Common use of Decommissioning Clause in Contracts

Decommissioning. (a) The Contractor shall submit to the Designated Authority, for its approval, pursuant to sub-paragraph 4.11(d)(v), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor shall carry out the Decommissioning Plan substantially in accordance with its terms. (d) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs the additions made to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor shall submit to prepare and implement the Designated Authority, for its approval, pursuant to sub-paragraph 4.11(d)(v), a approved Decommissioning Plan for in accordance with the Development Area Applicable Law on onshore Petroleum Operations and a schedule of provisions for the Decommissioning Costs ReserveGood Oil Field Practice. (b) The Upon the commencement of Commercial Production, the Contractor shall establish a Decommissioning Plan Fund in accordance with the Applicable Law on onshore Petroleum Operations which shall be revised and resubmitted to in the Designated Authority for its approval form of an interest bearing escrow account, which is a conservative account yielding a maximum of one (1) percentage point margin above the annual yield on long-term United States Treasury Bonds (thirty-year (30) bonds), in the name of the Ministry at such times as are reasonable having regard to a financial institution approved by the likelihood that Ministry. The interests accumulated in the Decommissioning Plan (including cost estimates thereunder) may need to Fund are neither Recoverable Costs nor tax deductible and shall be revised.considered a Miscellaneous Receipt for the purposes of Clause 2.7 of Annex C. (c) The Contractor shall carry out the Decommissioning Plan substantially in accordance with its terms. (d) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning decommissioning costs at the expected date of Decommissioning decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning decommissioning costs the additions made to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(iArticle 6.1(c)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioningdecommissioning. (iv) The discounted total of residual Decommissioning decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning decommissioning at the rate of Uplift, will equal the total Decommissioning decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(vArticle 6.1(c)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question. (d) If there is under provision of Decommissioning Fund, Contractor shall ensure there is sufficient fund to carry out the abandonment work without prejudice or breach of Good Oil Field Practice and other International Standards which deemed acceptable by the Ministry pursuant to Applicable law on onshore Petroleum Operations. (e) If at the end of decommissioning work, the actual decommissioning cost spent is less than the accumulated Decommissioning Fund, such over provision shall be treated as profit oil and return to the Ministry.

Decommissioning. (a) The Contractor shall submit to the Designated Authority, for its approval, pursuant to sub-sub- paragraph 4.11(d)(v4.11(b)(iv), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor shall carry out the Decommissioning Plan substantially in accordance with its terms. (d) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs Costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs Costs the additions made to the provisions for Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costsCosts, resulting from the calculations under sub-sub- paragraph 4.14(d)(i14.4(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs Costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of UpliftUplift rate, will equal the total Decommissioning costsCosts. (vii) If the amount in sub-paragraph 4.14(d)(v14.4(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor shall submit to the Designated Authority, for its approval, pursuant to sub-paragraph 4.11(d)(v4.11(d)(ii)(v), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor shall carry out the Decommissioning Plan substantially in accordance with its terms. (d) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs the additions made to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor shall submit to the Designated Authority, for its approval, pursuant to sub-paragraph 4.11(d)(v4.10(d)(v), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor shall carry out the Decommissioning Plan substantially in accordance with its terms. (d) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs the additions made to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(i4.13(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v4.13(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor Operator shall submit to annually, within sixty (60) days after the Designated Authorityend of each Financial Year, for its approval, pursuant to sub-paragraph 4.11(d)(v), a Decommissioning Plan for the Development Area and a schedule of provisions for estimate the Decommissioning Costs Reserve.for work that has been completed by the Joint Venture prior to the end of such Financial Year and submit the same to the Management Committee for review and approval. As at the Effective Date, the estimated Decommissioning Costs are nil.‌ (b) The Operator shall establish for each Participant a notional account (“Notional Account”) to which will be added such Participant’s pro rata share of the estimated Decommissioning Plan Costs when first calculated plus its pro rata share of any increases to the aggregate amount of the estimated Decommissioning Costs from time to time, in accordance with Section 21.3(a). Such pro rata share will be based upon each Participant’s Participating Interest as at the end of each Financial Year. It is acknowledged that the Participants’ Notional Accounts may be adjusted from time to time pursuant to this Section 21.3(b). Each Participant shall be revised and resubmitted liable for that portion of total Decommissioning Costs equal to the Designated Authority for balance in its approval at Notional Account from time to time plus its pro rata share, based upon the Participants’ respective Participating Interests, of any actual Decommissioning Costs exceeding the aggregate estimated Decommissioning Costs as reflected by the aggregate of the Notional Accounts. Such Liability shall not be decreased by any decrease in the Participating Interest of such times as are reasonable having regard Participant unless the Person acquiring a Participating Interest from such Participant agrees to assume the likelihood that applicable pro rata share of such Liability, based upon the Participating Interest acquired. A Participant acquiring a Participating Interest of another Participant whose Participating Interest is diluted or otherwise adjusted under this Agreement shall not be considered to assume any Decommissioning Cost Liability of the diluting Participant unless the acquiring Participant specifically agrees to assume such Liability. If a Participant assumes any of the Decommissioning Plan (including cost estimates thereunder) may need to Cost Liability of another Participant, the Notional Accounts of both such Participants shall be revisedadjusted accordingly. (c) The Contractor Notwithstanding Section 21.3(b), Generation shall carry out be responsible for all Decommissioning Costs arising from Joint Venture Activities during the Sole Funding Period, and only Generation’s Notional Account will have the estimated Decommissioning Plan substantially in accordance with its termsCosts added to it during this time. (d) Estimates The Participants agree that at any time the Management Committee may decide to establish a decommissioning fund to be contributed to by the Participants and to be used to pay for Decommissioning Costs. If such a fund is established, each Participant shall contribute thereto an amount equal to the balance in such Participant’s Notional Account from time to time or such lesser amount as may be determined by the Management Committee, subject always to any applicable laws concerning the establishment and maintenance of such a fund. If such a fund is established and the balance of a Participant’s Notional Account is later decreased, the Participant shall be entitled to withdraw from the fund a sufficient amount so that the amount contributed to the fund is not greater than the balance in such Participant’s Notional Account. Such contributions shall be made at such times as may be determined by the Management Committee and shall consist of cash or such form of liquid securities as may be approved by the Management Committee from time to time, acting reasonably. Such fund shall be deposited with a financial institution to be determined by the Management Committee. Notwithstanding the foregoing, if any law, regulation or permit requires that a decommissioning or similar fund be established and maintained, then the Parties must comply with such law, regulation or permit, and contribute the amount required thereunder. (e) Any income from any decommissioning fund established pursuant to Section 21.3(d) above shall be allocated, but not actually paid, among the Participants pro rata according to their Participating Interests as at the end of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Financial Year in which Commercial Production first occurssuch income was earned. The amount charged in each Calendar Year Each such Participant shall be calculated as follows: entitled to withdraw from any such decommissioning fund fifty percent (i50%) The total Decommissioning costs at of the expected date income so allocated to it in order to pay the income taxes relating to the allocation of Decommissioning shall first be calculatedsuch income to it. (iif) There The Operator shall prepare and file with the relevant regulatory authorities all required plans and reports relating to rehabilitation and restoration of the Property which may be required by applicable law and the cost thereof shall constitute Joint Venture Expenditures. The Liability of the Participants for any financial guarantee required in connection therewith shall be deducted from such total Decommissioning costs the additions made borne pro rata to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable)their respective Notional Accounts. (iii) The residual Decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. 38.1 To enable the CONTRACTOR to recover the costs associated with future Petroleum Field decommissioning and site restoration and any other similar expenditure to be borne by the CONTRACTOR under this Contract, the CONTRACTOR shall have the right to establish a reserve fund for future decommissioning and site restoration (aa “Decommissioning Reserve Fund”). The Decommissioning Reserve Fund may be established at any time during the final ten (10) The Contractor Calendar Years of the term of the Production Operations of a Petroleum Field but, upon the reasonable request by the CONTRACTOR, the GOVERNMENT shall submit allow the CONTRACTOR to establish such fund over a longer period. Once established, the CONTRACTOR shall make regular contributions to the Designated Authority, for its approval, pursuant to sub-paragraph 4.11(d)(v), a Decommissioning Plan for the Development Area Reserve Fund based upon estimated Petroleum Field decommissioning and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor shall carry out the Decommissioning Plan substantially site restoration costs in accordance with its termsstandard principles and technical norms generally accepted in the international petroleum industry, and taking into account interest received and future interest expected to be earned on the Decommissioning Reserve Fund. Any contributions by the CONTRACTOR to the Decommissioning Reserve Fund shall be made in Dollars and shall be deemed Petroleum Costs when paid into the reserve fund, and shall be recovered by the CONTRACTOR in accordance with the provisions of Articles 1 and 25. Contributions to the Decommissioning Reserve Fund shall be placed with a first rate bank approved by the Management Committee in accordance with Article 8.5. (d) Estimates 38.2 If, at the end of the monies required for the funding term of the Decommissioning Plan shall be charged as Recoverable Costs beginning in Production Operations of the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows:Petroleum Field, the (i) The total Decommissioning costs at the expected date of Decommissioning GOVERNMENT shall first be calculated.become liable for its future decommissioning and site restoration; (ii) There the contributions and any interest accumulated in the Decommissioning Reserve Fund, to the extent that such contributions have been recovered as Petroleum Costs, shall be deducted from such total Decommissioning costs the additions made paid to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable).GOVERNMENT; and (iii) The residual Decommissioning the GOVERNMENT shall release the CONTRACTOR from any obligations relating to decommissioning and site restoration and shall indemnify the CONTRACTOR for any costs, resulting liabilities, expenses, claims or obligations associated therewith. 38.3 If the CONTRACTOR undertakes the Petroleum Field decommissioning and site restoration works, the contributions and any interest accumulated in the Decommissioning Reserve Fund shall be paid to the CONTRACTOR and shall be used for the Petroleum Field Decommissioning Operations. The CONTRACTOR shall undertake any such Decommissioning Operations in accordance with standard practice in the international petroleum industry. 38.4 If the Decommissioning Reserve Fund is not sufficient to cover all Decommissioning Costs for the Petroleum Field, the balance shall be paid by the CONTRACTOR and may be recovered as Petroleum Costs from any other Production Areas or, if applicable, from any other area which is the calculations under sub-paragraph 4.14(d)(isubject of another Petroleum Contract (as defined by the Kurdistan Region Petroleum Act) of the CONTRACTOR or any of its Affiliates anywhere in the Kurdistan Region and, to the extent the balance is not recoverable as aforesaid, such remaining balance shall be paid by the GOVERNMENT. 38.5 If the Decommissioning Reserve Fund exceeds all Decommissioning Costs for the Petroleum Field, the balance shall be transferred to the GOVERNMENT. 38.6 Any expenditure incurred by the CONTRACTOR in relation with this Article 38, including but not limited to any contributions to the Decommissioning Reserve Fund, shall be deemed Petroleum Costs and shall be recovered by the CONTRACTOR in accordance with the provisions of Articles 1 and 25. 38.7 The CONTRACTOR shall submit the Management Committee for approval in accordance with Article 8.5 a detailed plan for decommissioning the Production Area facilities and site restoration (iithe “Decommissioning Plan”), shall then such Decommissioning Plan to be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. submitted no later than twenty four (iv24) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining Months prior to the Calendar Year of Decommissioning itself, including date estimated by the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve CONTRACTOR for the Calendar Year in questionend of Commercial Production from the Production Area. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor Contractors shall submit to the Designated AuthorityMinistry, for its approval, pursuant to sub-paragraph 4.11(d)(v4.11(d)(iv), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority Ministry for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor Ministry may give opportunity to persons likely to be affected to make representations to it in respect of the Decommissioning Plan. (d) The Contractors shall carry out the Decommissioning Plan substantially in accordance with its terms. (de) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs Costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs Costs the additions made to the provisions for Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costsCosts, resulting from the calculations under sub-paragraph 4.14(d)(iparagraphs 4.14(e)(í) and (ii4.14(e)(ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs Costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costsCosts. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor Operator shall submit to annually, within sixty (60) days after the Designated Authorityend of each Financial Year, for its approval, pursuant to sub-paragraph 4.11(d)(v), a Decommissioning Plan for the Development Area and a schedule of provisions for estimate the Decommissioning Costs Reservefor work that has been completed by the Joint Venture prior to the end of such Financial Year and submit the same to the Management Committee for review and approval. As at the Effective Date, the estimated Decommissioning Costs are nil. (b) The Operator shall establish for each Participant a notional account (“Notional Account”) to which will be added such Participant’s pro rata share of the estimated Decommissioning Plan Costs when first calculated plus its pro rata share of any increases to the aggregate amount of the estimated Decommissioning Costs from time to time, in accordance with Section 21.3(a). Such pro rata share will be based upon each Participant’s Participating Interest as at the end of each Financial Year. It is acknowledged that the Participants’ Notional Accounts may be adjusted from time to time pursuant to this Section 21.3(b). Each Participant shall be revised and resubmitted liable for that portion of total Decommissioning Costs equal to the Designated Authority for balance in its approval at Notional Account from time to time plus its pro rata share, based upon the Participants’ respective Participating Interests, of any actual Decommissioning Costs exceeding the aggregate estimated Decommissioning Costs as reflected by the aggregate of the Notional Accounts. Such Liability shall not be decreased by any decrease in the Participating Interest of such times as are reasonable having regard Participant unless the Person acquiring a Participating Interest from such Participant agrees to assume the likelihood that applicable pro rata share of such Liability, based upon the Participating Interest acquired. A Participant acquiring a Participating Interest of another Participant whose Participating Interest is diluted or otherwise adjusted under this Agreement shall not be considered to assume any Decommissioning Cost Liability of the diluting Participant unless the acquiring Participant specifically agrees to assume such Liability. If a Participant assumes any of the Decommissioning Plan (including cost estimates thereunder) may need to Cost Liability of another Participant, the Notional Accounts of both such Participants shall be revisedadjusted accordingly. (c) The Contractor Notwithstanding Section 21.3(b), Generation shall carry out be responsible for all Decommissioning Costs arising from Joint Venture Activities during the Sole Funding Period, and only Generation’s Notional Account will have the estimated Decommissioning Plan substantially in accordance with its termsCosts added to it during this time. (d) Estimates The Participants agree that at any time the Management Committee may decide to establish a decommissioning fund to be contributed to by the Participants and to be used to pay for Decommissioning Costs. If such a fund is established, each Participant shall contribute thereto an amount equal to the balance in such Participant’s Notional Account from time to time or such lesser amount as may be determined by the Management Committee, subject always to any applicable laws concerning the establishment and maintenance of such a fund. If such a fund is established and the balance of a Participant’s Notional Account is later decreased, the Participant shall be entitled to withdraw from the fund a sufficient amount so that the amount contributed to the fund is not greater than the balance in such Participant’s Notional Account. Such contributions shall be made at such times as may be determined by the Management Committee and shall consist of cash or such form of liquid securities as may be approved by the Management Committee from time to time, acting reasonably. Such fund shall be deposited with a financial institution to be determined by the Management Committee. Notwithstanding the foregoing, if any law, regulation or permit requires that a decommissioning or similar fund be established and maintained, then the Parties must comply with such law, regulation or permit, and contribute the amount required thereunder. (e) Any income from any decommissioning fund established pursuant to Section 21.3(d) above shall be allocated, but not actually paid, among the Participants pro rata according to their Participating Interests as at the end of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Financial Year in which Commercial Production first occurssuch income was earned. The amount charged in each Calendar Year Each such Participant shall be calculated as follows: entitled to withdraw from any such decommissioning fund fifty percent (i50%) The total Decommissioning costs at of the expected date income so allocated to it in order to pay the income taxes relating to the allocation of Decommissioning shall first be calculatedsuch income to it. (iif) There The Operator shall prepare and file with the relevant regulatory authorities all required plans and reports relating to rehabilitation and restoration of the Property which may be required by applicable law and the cost thereof shall constitute Joint Venture Expenditures. The Liability of the Participants for any financial guarantee required in connection therewith shall be deducted from such total Decommissioning costs the additions made borne pro rata to the Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable)their respective Notional Accounts. (iii) The residual Decommissioning costs, resulting from the calculations under sub-paragraph 4.14(d)(i) and (ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costs. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.

Decommissioning. (a) The Contractor Contractors shall submit to the Designated AuthorityMinistry, for its approval, pursuant to sub-paragraph 4.11(d)(v4.11(b)(iv), a Decommissioning Plan for the Development Area and a schedule of provisions for the Decommissioning Costs Reserve. (b) The Decommissioning Plan shall be revised and resubmitted to the Designated Authority Ministry for its approval at such times as are reasonable having regard to the likelihood that the Decommissioning Plan (including cost estimates thereunder) may need to be revised. (c) The Contractor Ministry may give opportunity to persons likely to be affected to make representations to it in respect of the Decommissioning Plan. (d) The Contractors shall carry out the Decommissioning Plan substantially in accordance with its terms. (de) Estimates of the monies required for the funding of the Decommissioning Plan shall be charged as Recoverable Costs beginning in the Calendar Year following the Calendar Year in which Commercial Production first occurs. The amount charged in each Calendar Year shall be calculated as follows: (i) The total Decommissioning costs Costs at the expected date of Decommissioning shall first be calculated. (ii) There shall be deducted from such total Decommissioning costs Costs the additions made to the provisions for Decommissioning Costs Reserve made, and taken as Recoverable Costs, in all previous Calendar Years together with interest on such Recoverable Costs calculated to the approved date of Decommissioning at the actual or forecast rate of Uplift (whichever is applicable). (iii) The residual Decommissioning costsCosts, resulting from the calculations under sub-paragraph sub- paragraphs 4.14(d)(i) and (ii4.14(d)(ii), shall then be discounted to the Calendar Year in question at the forecast rate of Uplift for each Calendar Year remaining until the Calendar Year of Decommissioning. (iv) The discounted total of residual Decommissioning costs Costs shall then be divided by the total number of Calendar Years remaining prior to the Calendar Year of Decommissioning itself, including the Calendar Year in question. (v) The resultant amount shall be the addition to the Decommissioning Costs Reserve for the Calendar Year in question. (vi) It is the intention of this provision that the total accumulated provision allowed, including interest calculated to the Calendar Year of Decommissioning at the rate of Uplift, will equal the total Decommissioning costsCosts. (vii) If the amount in sub-paragraph 4.14(d)(v) is a negative amount, then such amount shall be treated as a reduction of Recoverable Costs for the Calendar Year in question.