Common use of Costs and Revenues to be Apportioned Clause in Contracts

Costs and Revenues to be Apportioned. (a) Subject to Sections 7.1(b) and 7.1(c), below and except as otherwise provided in this Agreement, all costs and expenses relating to the Assets (including maintenance, development, capital and operating costs) and all revenues relating to the Assets (including proceeds from the sale of production and fees from processing, treating or transporting Petroleum Substances on behalf of Third Parties) shall be apportioned as of the Effective Time between Vendor and Purchaser on an accrual basis in accordance with generally accepted accounting principles, provided that: (i) advances made by Vendor or Quattro in respect of the costs of operations on Lands (or lands pooled or unitized therewith) or the Xxxxx, Pipelines or Facilities included in the Assets which advances have not been applied to the payment of costs prior to the Closing Date and still stand to the credit of Quattro or Vendor as at the Closing Date, shall be transferred to Purchaser at Closing and an adjustment will be made in favour of Vendor equal to the amount of such transferred advance; (ii) deposits made by Quattro or Vendor relative to operations on the Lands shall be returned to Vendor; (iii) costs and expenses of work done, services provided and goods supplied shall be deemed to accrue for the purposes of this Article when the work is done or the goods or services are provided, regardless of when such costs and expenses become payable; (iv) no adjustments shall be made in respect of Quattro's or Vendor's income taxes; (v) revenues from the sale of Petroleum Substances will be deemed to accrue when the Petroleum Substances are produced; (vi) Petroleum Substances that were produced beyond the wellhead, but not sold, as of the Effective Time shall be credited to Vendor and will be deemed to be sold on a first-in-first-out basis ; and (vii) all rentals and similar payments in respect of the Leased Substances or surface rights comprised in the Assets and all taxes (other than income taxes) levied with respect to the Assets or operations in respect thereof shall be apportioned between Vendor and Purchaser on a per diem basis as of the Closing Date. (b) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any liability, cost or expense which relates to the period which arose prior to the later of the Date of Appointment and the Effective Date, and which cost or expense will not constitute a liability of Purchaser. (c) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any cost or expense which relates to any reassessment of royalties arising or accruing before or after the Closing Time.

Costs and Revenues to be Apportioned. (a) Subject to Sections 7.1(b) and 7.1(c)) below, below and except as otherwise provided in this Agreement, all costs and expenses relating to the Assets (including maintenance, development, capital and operating costs) and all revenues relating to the Assets (including proceeds from the sale of production and fees from processing, treating or transporting Petroleum Substances on behalf of Third Parties) shall be apportioned as of the Effective Time between Vendor and Purchaser on an accrual basis in accordance with generally accepted accounting principles, provided that: (i) advances made by Vendor or Quattro in respect of the costs of operations on Lands (or lands pooled or unitized therewith) or the Xxxxx, Pipelines or Facilities included in the Assets which advances have not been applied to the payment of costs prior to the Closing Date and still stand to the credit of Quattro or Vendor as at the Closing Date, shall be transferred to Purchaser at Closing and an adjustment will be made in favour of Vendor equal to the amount of such transferred advance; (ii) deposits made by Quattro or Vendor relative to operations on the Lands shall be returned to Vendor; (iii) costs and expenses of work done, services provided and goods supplied shall be deemed to accrue for the purposes of this Article when the work is done or the goods or services are provided, regardless of when such costs and expenses become payable; (iv) no adjustments shall be made in respect of Quattro's or Vendor's income taxes; (v) revenues from the sale of Petroleum Substances will be deemed to accrue when the Petroleum Substances are produced; (vi) Petroleum Substances that were produced beyond the wellhead, but not sold, as of the Effective Time shall be credited to Vendor and will be deemed to be sold on a first-in-first-out basis ; and (vii) all rentals and similar payments in respect of the Leased Substances or surface rights comprised in the Assets and all taxes (other than income taxes) levied with respect to the Assets or operations in respect thereof shall be apportioned between Vendor and Purchaser on a per diem basis as of the Closing Date. (b) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any liability, cost or expense which relates to the period which arose prior to the later of the Date of Appointment and the Effective Date, and which cost or expense will not constitute a liability of Purchaser. (c) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any cost or expense which relates to any reassessment of royalties arising or accruing before or after the Closing Time.

Costs and Revenues to be Apportioned. (a) Subject to Sections 7.1(b) and 7.1(c), below and except Except as otherwise provided in this Agreement, all costs and expenses relating to the Assets (including including, without limitation, maintenance, development, capital and operating costs) and all revenues relating to the Assets (including including, without limitation, proceeds from the sale of production and fees from processing, treating or transporting Petroleum Substances on behalf of Third Parties) shall be apportioned as of the Effective Time between Vendor and Purchaser on an accrual basis in accordance with generally accepted accounting principles, provided that: (i) advances made by Vendor or Quattro in respect of the costs of operations on Lands (or lands pooled or unitized therewith) or the Xxxxx, Pipelines or Facilities included in the Assets which advances have not been applied to the payment of costs prior to the Closing Date and still stand to the credit of Quattro or Vendor as at the Closing Date, shall be transferred to Purchaser at Closing and an adjustment will be made in favour of Vendor equal to the amount of such transferred advance; (ii) deposits made by Quattro or Vendor relative to operations on the Lands shall be returned to Vendor; (iiiii) costs and expenses of work done, services provided and goods supplied shall be deemed to accrue for the purposes of this Article when the work is done or the goods (other than inventory) or services are provided, regardless of when such costs and expenses become payable; (iviii) no adjustments adjustment shall be made in respect of Quattro's or Alberta Royalty Tax Credits or, except as otherwise provided herein, Vendor's income taxesoverhead; (iv) where Vendor is the operator of any particular Asset, Vendor will be entitled to all overhead recoveries and operator's fees for the period up to the Effective Time; (v) revenues from the sale of Petroleum Substances will be deemed to accrue when adjusted on the basis of the date the Petroleum Substances are produced; (vi) Petroleum Substances that were produced beyond the wellhead, but not sold, as of the Effective Time shall be credited to Vendor and will be deemed to be sold on a first-in-first-out basis ; and (vii) all rentals and similar payments in respect of the Leased Substances Leases or surface rights Surface Rights comprised in the Assets and all taxes (other than income taxes) levied with respect to the Assets or operations in respect thereof shall be apportioned between Vendor and Purchaser on a per diem basis as of the Closing DateEffective Time; and (vii) Petroleum Substances attributable to the Assets which were produced, but not sold, as of the Effective Time shall be retained by Vendor and Vendor shall be responsible for all royalties or other encumbrances thereon. Petroleum Substances will be deemed to be sold on a first in, first out basis. (b) Subject to the foregoing provisions of this section 4.1, for the purposes of the Interim Period, all benefits and obligations relating to the Assets, including revenue, expenses, operating costs and expenses, capital costs, lease rentals, royalty obligations and the proceeds from the sale of production from the Lands, are to be received by or paid by the Vendor and its Representatives shall not be liable to make any adjustment adjusted for on the interim statement of adjustments or the final statement of adjustments and as provided in favour ofsubsection 4.2(c), or make any payment in an amount equal to, Purchaser pursuant hereto in respect of any liability, cost or expense which relates to the period which arose prior to the later of the Date of Appointment and the Effective Date, and which cost or expense will not constitute a liability of Purchaser.: (ci) the proceeds from the sale of production from the Lands for the Interim Period, minus (ii) all royalties and operating expenses for the Interim Period, minus (iii) those capital expenses for which Purchaser is responsible for the Interim Period. Vendor shall report all net revenue and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any cost or expense which relates to any reassessment of royalties arising or accruing before or after pay all income tax on the Closing Timenet revenue for the Interim Period.

Costs and Revenues to be Apportioned. (a) Subject to Sections 7.1(b) and 7.1(c), below and except Except as otherwise provided in this Agreement, all costs and expenses relating to the Assets (including including, without limitation, maintenance, development, capital and operating costs) and all revenues relating to the Assets (including including, without limitation, proceeds from the sale of production and fees from processing, treating or transporting Petroleum Substances on behalf of Third Parties) shall be apportioned as of the Effective Time between Vendor and Purchaser on an accrual basis in accordance with generally accepted accounting principles, provided that: (i) advances made by Vendor or Quattro in respect of the costs of operations on the Lands (or lands pooled or unitized therewith) therewith or the Xxxxx, Pipelines or Facilities facilities interests included in the Assets which advances have are not been applied to the payment of costs incurred prior to the Closing Date and still stand to the credit of Quattro or Vendor as at the Closing Date, shall Effective Time will be transferred to Purchaser at Closing and an adjustment will be made in favour of Vendor equal to the amount of such transferred advancethe advance transferred; (ii) deposits made by Quattro or Vendor relative to operations on the Lands shall be returned to Vendor; (iii) costs and expenses of work done, services provided and goods supplied shall be deemed to accrue for the purposes of this Article when the work is done or the goods or services are provided, regardless of when such costs and expenses become payable; (iv) no adjustments shall be made in respect of Quattro's Vendor’s overhead or Vendor's income taxes; (v) revenues from the sale recovery of Petroleum Substances will be deemed to accrue when the Petroleum Substances are produced; (vi) Petroleum Substances that were produced beyond the wellhead, but not sold, overhead by Vendor in its capacity as of the Effective Time shall be credited to Vendor and will be deemed to be sold on a first-in-first-out basis operator; and (viiv) all rentals and similar payments in respect of the Leased Substances or surface rights Concessions comprised in the Assets and all taxes (other than income taxes) levied with respect to the Assets or operations in respect thereof shall be apportioned between Vendor and Purchaser on a per diem basis as of the Closing DateEffective Time. (b) Petroleum Substances which were produced, but not sold, as of the Effective Time shall be retained by Vendor and its Representatives Vendor shall not be liable responsible for all royalties or other encumbrances thereon and all processing, treating and transportation expenses pertaining thereto. Petroleum Substances will be deemed to make any adjustment in favour ofbe sold on a first in, or make any payment to, Purchaser pursuant hereto in respect of any liability, cost or expense which relates to the period which arose prior to the later of the Date of Appointment and the Effective Date, and which cost or expense will not constitute a liability of Purchaserfirst out basis. (c) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any cost or expense which relates to any reassessment of royalties arising or accruing before or after the Closing Time.

Costs and Revenues to be Apportioned. (a) Subject to Sections paragraph 7.1(b) and 7.1(c), below and except as otherwise provided in this Agreement, all costs and expenses relating to the Assets (including including, without limitation, maintenance, development, capital and operating costs) and all revenues relating to the Assets (including including, without limitation, proceeds from the sale of production and fees from processing, treating or transporting Petroleum Substances on behalf of Third Parties) shall be apportioned as of the Effective Time Date between Vendor and Purchaser on an accrual basis in accordance with generally accepted accounting principles, provided that: (i) advances made by Vendor or Quattro in respect of the costs of operations on Lands (or lands pooled or unitized therewith) therewith or the Xxxxx, Pipelines or Facilities facilities interests included in the Assets which advances have not been applied to the payment of costs prior to the Closing Date and still stand to the credit of Quattro Wild Rose or Vendor as at the Closing Date, shall will be transferred to Purchaser at Closing and an adjustment will be made in favour of Vendor equal to the amount of such transferred advancethe advance transferred; (ii) deposits made by Quattro Wild Rose or Vendor relative to operations on the Lands Lands, including any security deposits made with the AER, shall be returned to Vendor; (iii) costs and expenses of work done, services provided and goods supplied shall be deemed to accrue for the purposes of this Article when the work is done or the goods or services are provided, regardless of when such costs and expenses become payable; (iv) no adjustments shall be made in respect of Quattro's Wild Rose’s or Vendor's ’s income taxes; (v) revenues from the sale of Petroleum Substances will be deemed to accrue when the Petroleum Substances are produced; (vi) Petroleum Substances that were produced beyond the wellhead, but not sold, as of the Effective Time shall be credited to Vendor and will be deemed to be sold on a first-in-first-out basis ; and (viiv) all rentals and similar payments in respect of the Leased Petroleum Substances or surface rights Surface Rights comprised in the Assets and all taxes (other than income taxes) levied with respect to the Assets or operations in respect thereof shall be apportioned between Vendor and Purchaser on a per diem basis as of the Closing Date. (b) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any liability, cost or expense liability which relates to the period which arose prior to the later of the Date of Appointment and the Effective Date, and which cost or expense will not constitute a liability of to Purchaser. (c) Vendor and its Representatives shall not be liable to make any adjustment in favour of, or make any payment to, Purchaser pursuant hereto in respect of any cost or expense which relates to any reassessment of royalties arising or accruing before or after the Closing Time.