ZONE IN COMMUNICATION Clause Samples

ZONE IN COMMUNICATION. Prior to September 30, 2003, should an independent evaluator conclusively determine a Glauconitic zone evaluated in any of the three Test ▇▇▇▇▇ that Farmee retains an interest to be in communication ("Zone in Communication") with the Glauconitic zone currently producing gas at 2-36-19-20 W4M, Farmee shall immediately be notified of such determination. Within 14 days of receipt of this notification, Farmee shall elect to pursue one of the following options: (a) Abandon/Suspend the Zone in Communication and proceed to further evaluate the Test Well or: (b) Sell Farmee's interest in the Test Well to Farmer for a price equivalent to Farmee's total costs associated with the Test Well that have been incurred to date less any revenue received by Farmee for production from the Zone in Communication from the Test Well. In the case of Option (a), ▇▇▇▇▇▇'s P & NG earning is unaffected. In the case of Option (b), Farmee shall forfeit any interest earned and/or the right to earn an interest in any zone within the section of the Farmout Lands that the Test Well was drilled. For the purpose of Farmee's P & NG earning, the portion of the Farmout Lands in the NW quarter of section 6-20-19 W4M is to be combined with section 1-20-20 W4M and thereby associated with the 1-1-20-20 W4M Test Well.