Mandatory Expenditures. (a) Commencing with the first full calendar year after the Effective Date, for each Lease Year during the term of this Lease prior to commencement of Commercial Production, Tectonic must make the following mandatory minimum Expenditures, to be spent according to the Programs and Budgets adopted under SECTION 4.2: 2018 $400,000 2019 $600,000 2020 - 2023 $750,000 2024 - 2027 $1,500,000 2028 and each Lease Year thereafter $2,000,000 The obligation to make Expenditures for any Lease Year accrues on the first day of that Lease Year. Expenditures in excess of the minimum for any year may be carried forward and credited toward the minimum accruing for any subsequent year or years. Regardless of the carry-forward credit, commencing with the seventh Lease Year and prior to commencement of Commercial Production, Tectonic must expend at least $2,000,000 over every five-year period of this Lease, or at Tectonic’s election to keep this Lease in effect, satisfy any shortfall in expenditures during any such five-year period by payment in cash to Xxxxx of an amount equal to the shortfall; provided, further, that if Tectonic fails to spend the full amount, less any carry-forward credit, it must satisfy the commitment for that year by paying the shortfall in cash to Xxxxx by January 31st following the end of the applicable Lease Year.
(b) No implied covenants or conditions whatsoever shall be read into this Lease relating to the prospecting, developing, or mining of the Premises or any other operations of Tectonic hereunder, including but not limited to the marketing or sale of Minerals, Mineral Products or Ores, or as to the time therefor or measure of diligence thereof, it being expressly agreed and understood that any operations conducted by Tectonic upon or relating to the Premises shall be conducted at such time and in such manner as Tectonic, in its sole discretion, deems advisable, subject only to the express provisions of this Lease.
Mandatory Expenditures. Subject to the provisions of Article 9, AEM is obligated to incur the Expenditures referred to in Section 7.1(b)(i).
Mandatory Expenditures. Notwithstanding §9.1, if, in any year in which there is no Program adopted pursuant to this Agreement, circumstances are such that the Manager must incur costs in order to maintain tenure to the Property, to satisfy contractual obligations or obligations imposed by law, to prevent waste or to protect life and property (in this paragraph called the "non-discretionary costs"), the Manager shall immediately propose a program (in this paragraph called the "mandatory program") to incur those non-discretionary costs and provide each party with one copy of it. The mandatory program shall be deemed to be approved and each of the parties shall be obligated to contribute to the non-discretionary costs incurred in proportion to their respective Participating Interest within 30 calendar days of receipt of the Manager's invoice. Cash Calls
Mandatory Expenditures. Notwithstanding paragraph 7.1, if, in any year in which there is no Program adopted pursuant to this agreement, circumstances are such that the Operator must incur costs in order to maintain tenure to the Property, to satisfy contractual obligations or obligations imposed by law, to prevent waste or to protect life and property (in this paragraph called "non-discretionary costs"), the Operator shall immediately propose a program (in this paragraph called the "mandatory program") to incur those non-discretionary costs and provide each party with one copy of it. The mandatory program shall be deemed to be approved and each of the parties shall be obligated to contribute to the non-discretionary costs incurred in proportion to their respective Interest within thirty days of receipt of the Operator's invoice; failing which contribution paragraph 7.9 shall apply.
Mandatory Expenditures. Notwithstanding subsection 7.1, if, in any year in which there is no Program adopted pursuant to this Agreement, circumstances are such that the Management Committee must incur costs in order to maintain tenure to the Property, to satisfy contractual obligations or obligations imposed by law, to prevent waste or to protect life and property (in this subsection called "non-discretionary costs"), the Management Committee shall instruct the Operator to immediately propose a program (in this subsection called the "mandatory program") to incur those non-discretionary costs and provide each party with one copy of it. The mandatory program shall be deemed to be approved and each of the parties shall be obligated to contribute to the non-discretionary costs incurred in proportion to their respective Interest within thirty days of receipt of the Management Committee's invoice; failing which contribution subsection 7.9 shall apply.
Mandatory Expenditures. Unless this Agreement is terminated in accordance with Section 6.3, the Optionee shall incur the Expenditures described in Section 3.3(b) and (c) of this Agreement.
Mandatory Expenditures. (a) As used in this agreement, “Mandatory Expenditures” means:
(1) Expenditures required because changes in applicable laws and regulations mandate a change in permissible product specifications and capital investment is necessary to allow the Combined Facility to continue to produce at least 90,000 barrels per day of marketable products;
(2) Expenditures required because changes in applicable laws and regulations require that capital investments be made at the Combined Facility in order to allow the Combined Facility to continue to meet environmental or other compliance standards; or
(3) Environmental cleanup or remediation expenses incurred by Chevron in connection with the Combined Facility other than those referred to in Sections 9(d) and 9(e) hereof.
(b) If in any calendar year during the term hereof Mandatory Expenditures are required at the Combined Facility in excess of $10 million, Chevron shall so notify RHC in writing and RHC and Chevron shall meet and confer regarding appropriate modifications to this agreement to address such Mandatory Expenditures. If the parties are unable to agree to such modifications within 30 days following the time such notice is given to RHC by Chevron, then this agreement shall continue in effect and Chevron shall cause such Mandatory Expenditures to be made; provided that the per barrel processing fee otherwise provided for in Section 3(c) shall be increased by an amount equal to: (The initial cost of such Mandatory Expenditures in excess of $10 million) times 12% times (1/90,000) times (1/365), to reflect the value of such Mandatory Expenditures by Chevron. An example of such calculation is set forth in Exhibit F. Such processing fee shall be subject to being increased only for Mandatory Expenditures incurred by Chevron in years subsequent to 1993. Any such increased fee shall apply beginning with the first calendar month during the year after the month during which the $10 million threshold is exceeded, and shall be further increased thereafter to reflect additional Mandatory Expenditures by Chevron during such year.
Mandatory Expenditures. 13 4.3 Exploration Program and Budget.................................14 4.4 Sampling.......................................................14 4.5 Guarantee of Exploration Expenditures..........................14 5. EXERCISE OF OPTION AND EXECUTION OF LEASE...............................15 5.1 Prefeasibility Study; Designated Areas.........................15 5.2 Request for Conveyance and Execution of Lease..................16 6.
Mandatory Expenditures. North Star agrees to make mandatory minimum Exploration Expenditures as set forth below. The obligation to make Exploration Expenditures for any Option Year accrues on the first day of that Option Year and not before.
(a) (i) Allocated Exploration Expenditures ---------------------------------------------------------------------------------------------------------------------- Block and Area of Interest Option Year ---------------------------------------------------------------------------------------------------------------------- 2002 2003 2004 ---------------------------------------------------------------------------------------------------------------------- Northway Village $390,000 $110,000 $350,000 ---------------------------------------------------------------------------------------------------------------------- Takotna Village $90,000 0 $170,000 ---------------------------------------------------------------------------------------------------------------------- Highway Village $60,000 0 $150,000 ---------------------------------------------------------------------------------------------------------------------- Yukon Group $130,000 $20,000 $150,000 ---------------------------------------------------------------------------------------------------------------------- Minto Village $10,000 $65,000 $75,000 ---------------------------------------------------------------------------------------------------------------------- (ii) Non-Allocated Exploration Expenditures: ---------------------------------------------------------------------------------------------------------------------- State of Alaska Mining Claim and Other Miscellaneous Expenditures $35,000 $35,000 $35,000 ---------------------------------------------------------------------------------------------------------------------- Database $30,000 0 0 ---------------------------------------------------------------------------------------------------------------------- Fairbanks & Denver Offices $200,000 $200,000 $200,000 ----------------------------------------------------------------------------------------------------------------------
(b) Exploration Expenditures in excess of the minimum amount required for each Option Year as described above may be carried forward and credited toward the minimum Exploration Expenditures amount accruing for any subsequent year or years, except that only $200,000 of drilling costs per each Block and associated Area of Interest may be so carried forward ...
Mandatory Expenditures
