Decommissioning Costs. (a) The Decommissioning Plan is to form part of the Development Plan, and shall include a schedule for the amortization of costs and cost recovery of costs, which are estimated to be incurred when the development is decommissioned.
(b) The Contractor shall exercise its good faith judgment to book sufficient accruals for future abandonment and decommissioning operations to cover the expenses which are expected to be incurred under the Decommissioning Plan. The Contractor shall examine on an annual basis, the estimated costs of abandonment and decommissioning operations and, if appropriate, revise them. Draft Production Sharing Contract Blocks L1B Ministry of Energy Page 50
(c) The Contractor shall commence booking accruals for abandonment and decommissioning costs in the first Calendar Quarter in which the ratio of cumulative production to overall recoverable reserves reaches sixty percent (60%), unless otherwise agreed in the Development Plan.
(d) All abandonment and decommissioning costs shall be recovered as Petroleum Costs at the time that the accrual is entered in the books.
(e) Contractor shall book an accrual on a Calendar Quarter basis for the amount of future abandonment and decommissioning costs according to the following formula: FTA = (ECA – AFB) X CPP/PRR Where: FTA is the amount to be accrued for future abandonment and decommissioning costs in respect of the relevant Calendar Quarter. ECA is the total estimated cost of abandonment and decommissioning operations established pursuant to this Abandonment and Decommissioning Clause. CPP is the volume of Petroleum produced during the Calendar Quarter in which the abandonment and decommissioning accrual was booked. PRR is the Contractor’s estimated remaining recoverable reserves at the end of the Calendar Quarter in which the abandonment and decommissioning accrual was booked; as such estimates may be revised by Contractor from time to time. AFB is the accrued abandonment and decommissioning cost balance at the end of the previous Calendar Quarter.
Decommissioning Costs. Decommissioning Costs are all direct and allocated indirect costs and expenditures incurred in carrying out Decommissioning Operations and include that portion of all service expenditures and that portion of all general and administrative expenditures directly attributable to Decommissioning Costs or allocated thereto on a consistent and equitable basis, and the Decommissioning Reserve Fund shall be determined on such basis, in advance of incurring such costs, as provided in Article 38 and, for the purposes of cost recovery, the contributions to the Decommissioning Reserve Fund shall be recovered in accordance with Article 38.
Decommissioning Costs. For purposes of this Agreement, Decommissioning Costs include the costs and obligations incurred by the Decommissioning Agent in the performance of Decommissioning Work, including overhead costs of the Decommissioning Agent as provided for herein, costs of insurance, including assessments resulting from a Nuclear Incident, Decommissioning Power costs (including costs of improvements to the Plant Site, to the Edison Switchyard, Edison Facilities, San Diego Switchyard, or San Diego Facilities necessary to deliver such power), security costs, maintenance costs, and legal costs, all as approved by the Executive Committee. Decommissioning Costs do not include: (i) any expenses incurred by any Party for purposes of administering, managing, and investing monies in its Decommissioning Trust Fund(s); (ii) any expenses incurred by any Party to perform legal evaluations related to its Decommissioning Cost Share or other rights or obligations under this Agreement; (iii) costs incurred in preparing and participating in a Party’s rate-making proceeding; (iv) any other expenses incurred by a Party on its own behalf; or (v) costs properly incurred and payable under the 1987 Operating Agreement or, as applicable, the Settlement Agreement between Anaheim and Edison.
Decommissioning Costs. Total recovery of Petroleum Costs during any Calendar Year, expressed in quantities of Petroleum, shall not exceed the relevant percentages indicated in Articles 25.3 and
Decommissioning Costs. 22.1 The Parties have agreed to create a separate agreement to define their rights, duties, and obligations with respect to decommissioning Units 2 and 3 and sharing the costs thereof. This agreement is currently being negotiated by the Parties. In accordance with the Settlement Agreement, Anaheim’s Ownership Share in SONGS Units 2 and 3 and the SONGS Common Facilities was reduced to zero on December 29, 2006.
22.2 In view of the fact that the Ownership Share of any Party may change during the term of this Agreement, it is hereby agreed that the percentage share obligation of each Party to pay for the decommissioning costs of each Unit, shall be determined by the following formula: DCS = OS1 x T1 + OS2 x T2 + O.S.n.x Tn X 100 S where: DCS = The percentage share of total decommissioning costs for a Unit for which a Party is obligated to pay, expressed in percent. OS1 = The initial Ownership Share of such Party, expressed in percent. T1 = The number of months that such Party’s Ownership Share was OS1, commencing with the date of commercial operation of such Unit. OS2 = The second Ownership Share of such Party, expressed in percent. T2 OSn = = The number of months that such Party’s Ownership Share was OS2. The final Ownership Share of such Party, expressed in percent. If such Party’s Ownership Share is constant over the life of such Unit, then Tn = only OS1 would be used. The number of months that such Party’s Ownership Share was OSn, ending with the date the Unit is removed from commercial service. If such Party’s Ownership Share is constant over the n S = = life of such Unit, then only T1 would be used. The number of different ownership Shares held by such Party commencing with OS1 and ending with OSn. The sum of the OS x T products for all Parties. For purposes of this Section 22.2, the dates of commercial operation of the Units are as follows: Unit 1 – January 1, 1968 Unit 2 – October 9, 1983 Unit 3 – April 1, 1984
22.3 At least once every two years, the Operating Agent shall estimate the costs of decommissioning each Unit and provide such estimates to the Other Parties.
Decommissioning Costs. 13.1.1 The Decommissioning Plan, to be part of the Development Plan, shall include a schedule for the amortization of costs and recovery of costs, estimated to be incurred when the Development is Decommissioned.
13.1.2 The Contractor shall commence making contributions to the Decommissioning Fund for future plugging and abandonment and Decommissioning Costs in the first Calendar Quarter in which the ratio of cumulative production to overall recoverable reserves reaches 70%.
13.1.3 In the event that the Contractor has reasons to believe that the contributions made in accordance with clause 13.1.2 may not be sufficient to complete the Decommissioning Operations it, shall commence making contributions to the Decommissioning Fund as early as possible to ensure that the Decommissioning Fund has all funds required to complete the Decommissioning Operations.
13.1.4 The Contractor shall examine, on an annual basis, the estimated costs of plugging and abandonment and Decommissioning and, if deemed appropriate, revise them and submit them to the SPA for approval, which approval shall be granted within thirty
Decommissioning Costs. No decommission costs are foreseen.
Decommissioning Costs. Notwithstanding anything to the contrary contained herein, the determination by either Viatel or Level 3 that the Useful Life has ended shall not relieve such party from the obligation to pay, and such party shall remain liable for the payment of, its pro rata share of the reasonable costs of decommissioning, retrieval and/or recovery costs of the Yellow System which may be required by applicable laws, prevailing industry standards, or as mutually agreed by the parties (net of such party's pro rata share of any salvage proceeds received in connection therewith), which obligation and liability shall survive any termination of this Agreement; provided, and notwithstanding the foregoing, Viatel shall have no liability under this Section 8B if this Agreement terminates pursuant to Sections l2D or 12E.
Decommissioning Costs. On the Effective Date, Montaup shall pay eleven percent (11%) of the amount determined in accordance with Appendix B hereto to Boston Edison for deposit into the "Decommissioning Trust" and the "Provisional Trust" as provided under Section 5.21 of the Purchase and Sale Agreement (or at Montaup's option, directly to said trusts); provided, however, the foregoing amount shall be reduced by payments made by Montaup for Decommissioning Expenses (as that term is defined in Section C-6.2.5 of the Power Sale Agreement) and associated earnings from the inception of the Power Sale Agreement to the Effective Date. To the extent any cost under this Paragraph is paid on the Effective Date on the basis of an estimate, such estimate shall be trued-up within sixty (60) days and shall be charged or credited, as the case may be, through the provisions of Paragraph 8 hereof.
Decommissioning Costs. The Initial Purchase Price shall be decreased by Seller’s pro rata share of the estimated cost of Decommissioning, as set forth in the Decommissioning Report, as adjusted as set forth in Schedule 3.2(d).
