Common use of Allocation of Shared Costs Clause in Contracts

Allocation of Shared Costs. To the extent that costs and expenses are incurred by Licensee in respect of activities which would only in part qualify as Contract Expenses hereunder, such costs and expenses shall be allocated to the books, accounts, records and reports maintained hereunder in such a manner as to avoid any duplication of cost, to fairly and equitably reflect the costs attributable to Petroleum Operations carried out hereunder and to exclude any costs and expenses which should otherwise be allocated to those activities which would not constitute Petroleum Operations hereunder. It is understood, however, that any Exploration or Development and Production Expenditures associated with a unit development involving a Discovery Area, which extends into a neighbouring country shall be allocated on the basis of the petroleum reserves attributable to that portion of the Discovery Area located in each country.

Allocation of Shared Costs. To the extent that costs and expenses are incurred by Licensee in respect of activities which would only in part qualify as Contract Expenses hereunder, such costs and expenses shall be allocated to the books, accounts, records and reports maintained hereunder in such a manner as to avoid any duplication of cost, to fairly and equitably reflect the costs attributable to Petroleum Operations carried out hereunder and to exclude any costs and expenses which should otherwise be allocated to those activities which would not constitute Petroleum Operations hereunder. It is understood, however, that any Exploration or Development and Production Expenditures associated with a unit development involving a Discovery Area, Area which extends into a neighbouring country shall be allocated on the basis of the petroleum reserves attributable to that portion of the Discovery Area located in each country.