AFE Approvals Clause Samples
AFE Approvals. Except for Extraordinary Circumstances, the ------------- President, before incurring any expenditure or entering into any commitment for the account of the Company which would be considered a Major Decision, shall submit an AFE to the Board of Managers for approval. To the extent the Board of Managers approves an AFE, the President shall be authorized and obliged, in accordance with this Agreement, to proceed with such commitment or expenditure on behalf of the Company. In case of Extraordinary Circumstances, the President may take such steps and incur such expenses as in its reasonable opinion are required to deal with the Extraordinary Circumstance to safeguard life and property, but the President, as promptly as possible, shall report the Extraordinary Circumstance to the Board of Managers and, to the extent the further work or other operations necessary in connection with such Extraordinary Circumstance constitutes a Major Decision or is outside of the then approved Annual Budget, submit an AFE for such further work or operations to the Board of Managers for approval.
AFE Approvals. Except as hereinafter provided with respect to explosion, fires, floods or other sudden emergencies, whether of the same or different nature (“Emergencies”), and except as provided in this Agreement or any other Agreement pertaining to any specific property already in existence, Operator, before incurring any expenditure or entering into any commitment for the account of the Parties, shall submit to the Participants an AFE for approval thereof. To the extent that each party’s management approves an AFE, Operator and/or Participants shall be authorized and obliged, in accordance with this Agreement, to proceed with such commitment or expenditure on behalf of the Parties. In case of Emergencies, Operator may take such steps and incur such expenses as in its reasonable opinion are required to deal with the Emergency to safeguard life and property but Operator, as promptly as possible, shall report the Emergency to the Parties and, to the extent the further work or other operations necessary in connection with such Emergency is outside of the then approved Budget, submit an AFE for such further work or operations to the Parties for approval.