Economically Recoverable definition
Economically Recoverable in relation to petroleum means those resources which could be recovered at an expected (pre-tax) market value greater than the expected (pre-tax) resource cost of their extraction, where costs include both capital and operating costs but exclude sunk costs and costs (such as interest charges) which do not reflect current use of resources. In bringing costs and revenues to a common point for comparative purposes a 10% real discount rate will be used;
Economically Recoverable means:
Economically Recoverable shall have the meaning set forth in Section 10.17.
Examples of Economically Recoverable in a sentence
Lessee shall conduct Mining Operations in a workmanlike manner and in such a manner as to recover the Maximum Economically Recoverable (“MER”) quantity of Lessor’s Coal.
Seller and Purchaser understand and agree that, for purposes of calculating Economically Recoverable stone reserves at each of the Rich Hill and Springfield Pike operations of the Company and the Subsidiaries, the boundaries of each of the Rich Hill and Springfield Pike operations as shown on Purchaser’s Rich Hill Surveys (as defined in Section 10.20) shall be determinative as to such boundaries.