Reclamation Trust Clause Samples
Reclamation Trust. Subject to the terms of the Credit Facilities, the Grantor and the Royalty Owner agree that if changes are made to the INCOME TAX ACT (Canada) so as to permit the formation of a trust or other fund which:
(a) has characteristics similar to a mining reclamation trust as defined in the INCOME TAX ACT (Canada);
(b) may be used to secure or otherwise provide funding for environmental and/or reclamation obligations relating to the Properties for which the Grantor may be liable; and
(c) would have beneficial income tax consequences for the Grantor as determined by the Grantor, acting reasonably; then:
(d) the Grantor shall establish such a trust or other fund;
(e) the amount then contained in the Reclamation Fund shall be paid to such trust or other fund;
(f) thereafter, amounts which would otherwise have been paid into the Reclamation Fund will, instead, be paid to such trust or other fund; and
(g) thereafter, for purposes of computing Production Costs and Deductible Production Costs, payments to or from such trust or other fund shall be deemed to be payments to or from the Reclamation Fund.
Reclamation Trust. The Grantor and the Royalty Owner covenant that if changes are made to the Tax Act so as to permit the formation of a vehicle which:
(a) has characteristics similar to those of a mining reclamation trust, as defined in the Tax Act;
(b) may be used to secure or otherwise provide funding for any well bore, facility abandonment, environmental or reclamation obligations and liabilities in respect of the Properties for which the Grantor may be liable; and
(c) would have beneficial income tax consequences for the Grantor, as determined by the Grantor acting reasonably; then:
(d) the Grantor may cause such a vehicle to be formed and shall control such vehicle;
(e) the amount contained in the Reclamation Fund at the time of the formation of such vehicle shall immediately be paid into such vehicle;
(f) after the formation of such vehicle, any amounts which would have been paid into the Reclamation Fund pursuant to this Article 4 shall be paid directly into such vehicle; and
(g) after the formation of such vehicle, for the purpose of computing the Royalty, payments to or from such vehicle shall be deemed to be payments to or from the Reserve.
Reclamation Trust. The Grantor and the Royalty Owner covenant that if changes are made to the Tax Act so as to permit the formation of a vehicle which:
(a) has characteristics similar to those of a mining reclamation trust, as defined in the Tax Act;
(b) may be used to secure or otherwise provide funding for any well bore, facility abandonment, environmental or reclamation obligations and liabilities in respect of the Properties for which the Grantor may be liable; and
(c) would have beneficial income tax consequences for the Grantor, as determined by the Grantor acting reasonably; then:
(d) the Grantor may cause such a vehicle to be formed and shall control such vehicle;
(e) the amount contained in the Reclamation Fund at the time of the formation of such vehicle shall immediately be paid into such vehicle;
Reclamation Trust. The Grantor and the NPI Holder agree that if changes are made to the Income Tax Act (Canada) so as to permit the formation of a vehicle such as a trust which is similar to a “mining reclamation trust” (as defined in the Income Tax Act (Canada) in effect on the date hereof) to secure or otherwise provide funding for environmental and/or reclamation obligations relating to the Property Interests which would have beneficial income tax consequences for the Grantor in the reasonable opinion of the Grantor:
(a) the Grantor shall establish such a vehicle;
(b) the amount then contained in the Reclamation Fund shall be paid to such vehicle;
(c) thereafter, amounts which would otherwise have been paid into the Reclamation Fund pursuant to clause 7.2 will, instead, be paid to such vehicle; and
(d) thereafter, for purposes of computing Production Costs and Deductible Production Costs payments to or from such vehicle shall be deemed to be payments to or from the Reclamation Fund.
Reclamation Trust. 32 ARTICLE 8 POOLING, UNITIZATION, SURRENDER AND ABANDONMENT
Reclamation Trust. Following the Cameco Exit, KGC shall place the reclamation trust funds in relation to the Kumtor Project (the "Reclamation Trust Fund") with a financial institution located in the Kyrgyz Republic, provided that (a) there are no legal or contractual restrictions on KGC's ability to transfer the Reclamation Trust Fund (including requirements of the EBRD and IFC regarding the management of the Reclamation Trust Fund), or (b) if such legal or contractual restrictions exist, KGC is able to obtain, using its reasonable efforts, all the required consents (including, if necessary, consents for any required amendments to the existing Reclamation Trust Fund documentation) for the transfer of the Reclamation Trust Fund. If placed with a financial institution in the Kyrgyz Republic, (a) the obligations of such financial institution to KGC in respect of the Reclamation Trust fund shall be fully guaranteed by the Government, and (b) in the event there is any impairment with respect to amounts so placed, KGC shall have the right to offset any impaired Reclamation Trust Fund amounts against the Taxes and other payments payable under the New Tax Regime or against amounts payable pursuant to Section 5.4(d)(ii) of this Agreement on New Terms.