Common use of Depletion Allocation Clause in Contracts

Depletion Allocation. Depletion will be allocated to the Members in the same proportions as they share in the income of the Company; provided, however, that depletion will not be allocated to a Member to the extent that it causes or increases a negative balance in his Capital Account.

Depletion Allocation. Depletion will be allocated to the Members in the same proportions as they share in the income and profits of the Company; provided, however, that depletion will not be allocated to a Member to the extent that it causes or increases a negative balance in his Capital Account.