Common use of EQUIPMENT AND FACILITIES FURNISHED BY OPERATOR Clause in Contracts

EQUIPMENT AND FACILITIES FURNISHED BY OPERATOR. In the absence of a separately negotiated agreement, equipment and facilities furnished by the Operator will be charged as follows: A. The Operator shall charge the Joint Account for use of Operator-owned equipment and facilities, at rates commensurate with the costs of ownership and operation. B. In lieu of charges in Section II.6.A above, the Operator may elect to use average commercial rates prevailing in the immediate area of the Joint Property, less five percent (5%). If equipment and facilities are charged under this Section II.6.B, the operator shall adequately document and support commercial rates and shall periodically review and update the rate and the supporting documentation. For automotive equipment, the Operator may elect to use rates published by the Petroleum Motor Transport Association (PMTA) or such other organization recognized by XXXXX as the official source of rates.

EQUIPMENT AND FACILITIES FURNISHED BY OPERATOR. In the absence of a separately separately-negotiated agreement, equipment and facilities furnished by the Operator will be charged as follows: A. The Operator shall charge the Joint Well Account for use of Operator-owned equipment and facilities, facilities at rates commensurate with the costs of ownership and operation. B. In lieu of charges in Section II.6.A above, the Operator may elect to use average commercial rates prevailing in the immediate area of the Joint PropertyXxxxx, less five percent (5%). If equipment and facilities are charged under this Section II.6.B, the operator shall adequately document and support commercial rates and shall periodically review and update the rate and the supporting documentation. For automotive equipment, the Operator may elect to use rates published by the Petroleum Motor Transport Association (PMTA) or such other organization recognized by XXXXX as the official source of rates.