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Continuous Operations

CategoryOil and Gas

Clause TypePositive covenant

Definition

Lessee agrees to conduct continuous operations during the primary term.

Example

If, at the expiration of the primary term of this Lease, there is no production of oil, gas or condensate from the Leasehold or lands pooled or unitized therewith, but Lessee is engaged in operations for drilling. reworkings plugging back or deepening a well on lands pooled or'unitized with the Leasehold, this Lease shall remain in force and its term shall continue for so long as such operations or additional drilling, reworking, plugging back or deepening are prosecuted with no cessation of more than ninety (90) consecutive days and if any such operations result in the production of oil, gas or condensate covered hereby, as long thereafter as there is production from the Leasehold or lands pooled or unitized therewith, or the term of this Lease is otherwise extended by any of the provisions herein.