Common use of Abandonment Security Clause in Contracts

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. If under the Contract or the 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 seventy-five percent (30075%) 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 seventy-five percent (30075%) 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. If under the Contract or the 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 one hundred fifty percent (300150%) 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 one hundred fifty percent (300150%) 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. If under the terms of the Contract or Laws / Regulationsapplicable law, the Parties are or become obliged to pay or contribute to the cost of ceasing operations, then during the following provisions shall apply: (A) During preparation of a Development Plan, the Parties shall negotiate and agree upon the terms of a security agreement, which security agreement shall be completed and executed by all Parties participating in such Development Plan prior to application for an a Field Exploitation Area. The security agreement shall incorporate the following principles: (A1) 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 one hundred and fifty percent (300150%) of the Discounted Net Cost; and. (B2) the The amount of the Security required to be provided by each such Party in any Calendar Year (including any security 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.