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.
District of Columbia Cost Overruns for Non-Operator's Non-Consent Option refers to a situation where an operator in the District of Columbia incurs additional costs beyond the initial budget for a project, and the non-operating stakeholders who have not consented to the project are not liable for these cost overruns. This provision is usually found in contracts or agreements related to oil and gas operations, mining, real estate development, or any other ventures requiring multiple stakeholders. In the District of Columbia, there are two main types of Cost Overruns for Non-Operator's Non-Consent Option: 1. Oil and Gas Operations: In the oil and gas industry, cost overruns can occur due to various reasons, such as unexpected geological complexities, increased labor or material costs, and regulatory changes. If a non-operator has not consented to the project, they are typically exempt from bearing the burden of these additional costs. This provision aims to protect non-consenting stakeholders from financial liabilities when the project's budget exceeds the initial estimate. 2. Real Estate Development: When undertaking real estate development projects in the District of Columbia, cost overruns can arise due to several factors, including delays, design changes, construction challenges, or unforeseen obstacles. If a non-operator or investor has not given their consent to the project, they are often protected from shouldering the financial burden associated with these extra costs. This provision serves as a safeguard for non-consenting stakeholders against potential financial risks and uncertainties. In either scenario, the Cost Overruns for Non-Operator's Non-Consent Option provides a level of protection for those who have not agreed to or actively participated in the project's decision-making process. By allowing non-consenting parties to be excluded from any financial obligations related to cost overruns, it helps maintain equitable and fair conditions among all stakeholders involved in the District of Columbia.District of Columbia Cost Overruns for Non-Operator's Non-Consent Option refers to a situation where an operator in the District of Columbia incurs additional costs beyond the initial budget for a project, and the non-operating stakeholders who have not consented to the project are not liable for these cost overruns. This provision is usually found in contracts or agreements related to oil and gas operations, mining, real estate development, or any other ventures requiring multiple stakeholders. In the District of Columbia, there are two main types of Cost Overruns for Non-Operator's Non-Consent Option: 1. Oil and Gas Operations: In the oil and gas industry, cost overruns can occur due to various reasons, such as unexpected geological complexities, increased labor or material costs, and regulatory changes. If a non-operator has not consented to the project, they are typically exempt from bearing the burden of these additional costs. This provision aims to protect non-consenting stakeholders from financial liabilities when the project's budget exceeds the initial estimate. 2. Real Estate Development: When undertaking real estate development projects in the District of Columbia, cost overruns can arise due to several factors, including delays, design changes, construction challenges, or unforeseen obstacles. If a non-operator or investor has not given their consent to the project, they are often protected from shouldering the financial burden associated with these extra costs. This provision serves as a safeguard for non-consenting stakeholders against potential financial risks and uncertainties. In either scenario, the Cost Overruns for Non-Operator's Non-Consent Option provides a level of protection for those who have not agreed to or actively participated in the project's decision-making process. By allowing non-consenting parties to be excluded from any financial obligations related to cost overruns, it helps maintain equitable and fair conditions among all stakeholders involved in the District of Columbia.
