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 xxxxx and the restoration of their drillsites, 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 xxxxx and the restoration of their drillsites shall be charged as Operating Costs in accordance with Article II of this Exhibit "C". Estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of clause 5.2.5 of the Contract shall be charged as Operating Costs annually on the basis of accounting accruals beginning in the year of first production. The amount charged in each Year will be calculated by dividing the total estimated cost of abandonment and site restoration for each discovery by the total estimated number of years in the economic life of each 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. C–4 EXHIBIT "D" This EXHIBIT "D", THE MEMORANDUM OF PARTICIPATION is attached to and made an integral part of the Contract between PERUSAHAAN PERTAMBANGAN MINYAK XXX GAS BUMI NEGARA (PERTAMINA) and APEX (YAPEN) LTD. (CONTRACTOR) and is dated as of the Effective Date therein defined. The operating agreement between CONTRACTOR and the Indonesian participant referred to in subsection 16.3 Section XVI shall embody, inter alia, the following main principles: 1. CONTRACTOR shall be the sole Operator of the venture under properly defined rights and obligations. 2. Authorized representatives of both parties shall meet periodically for the purpose of conducting the venture's operations. All decisions shall be taken by majority vote except in case of terminating the Contract which decision shall require the unanimous consent of both parties. However if either of the parties wishes to withdraw from the venture it shall transfer without cost its undivided interest to the other party. 3. Both parties shall have the obligation to provide or cause to be provided their respective proportions of such finance and in such currencies as may be required from time to time by the Operator for the operations envisaged under the Contract. The effects of a party's failure to meet calls for funds within the prescribed time limits shall be provided. 4. The Operator shall prepare the annual work program and budgets which shall be submitted to the authorized representative of both partners for decision prior to their submission to PERTAMINA in accordance with the provisions of the Contract. 5. In respect of any exploratory drilling operation a "non-consent" provision shall be made which assures the Indonesian Participant that it does not have to participate in such operation if it were to disagree to the inclusion of such operation in the work program and budget and which in case of success adequately compensates CONTRACTOR for the cost and risk incurred by the latter. 6. Subject to adequate lifting tolerances each party shall offtake at CONTRACTOR's point of export its production entitlement and its proportionate share of any portion of the Crude Oil which PERTAMINA elects not to take in kind, both as provided under the Contract. However, if the Indonesian Participant is not in a position to market such quantity wholly or partly it shall in respect of the quantity which it cannot market itself have the option under an adequate notification procedure: either to require CONTRACTOR (or its associates if CONTRACTOR so desires) to purchase that quantity, or to lift that quantity at a later date under an adequate procedure. 7. In respect of any quantity to be purchased from the Indonesian Participant by CONTRACTOR (or its associates) the price in respect of each quality of Crude Oil shall be: 7.1 for Crude Oil to be delivered for local consumption under the terms of the Contract twenty-five percent (25%) of the price pursuant to Section VII or as otherwise provided for in the Contract. 7.2 for all other Crude Oil the weighted average net realized price received by CONTRACTOR for comparable types and quantities sold by it during the Calendar Year involved minus five percent (5%). 8. If Natural Gas is encountered in commercial quantities, special provisions shall be drawn up having due regard, inter alia, to the long term character of Natural Gas supply contracts.

Abandonment and Site Restoration. Operating Costs shall include all expenditures incurred in the abandonment of all exploratory xxxxx and the restoration of their drillsites, 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 xxxxx and the restoration of their drillsites shall be charged as Operating Costs in accordance with Article II of this Exhibit "C". Estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of clause 5.2.5 of the Contract shall be charged as Operating Costs annually on the basis of accounting accruals beginning in the year of first production. The amount charged in each Year will be calculated by dividing the total estimated cost of abandonment and site restoration for each discovery by the total estimated number of years in the economic life of each 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. C–4 EXHIBIT "D" This EXHIBIT "D", THE MEMORANDUM OF PARTICIPATION is attached to and made an integral part of the Contract between PERUSAHAAN PERTAMBANGAN MINYAK XXX GAS BUMI NEGARA (PERTAMINA) and APEX (YAPEN) LTD. (CONTRACTOR) and is dated as of the Effective Date therein defined. The operating agreement between CONTRACTOR and the Indonesian participant referred to in subsection 16.3 Section XVI shall embody, inter alia, the following main principles: 1. CONTRACTOR shall be the sole Operator of the venture under properly defined rights and obligations. 2. Authorized representatives of both parties shall meet periodically for the purpose of conducting the venture's operations. All decisions shall be taken by majority vote except in case of terminating the Contract which decision shall require the unanimous consent of both parties. However if either of the parties wishes to withdraw from the venture it shall transfer without cost its undivided interest to the other party. 3. Both parties shall have the obligation to provide or cause to be provided their respective proportions of such finance and in such currencies as may be required from time to time by the Operator for the operations envisaged under the Contract. The effects of a party's failure to meet calls for funds within the prescribed time limits shall be provided. 4. The Operator shall prepare the annual work program and budgets which shall be submitted to the authorized representative of both partners for decision prior to their submission to PERTAMINA in accordance with the provisions of the Contract. 5. In respect of any exploratory drilling operation a "non-consent" provision shall be made which assures the Indonesian Participant that it does not have to participate in such operation if it were to disagree to the inclusion of such operation in the work program and budget and which in case of success adequately compensates CONTRACTOR for the cost and risk incurred by the latter. 6. Subject to adequate lifting tolerances each party shall offtake at CONTRACTOR's point of export its production entitlement and its proportionate share of any portion of the Crude Oil which PERTAMINA elects not to take in kind, both as provided under the Contract. However, if the Indonesian Participant is not in a position to market such quantity wholly or partly it shall in respect of the quantity which it cannot market itself have the option under an adequate notification procedure: either to require CONTRACTOR (or its associates if CONTRACTOR so desires) to purchase that quantity, or to lift that quantity at a later date under an adequate procedure. 7. In respect of any quantity to be purchased from the Indonesian Participant by CONTRACTOR (or its associates) the price in respect of each quality of Crude Oil shall be: 7.1 for Crude Oil to be delivered for local consumption under the terms of the Contract twenty-five percent (25%) of the price pursuant to Section VII or as otherwise provided for in the Contract. 7.2 for all other Crude Oil the weighted average net realized price received by CONTRACTOR for comparable types and quantities sold by it during the Calendar Year involved minus five percent (5%). 8. If Natural Gas is encountered in commercial quantities, special provisions shall be drawn up having due regard, inter alia, to the long term character of Natural Gas supply contracts.

Abandonment and Site Restoration. Operating Costs shall include all expenditures incurred in the abandonment of all exploratory xxxxx and the restoration of their drillsites, 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 xxxxx and the restoration of their drillsites shall be charged as Operating Costs in accordance with Article II of this Exhibit "C". Estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of clause 5.2.5 of the Contract shall be charged as Operating Costs annually on the basis of accounting accruals beginning in the year of first production. The amount charged in each Year will be calculated by dividing the total estimated cost of abandonment and site restoration for each discovery by the total estimated number of years in the economic life of each 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. C–4 EXHIBIT "D" This EXHIBIT "D", THE MEMORANDUM OF PARTICIPATION is attached to and made an integral part of the Contract between PERUSAHAAN PERTAMBANGAN MINYAK XXX GAS BUMI NEGARA (PERTAMINA) and APEX (YAPEN) LTD. (CONTRACTOR) and is dated as of the Effective Date therein defined. MEMORANDUM OF PARTICIPATION The operating agreement between CONTRACTOR and the Indonesian participant referred to in subsection 16.3 Section XVI shall embody, inter alia, the following main principles: 1. CONTRACTOR shall be the sole Operator of the venture under properly defined rights and obligations. 2. Authorized representatives of both parties shall meet periodically for the purpose of conducting the venture's operations. All decisions shall be taken by majority vote except in case of terminating the Contract which decision shall require the unanimous consent of both parties. However if either of the parties wishes to withdraw from the venture it shall transfer without cost its undivided interest to the other party. 3. Both parties shall have the obligation to provide or cause to be provided their respective proportions of such finance and in such currencies as may be required from time to time by the Operator for the operations envisaged under the Contract. The effects of a party's failure to meet calls for funds within the prescribed time limits shall be provided. 4. The Operator shall prepare the annual work program and budgets which shall be submitted to the authorized representative of both partners for decision prior to their submission to PERTAMINA in accordance with the provisions of the Contract. 5. In respect of any exploratory drilling operation a "non-consent" provision shall be made which assures the Indonesian Participant that it does not have to participate in such operation if it were to disagree to the inclusion of such operation in the work program and budget and which in case of success adequately compensates CONTRACTOR for the cost and risk incurred by the latter. 6. Subject to adequate lifting tolerances each party shall offtake at CONTRACTOR's point of export its production entitlement and its proportionate share of any portion of the Crude Oil which PERTAMINA elects not to take in kind, both as provided under the Contract. However, if the Indonesian Participant is not in a position to market such quantity wholly or partly it shall in respect of the quantity which it cannot market itself have the option under an adequate notification procedure: either to require CONTRACTOR (or its associates if CONTRACTOR so desires) to purchase that quantity, or to lift that quantity at a later date under an adequate procedure. 7. In respect of any quantity to be purchased from the Indonesian Participant by CONTRACTOR (or its associates) the price in respect of each quality of Crude Oil shall be: 7.1 for Crude Oil to be delivered for local consumption under the terms of the Contract twenty-five percent (25%) of the price pursuant to Section VII or as otherwise provided for in the Contract. 7.2 for all other Crude Oil the weighted average net realized price received by CONTRACTOR for comparable types and quantities sold by it during the Calendar Year involved minus five percent (5%). 8. If Natural Gas is encountered in commercial quantities, special provisions shall be drawn up having due regard, inter alia, to the long term character of Natural Gas supply contracts.

Abandonment and Site Restoration. Operating Costs shall include all expenditures incurred in the abandonment of all exploratory xxxxx and the restoration of their drillsitesdrill 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 exploratory, xxxxx and the restoration of their drillsites drill sites shall be charged as Operating Costs in accordance with Article II of this Exhibit "C". Estimates of monies required for the funding of any abandonment and site restoration program established pursuant to paragraph (e) of clause 5.2.5 of the Contract shall be charged as Operating Costs annually on the basis of accounting accruals beginning in the year of first production. The amount charged in each Year will be calculated by dividing the total estimated cost of abandonment and site restoration for each discovery by the total estimated number of years in the economic life of each 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. C–4 C–5 EXHIBIT "D" This EXHIBIT Exhibit "D", THE MEMORANDUM OF PARTICIPATION " is attached to and made an integral part of the Contract for the Bengara-II Contract Area by and between PERUSAHAAN PERTAMBANGAN MINYAK XXX GAS BUMI NEGARA (PERTAMINA) and APEX (YAPEN) BENGARA LTD. (CONTRACTOR) and is dated as of the Effective Date therein defined. The operating agreement Operating Agreement between CONTRACTOR and the Indonesian participant Participant referred to in subsection 16.3 Section of Section-XVI of the Contract shall embody, inter alia, the following main principles: 1. CONTRACTOR shall shaI1 be the sole Operator of the venture under properly defined rights and obligations. 2. Authorized representatives of both parties shall meet periodically for the purpose of conducting the venture's operations. All decisions shall be taken by majority vote except in case of terminating the Contract which decision shall require the unanimous consent of both parties. However if either of the parties party wishes to withdraw from the venture it shall transfer without cost costs its undivided interest to the other party. 3. Both parties shall have the obligation to provide or cause to be provided their respective proportions of such finance and in such currencies as may be required from time to time by the Operator for the operations envisaged under the Contract. The effects of a party's failure to meet calls for funds within the prescribed time limits shall be provided. 4. The Operator shall prepare the annual work program Work Program and budgets budget which shall be submitted to the authorized representative of both partners parties for decision decisions prior to their submission to PERTAMINA in accordance with the provisions of the Contract. 5. In respect of any exploratory drilling operation operations, a "non-consentnonconsent" provision shall be made which assures the Indonesian Participant that it does not have to participate in such operation operations if it were to disagree to the inclusion of such operation operations in the work program Work Program and budget budget, and which which, in case of success success, adequately compensates CONTRACTOR for the cost costs and risk risks incurred by the latter. 6. Subject to adequate lifting tolerances tolerances, each party shall offtake at CONTRACTOR's point of export its production entitlement and in its proportionate share of any portion of the Crude Oil which PERTAMINA elects not to take in kind, both as provided under the Contract. However, if the Indonesian Participant is not in a position to market such quantity wholly or partly partly, it shall in respect of the quantity which it cannot market itself itself, have the option under an adequate notification procedure, either: either to require CONTRACTOR (or its associates if CONTRACTOR so desires) to purchase that quantity, or to lift that quantity at a later date under an adequate procedure. 7. In respect of any quantity to be purchased from the Indonesian Participant by CONTRACTOR (or its associates) the price in respect of each quality of Crude Oil shall be: 7.1 for Crude Oil to be delivered for local consumption under the terms of the Contract twenty-five Contract, fifteen percent (2515%) of the price pursuant to Section as provided in Section-VII or as otherwise provided for in the Contract.Contract and 7.2 for all other Crude Oil the weighted average net realized price received by CONTRACTOR for comparable types and quantities sold by it during the Calendar Year involved minus five percent (5%). 8. If Natural Gas is encountered in commercial quantities, special provisions shall be drawn up having due regard, inter alia, to the long term character of Natural Gas supply contracts.