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ADVANCE OF WELL COSTS (A “Cash” Call) Operator shall have the right to request and receive from each Non-Operator payment in advance of its respective share of (i) the dry hole cost or (at Operator’s election) the completed well cost for the Initial Well to be drilled under Article VI.A. (if Option No. 1 i n Article VI.C.1. is selected), and (ii) the cost of any Completion, Reworking, Recompletion, Side-tracki ng, Deepening, or Plugging Back operation to which the Non-Operator has consented (any operation under clause (i) or (ii) being called a “Drilling Operation”). The request for advance payment may be made on all Non-Operators or on any one or more of them to the exclusion of others, and shall be made in writing no earlier than _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) prior to the anticipated commencement date for the Drilling Ope ration. The amount of each Non-Operator’s advance shall be based upon the latest AFE approved by persons participating in the Drilling Operation who own a majority of the working interest for the operation. A Non-Operator receiving a request for advance payment shall, within _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) of the receipt of the request if a dri lling rig is on location and within _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) of the receipt of the request in all other cases, pay to Operator in cash the full amount of the request or tender to Operator an irrevocable bank letter of credit (which shall perm it partial draws) or other cash equivalent security satisfactory to Operator for the full amount due. In the event payment is in cash, Operator shall credit the amount to the Non-Operator’s account for the payment of the Non-Operator’s share of costs of the Drilling Operation, and following the end of each month Operator shall charge the account with the Non-Operator’s share of actual costs incurred during the month. Payment of an advance shall not relieve a Non-Operator of its obligation to pay its share of the actual cost of a Drilling Operation, and when the actual costs have been det ermined, Operator shall adjust the accounts of the parties by refunding any net amounts due, or invoice the parties for additional sums owing, which additional sums shall be paid in accordance wit h the Accounting Procedure. Advance payment by a Non-Operator of its share of completed well costs shall in no event prevent the Non-Operator from electing not to participate in Completion of a well pursuant to Option No. 2 of Article VI.C.1., and, in the event a Non-Operator elects not to participate in Completion, the sums which the Non-Operator has advanced shall not be charged with any share of the costs of any Completion attempted. In the event a Non-Operator from which a request for advance payment was made does not, within the time and manner provided above, fully satisfy the request for advance payme nt by depositing cash or furnishing a letter of credit or security, then Operator shall make a second written or telephone request for the advance. Non-Operator shall pay or give the advance within _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) from receipt of the second request. If a Non-Operator fails to pay or furnish this security within _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) of the receipt of the second request, then: 1. If the advance was requested for the drilling of the Initial Well under Article VI.A., Non- Operator shall be deemed to have relinquished and shall assign all of its Leasehold and contract rights in the Contract Area, within _____ (_____) days (inclusive of Saturday, Sunday and legal holidays) of a request for the assignment, to those parties who have participated in the Drilling Operation, in proportion that the parties elected to share the relinquished interest. 2. If the advance was requested for any other Drilling Operation involving the Initial W ell drilled pursuant to Article VI.A. (including Completion of the Initial Well), Non- Operator shall be deemed to have relinquished an interest in the well to which t he Drilling Operation relates, computed in the same manner and with the same force and effect as if the Non-Operator had originally elected under Article VI.B.2. (and, if applicable, Option No. 2 of Article VI.C.1.) not to participate in the operation. Operator shall have the right to sue a Non-Operator who failed to pay or furnish the required security, provided above, for its proportionate share of expenses, in lieu of an assignment of all Non-Operator’s Leasehold and contract rights within the Contract Area or in lieu of obtaining a non-consent penalty as provided for in Article VI.B.2. If the Non-Operator fails to make the payment or furnish the security within _____ (_____) days (exclusive of Saturday, Sunday and legal holidays) of the receipt of the second request, Operator shall promptly notify all other Parties still participating in the Drilling Operation of the relinquishment of an interest under this provision. The parties who wish to participate in the Drilling Operation shall have _____ (_____) days (exclusive of Saturday, Sunday and legal holidays) from receipt of the notice to elect to assume the costs chargeable to the relinquished interest and shall share the relinquished interest, in proportion to thei r assumption of the relinquished interest. If the Parties who wish to participate in the Drilling Operations are unwilling to assume the costs chargeable to the relinquished interest, t he Drilling Operation shall be canceled, and if the canceled Drilling Operation involves the dril ling of a test well under Article VI.A., no assignment shall be due as a consequence of the failure to pa y or furnish the security provided above.