15tn may

From an ann...
The Company's leases on the Golden Eagle 70 Unit, which currently consists of approximately 22,500 acres in aggregate, have an initial term of five years from first approval (15 May 2006) and if not extended, will terminate on 15 May 2011. The Company is required to demonstrate an economic case for the Paradox Basin #3 well located within Golden Eagle 70 Unit as a ?paying well? to the satisfaction of the BLM by the 15 May 2011 expiry deadline. This is in order to retain the lands within the Golden Eagle 70 Unit area from which the well obtains its production of gas ("participating area"), which area has not yet been determined. Should a ?paying well? determination be achieved, to retain the remainder of the lands in the Golden Eagle 70 Unit outside of the participating area, a new well must be in progress on the anniversary of the fifth year from the date of first approval (being 15 May 2006).
I am a bit confused here, BLM will decide on 15th May if GDN can continue in the Paradox Basin, but it seems P4 must be started by that date.
How can they commence without prior approval of P3 as a 'paying well"??