HYDROCARBON VALUATION Clause Samples
The Hydrocarbon Valuation clause defines the method and criteria for determining the value of hydrocarbons produced under an agreement. It typically outlines whether valuation is based on market prices, posted prices, or actual sales, and may specify adjustments for quality, transportation, or other relevant factors. This clause ensures that all parties have a clear and consistent basis for calculating revenues and payments, thereby reducing disputes and providing transparency in financial settlements.
HYDROCARBON VALUATION. The payments or reimbursements referred to in Clauses 9 (Items 9.2 and 9.4) and 22 (Item 22.5), will be made in USA dollars, or in Hydrocarbons, based on its current market price and the limitations established or that may be established by Colombian Law for the sale of the portion payable in USA dollars of Hydrocarbons coming from the Contracted Area to be used in refining in the Colombian territory.
HYDROCARBON VALUATION. 45 CLAUSE 38.