This form provides that when Operator, in good faith, believes or determines that the actual costs for any Drilling, Reworking, Sidetracking, Deepening, or Plugging Back operation conducted under this Agreement will exceed a designated of the costs estimated for the operation on the approved AFE, the Operator will give prompt notice by telephone to the other Parties participating in the operation, as well as delivering a supplemental AFE estimating the costs necessary to complete the operation. Each Party receiving the supplemental AFE shall have forty-eight from receipt of the notice to elect to approve Operators recommendation or propose an alternative operation.
Collin Texas Cost Overruns for Non-Operator's Non-Consent Option refer to the expenses incurred in an oil and gas operation located in Collin County, Texas when the non-operator party does not consent to a particular project or expenditure. In such cases, when the operator of the oil or gas lease decides to undertake an activity that involves additional costs, the non-operator has the option to not participate and avoid bearing the financial burden. However, it is important to note that there can be different types of Collin Texas Cost Overruns for Non-Operator's Non-Consent Options. These may include: 1. Drilling Cost Overruns: This type of cost overrun arises when the operator decides to drill a well in Collin County, Texas, and the non-operator chooses not to participate. If the drilling costs exceed the initial estimate or budget, the non-operator would not be liable for covering the excess costs. 2. Production Cost Overruns: These cost overruns occur when the operator incurs additional expenses during the extraction and production phase of the oil or gas operation. Non-operators who have not given their consent to these activities are typically not responsible for sharing the increased production-related costs. 3. Infrastructure Cost Overruns: In some cases, the operator may have to invest in infrastructure development or maintenance to support the oil and gas operations in Collin County, Texas. If the costs associated with such infrastructure projects exceed the expected budget and the non-operator has not consented to these expenditures, they can avoid being held liable for the cost overruns. It is crucial for non-operators to carefully review the terms and conditions of their agreements with operators in Collin County, Texas, to understand the extent of their liability for cost overruns in different scenarios. By exercising the non-operator's non-consent option, they can protect themselves from unexpected financial burdens resulting from these overruns.
