Commencement of Drilling Operations

Commencement of Drilling Operations. Means, (i) with respect to a Nucor Well on a Well Location under the BJU C&E Agreement, the date that a drilling rig capable of reaching the Formation (as defined in the BJU C&E Agreement) is rigged up and rotating under power on the Well Location for such well, and (ii) with respect to a Nucor Well on a Well Location under the South Piceance C&E Agreement, the date that Encana has moved, or caused to be moved, a rig capable of setting surface casing, and has spud.