Authority for Expenditure Sample Clauses
The Authority for Expenditure clause defines the process and requirements for obtaining approval before incurring significant project costs. Typically, it outlines who has the power to authorize expenditures, the thresholds for approval, and the documentation needed to justify the spending. For example, it may require a formal submission and sign-off before starting major capital projects or operational expenses. This clause ensures that financial commitments are made transparently and with proper oversight, helping to control costs and prevent unauthorized spending.
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Authority for Expenditure. Prior to commencement of operations for the drilling of any Subsequent Prospect Well, the Operator shall prepare and submit to all Prospect working interest owners an AFE for each such well which shall include, but not necessarily be limited to, the estimated costs of drilling, testing, completing, and plugging and abandoning each such Subsequent Prospect Well.
Authority for Expenditure. Operator shall issue an Authority for Expenditure (“AFE”) thirty (30) days prior to the month in which it intends to conduct a given operation. Silver Star shall pay to the Operator the amount proscribed on the AFE no later than the close of business on the tenth business day following the delivery of the AFE. Any AFE for existing rentals or new lease acquisition shall contain a twenty percent (20%) management fee for Operator. This section of the Agreement does not apply to any AFE or supplemental AFE issued during the course of actual drilling operations. In that instance the Joint Operating Agreement shall govern as to the timeliness of payment.
Authority for Expenditure. During such next succeeding Calendar Year or calendar quarter, as the case may be, Manager shall have the right and authority with respect to the Approved Operating Budget and Approved Capital Budget (as they may be amended by any Approved Budget Amendments), or an approved Major Decision, or other authorized expenditures expressly set forth under this Agreement, to make expenditures therefore up to 100% of the respective amount provided for such Approved Budget, approved Major Decision, other approved expenditure, cost or liability expressly set forth in this Agreement. To the extent not otherwise covered by an Approved Budget (as amended), an approved Major Decision, and is not otherwise expressly authorized or permitted under another provision of this Agreement, then the Manager may incur (and be reimbursed by the other Owners relative to their share, or demand advance payment of the Owners relative to their share of) any cost, expense or liability which it is not estimated in excess of Fifty Thousand Dollars ($50,000), except in case of Emergencies as hereinafter provided, without the need to be approved by the Committee; and to the extent such cost, expense or liability would be estimated to exceed such amount, then the same shall be incurred by Manager only with the prior written consent of the Committee in the form of an AFE.
Authority for Expenditure. During a Calendar Year, Operator shall have the right and authority with respect to each item appearing in such Calendar Year’s approved Operating Budget and Capital Budget (as they may be amended by any approved Budget Amendment) to make expenditures up to one hundred and fifteen percent (115%) of the respective amount provided in such Budgets. No single item of cost or expense that is not specifically identified in an approved Operating Budget or Capital Budget and is estimated will result in a charge in excess of Fifty Thousand Dollars ($50,000), except in case of emergencies as provided in Section 4.7, shall be incurred by Operator without the prior written consent of the ▇▇▇▇▇ Entities. Actual costs or expenses of budgeted items shall not exceed one hundred and fifteen percent (115%) of the budgeted amount without prior written consent of the ▇▇▇▇▇ Entities. Operator has no authority to make expenditures on behalf of the ▇▇▇▇▇ Entities except as provided in this Section 4.5 or as permitted under Sections 3.2 or 4.7.
Authority for Expenditure. Lakehills and Pantera shall prepare separate budgets for the drilling, re-entry and completion, respectively, of each Well in the Well Program (each, an “Authority for Expenditure” or “AFE”). No fees or other expenses other than the actual, reasonably incurred costs associated with the drilling, re-entry and completion of such Well shall be allocated to any Well and set forth on an AFE. Each AFE shall be subject to the review and approval of Madoff. Lakehills and/or Pantera shall notify Madoff of the dates when drilling and completion will begin. Prior to such dates, Madoff shall pay the applicable amounts set forth in the AFE. Payment of such amounts shall be made by wire transfer of immediately available funds to a bank account designated by Pantera for the exclusive purpose of the Well Program (the “Drilling Program Bank Account”). The Drilling Program Bank Account will be an interest-bearing account maintained separate and apart from all other accounts of Lakehills and Pantera and the funds therein will not be commingled with any of their other funds. Madoff shall be made a signatory on the Drilling Program Bank Account, receive monthly bank statements relating thereto and, to the extent practicable, receive online access thereto. If requested by Madoff, Lakehills shall enter into and it shall cause any of its contractors to enter into a joint check agreement with Madoff pursuant to which Madoff shall have the right to make check(s) payable to both Lakehills and such contractor. Any interest earned on the funds in the account shall be applied to other costs paid out of such account. Notwithstanding anything otherwise set forth herein or in any operating agreement, Madoff shall not be obligated to pre-pay any AFEs or pre-fund the
Authority for Expenditure. 3.4.1. Year 1 of the Agreement. For the first year of the Agreement, TIML shall prepare and provide CAP, or its designee, DRC, with an informational AFE for each capital project, improvement or enhancement to the Sierra Kaolin(TM) for which the total estimated cost shall exceed $15,000.00. It being understood that all costs of the operation, exploration, exploitation, development, marketing, processing and delivering the Sierra Kaolin(TM) during the first year of this Agreement shall, consistent with the TPA MOU, be the sole and exclusive obligation of TIML.
Authority for Expenditure. (a) Subject to clause 11.5(g) prior to incurring any expenditure or commitment under an Approved Work Program and Budget in excess of One million dollars (US$1,000,000) the Operator must provide to the Operating Committee an AFE which complies with clause 11.5(c).
(b) AFEs supplied for operating expenditure or for capital expenditure below the amount specified in clause 11.5(a) are provided for information purposes only.
(c) An AFE provided under clause 11.5(a) must:
(i) identify the operation by specific reference to the line item in the Approved Work Program and Budget;
(ii) describe the work in detail;
(iii) contain the Operator’s best estimate of the total funds required to carry out the work;
(iv) outline the work schedule; and
(v) provide such other supporting information as may be required to enable an informed decision to be made.
(d) The Operating Committee must approve the AFE within 10 Business Days of submission or it is deemed to have been rejected.
(e) Approval of an AFE represents authority for the Operator to incur the expenditure or enter into the commitment described in that AFE.
(f) If an AFE is not approved as submitted, or is approved for a different amount than was provided for in an Approved Work Program and Budget, the Work Program and Budget is deemed to be varied accordingly.
(g) An AFE is not required for:
(i) operational expenditure in an Approved Work Program and Budget;
(ii) emergency expenditure authorised under clause 8.5(c).
Authority for Expenditure