Common use of Transfer Procedure for the Joint Account Clause in Contracts

Transfer Procedure for the Joint Account. 9.1 If, at the expiration of the pilot test period, the Contractor opts to enter into development period, or when the Oil Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum Operations, the gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 of the Contract, when CNPC becomes the Operator of the Oil Field within the Contract Area, the former Operator shall transfer to CNPC all the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPC. The transfer procedure shall be completed within the time period agreed upon by the Parties. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at When the expiration of Exploration Operations are successful and the pilot test Contract Area enters the development period, the Contractor opts to enter into development period, or when Operator shall conduct an inventory and check of all the Oil properties and accounts for CUCBM. When each CBM Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum CBM Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum CBM Operations, the . The gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to for all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 8.8 of the Contract, when CNPC the organization established by the joint operating agreement takes over and becomes the Operator of all the Oil Field said CBM Fields within the Contract Area, the former Operator shall transfer to CNPC all of the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC CUCBM for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPCCUCBM. The transfer procedure shall be completed within the time period agreed upon by the Parties. Thereafter, owing to the needs of any Investing Party to the Contract, CUCBM shall allow that Party's staff access to the Accounting Records within the relevant Accounting Records custody period and provide them with duplicates, if necessary. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at When the expiration of Exploration Operations are successful and the pilot test Contract Area enters the development period, the Contractor opts to enter into development period, or when Operator shall conduct an inventory and check of all the Oil properties and accounts for CUCBM. When each CBM Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. <PAGE> If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum CBM Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum CBM Operations, the . The gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to for all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 8.8 of the Contract, when CNPC the organization established by the joint operating agreement takes over and becomes the Operator of all the Oil Field said CBM Fields within the Contract Area, the former Operator shall transfer to CNPC all of the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC CUCBM for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPCCUCBM. The transfer procedure shall be completed within the time period agreed upon by the Parties. Thereafter, owing to the needs of any Investing Party to the Contract, CUCBM shall allow that Party's staff access to the Accounting Records within the relevant Accounting Records custody period and provide them with duplicates, if necessary. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at the expiration of the pilot test period, the Contractor opts to enter into development period, or when the Oil Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum Operations, the gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 of the Contract, when CNPC becomes the Operator of the Oil Field within the Contract Area, the former Operator shall transfer to CNPC all the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPC. The transfer procedure shall be completed within the time period agreed upon by the Parties. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at the expiration of the pilot test Pilot Test period, the Contractor opts Parties opt to enter into development Development period, or when the Oil Field oil field within the Contract Area goes from development Development into productionProduction, or when the Contractor terminates Parties terminate the Petroleum Contract, an inventory and check of all properties and accounts shall be conducted. If the Petroleum Contract Area has entered into the development Development period or the production Production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to the Operating Committee and JMC for its approval listing the remaining equipment and Materials needed for the Petroleum Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum Operations, the gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Petroleum Contract terminates, the method of an inventory to all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party Parties in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 of the Petroleum Contract, when CNPC becomes the Operator of the Oil Field oil fields within the Contract Area, the former Operator shall transfer to CNPC all the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Petroleum Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator Parties and CNPC. The transfer procedure shall be completed within the time period agreed upon by the Partieswith CNPC. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at When the expiration of Exploration Operations are successful and the pilot test Contract Area enters the development period, the Contractor opts to enter into development period, or when Operator shall conduct an inventory and check of all the Oil properties and accounts for CUCBM. When each CBM Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum CBM Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum CBM Operations, the gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 8.7 of the Contract, when CNPC the Joint Operators Group (JOG) pursuant to Article 8. 8.1 herein becomes the Operator of all the Oil Field said CBM Fields within the Contract Area, the former Operator shall transfer to CNPC JOG all of the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC CUCBM for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPCCUCBM. The transfer procedure shall be completed within the time period agreed upon by the Parties. Article 1 General Provisions Article 2 Employment . Thereafter, owing to the needs of Chinese Personnel Article 3 Salaries any Investing Party to the Contract, CUCBM shall allow that Party's staff access to the Accounting Records within the relevant Accounting Records custody period and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of provide them with duplicates, if necessary. Annex III Personnel Costs

Transfer Procedure for the Joint Account. 9.1 If, at When the expiration of Exploration Operations are successful and the pilot test Contract Area enters the development period, the Contractor opts to enter into development period, or when Operator shall conduct an inventory and check of all the Oil properties and accounts for CUCBM. When each CBM Field within the Contract Area goes from development into production, or when the Contractor terminates the Contract, an inventory and check of all properties and accounts shall be conducted. If the Contract Area has entered into the development period or the production period, the Operator (after taking an inventory of all properties taken by all Investing Parties) shall make a proposal to JMC for its approval listing the remaining equipment and Materials needed for the Petroleum CBM Operations for the following period and which shall be carried forward to the next period in book values in the Joint Account. The Operator shall be responsible for the disposal of the equipment and materials not needed for the Petroleum CBM Operations, the gains or losses derived from such disposal shall be allocated in accordance with the share of each Investing Party in proportion to the overall investment amount of all Investing Parties and be adjusted against the original accounts. If the Contract terminates, the method of an inventory to all of the remaining equipment and Materials shall be the same as mentioned above, and the gains and losses derived from such disposal shall be adjusted against the accounts of the original Investing Party in accordance with the above mentioned methods. 9.2 In accordance with the provisions of Article 8.9 8.7 of the Contract, when CNPC the Joint Operators Group (JOG) pursuant to Article 8.8.1 herein becomes the Operator of all the Oil Field said CBM Fields within the Contract Area, the former Operator shall transfer to CNPC JOG all of the Accounting Records relating to the Joint Account. 9.3 Upon the termination of the Contract, the Operator shall transfer all the relevant vouchers, books and statements over to CNPC CUCBM for custody. 9.4 In conducting the transfer of the accounting books and inventory and check of all the properties in accordance with the provisions of this Accounting Procedure, the implementation procedure for the transfer and verification, the accounting files to be transferred and accounting matters to be settled as well as other details shall be agreed upon through consultation in advance between the Operator and CNPCCUCBM. The transfer procedure shall be completed within the time period agreed upon by the Parties. Thereafter, owing to the needs of any Investing Party to the Contract, CUCBM shall allow that Party's staff access to the Accounting Records within the relevant Accounting Records custody period and provide them with duplicates, if necessary. Article 1 General Provisions Article 2 Employment of Chinese Personnel Article 3 Salaries and Wages of Personnel Article 4 Other Expenses Article 5 Settlement of Personnel Costs