Common use of Abandonment Trust Clause in Contracts

Abandonment Trust. At the latest during the first Trimester of the Year in which the accumulated production of Net Hydrocarbons from the start of Regular Commercial Production until the end of the previous Year is equated to the remaining proved Reserves (1P) estimated for the Year, or after a period of twenty five (25) Years from the Effective Date, whichever occurs first, the Contractor shall open an investment trust (the "Abandonment Trust ") at a reputable and creditworthy Mexican banking institution chosen by the Contractor prior favorable opinion of the CNH. The trustee of the Abandonment Trust shall invest the available received resources in financial instruments issued by financial institutions, corporations or governments with investment-grade credit rating whose term does not exceed the time those resources are required to fund the activities of Abandonment in accordance with the investment policies established by the trustor. The Parties agree that the purpose of the Abandonment Trust is to create a reserve to fund the Abandonment activities in the Contract Area. The Contractor may not use the funds deposited in the Abandonment Trust for any purpose other than conducting the Abandonment activities in the Contract Area, and shall not be entitled to pledge, assign or otherwise dispose of the resources in the Abandonment Trust. The foregoing is without prejudice to any other requirement imposed by the Agency in accordance with the Applicable Laws.

Abandonment Trust. At the latest during the first Trimester of the Year in which the accumulated production of Net Hydrocarbons from the start of Regular Commercial Production until the end of the previous Year is equated to the remaining proved Reserves (1P) estimated for the Year, or after a period of twenty five (25) Years years from the Effective Date, whichever occurs first, the Contractor shall open an investment trust (the "Abandonment Trust ") at a reputable and creditworthy Mexican banking institution chosen by the Contractor prior with the favorable opinion of the CNH. The trustee of the Abandonment Trust shall invest the available received resources in financial instruments issued by financial institutions, corporations or governments with investment-grade credit rating whose term does not exceed the time those resources are required to fund the activities of Abandonment in accordance with the investment policies established by the trustor. The Parties agree that the purpose of the Abandonment Trust is to create a reserve to fund the Abandonment activities in the Contract Area. The Contractor may not use the funds deposited in the Abandonment Trust for any purpose other than conducting the Abandonment activities in the Contract Area, and shall not be entitled to pledge, assign or otherwise dispose of the resources in the Abandonment Trust. The foregoing is without prejudice to any other requirement imposed by the Agency in accordance with the Applicable Laws.