Fill and Sign the Model Form Operating Agreement Nm Oil Conservation Division

LIMITATIONS ON ADDITIONAL PROPOSALS No party to this Operating Agreement shall propose the drilling, deepening, reentering, or sidetracking of more than one well at a time, nor shall any party to this Operati ng Agreement propose the drilling, deepening, reentering, or sidetracking of a well during the time that another well is being drilled, deepened, reentered, sidetracked, or completed or for which there is an existing valid proposal, or within sixty days of the completion of the previous well if it is completed as a commercial producer, except where the well or other operations to whi ch notice or proposal is given is for a well or operations: (i) required under the terms of an oil and gas lease or other contract; (ii) required to maintain all or a portion of an oil a nd gas lease or other contract in force; (iii) required by governmental regulations, court orders, or other mandate; or, (iv) by the mutual consent of all parties. For the purposes of defining necessary operations to maintain an oil and gas lease or other contract in force, which would otherwise expire, t he operations shall be deemed necessary if proposed on or before one hundred twenty (120) days prior to the date on which any oil and gas lease or contract, or a portion of it, would expi re in the absence of conducting the necessary operation and only as the necessary operation is designa ted as a necessary operation in the proposal of same.