Common use of Investment Usage Fees Clause in Contracts

Investment Usage Fees. The Participating Parties in such well shall pay to the Operator, for credit to the owners of the Platform and/or Development Facilities, a one-time usage fee for the right to use the Platform and/or Development Facilities. Such usage fees shall be determined in accordance with paragraphs (a) and (b) below: (a) A fee for slot usage will be determined as follows: (i) In the event the well uses a platform with well slots and such platform has no Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform. (ii) In the event the well uses a Platform with well slots and such Platform has Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform attributable to well slot area, determined as follows: ST/WD EPA JOA 40 Slot Usage Fee = (one platform slot divided by total platform slots) x [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Well Slot Area %] Well Slot Area % = Deck Space Dedicated to Well Slots divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated to Development Facilities) The cost of Development Facilities [as used in Article 13.9.1 (a) and (b)] shall include the cost of design, material, fabrication, transportation, installation, repairs and modifications of such Development Facilities. For purposes of calculating the slot usage fee [under Article 13.9.1 (a) (1) or (ii)], the total cost of the Platform shall be reduced by 0.83333% per month, commencing on the first day of the month following the date the Platform was installed and continuing every month thereafter until the month actual drilling operations on such well is commenced; however, the total cost of the Platform shall not be reduced by more than twenty-five percent (25%) of the total Platform costs. The cost of additions to the Platform shall be reduced in the same manner commencing the first day of the month after the addition is installed If such well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate unless such Parties commence drilling a substitute well for the abandoned well through the same slot within ninety (90) days of the abandonment. If such substitute well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate. No refund or credit of the slot usage fee shall be given or due if a subsequent well operation is conducted through the same slot or if that Platform slot is restored to a usable condition. If subsequent Non-consent Operations (such as Workover, Recompletion, Deepening, or Sidetracking operations) are conducted in any wellbore where either all Parties to this agreement participated in the original well drilling costs or a previous Non-consent Operation was conducted, ST/WD EPA JOA 41 no slot usage fee shall be charged to the Participating Parties in the subsequent Non-consent Operation. (b) The Participating Parties in such well shall pay to the owners of the Development Facilities a sum equal to that portion of the total cost of such Development Facilities which the throughput volume of the Non-consent Operation bears to the total design throughput volume of the Development Facilities at the time such well is connected. Throughput volume shall be estimated by the Operator using an average daily volume of the first three months of production from the Non consent Operation. The Total Cost of Development Facilities shall include the cost of design, material, fabrication, transportation, installation, repairs and modifications of Development Facilities plus that portion of the cost of the Platform attributable to Development Facilities Area. The Development Facilities Usage Fee shall be based on the following: Development Facilities Usage Fee =Total Cost of Development Facilities x Throughput Volume of Non-consent Well divided by Total Design Throughput of Facilities Total Cost of Development Facilities = Cost of Development Facilities + [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Development Facilities Area %] Development Facilities Area % = Deck Space Dedicated to Development Facilities divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated toDevelopment Facilities) For purposes of calculating the Development Facilities usage fee, the total cost of the Development Facilities, shall be reduced by 0.83333% per month, commencing from the first day of the month following the date when the Development Facilities where installed and continuing every month thereafter until the first day of the month during which production from the Non-consent Operation is commenced; however, the total cost of the Development Facilities shall not be reduced more than twenty-five percent (25%). If modifications, expansions or additions to the Development Facilities are made after commencing first production and prior to the connection of the Non-consent Operation to the Development Facilities, such Development Facilities investment shall be reduced in the same manner as described above, from the first day of the month the ST/WD EPA JOA 42 Development Facilities modification, expansion or addition is completed until the first day of the month during which production from the Non-consent Operation is commenced. If modifications, expansions or additions are made to the Development Facilities after connection of the Non-consent Well which benefit the Non-consent Well, such costs shall be shared by the Non-consent Well based on that portion which the throughput volume of the Non-consent Well bears to the total design throughput volume of the Development Facilities at the time of completion of such modification, expansion or addition. The Non-consent well's throughput volumes shall be determined in the same manner as described above. Payment of sums under this Article 13.9.1 is not a purchase of an additional interest in the Platform or the Development Facilities. Such payment shall be included in the total amount that the Participating Parties are entitled to recoup out of Hydrocarbon production from the Non-consent Well.

Investment Usage Fees. The Participating Parties in such well shall pay to the Operator, for credit to the owners of the Platform and/or Development Facilities, ; a one-time usage fee for the right to use the Platform and/or Development Facilities. Such usage fees shall be determined in accordance with paragraphs (a) and (b) below: (a) A fee for slot usage will be determined as follows: (i) In the event the well uses a platform with well slots and such platform has no Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform. (ii) In the event the well uses a Platform with well slots and such Platform has Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform attributable to well slot area, determined as follows: ST/WD EPA JOA 40 Slot Usage Fee = (one platform slot divided by total platform slots) x [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Well Slot Area %] Well Slot Area % = Deck Space Dedicated to Well Slots divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated to Development Facilities) The cost of Development Facilities [as used in Article 13.9.1 (a) and (b)] shall include the cost of design, material, fabrication, transportation, installation, repairs installation and modifications of such Development Facilities. For purposes of calculating the slot usage fee [under Article 13.9.1 (a) (1i) or (ii)], the total cost of the Platform shall be reduced by 0.83333% per month, commencing on the first day of the month following the date the Platform was installed and continuing every month thereafter thereafer until the month actual drilling operations on such well is commenced; however, the total cost of the Platform shall not be reduced by more than twenty-five forty percent (2540%) of the total Platform costs. The cost of additions to the Platform shall be reduced in the same manner commencing the first day of the month after the addition is installed If such well is abandoned, having never produced, the right of the the. Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate unless such Parties commence drilling a substitute well for the abandoned well through the same slot within ninety (90) days of the abandonment. If such substitute well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate. No refund or credit of the slot usage fee shall be given or due if a subsequent well operation is conducted through the same slot or if that Platform slot is restored to a usable condition. If subsequent Non-consent Operations (such as Workover, Recompletion, Deepening, or Sidetracking operations) are conducted in any wellbore where either all Parties to this agreement participated in the original well drilling costs or a previous Non-consent Operation was conducted, ST/WD EPA JOA 41 no slot usage fee shall be charged to the Participating Parties in the subsequent Non-consent Operation. (b) The Participating Parties in such well shall pay to the owners of the Development Facilities a sum equal to that portion of the total cost of such Development Facilities which the throughput volume of the Non-consent Operation bears to the total design throughput volume of the Development Facilities at the time such well is connected. Throughput volume shall be estimated by the Operator using an average daily volume of the first three months of production from the Non consent Operation. The Total Cost of Development Facilities shall include the cost of design, material, fabrication, transportation, installation, repairs installation and modifications of Development Facilities plus that portion of the cost of the Platform attributable to Development Facilities Area. The Development Facilities Usage Fee shall be based on the following: Development Facilities Usage Fee == Total Cost of Development Facilities x Throughput Volume of Non-consent Well divided by Total Design Throughput of Facilities Total Cost of Development Facilities = Cost of Development Facilities + [(Total Cost of Platform - Any Cost of Development Facilities Included In in the Total Cost of Platform) x Development Facilities Area %] Development Facilities Area % = Deck Space Dedicated to Development Facilities divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated toDevelopment to Development Facilities) For purposes of calculating the Development Development, Facilities usage fee, the total cost of the Development Facilities, shall be reduced by 0.83333% per month, commencing from the first day of the month following the date when the Development Facilities where installed and continuing every month thereafter until the first day of the month during which production from the Non-consent Operation is commenced; however, the total cost of the Development Facilities shall not be reduced more than twenty-five forty percent (2540%). If modifications, expansions or additions to the Development Facilities are made after commencing first production and prior to the connection of the Non-consent Operation to the Development Facilities, such Development Facilities investment shall be reduced in the same manner as described above, from the first day of the month the ST/WD EPA JOA 42 Development Facilities modification, expansion or addition is completed until the first day of the month during which production from the Non-consent Operation is commenced. If modifications, expansions or additions are made to the Development Facilities after connection of the Non-consent Well which benefit the Non-consent Well, such costs shall be shared by the Non-consent Well based on that portion which the throughput volume of the Non-consent Well bears to the total design throughput volume of the Development Facilities at the time of completion of such modification, expansion or addition. The Non-consent well's throughput volumes shall be determined in the same manner as described above. Payment of sums under this Article 13.9.1 is not a purchase of an additional interest in the Platform or the Development Facilities. Such payment shall be included in the total amount that the Participating Parties are entitled to recoup out of Hydrocarbon production from the Non-consent Well.

Investment Usage Fees. The Participating Parties in such well shall pay to the Operator, for credit to the owners of the Platform and/or Development Facilities, a one-time usage fee for the right to use the Platform and/or Development Facilities. Such usage fees shall be determined in accordance with paragraphs (a) and (b) below: (a) A fee for slot usage will be determined as follows: (i) In the event the well uses a platform with well slots and such platform has no Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform. (ii) In the event the well uses a Platform with well slots and such Platform has Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform attributable to well slot area, determined as follows: ST/WD EPA JOA 40 Slot Usage Fee = (one platform slot divided by total platform slots) x [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Well Slot Area %] Well Slot Area % = Deck Space Dedicated to Well Slots divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated to Development Facilities) The cost of Development Facilities [as used in Article 13.9.1 (a) and (b)] shall include the cost of design, material, fabrication, transportation, installation, repairs installation and modifications of such Development Facilities. For purposes of calculating the slot usage fee [under Article 13.9.1 (a) (1) or (ii)], the total cost of the Platform shall be reduced by 0.83333% per month, commencing on the first day of the month following the date the Platform was installed and continuing every month thereafter until the month actual drilling operations on such well is commenced; however, the total cost of the Platform shall not be reduced by more than twenty-five percent (25%) of the total Platform costs. The cost of additions to the Platform shall be reduced in the same manner commencing the first day of the month after the addition is installed If such well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate unless such Parties commence drilling a substitute well for the abandoned well through the same slot within ninety (90) days of the abandonment. If such substitute well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate. No refund or credit of the slot usage fee shall be given or due if a subsequent well operation is conducted through the same slot or if that Platform slot is restored to a usable condition. If subsequent Non-consent Operations (such as Workover, Recompletion, Deepening, or Sidetracking operations) are conducted in any wellbore where either all Parties to this agreement participated in the original well drilling costs or a previous Non-consent Operation was conducted, ST/WD EPA JOA 41 no slot usage fee shall be charged to the Participating Parties in the subsequent Non-consent Operation. (b) The Participating Parties in such well shall pay to the owners of the Development Facilities a sum equal to that portion of the total cost of such Development Facilities which the throughput volume of the Non-consent Operation bears to the total design throughput volume of the Development Facilities at the time such well is connected. Throughput volume shall be estimated by the Operator using an average daily volume of the first three months of production from the Non consent Operation. The Total Cost of Development Facilities shall include the cost of design, material, fabrication, transportation, installation, repairs and modifications of Development Facilities plus that portion of the cost of the Platform attributable to Development Facilities Area. The Development Facilities Usage Fee shall be based on the following: Development Facilities Usage Fee =Total Cost of Development Facilities x Throughput Volume of Non-consent Well divided by Total Design Throughput of Facilities Total Cost of Development Facilities = Cost of Development Facilities + [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Development Facilities Area %] Development Facilities Area % = Deck Space Dedicated to Development Facilities divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated toDevelopment Facilities) For purposes of calculating the Development Facilities usage fee, the total cost of the Development Facilities, shall be reduced by 0.83333% per month, commencing from the first day of the month following the date when the Development Facilities where installed and continuing every month thereafter until the first day of the month during which production from the Non-consent Operation is commenced; however, the total cost of the Development Facilities shall not be reduced more than twenty-five percent (25%). If modifications, expansions or additions to the Development Facilities are made after commencing first production and prior to the connection of the Non-consent Operation to the Development Facilities, such Development Facilities investment shall be reduced in the same manner as described above, from the first day of the month the ST/WD EPA JOA 42 Development Facilities modification, expansion or addition is completed until the first day of the month during which production from the Non-consent Operation is commenced. If modifications, expansions or additions are made to the Development Facilities after connection of the Non-consent Well which benefit the Non-consent Well, such costs shall be shared by the Non-consent Well based on that portion which the throughput volume of the Non-consent Well bears to the total design throughput volume of the Development Facilities at the time of completion of such modification, expansion or addition. The Non-consent well's throughput volumes shall be determined in the same manner as described above. Payment of sums under this Article 13.9.1 is not a purchase of an additional interest in the Platform or the Development Facilities. Such payment shall be included in the total amount that the Participating Parties are entitled to recoup out of Hydrocarbon production from the Non-consent Well.

Investment Usage Fees. The Participating Parties in such well shall pay to the Operator, for credit to the owners of the Platform and/or Development Facilities, a one-time usage fee for the right to use the Platform and/or Development Facilities. Such usage fees shall be determined in accordance with paragraphs (a) and (b) below: (a) A fee for slot usage will be determined as follows: (i) In the event the well uses a platform with well slots and such platform has no Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform. (ii) In the event the well uses a Platform with well slots and such Platform has Development Facilities installed on it, the slot usage fee shall be an amount equal to the ratio which one Platform slot bears to the total number of slots on the Platform times the total cost of the Platform attributable to well slot area, determined as follows: ST/WD EPA JOA 40 Slot Usage Fee = (one platform slot divided by total platform slots) x [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Well Slot Area %] Well Slot Area % = Deck Space Dedicated to Well Slots divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated to Development Facilities) The cost of Development Facilities [as used in Article 13.9.1 (a) and (b)] shall include the cost of design, material, fabrication, transportation, installation, repairs installation and modifications of such Development Facilities. For purposes of calculating the slot usage fee [under Article 13.9.1 (a) (1i) or (ii)], the total cost of the Platform shall be reduced by 0.83333% per month, commencing on the first day of the month following the date the Platform was installed and continuing every month thereafter until the month actual drilling operations on such well is commenced; however, the total cost of the Platform shall not be reduced by more than twenty-five forty percent (2540%) of the total Platform costs. The cost of additions to the Platform shall be reduced in the same manner commencing the first day of the month after the addition is installed If such well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate unless such Parties commence drilling a substitute well for the abandoned well through the same slot within ninety (90) days of the abandonment. If such substitute well is abandoned, having never produced, the right of the Participating Parties in such well to utilize the Platform slot through which such well was drilled shall terminate. No refund or credit of the slot usage fee shall be given or due if a subsequent well operation is conducted through the same slot or if that Platform slot is restored to a usable condition. If subsequent Non-consent Operations (such as Workover, Recompletion, Deepening, or Sidetracking operations) are conducted in any wellbore where either all Parties to this agreement participated in the original well drilling costs or a previous Non-consent Operation was conducted, ST/WD EPA JOA 41 no slot usage fee shall be charged to the Participating Parties in the subsequent Non-consent Operation. (b) The Participating Parties in such well shall pay to the owners of the Development Facilities a sum equal to that portion of the total cost of such Development Facilities which the throughput volume of the Non-consent Operation bears to the total design throughput volume of the Development Facilities at the time such well is connected. Throughput volume shall be estimated by the Operator using an average daily volume of the first three months of production from the Non consent Operation. The Total Cost of Development Facilities shall include the cost of design, material, fabrication, transportation, installation, repairs installation and modifications of Development Facilities plus that portion of the cost of the Platform attributable to Development Facilities Area. The Development Facilities Usage Fee shall be based on the following: Development Facilities Usage Fee =Total Cost of Development Facilities x Throughput Volume of Non-consent Well divided by Total Design Throughput of Facilities Total Cost of Development Facilities = Cost of Development Facilities + [(Total Cost of Platform - Any Cost of Development Facilities Included In the Total Cost of Platform) x Development Facilities Area %] Development Facilities Area % = Deck Space Dedicated to Development Facilities divided by (Deck Space Dedicated to Well Slots + Deck Space Dedicated toDevelopment to Development Facilities) For purposes of calculating the Development Facilities usage fee, the total cost of the Development Facilities, shall be reduced by 0.83333% per month, commencing from the first day of the month following the date when the Development Facilities where installed and continuing every month thereafter until the first day of the month during which production from the Non-consent Operation is commenced; however, the total cost of the Development Facilities shall not be reduced more than twenty-five forty percent (2540%). If modifications, expansions or additions to the Development Facilities are made after commencing first production and prior to the connection of the Non-consent Operation to the Development Facilities, such Development Facilities investment shall be reduced in the same manner as described above, from the first day of the month the ST/WD EPA JOA 42 Development Facilities modification, expansion or addition is completed until the first day of the month during which production from the Non-consent Operation is commenced. If modifications, expansions or additions are made to the Development Facilities after connection of the Non-consent Well which benefit the Non-consent Well, such costs shall be shared by the Non-consent Well based on that portion which the throughput volume of the Non-consent Well bears to the total design throughput volume of the Development Facilities at the time of completion of such modification, expansion or addition. The Non-consent well's throughput volumes shall be determined in the same manner as described above. Payment of sums under this Article 13.9.1 is not a purchase of an additional interest in the Platform or the Development Facilities. Such payment shall be included in the total amount that the Participating Parties are entitled to recoup out of Hydrocarbon production from the Non-consent Well.