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.
Nassau, New York is a county located on Long Island, just east of New York City. It is a vibrant and diverse area, known for its rich history, stunning beaches, and top-notch cultural amenities. In terms of the oil and gas industry, Nassau County has specific regulations in place to handle cost overruns for Non-Operator's Non-Consent Options. A Non-Operator's Non-Consent Option refers to a situation where an entity or individual who is not the operator of an oil or gas well decides not to participate in the costs associated with the well's drilling or development. This could be due to financial constraints, lack of interest, or any other reason. In such cases, the non-operator has the option to choose a non-consent option, where they will still have a financial interest in the well but will not be liable for any cost overruns. There are different types of Nassau, New York cost overruns for Non-Operator's Non-Consent Options, including: 1. Budgeted Cost Overruns: These occur when the actual expenses of drilling or developing the well exceed the initial budgeted amount. The non-operator would not be financially responsible for these additional costs. 2. Time Overruns: Time overruns refer to delays in completing the well beyond the estimated timeframe. If there are any additional expenses incurred due to these delays, the non-operator would not be liable under the Non-Operator's Non-Consent Option. 3. Operational Cost Overruns: Operational cost overruns can happen when unexpected expenses arise during the ongoing operations of the well. These could include equipment repairs or replacement, unforeseen environmental mitigation measures, or any other unforeseen costs. The non-operator has no obligation to cover these overruns. 4. Administrative Cost Overruns: Administrative cost overruns pertain to any unexpected expenses related to the administrative functions of the well operations. These could include legal fees, regulatory compliance costs, or paperwork-related expenses. Again, under the Non-Operator's Non-Consent Option, the non-operator is exempt from covering these overruns. It is important for non-operators in Nassau, New York to carefully review their options and assess the potential risks associated with cost overruns before deciding to exercise the Non-Operator's Non-Consent Option. By understanding the various types of cost overruns that can occur and the role they play in the non-operator's financial liability, individuals can make informed decisions about their involvement in oil and gas activities in Nassau County.Nassau, New York is a county located on Long Island, just east of New York City. It is a vibrant and diverse area, known for its rich history, stunning beaches, and top-notch cultural amenities. In terms of the oil and gas industry, Nassau County has specific regulations in place to handle cost overruns for Non-Operator's Non-Consent Options. A Non-Operator's Non-Consent Option refers to a situation where an entity or individual who is not the operator of an oil or gas well decides not to participate in the costs associated with the well's drilling or development. This could be due to financial constraints, lack of interest, or any other reason. In such cases, the non-operator has the option to choose a non-consent option, where they will still have a financial interest in the well but will not be liable for any cost overruns. There are different types of Nassau, New York cost overruns for Non-Operator's Non-Consent Options, including: 1. Budgeted Cost Overruns: These occur when the actual expenses of drilling or developing the well exceed the initial budgeted amount. The non-operator would not be financially responsible for these additional costs. 2. Time Overruns: Time overruns refer to delays in completing the well beyond the estimated timeframe. If there are any additional expenses incurred due to these delays, the non-operator would not be liable under the Non-Operator's Non-Consent Option. 3. Operational Cost Overruns: Operational cost overruns can happen when unexpected expenses arise during the ongoing operations of the well. These could include equipment repairs or replacement, unforeseen environmental mitigation measures, or any other unforeseen costs. The non-operator has no obligation to cover these overruns. 4. Administrative Cost Overruns: Administrative cost overruns pertain to any unexpected expenses related to the administrative functions of the well operations. These could include legal fees, regulatory compliance costs, or paperwork-related expenses. Again, under the Non-Operator's Non-Consent Option, the non-operator is exempt from covering these overruns. It is important for non-operators in Nassau, New York to carefully review their options and assess the potential risks associated with cost overruns before deciding to exercise the Non-Operator's Non-Consent Option. By understanding the various types of cost overruns that can occur and the role they play in the non-operator's financial liability, individuals can make informed decisions about their involvement in oil and gas activities in Nassau County.
