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.
Fulton Georgia Cost Overruns for Non-Operator's Non-Consent Option refers to a specific legal provision that addresses cost overruns in the context of oil and gas operations in Fulton County, Georgia. In this scenario, a non-operator (a party who does not have direct control over operations) has the choice to either consent or not consent to participating in cost overruns. Cost overruns can occur when the actual expenses incurred during drilling, exploration, or production activities exceed the initial estimates provided by the operator (the party responsible for managing the operations). In such cases, the operator may seek additional funds from the non-operator to cover the increased costs. Under the Fulton Georgia Cost Overruns for Non-Operator's Non-Consent Option, there are two possible types: 1. Consent Option: In this scenario, the non-operator agrees to cover their proportionate share of the cost overruns, as determined by their working interest in the operation. Working interest refers to the percentage of ownership or investment in a given oil and gas property or well. By choosing the consent option, the non-operator becomes a participating party in covering the cost overruns. 2. Non-Consent Option: Unlike the consent option, the non-consent option allows the non-operator to decline participation in the cost overruns. By choosing this option, the non-operator effectively forfeits any potential benefits from the increased investment required to cover the cost overruns. However, it is important to note that the non-operator might also forfeit any rights to the related production revenues, depending on the specific agreement or lease terms. It is crucial for all parties involved to carefully review and understand the terms and conditions outlined in the cost overrun provision, as they can significantly impact the financial responsibilities and interests of both the operator and the non-operator. These provisions are typically included in contracts, agreements, or leases between the parties involved in oil and gas operations to ensure transparency and protect parties from unexpected financial burdens.Fulton Georgia Cost Overruns for Non-Operator's Non-Consent Option refers to a specific legal provision that addresses cost overruns in the context of oil and gas operations in Fulton County, Georgia. In this scenario, a non-operator (a party who does not have direct control over operations) has the choice to either consent or not consent to participating in cost overruns. Cost overruns can occur when the actual expenses incurred during drilling, exploration, or production activities exceed the initial estimates provided by the operator (the party responsible for managing the operations). In such cases, the operator may seek additional funds from the non-operator to cover the increased costs. Under the Fulton Georgia Cost Overruns for Non-Operator's Non-Consent Option, there are two possible types: 1. Consent Option: In this scenario, the non-operator agrees to cover their proportionate share of the cost overruns, as determined by their working interest in the operation. Working interest refers to the percentage of ownership or investment in a given oil and gas property or well. By choosing the consent option, the non-operator becomes a participating party in covering the cost overruns. 2. Non-Consent Option: Unlike the consent option, the non-consent option allows the non-operator to decline participation in the cost overruns. By choosing this option, the non-operator effectively forfeits any potential benefits from the increased investment required to cover the cost overruns. However, it is important to note that the non-operator might also forfeit any rights to the related production revenues, depending on the specific agreement or lease terms. It is crucial for all parties involved to carefully review and understand the terms and conditions outlined in the cost overrun provision, as they can significantly impact the financial responsibilities and interests of both the operator and the non-operator. These provisions are typically included in contracts, agreements, or leases between the parties involved in oil and gas operations to ensure transparency and protect parties from unexpected financial burdens.
