Authority for the Operator Sample Clauses

Authority for the Operator. Approval of an AFE by the Operating Committee constitutes authority for the Operator to enter into any commitment or incur any expenditure properly made in relation thereto whether or not payments in respect of such commitments and expenditures will result in the final cost of such commitments and expenditure exceeding the total Budget amount or the AFE, provided that if at any time it becomes apparent that either, (a) commitments yet to be made will, or are likely to, cause the total annual Budget to be exceeded by five per cent (5%), or (b) expenditures to be incurred under commitments already made will cause an individual Budget item or AFE to be exceeded by the lesser of ten per cent (10%) or one million Kroner (DKK 1,000,000) or that the cumulative total of such excess expenditures shall, or are likely to, exceed five per cent (5%) of the total Budget, the Operator shall immediately notify the Parties and shall without delay prepare a revised AFE and if necessary a revised Budget, giving the reasons for the increased cost, and shall request approval of the revised AFE and Budget, and shall not enter into any new commitment in relation to the AFE until the revised AFE and Budget has been approved by the Operating Committee.