Abandonment Fund. THE CONTRACTOR will establish a fund to guarantee the financing of activities that are necessary to undertake an Abandonment program of the xxxxx and an environmental renewal of production areas when their Production Period ends, in accordance with Good Oil Industry Practices and pursuant to the following stipulations:
Abandonment Fund. 30.4.1. Creation: At the end of the first Calendar Year as of the Month in which the CONTRACTOR initiated commercial and regular production of Hydrocarbons in an Exploitation Area, and as of such time, the CONTRACTOR shall carry, within its accounting, a special register called Abandonment Fund, and, in order to guarantee availability of financial resources required to carry out the aforementioned Abandonment program, the CONTRACTOR shall establish an escrow fund, a bank guarantee or such other accepted by the XXX instrument . In either case, the terms and conditions of the agreed instrument shall be determined by the Parties within the year immediately prior to the date in which the abandonment fund must be constituted. In case an agreement might not be reached, the CONTRACTOR shall constitute a bank guarantee as set forth in this clause.
Abandonment Fund. Will have the meaning foreseen in Article 40.1.
Abandonment Fund. Cost Recovery Abandonment Fund payments made by Contractor to Petrobangla shall be cost recoverable.
Abandonment Fund. 39.1. Within thirty (30) calendar Days following the approval of the Development Plan by MEM, the Contractor shall open a custody or Escrow account (the "Abandonment Fund"), in a banking institution of recognized reputation and solvency chosen by the Contractor with the favourable opinion of MEM. In the event that MEM rejects the proposal of the banking institution of the Contractor, the contractor must propose three (3) alternative institutions in a term no greater than thirty (30) calendar Days.
Abandonment Fund. To finance the activities under Sub-article 29.1, Parties shall open an escrow account (the “Abandonment Fund”), at a bank of good international repute to be agreed between Staatsolie and Contractor. The structure of the Abandonment Fund and the terms for the administration of the Abandonment Fund shall be mutually agreed between Staatsolie and Contractor. All funds allocated to the Abandonment Fund shall be recoverable as Operating Expenditures.
Abandonment Fund. All contributions made by Contractor to the Abandonment Fund.
Abandonment Fund. (A) The Operator shall establish an escrow account in the name of the Parties hereof at a financial institution approved by the Parties to accumulate cash reserves for use as a contingency fund for remediation of pollution arising from the Petroleum operations carried out and eventual abandonment of xxxxx in the Contract Area and decommissioning of facilities used for Petroleum operations conducted hereunder.
Abandonment Fund. To finance the activities under Sub-Article 30.1, Parties shall open an escrow account in US Dollars (the “Abandonment Fund”) to finance abandonment activities for each Commercial Field, at a bank of good international repute located outside of Suriname that is rated A or better by Standard & Poor’s and A2 or better by Moody’s, to be agreed between Staatsolie and Contractor. The structure of the Abandonment Fund and the terms for the administration of the Abandonment Fund shall be mutually agreed between Staatsolie and Contractor. Staatsolie may at its sole discretion access funds from the escrow account in the event that Contractor (i) fails to effect environmental clean-up during the term of this Contract, or (ii) fails to properly abandon xxxxx, or decommission facilities to the satisfaction of Staatsolie upon termination of this Contract. Where Staatsolie accesses the escrow account as aforementioned Contractor shall be required to pay into the account the sum used for said purposes within sixty (60) days. All funds allocated to the Abandonment Fund shall be recoverable as Operating Expenditures.
Abandonment Fund. Operator shall have the right to require each or any Participating Party to advance its proportionate share of all estimated costs and expenses for the disposition of any Platforms and Facilities, the abandonment of any xxxxx and any other site restoration obligations under the Lease, less the estimated salvage value at the expected time of abandonment as determined in accordance with Exhibit "C" ("Abandonment Fund"). Operator and Non-Operators have agreed that $3,300,000.00 ("Abandonment Amount") is to be deposited in the Abandonment Fund. Operator shall have no liability to Non-Operators or to any third party for a failure to establish the Abandonment Fund or for incorrectly estimating the Abandonment Amount. Payments shall be made into the Abandonment Fund based upon a per mcf (thousand cubic feet) charge of $0.31, which amount shall be deducted by the Operator from its share of gross production revenues and the share of gross production revenues for each Non-Operator until the full Abandonment Amount has been funded. Until the full Abandonment Amount has been funded from these revenues, the Non-Operators shall not have the right to take in kind or separately dispose of their shares of Petroleum Substances from the Lease. The Abandonment Fund shall be held in a suspense account by Operator until an independent escrow account is established. The escrow account shall provide for payment of the escrowed funds at the time the disposition or abandonment operations are performed and shall be to the contractors performing the disposition or abandonment operations or to the then Operator for appropriate distribution. If the escrow amount is insufficient to pay the disposition or abandonment costs, each Participating Party shall pay the balance of such costs pursuant to the terms of this Agreement. The escrow account shall be an interest bearing account. Any excess funds including interest after all disposition and abandonment operations are performed shall be returned to the Parties in proportion to each Party's participation in the Abandonment Fund. 58 In lieu of payment into the Abandonment Fund, any Participating Party may elect to furnish an irrevocable letter of credit in favor of the other Participating Parties, proof of coverage under adequate plugging and abandonment bonds, (subrogated in favor of the Operator) or other financial assurances acceptable to Operator to provide for that Party's estimated proportionate share of the Abandonment Fund. The lett...
