Authorisation for expenditure. (1) The expenditure entered in the budget shall be authorised for the duration of one accounting period unless the Financial Regulations provide otherwise.
(2) In accordance with the Financial Regulations, any appropriations, other than those relating to staff costs, which are unexpended at the end of the accounting period may be carried forward, but not beyond the end of the following accounting period.
(3) Appropriations shall be set out under different headings according to type and purpose of the expenditure, and subdivided, as far as necessary, in accordance with the Financial Regulations.
Authorisation for expenditure. (AFE) Procedure
(a) Prior to incurring any commitment or expenditure for the Joint Account, which is estimated to be:
(i) in excess of two hundred fifty thousand US dollars (250,000 USD) in an exploration or appraisal Work Program and Budget;
(ii) in excess of five hundred thousand US dollars (500,000 USD) in a development Work Program and Budget; and
(iii) in excess of two hundred fifty thousand US dollars (250,000 USD) in a production Work Program and Budget, Operator shall send to each Non-Operator an AFE as described in Clause 6.6(c). Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to any Minimum Work Obligations, workovers of xxxxx and general and administrative costs that are listed as separate line items in an approved Work Program and Budget.
(b) Prior to making any expenditures or incurring any commitments for work subject to the AFE procedure in Clause 6.6(a), Operator shall obtain the approval of the Operations Management Board to an AFE. If the Operations Management Board approves an AFE for the operation within the applicable time period under Clause 5.12, Operator shall be authorised to conduct the operation under the terms of this Agreement. If the Operations Management Board fails to approve an AFE for the operation within the applicable time period, the operation shall be deemed rejected. Operator shall promptly notify the Parties if the operation has been rejected, and, subject to Clause 7, any Party may thereafter propose to conduct the operation as an Exclusive Operation under Clause 7. When an operations is rejected under this Clause 6.6(b) or an operation is approved for differing amounts than those provided for in the applicable line items of the approved Work Program and Budget, the Work Program and Budget shall be deemed to be revised accordingly.
(c) Each AFE proposed by the Operator shall:
(i) identify the operation by specific reference to the applicable line items in the Work Program and Budget;
(ii) describe the work in detail;
(iii) contain Operator’s best estimate of the total funds required to carry out such work;
(iv) outline the proposed work schedule;
(v) provide a timetable of expenditures, if known; and
(vi) be accompanied by such other supporting information as is necessary for an informed decision.
Authorisation for expenditure. Except as provided in clause 6.10.2, the Operator shall, before entering into any commitment or incurring any capital expenditure or seismic expenditure in excess of fifty thousand Pounds (£50,000) under an approved exploration and/or appraisal Programme and Budget submit to the Participants an AFE for it in accordance with the Accounting Procedure. To the extent that the Joint Operating Committee approves an AFE, the Operator shall be authorised and obliged, subject to clauses 6.5 and 10.3, to proceed with such commitment or expenditure. The Operator shall prepare and submit to the Participants a separate AFE for each exploration or appraisal well, on a dry-hole basis. Drill stem testing shall be a contingent item.
Authorisation for expenditure. Except as provided in clause 6.10.2, the Operator shall, before entering into any commitment or incurring any capital expenditure in excess of one hundred thousand Pounds (£100,000) with respect to the preparation of a development Programme and Budget or under an approved development Programme and Budget submit to the Participants an AFE for it in accordance with the Accounting Procedure. To the extent that the Joint Operating Committee approves an AFE, the Operator shall be authorised and obliged, subject to clauses 6.5 and 11.3, to proceed with such commitment or expenditure. The Operator shall prepare and submit to the Participants a separate AFE for each development well.
Authorisation for expenditure. Except as provided in clause 6.10.2, the Operator shall, before entering into any commitment or incurring any capital expenditure in excess of fifty thousand pounds (£50,000) under an approved Decommissioning Programme and Decommissioning Budget, submit to the Participants an AFE for it in accordance with the Accounting Procedure. To the extent that the Joint Operating Committee approves an AFE, such approval not to be unreasonably withheld or delayed where the AFE is consistent with the approved Decommissioning Programme and Budget, the Operator shall be authorised and obliged, subject to clauses 6.5 and 13.3, to proceed with such commitment or expenditure.
Authorisation for expenditure. Before entering into any commitment incurring any expenditure under an approved exploration Program and Budget, Operator shall, except as provided in Articles 5.8 and 9.
Authorisation for expenditure. Before entering into any commitment incurring any expenditure under an approved appraisal Program and Budget, Operator shall, except as provided in Article 5.8, submit an AFE to the Parties for the Program. The AFE shall include the information set out in, and be prepared in accordance with the provisions of the Accounting Procedure. Provided that the AFE is within the limits of and is in accordance with the Budget, the Operating Committee shall be deemed to have approved the AFE unless, within twenty (20) days of its submission to the Parties, a Party or Parties having individually or in the aggregate a Percentage Interest of at least thirty percent (30%) give(s) notice to Operator that they require such AFE to be formally approved by the Operating Committee. To the extent that the Operating Committee approves or is deemed to approve an AFE, Operator shall be authorised and obligated, in accordance with the provisions of the Accounting Procedure, but subject to Article 10.3, to proceed with such commitment or expenditure.
Authorisation for expenditure. Except as provided in Article 5.8, Operator shall submit an AFE to the Parties, before entering into any capital commitment or incurring any Capital Expenditure in excess of $100,000 with respect to an approved development Program and Budget. To the extent that the AFE is approved or deemed to be approved by the Parties, Operator shall be authorised and obligated, subject to Article 11.3, to proceed with such commitment or expenditure. In cases where no AFE is required the approval of the development Program and Budget shall constitute the necessary authority to Operator to proceed with such commitment or expenditure.
Authorisation for expenditure. 12.2.1 Except as otherwise provided herein, Operator shall, before entering into any capital commitment or incurring any Capital Expenditure in excess of one hundred thousand dollars ($100,000) under an approved production Program and Budget, submit to the Parties an AFE therefor. To the extent that the AFE is approved by the Parties, Operator shall be authorised and obliged, subject to Article 12.3, to proceed with such commitment or expenditure. In cases where no AFE is required the approval of the production Program and Budget shall constitute the necessary authority to Operator to proceed with such commitment or expenditure.
12.2.2 Operator shall not be obliged to submit an AFE to the Parties before making commitments or incurring expenditure in connection with the workover of a well where such workover is pursuant to an approved Production Budget.
Authorisation for expenditure. AFEs in respect of capital expenditures within an approved Work Programme and Budget will be issued on a timely basis to Non-Operators for their consideration consistent with giving them at least twenty-one
