Common use of ALLOCATION OF EXPENDITURES Clause in Contracts

ALLOCATION OF EXPENDITURES. (a) A particular expenditure is not to be included in more than one category of eligible expenditure in calculating the royalty payable by the Lessee. (b) The Minister may determine in accordance with the provisions of this lease the extent to which a particular expenditure is to be attributed to a particular category of eligible expenditure in calculating the royalty payable by the Lessee, and upon his so determining, that particular expenditure shall be attributed accordingly. (c) Where any expenditure paid by the Lessee in a royalty year in respect of activities or facilities of the Lessee on or in relation to the production unit is, in the opinion of the Minister, directly but not solely related to the production of a petroleum commodity from petroleum from the Xxxxxx Island Lease but that expenditure would otherwise be an eligible expenditure, the Minister shall, for the purpose of calculating the royalty payable by the Lessee, allow as an eligible deduction such portion of that expenditure as he thinks fit. (d) Where any expenditure paid by the Lessee in a royalty year in respect of activities or facilities of the Lessee on or in relation to the production unit is, in the opinion of the Minister, related to the production of a petroleum commodity not solely from petroleum from the Xxxxxx Island Lease but that expenditure would otherwise be an eligible expenditure, the Minister shall, for the purpose of calculating the royalty parable by the Lessee, allow as an eligible deduction such portion of that expenditure as he thinks fit. (e) The provisions of paragraphs (g) and (gb) of clause 21 of the Xxxxxx Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this subclause 2(6), but this paragraph shall not limit the other rights and remedies of the parties.

ALLOCATION OF EXPENDITURES. (a) A particular expenditure is not to be included in more than one category of eligible expenditure in calculating the royalty payable by the Lessee. (b) The Minister may determine in accordance with the provisions of this lease the extent to which a particular expenditure is to be attributed to a particular category of eligible expenditure in calculating the royalty payable by the Lessee, and upon his so determining, that particular expenditure shall be attributed accordingly. (c) Where any expenditure paid by the Lessee in a royalty year in respect of activities or facilities of the Lessee on or in relation to the production unit is, in the opinion of the Minister, directly but not solely related to the production of a petroleum commodity from petroleum from the Xxxxxx Island Lease but that expenditure would otherwise be an eligible expenditure, the Minister shall, for the purpose of calculating the royalty payable by the Lessee, allow as an page 24 Compare 03 Jan 2003 [01-a0-05] / 21 Dec 2007 [01-b0-02] eligible deduction such portion of that expenditure as he thinks fit. (d) Where any expenditure paid by the Lessee in a royalty year in respect of activities or facilities of the Lessee on or in relation to the production unit is, in the opinion of the Minister, related to the production of a petroleum commodity not solely from petroleum from the Xxxxxx Island Lease but that expenditure would otherwise be an eligible expenditure, the Minister shall, for the purpose of calculating the royalty parable by the Lessee, allow as an eligible deduction such portion of that expenditure as he thinks fit. (e) The provisions of paragraphs (g) and (gb) of clause 21 of the Xxxxxx Island Lease shall not apply to any dispute arising out of the exercise of any discretion, whether express or implied, conferred upon the Minister pursuant to this subclause 2(6), but this paragraph shall not limit the other rights and remedies of the parties.