Common use of Abandonment and Site Restoration Clause in Contracts

Abandonment and Site Restoration. Operating Costs shall include all expenditures incurred in the abandonment of all exploratory wxxxx and the restoration of their drill sites, together with all estimates of monies required for the funding of any abandonment and site restoration program established in conjunction with an approved plan of development for a commercial discovery. Expenditures incurred in the abandonment of exploratory wxxxx and the restoration of their drill sites shall be charged as Operating Costs in accordance with Article II of this Exhibit “C” The deposit of the estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of Sub-section 5.2.6 of the CONTRACT into an escrow account which constitutes the Abandonment and Restoration Funds (AARF), shall begin at the Year of first commercial production, and such deposited amount may be charge as Operating Cost Annually. Such estimated amount of monies to be deposited into such an escrow account between SKK MIGAS and CONTRACTOR at Indonesian bank in Indonesia , will be calculated each Year by dividing the total estimated costs of abandonment and site restoration for each discovery less the estimated salvage value of abandoned facilities by the total estimated number of Years in the economic life of each discovery and shall be reviewed on an annual basis and such estimates shall be adjusted each Year as required. If, for any reason, CONTRACTOR is required to abandon any field and restore the related site prior to the expiration or termination of this CONTRACT, CONTRACTOR may, for the purpose of conducting such abandonment and site restoration, use the funds established as AARF pursuant to the provisions of Sub-section 5.2.6 (e) hereof.

Abandonment and Site Restoration. Operating Costs shall include all expenditures incurred in the abandonment of all exploratory wxxxx and the restoration of their drill sitesdrillsites, together with all estimates of all of monies and funds required for the funding of any abandonment and site restoration program established in conjunction with an approved plan of development for a commercial discoverydiscovery in the judgement of PERTAMINA EP. Expenditures incurred in the abandonment of exploratory wxxxx and the restoration of their drill sites shall be charged as Operating Costs in accordance with Article II of this Exhibit “C” The deposit of the estimates Exhibit-III. Estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of Sub-section 5.2.6 clause 4.1.8 of the CONTRACT into an escrow account which constitutes Agreement shall be charged as Operating Costs annually on the Abandonment and Restoration Funds (AARF), shall begin at basis of accounting accruals beginning in the Year of first commercial production, . The fund of such abandonment and such deposited site restoration shall be used by PARTNER upon PERTAMINA EP prior written approval. The amount may be charge as Operating Cost Annually. Such estimated amount of monies to be deposited into such an escrow account between SKK MIGAS and CONTRACTOR at Indonesian bank charged in Indonesia , each Year will be calculated each Year by dividing the total estimated costs cost of abandonment and site restoration for each discovery less the estimated salvage value of abandoned facilities by the total estimated number of Years in the economic life of each discovery discovery. The estimates of monies required for all abandonment and site restoration activities shall be reviewed on an annual basis and such estimates shall be adjusted each Year as required. If, for any reason, CONTRACTOR is required to abandon any field and restore the related site prior to the expiration or termination of this CONTRACT, CONTRACTOR may, for the purpose of conducting such Such available abandonment and site restoration, use restoration fund shall be deposited into separate bank account in the funds established as AARF pursuant name of PERTAMINA EP and SKK Migas. PARTNER shall deposit and report to PERTAMINA EP the provisions of Sub-section 5.2.6 (e) hereofabandonment and site restoration fund to such account initially after the first year production and for the subsequent year shall be executed by PARTNER every *** in any Agreement Year.