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/ title to any lands, oil, and/or gas rights, licenses or leases to Unit Operator as such, it being understood that Unit Operator as such, shall have only rights of possession and use for the purposes herein specified,. Operations shall at all times be carried on with diligence, to the end that the drilling, development, and producing operations required hereunder shall be fully performed. Except for drilling authorized under Sections 6 and 7 and normal operating expenditures and emergency expenditures necessary to protect the property and employes, Unit Operator shall make no expenditures in excess of Five Thousand Dollars ($5,000.00) without the approval of all parties. SECTION 6; INITIAL WELL OR Within the time specified WELLS, SUBSEQUENT in the Unit Agreement, DEVELOPMENT: __ ______________________ shall begin to drill the test well required under Section 7 of that agreement on the Unit Lands at a location approved by the parties hereto and by the Federal Oil and Gas Supervisor and shall thereafter with diligence continue drilling such well so as to adequately test all sands in the ______________ formation (but shall not be required to drill to a depth in excess of _____ feet) unless at a lesser depth a discovery of unitized substances in paying quantities shall have been made, or granite or other practically impenetrable substance is encountered, or the parties shall determine, with the approval of the Federal Oil and Gas Supervisor, that further drilling in said well would not be warranted. Drilling costs of the initial test well shall be borne wholly by ,______ ___________ and shall not be charged to Joint Expense. The consideration for the reduction of Union Pacific's participating percentage from its original acreage percentage to the ____% set forth in Section 2 is that ,_________ _____ , at its sole cost, shall drill the initial test well to the "objective depth," meaning the depth required to adequately test all sands in the _________ _____ _ formation, or to _____________ feet, or until granite or other practically Impenetrable substance is encountered, or until the parties determine, with the approval of the Federal Oil and Gas Supervisor, that further drilling in said well would not be warranted, whichever of these depths is the lesser. Notwithstanding that the initial test well may have made a commercial discovery in a formation or formations above the objective depth, if shall fail to continue the drilling of the initial test well to the objective depth, the parties shall share in production from all formations in the Unit Lands in accordance with their agreed acreage percentages as set forth in Exhibit "B" of the Unit Agreement. If the initial test well does not result in a discovery of unitized substances in paying quantities, then ______________, within the time required under the Unit Agreement, may drill such additional test wells as it elects, at locations selected by it on the Unit Lands, and shall bear the drilling costs thereof, which shall not be charged to Joint Expense. “3-