Carried Costs Clause Samples

Carried Costs. If Noble is the Non-Consenting Party, then: (i) On or prior to January 1 of the Non-Consent Year, Noble must advance to the Tax Partnership Account designated and controlled (subject to the obligation of CONSOL to withdraw such funds only to pay for specific costs of the Non-Consent Year's drilling program) by CONSOL (the “Non-Consent Account”) the total amount of the Carried Costs that are contemplated by the Development Plan for the Non-Consent Year (the “Carried Costs Amount”), which funds may thereafter be solely utilized for the purposes described in Section 3.5(b)(ii) or 3.5(c)(ii). The Parties acknowledge that such funds in the Non-Consent Account discharge Noble's obligations to pay Carried Costs during such Non-Consent Year. Notwithstanding the fact that Noble has no right to the return of such funds once they are paid into such Non-Consent Account, interest in such funds shall be allocated and distributed 50% to CONSOL and 50% to Noble. Except for payment under this Section 3.5(b) of the Carried Costs Amount, Noble shall have no other obligation to pay any Carried Costs during the Non-Consent Year. (ii) With respect to any Non-Consent Well or any other well proposed by a Third Party under an Applicable Operating Agreement that is actually spudded during the Non-Consent Year in which CONSOL participates, notwithstanding anything in Section 7.1(b) to the contrary, CONSOL shall pay out of the Non-Consent Account (until expended) two-thirds of CONSOL's Working Interest share of all Drilling and Completion Costs with respect to such ▇▇▇▇▇ (and all such Drilling and Completion Costs that are funded pursuant to this Section 3.5(b)(ii) shall be deemed to be Carried Costs for all purposes hereunder). (iii) The provisions of Section 7.1(d) shall not be applicable during any Non-Consent Year.