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.
Wisconsin Cost Overruns for Non-Operator's Non-Consent Option can be a complex legal concept within the oil and gas industry. It refers to the situation where a non-operator in a joint operating agreement decides to not participate in a specific operation but may still be responsible for cost overruns that occur. In the state of Wisconsin, there are various types of cost overruns for non-operator's non-consent option, including: 1. Drilling Cost Overruns: If a non-operator chooses not to consent to drilling a well, they may still be liable for any cost overruns that exceed the estimated drilling budget. This includes additional expenses incurred due to unforeseen circumstances or changes in the drilling plan. 2. Completion Cost Overruns: Non-operators who do not participate in the completion phase of a well may still be subject to cost overruns related to completion activities, such as testing, fracturing, or installing production equipment. 3. Work over Cost Overruns: Work overs are operations performed on an existing well to improve or restore its productivity. When a non-operator decides not to participate in work over activities, they may still be responsible for any cost overruns that occur during the work over process. It is important for non-operators to carefully consider the potential cost overruns associated with the non-consent option before choosing to exercise it. They should thoroughly review the joint operating agreement and consult with legal advisors to fully understand their obligations and potential liabilities. In Wisconsin, the laws governing cost overruns for non-operator's non-consent option may vary, so it is crucial for non-operators to be familiar with the specific regulations and provisions applicable to their situation.
