Costs Due to Catastrophe Sample Clauses

Costs Due to Catastrophe. In addition to direct costs incurred in connection with a Catastrophe, Operator shall be paid the following rate in excess of the expenditure limit set forth in Section 5 to compensate Operator for overhead costs: 5% of total costs if such costs are less than $1,00,000; plus 3% of total costs in excess of $100,000 but less than $1,000,000; plus 2% of total costs in excess of $1,000,000. Overhead costs for Catastrophe shall be applied as follows: (i) Catastrophe is defined as a sudden calamitous event bringing damage, loss or destruction to property or the environment, such as an oil spill, blowout, explosion, fire, storm, hurricane or other disaster. The overhead rate shall be applied to those costs necessary to restore the Contract Area to the equivalent condition that existed prior to the event. (ii) Total cost shall mean the gross cost of any one project, and the rates shall be applied to all costs associated with each single occurrence or event. (iii) For the purpose of calculating Catastrophe overhead, the cost of drilling relief ▇▇▇▇▇ or substitute ▇▇▇▇▇, or conducting other well operations directly resulting from the catastrophic event shall be included. Expenditures to which these rates apply shall not be reduced by salvage or insurance recoveries. Expenditures that qualify for Catastrophe overhead shall not qualify for overhead under any other overhead provisions.