Shutdown and Reclamation Fund. The Parties shall, before the filing of any rehabilitation and reclamation plan regarding the Property in compliance with all applicable Laws including, without limitation, Environmental Laws and Environmental Policies, and in the thirty (30)-day period following a notice of the Manager to this effect, agree on a mechanism for establishing a cash fund (the “Shutdown and Reclamation Fund”) for the funding of all Final Expenditures. In the absence of such an agreed-upon mechanism within the above mentioned delay, the following provisions shall apply:
Shutdown and Reclamation Fund. The Operator will establish a cash fund (the "Shutdown and Reclamation Fund") from which all costs and expenses relating to the final shutdown of Operations on the Project, including without limitation, costs associated with employees’ severance pay, as well as costs associated with the reclamation of the Project and with regulatory compliance in that respect (the "Shutdown and Reclamation Costs") will be paid. Any interest income will accrue to the Shutdown and Reclamation Fund. The Operator will, during the period commencing on the earlier of the date on which an Exploration Program providing for significant surface disturbances is adopted by the Management Committee or the date on which a Production Notice is given and expiring on the Completion Date, estimate the Shutdown and Reclamation Costs and xxxx the parties quarterly for their Proportionate Share of any contribution to the Shutdown and Reclamation Fund so that, at any particular time, the Shutdown and Reclamation Fund is sufficient to meet the estimated Shutdown and Reclamation Costs. The Operator will, at any time after the Completion Date, estimate the additional Shutdown and Reclamation Costs and will include in Production Costs an amount, calculated on a per tonne of production basis, to be contributed to the Shutdown and Reclamation Fund. To the extent to which Programs adopted following the giving of a Production Notice include a requirement for contributions to the Shutdown and Reclamation Fund, the part of the Program requiring such a contribution is mandatory and each of the parties will be obliged to contribute its Proportionate Share of that part of the Program. The Management Committee will annually review the calculation of the Shutdown and Reclamation Fund and will make any adjustments to the calculation thereof and the contribution by the parties thereto as considered necessary.
