Common use of Programs and Budgets Clause in Contracts

Programs and Budgets. 9.8 The Operator will propose the work programs and budgets following the formation of the Joint Venture in accordance with the instructions of the Management Committee. Each party will have thirty (30) days from the date of receipt of a program to notify the Operator as to whether it will participate at its interest level or whether it will not participate. The participating interest of a party which elects not to participate will be proportionately diluted in accordance with the dilution formula set out in §9.9. A party which fails to so notify the Operator within the time required will be deemed to have elected to participate in the work program at its interest level. A party’s right not to participate in a work program and be diluted as aforesaid may only be exercised prior to a production decision, subject to §9.12. A party which elects not to participate in a program will not be subject to dilution to the extent that the expenditures under such program exceed one hundred fifteen percent (115%) of the budget for such program. If a party fails to pay after electing to participate that party will suffer an accelerated dilution of one-hundred fifty percent (150%) of the monies not paid. The Joint Venture Agreement shall provide that monies required for a work program must be paid no later than thirty days (30) prior to commencement of a work program. Dilution

Programs and Budgets. 9.8 10.9 The Operator will propose the work programs and budgets following the formation of the Joint Venture in accordance with the instructions of the Management Committee. Each party will have thirty (30) days from the date of receipt of a program to notify the Operator as to whether it will participate at its interest level or whether it will not participate. The participating interest of a party which elects not to participate will be proportionately diluted in accordance with the dilution formula set out in §9.910.10. A party which fails to so notify the Operator within the time required will be deemed to have elected to participate in the work program at its interest level. A party’s right not to participate in a work program and be diluted as aforesaid may only be exercised prior to a production decision, subject to §9.1210.14. A party which elects not to participate in a program will not be subject to dilution to the extent that the expenditures under such program exceed one hundred fifteen percent (115%) of the budget for such program. If a party fails to pay after electing to participate that party will suffer an accelerated dilution of one-hundred fifty percent (150%) of the monies not paid. The Joint Venture Agreement shall provide that monies required for a work program must be paid no later than thirty days (30) prior to commencement of a work program. Dilution