Project Area of which such Drillsite forms part, at Operator's discretion. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party Party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite Drillsite, Drilling Unit or Drilling UnitProject Area, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the partiesParties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyParticipating Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit "C" shall be borne by the Participating Parties in the proportion that their working the interest of each Participating Party bears to the total interest of all Participating Parties as such interests appear in Exhibit “A.” "A". Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each Party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiessuch Party. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneysattorneys or field landmen, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreementagreement, shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” "C". Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit or Project Area, if appropriate, has been examined as above provided, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesOperator.

Appears in 1 contract

Samples: Operating Agreement (Megawest Energy Corp.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, unless all Non-Operators and the Operator agree otherwise, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of all charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “CB” shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as such interests appear in Exhibit “A.” A”. Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases of Oil and Gas Interests contributed by the partiessuch party. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunder. This shall not prevent any party from appearing on its own behalf at such hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, shall be direct charges to the joint account accounting and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” B”. Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above provided, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in such well.

Appears in 1 contract

Samples: Operating Agreement (Egpi Firecreek, Inc.)

Title Examination. Title examination shall be made on the Drillsite of any proposed well prior to commencement of drilling operationsoperations and, if a majority in interest of the Drilling Parties so request or Operator so elects, title examination shall be made on the entire Drilling Unit, or maximum anticipated Drilling Unit, of the well. The opinion will include the ownership of the working interest, minerals, royalty, overriding royalty and any production payments under the applicable leasesLeases. Each party Party contributing Leases and/or Oil and Gas Interests to be included in the Drillsite or Drilling Unit, if appropriate, shall furnish to Operator all abstracts (including federal lease status reports), title opinions, title papers and curative material in its possession free of charge. All such information not in the possession of or made available to Operator by the parties, but necessary for the examination of the title, shall be obtained by Operator. Operator shall cause title to be examined by attorneys on its staff or by outside attorneys. Copies of all title opinions shall be furnished to each partyDrilling Party. Costs incurred by Operator in procuring abstracts, fees paid outside attorneys for title examination (including preliminary, supplemental, shut-in royalty opinions and division order title opinions) and other direct charges as provided in Exhibit “C” shall be borne by the Drilling Parties in the proportion that their working the interest of each Drilling Party bears to the total interest of all Drilling Parties as those interests appear in Exhibit “A.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. Operator Each Party shall be responsible for securing curative matter and pooling amendments or agreements required in connection with Leases or Oil and Gas Interests contributed by the partiesParty. Operator shall be responsible for the preparation and recording of pooling designations or declarations and communitization agreements as well as the conduct of hearings before governmental agencies for the securing of spacing or pooling orders or any other orders necessary or appropriate to the conduct of operations hereunderunder this agreement. This shall not prevent any party Party from appearing on its own behalf at such any hearings. Costs incurred by Operator, including fees paid to outside attorneys, which are associated with hearings before governmental agencies, and which costs are necessary and proper for the activities contemplated under this Agreement, agreement shall be direct charges to the joint account and shall not be covered by the administrative overhead charges as provided in Exhibit “C.” Operator shall make no charge for services rendered by its staff attorneys or other personnel in the performance of the above functions. No well shall be drilled on the Contract Area until after (1) the title to the Drillsite or Drilling Unit, if appropriate, has been examined as above providedprovided above, and (2) the title has been approved by the examining attorney or title has been accepted by all of the PartiesDrilling Parties in the well.

Appears in 1 contract

Samples: Operating Agreement (New Source Energy Corp)

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