Abandonment Security. If under the Contract or Laws / Regulations, the Parties are or become obliged to pay or contribute to the cost of ceasing operations, then during preparation of a Development Plan, the Parties shall negotiate a security agreement, which shall be completed and executed by all Parties participating in such Development Plan prior to application for an Exploitation Area. The security agreement shall incorporate the following principles:
(A) a Security shall be provided by each such Party for each Calendar Year commencing with the Calendar Year in which the Discounted Net Value equals or is less than three hundred percent (300%) of the Discounted Net Cost; and
(B) the amount of the Security required to be provided by each such Party in any Calendar Year (including any security previously provided which will still be current throughout such Calendar Year) shall be equal to the amount by which three hundred percent (300%) of the Discounted Net Cost exceeds the Discounted Net Value, up to a maximum of two hundred percent (200%) of the Discounted Net Cost.
Abandonment Security. A withdrawing Party shall provide Security satisfactory to the other Parties to satisfy any such obligations or liabilities which were approved or accrued prior to notice of withdrawal, but which become due after its withdrawal, including, without limitation, Security to cover the costs of an abandonment, if applicable; provided that the withdrawing Party was participating or was obligated to participate in the operations which gave rise to such obligations or liabilities. "
Abandonment Security. If under the terms of the Contract or applicable law, the Parties are or become obliged to pay or contribute to the cost of ceasing operations, then the following provisions shall apply:
(a) During preparation of a Development Plan, the Parties shall negotiate and agree a security agreement, which shall be completed and executed by all Parties participating in such Development Plan prior to application for an Exploitation Area. The security agreement shall incorporate the following principles:
(i) Security shall be provided by each such Party for each Calendar Year commencing with the Calendar Year in which the Discounted Net Value equals less than one hundred percent of the Discounted Net Cost.
(ii) The amount of Security required to be provided by each such Party in any Calendar Year (including security previously provided which will still be current throughout such Calendar Year) shall be equal to the amount by which one hundred percent of the Discounted Net Cost exceeds the Discounted Net Value.
(b) Failure to provide Security shall constitute default under this Agreement.
Abandonment Security. Notwithstanding Article 10.4, if under the Licence or the Laws, the Parties are or become obliged to pay or contribute to the cost of ceasing operations, then during preparation of a Development Plan, the Parties shall negotiate an abandonment agreement, which shall be completed and executed by all Parties participating in such Development Plan prior to application for an Exploitation Area. The abandonment agreement shall incorporate appropriate provisions for security.
Abandonment Security. During preparation of a Development Plan, the Parties shall negotiate and agree a security agreement, which shall be completed and executed by all Parties participating in such Development Plan prior to application for an Exploitation Area. The security agreement shall set out the amount of the provision the parties shall provide for the abandonment of operations and, required, agree the same with the Government in accordance with the Contract.
Abandonment Security. [X] ALTERNATIVE NO. 1 -
Abandonment Security. 87 13.9 Withdrawal or Abandonment by all Parties ....................................... 88
Abandonment Security. If under the Contract or Laws / Regulations, the Parties are or become obliged to pay or contribute to the cost of ceasing operations, then during preparation of a Development Plan, the Parties shall negotiate a security agreement, which shall be completed and executed by all Parties participating in such Development Plan prior to application for an Exploitation Area. The security agreement shall incorporate the following principles:
(A) a Security shall be provided by each such Party for each Calendar Year commencing with the Calendar Year in which the Discounted Net Value equals or is less than three hundred percent (300%) of the Discounted Net Cost; and
Abandonment Security. [OPTION #2] CONTRACTOR shall provide acceptable Abandonment security to QP in the form of a parent company guarantee or a third party guarantee. Such guarantee shall provide that the CONTRACTOR and QP shall establish an Abandonment fund and the CONTRACTOR shall fully fund such Abandonment fund no later than 180 days prior to the termination of this Agreement. Such guarantee shall further provide that, in the event the CONTRACTOR does not timely fund the Abandonment fund then the Guarantor shall do so within thirty days following notice of such funding failure, in whole or in part, from QP.
Abandonment Security. (A) The Operator shall perform, on behalf of the Joint Venture, all obligations resulting from the Petroleum Contract and the applicable law in respect of providing security for the cost of abandonment of xxxxx and other facilities used to extract and treat Hydrocarbons (hereinafter jointly called the “Mining Establishment”), located within the Contract Area, including the obligation to establish a mining establishment liquidation fund.
(B) Any Work Program and Budget proposed by the Operator for any Calendar Year of the Exploitation Period shall include an estimate of the net (i.e., taking into account the expected liquidation proceeds) cost of liquidation of the Mining Establishment. Such cost of liquidation, when approved by the Operating Committee (the “Liquidation Costs”) shall constitute a basis for the establishment by the Operator of a fund (the “Liquidation Fund”) for the purposes of financing liquidation of the Mining Establishment. In any event, the Liquidation Cost shall at least equal the minimum mandatory allocations to the mining establishment liquidation fund required under the applicable law.
(C) Each Party shall pay to the Liquidation Fund in any Calendar Year of the Exploitation Period an amount equal to the product of its Interest and 1/10 (one tenth) of the Liquidation Costs. No further payments to the Liquidation Fund shall be required as soon as the total funds accumulated therein equal the Liquidation Costs. Notwithstanding the above, the Parties shall be required to pay additional funds to the Liquidation Fund if the Liquidation Costs increase as compared to the amount set in the prior Work Program and Budget. If the Liquidation Costs become lower than the amount accumulated in the Liquidation Fund, the resulting surplus shall be reimbursed to the Parties pro rata to the amounts actually paid in.
(D) Contributions to the Liquidation Fund shall be made annually, by 31 December of each year.
