Destination of the CBM and Liquid Hydrocarbons. 14.6.1 The destination of Contractor's CBM, CBM Products, and Liquid Hydrocarbons obtained under the Contract shall be at the discretion of the Contractor. The Contractor shall have the following non-exclusive options: (1) to join with CUCBM to market a part or all of their respective shares of CBM and Liquid Hydrocarbons and to sell such CBM and Liquid Hydrocarbons jointly to prospective purchasers able to pay in U.S. Dollars; (2) to sell directly its share of the CBM and Liquid Hydrocarbons to the Chinese users subject to the approval of the relevant government departments if required; (3) to sell its share of the CBM and Liquid Hydrocarbons to CUCBM and/or its Affiliates, CUCBM and/or its Affiliates shall pay to the Contractor in U.S. Dollars in accordance with Article 14.6.5; or (4) to sell its share of the CBM and Liquid Hydrocarbons to any other lawful destinations or buyers. 14.6.2 Transportation costs shall be determined in accordance with Article 14.4.1 herein. 14.6.3 The CBM and Liquid Hydrocarbons price or value shall be determined in accordance with this Article 14 with the objective of the Parties being to produce the CBM and Liquid Hydrocarbons at the MER and to obtain the best price possible. 14.6.4 Unless otherwise mutually agreed, the Delivery Point shall be the most economically viable nearby pipeline having available capacity, or the Delivery Point of the pipeline owned under this Contract or by any of the Parties. 14.6.5 For the purpose of encouraging the exploration and development of CBM, CUCBM and/or its Affiliates will, upon request of Contractor, act as a buyer to purchase all or part of Contractor's share of CBM and Liquid Hydrocarbons produced from the Contract Area in accordance with the following provisions: 14.6.5.1 The Parties shall agree upon the volume and rates of delivery of CBM and Liquid Hydrocarbons by Contractor and to be purchased by CUCBM and/or its Affiliates. 14.6.5.2 The price of CBM and Liquid Hydrocarbons and other essential terms and conditions, including but not limited to, Delivery Point and pipeline costs shall be determined pursuant to the provisions of this Article 14 and shall, unless otherwise mutually agreed, be agreed upon prior to the determination of commerciality and preparation of the Overall Development Program. 14.6.5.3 The Purchase of the CBM and Liquid Hydrocarbons produced from the Contract Area shall be made at the Delivery Point, which unless otherwise mutually agreed, shall be the most economically viable nearby Natural Gas pipeline having available capacity. 14.6.5.4 Unless otherwise agreed by the Contractor, payments for CBM and Liquid Hydrocarbons shall be made in U.S. dollars in the bank account designated by Contractor, either within or outside the People's Republic of China at Contractor's election. 14.6.6 In case CUCBM and/or its Affiliates have available capacity in the gas trunklines and/or pipeline infrastructure, once a CBM transportation contract with reasonable transportation costs determined in accordance with Article 14.4.1 has been signed by and between CUCBM and/or its Affiliates and Contractor, the Contractor shall be guaranteed access and priority use of such trunkline and/or pipeline infrastructure and any subsequent CBM or Natural Gas producer shall be subject to Contractors' guaranteed access and priority use of such trunkline and/or pipeline infrastructure.
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Samples: Production Sharing Contract (Far East Energy Corp), Production Sharing Contract (Far East Energy Corp)
Destination of the CBM and Liquid Hydrocarbons. 14.6.1 The destination of Contractor's CBM, CBM Products, and Liquid Hydrocarbons obtained under the Contract shall be at the discretion of the Contractor. The Contractor shall have the following non-exclusive options:
(1) to join with CUCBM to market a part or all of their respective shares of CBM and Liquid Hydrocarbons and to sell such CBM and Liquid Hydrocarbons jointly to prospective purchasers able to pay in U.S. Dollars;
(2) to sell directly its share of the CBM and Liquid Hydrocarbons to the Chinese users subject to the approval of the relevant government departments if required;
(3) to sell its share of the CBM and Liquid Hydrocarbons to CUCBM and/or its Affiliates, CUCBM and/or its Affiliates shall pay to the Contractor in U.S. Dollars in accordance with Article 14.6.5; or
(4) to sell its share of the CBM and Liquid Hydrocarbons to any other lawful destinations or buyers.
14.6.2 Transportation costs shall be determined in accordance with Article 14.4.1 herein.
14.6.3 The CBM and Liquid Hydrocarbons price or value shall be determined in accordance with this Article 14 with the objective of the Parties being to produce the CBM and Liquid Hydrocarbons at the MER and to obtain the best price possible.
14.6.4 Unless otherwise mutually agreed, the CBM Delivery Point shall be the most economically viable nearby pipeline having available capacity, or the Delivery Point of the pipeline owned under this Contract or by any of the Parties.
14.6.5 For the purpose of encouraging the exploration and development of CBM, CUCBM and/or its Affiliates will, upon request of Contractor, act as a buyer to purchase all or part of Contractor's share of CBM and Liquid Hydrocarbons produced from the Contract Area in accordance with the following provisions:.
14.6.5.1 The Parties shall agree upon the volume and rates of delivery of CBM and Liquid Hydrocarbons by Contractor and to be purchased by CUCBM and/or its Affiliates.
14.6.5.2 The price of CBM and Liquid Hydrocarbons and other essential terms and conditions, conditions including but not limited to, to Delivery Point and pipeline costs shall be determined pursuant to the provisions of this Article 14 and shall, shall unless otherwise mutually agreed, agreed be agreed upon prior to the determination of commerciality and preparation of the Overall Development Program.
14.6.5.3 The Purchase of the CBM and Liquid Hydrocarbons produced from the Contract Area shall be made at the Delivery Point, which unless otherwise mutually agreed, shall be the most economically viable nearby Natural Gas pipeline having available capacity.
14.6.5.4 Unless otherwise agreed by the Contractor, payments for CBM and Liquid Hydrocarbons shall be made in U.S. dollars Dollars in the bank account designated by Contractor, either within or outside the People's Republic of China at Contractor's election.
14.6.6 In the case that CUCBM and/or its Affiliates have available capacity in the gas trunklines and/or pipeline infrastructure, once a CBM transportation contract with reasonable transportation costs determined in accordance with Article 14.4.1 and with due reference to Chinese CBM industry practice has been signed by and between CUCBM and/or its Affiliates and Contractor, the Contractor shall be guaranteed access and priority use of such trunkline and/or pipeline infrastructure and any subsequent CBM or Natural Gas producer shall be subject to Contractors' guaranteed access and priority use of such trunkline and/or pipeline infrastructure.
14.6.7 Both Parties understand that the construction of pipelines and related facilities (the "Pipeline") is required for the purpose of transport CBM from the Contract Area. The construction can either be included in the Overall Development Program or be developed as a separate project. Unless otherwise agreed between the Parties in writing and subject to the applicable laws and regulations, the Contractor shall have the right to participate in the Pipeline and to all revenues generated thereof equal to its participating interest
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