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.
Broward Florida Cost Overruns for Non-Operator's Non-Consent Option is a legal provision in the oil and gas industry that applies when a non-operating partner in a joint venture project in Broward County, Florida does not agree to participate in additional costs associated with the project. This provision allows the non-operating partner to be exempt from liability for any cost overruns beyond their original investment. The Broward Florida Cost Overruns for Non-Operator's Non-Consent Option is designed to protect the non-operating partner from incurring unexpected financial burdens in the event that the project runs into unforeseen expenses. In such cases, the non-operator partner has the right to opt-out of funding these additional costs, but they also forfeit any potential future profits or equity from the project. There are several types of Broward Florida Cost Overruns for Non-Operator's Non-Consent Options: 1. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Full Exemption: This option completely releases the non-operating partner from any liability for cost overruns beyond their initial investment. They are not required to contribute any additional funds but may also lose any potential benefits from the project's success. 2. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Partial Contribution: In this scenario, the non-operating partner may choose to partially contribute to the cost overruns but not bear the full financial burden. They have the option to limit their additional investment to a predetermined percentage or amount. 3. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Carried Interest: This option allows the non-operating partner to retain a percentage of their original equity in the project, even without contributing to the cost overruns. They may still benefit from the project's success but are not liable for the additional costs. 4. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Convertible Equity: Under this option, the non-operating partner has the opportunity to convert their non-consent status to equity by funding the cost overruns at a later stage. This allows them to retain a stake in the project while deferring their financial commitment. It is important for both the non-operating and operating partners to consider the potential implications and risks associated with the Broward Florida Cost Overruns for Non-Operator's Non-Consent Option before entering into a joint venture. Proper legal advice and thorough understanding of the specific provisions and terms in the agreement are essential to ensure a fair and transparent partnership.Broward Florida Cost Overruns for Non-Operator's Non-Consent Option is a legal provision in the oil and gas industry that applies when a non-operating partner in a joint venture project in Broward County, Florida does not agree to participate in additional costs associated with the project. This provision allows the non-operating partner to be exempt from liability for any cost overruns beyond their original investment. The Broward Florida Cost Overruns for Non-Operator's Non-Consent Option is designed to protect the non-operating partner from incurring unexpected financial burdens in the event that the project runs into unforeseen expenses. In such cases, the non-operator partner has the right to opt-out of funding these additional costs, but they also forfeit any potential future profits or equity from the project. There are several types of Broward Florida Cost Overruns for Non-Operator's Non-Consent Options: 1. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Full Exemption: This option completely releases the non-operating partner from any liability for cost overruns beyond their initial investment. They are not required to contribute any additional funds but may also lose any potential benefits from the project's success. 2. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Partial Contribution: In this scenario, the non-operating partner may choose to partially contribute to the cost overruns but not bear the full financial burden. They have the option to limit their additional investment to a predetermined percentage or amount. 3. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Carried Interest: This option allows the non-operating partner to retain a percentage of their original equity in the project, even without contributing to the cost overruns. They may still benefit from the project's success but are not liable for the additional costs. 4. Broward Florida Cost Overruns for Non-Operator's Non-Consent Option — Convertible Equity: Under this option, the non-operating partner has the opportunity to convert their non-consent status to equity by funding the cost overruns at a later stage. This allows them to retain a stake in the project while deferring their financial commitment. It is important for both the non-operating and operating partners to consider the potential implications and risks associated with the Broward Florida Cost Overruns for Non-Operator's Non-Consent Option before entering into a joint venture. Proper legal advice and thorough understanding of the specific provisions and terms in the agreement are essential to ensure a fair and transparent partnership.
