Well Operations definition
Examples of Well Operations in a sentence
Any other expenditure not covered or dealt with in the foregoing provisions of this Section II (Direct Charges), or in Section III (Overhead) and which is of direct benefit to the ▇▇▇▇▇ and is incurred by the Operator in the necessary and proper conduct of the Well Operations.
Any Party may propose Development Well Operations, including any Platform or Facilities required by such operations, by notifying the other Parties.
The Operator shall provide all Material for use in the conduct of Well Operations; however, Material may be supplied by the Owner, at the Operator’s option.
Surplus Material is that Material, whether new or used, that is no longer required for Well Operations.
When higher than specification grade or size tubulars are used in the conduct of Well Operations, the Operator shall charge the Well Account at the equivalent price for well design specification tubulars, unless such higher specification grade or sized tubulars are approved by the Parties pursuant to Section I.5.A (General Matters).
Operator’s current cost of established plans for employee benefits, as described in ▇▇▇▇▇ MFI-27 (“Employee Benefits Chargeable to Well Operations and Subject to Percentage Limitation”), applicable to the Operator’s labor costs chargeable to the Well Account under Sections II.2.A and B based on the Operator’s actual costs not to exceed the employee benefits limitation percentage most recently recommended by ▇▇▇▇▇.
In the event that Farmoutee provides Farmoutor with formal written notice that Farmoutee desires for Farmoutor to perform certain Well Operations (including but not limited to the related well hook-up for production and flow back of completion fluids and spent acid) on behalf of Farmoutee, Farmoutor shall have the option to perform same on behalf of Farmoutee (and on Farmoutor's own behalf to the extent of any participation therein by Farmoutor pursuant to Section 4.1) or to decline to perform same.
Farmout Well▇ ▇▇ which Farmoutee elects to and does perform (whether by or on behalf of Farmoutee) Well Operations in the Farmout Area pursuant to Section 4.3, including but not limited to Farmout Workovers.
In addition, it is understood and agreed that Farmoutee shall provide Farmoutor with all Designation of Operator and other regulatory forms requested by Farmoutor to enable Farmoutor to conduct all the operations, other than Farmoutee's Well Operations, under the terms of this Agreement, the Terms for Contract Operations and Processing, and the Operating Agreement subject to the reassignment, termination and other provisions of Sections 7.5 and 10.
During the Stage 2 Carry Period, STC Eagleville will pay on behalf of Forest 10% (proportionately reduced if Forest owns less than a 50% Working Interest in a particular Approved Well) of the Qualified Carried Costs of Approved Development Well Operations and Approved Rework Operations (the “Stage 2 Carry Payments”).