Chargeable Costs. The Chargeable Costs per Barrel of Royalty Production shall be the amount set forth in the following table opposite the calendar year stated: For the Chargeable Year Ending Costs Per December 31 Barrel 1989 4.50 1990 4.50 1991 4.50 1992 6.00 1993 6.75 1994 8.00 1995 8.25 1996 8.50 1997 8.85 1998 9.30 1999 9.80 2000 10.00 2001 10.75 2002 11.25 2003 11.75 2004 12.00 2005 12.25 2006 12.50 2007 12.75 2008 13.00 2009 13.25 2010 14.50 2011 16.60 2012 16.70 2013 16.80 2014 16.90 8 For the Chargeable Year Ending Costs Per December 31 Barrel 2015 17.00 2016 17.10 2017 17.20 2018 20.00 2019 23.75 2020 26.50 thereafter increasing by $2.75 each year (b) If, between January 1, 1996 and December 31, 2000, an additional 200,000,000 STB of Proved Reserves (that is, 200,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4 (a)) have not been added to Current Reserves (before taking into account any production therefrom) then for each year from 2001 through 2005, inclusive, Chargeable Costs as set forth in the table above shall be reduced, as of January 1 in each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 200,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 1996 through December 31, 2000 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 1995 over 100,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 200,000,000 STB of Proved Reserves), and the denominator of which shall be 200,000,000 STB of Proved Reserves. (c) The tests set forth in (i) and (ii) below shall be utilized to calculate the reduction, if any, in Chargeable Costs for the year 2006 and each year thereafter. If the calculations under both such tests produce a reduction in Chargeable Costs, the greater of such reductions shall apply. If the calculation under one of such tests produces a reduction in Chargeable Costs but the calculation under the other test does not, the calculation that produces the reduction shall apply. In applying the tests below, it is the intention of Grantor and Grantee that test (i) allow as a credit toward the 400,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test an amount equal to the excess, if any, of the number of STB of Proved Reserves added to Current Reserves prior to December 31, 2000 over 300,000,000 STB of Proved Reserves, while test (ii) sets a level of only 100,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test, but does not allow a credit for additions of STB of Proved Reserves accrued prior to December 31, 2000. (i) If, between January 1, 2001 and December 31, 2005, an additional 400,000,000 STB of Proved Reserves (that is, 400,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4(a) and the 200,000,000 STB of Proved Reserves that are referred to in Section 4.4(b)) have not been added to Current Reserves (before taking into account any production therefrom), then for the year 2006 and each year thereafter Chargeable Costs as set forth in the table above shall be reduced, as of January 1 of each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 400,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 2001 through December 31, 2010 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 2000 over 300,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 400,000,000 STB of Proved Reserves) and the denominator of which shall be 400,000,000 STB of Proved Reserves.
Appears in 1 contract
Sources: Overriding Royalty Conveyance
Chargeable Costs. The Chargeable Costs per Barrel of Royalty Production shall be the amount set forth in the following table opposite the calendar year stated: For the Chargeable Year Ending Costs Per December 31 Barrel 1989 4.50 1990 4.50 1991 4.50 1992 6.00 1993 6.75 1994 8.00 1995 8.25 1996 8.50 1997 8.85 1998 9.30 1999 9.80 2000 10.00 2001 10.75 2002 11.25 2003 11.75 2004 12.00 2005 12.25 2006 12.50 2007 12.75 2008 13.00 2009 13.25 2010 14.50 2011 16.60 2012 16.70 2013 16.80 2014 16.90 8 For the Chargeable Year Ending Costs Per December 31 Barrel 2015 17.00 2016 17.10 2017 17.20 2018 20.00 2019 23.75 2020 26.50 thereafter increasing by $2.75 each year Chargeable Costs shall be subject to a maximum reduction of $1.20 per year in years subsequent to 1995 in the following circumstances, irrespective of whether the number of Proved Reserves added during any applicable period is a positive number, a negative number, or zero:
(a) If, by December 31, 1995, 100,000,000 or more Stock Tank Barrels (STB) of Proved Reserves have not been added to Current Reserves (before taking into account any production therefrom) then for each year 1996 through 2000, inclusive, Chargeable Costs as set forth in the table above shall be reduced, as of January 1 in each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between 100,000,000 STB of Proved Reserves and the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 1995, and the denominator of which shall be 100,000,000 STB of Proved Reserves.
(b) If, between January 1, 1996 and December 31, 2000, an additional 200,000,000 STB of Proved Reserves (that is, 200,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4 (a)) have not been added to Current Reserves (before taking into account any production therefrom) then for each year from 2001 through 2005, inclusive, Chargeable Costs as set forth in the table above shall be reduced, as of January 1 in each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 200,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 1996 through December 31, 2000 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 1995 over 100,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 200,000,000 STB of Proved Reserves), and the denominator of which shall be 200,000,000 STB of Proved Reserves.
(c) The tests set forth in (i) and (ii) below shall be utilized to calculate the reduction, if any, in Chargeable Costs for the year 2006 and each year thereafter. If the calculations under both such tests produce a reduction in Chargeable Costs, the greater of such reductions shall apply. If the calculation under one of such tests produces a reduction in Chargeable Costs but the calculation under the other test does not, the calculation that produces the reduction shall apply. In applying the tests below, it is the intention of Grantor and Grantee that test (i) allow as a credit toward the 400,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test an amount equal to the excess, if any, of the number of STB of Proved Reserves added to Current Reserves prior to December 31, 2000 over 300,000,000 STB of Proved Reserves, while test (ii) sets a level of only 100,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test, but does not allow a credit for additions of STB of Proved Reserves accrued prior to December 31, 2000.
(i) If, between January 1, 2001 and December 31, 2005, an additional 400,000,000 STB of Proved Reserves (that is, 400,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4(a) and the 200,000,000 STB of Proved Reserves that are referred to in Section 4.4(b)) have not been added to Current Reserves (before taking into account any production therefrom), then for the year 2006 and each year thereafter Chargeable Costs as set forth in the table above shall be reduced, as of January 1 of each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 400,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 2001 through December 31, 2010 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 2000 over 300,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 400,000,000 STB of Proved Reserves) and the denominator of which shall be 400,000,000 STB of Proved Reserves.
(ii) If between January 1, 2001 and December 31, 2005, an additional 100,000,000 STB of Proved Reserves (that is, 100,000,000 STB of Proved Reserves in addition to any and all STB of Proved Reserves that are added to Current Reserves prior to January 1, 2001) have not been added to Current Reserves (before taking into account any production therefrom), then for the year 2006 and each year thereafter Chargeable Costs as set forth in the table above shall be reduced, as of January 1 of each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between 100,000,000 STB of Proved Reserves and the number of STB of Proved Reserves added to Current Reserves from January 1, 2001 through December 31, 2005 and the denominator of which shall be 100,000,000 STB of Proved Reserves. Grantor shall report to Grantee the amount of Proved Reserves added in any year, taking into account the reductions, if any, to Proved Reserves resulting from modifications of Grantor's estimates which were made of Proved Reserves for prior years, it being agreed that only the net amount of Proved Reserves (that is, additions net of reductions resulting from modifications of previous estimates of Proved Reserves) shall be utilized in determining whether the requisite number of STB of Proved Reserves have been added pursuant to the provisions of this Section 4.4.
Appears in 1 contract
Sources: Overriding Royalty Conveyance (Bp Prudhoe Bay Royalty Trust)
Chargeable Costs. The Chargeable Costs per Barrel of Royalty Production shall be the amount set forth in the following table opposite the calendar year stated: For the Chargeable Year Ending Costs Per December 31 Barrel 1989 4.50 1990 4.50 1991 4.50 1992 6.00 1993 6.75 1994 8.00 1995 8.25 1996 8.50 1997 8.85 1998 9.30 1999 9.80 2000 10.00 2001 10.75 2002 11.25 2003 11.75 2004 12.00 2005 12.25 2006 12.50 2007 12.75 2008 13.00 2009 13.25 2010 14.50 2011 16.60 2012 16.70 2013 16.80 2014 16.90 8 For the Chargeable Year Ending Costs Per December 31 Barrel 2015 17.00 2016 17.10 2017 17.20 2018 20.00 2019 23.75 2020 26.50 thereafter increasing by $2.75 each year Chargeable Costs shall be subject to a maximum reduction of $1.20 per year in years subsequent to 1995 in the following circumstances, irrespective of whether the number of Proved Reserves added during any applicable period is a positive number, a negative number, or zero:
(a) If, by December 31, 1995, 100,000,000 or more Stock Tank Barrels (STB) of Proved Reserves have not been added to Current Reserves (before taking into account any production therefrom) then for each year 1996 through 2000, inclusive, Chargeable Costs as set forth in the table above shall be reduced, as of January 1 in each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between 100,000,000 STB of Proved Reserves and the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 1995, and the denominator of which shall be 100,000,000 STB of Proved Reserves.
(b) If, between January 1, 1996 and December 31, 2000, an additional 200,000,000 STB of Proved Reserves (that is, 200,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4 (a)) have not been added to Current Reserves (before taking into account any production therefrom) then for each year from 2001 through 2005, inclusive, Chargeable Costs as set forth in the table above shall be reduced, as of January 1 in each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 200,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 1996 through December 31, 2000 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 1995 over 100,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 200,000,000 STB of Proved Reserves), and the denominator of which shall be 200,000,000 STB of Proved Reserves.
(c) The tests set forth in (i) and (ii) below shall be utilized to calculate the reduction, if any, in Chargeable Costs for the year 2006 and each year thereafter. If the calculations under both such tests produce a reduction in Chargeable Costs, the greater of such reductions shall apply. If the calculation under one of such tests produces a reduction in Chargeable Costs but the calculation under the other test does not, the calculation that produces the reduction shall apply. In applying the tests below, it is the intention of Grantor and Grantee that test (i) allow as a credit toward the 400,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test an amount equal to the excess, if any, of the number of STB of Proved Reserves added to Current Reserves prior to December 31, 2000 over 300,000,000 STB of Proved Reserves, while test (ii) sets a level of only 100,000,000 STB of Proved Reserves that must be added to Current Reserves during the period set forth in such test, but does not allow a credit for additions of STB of Proved Reserves accrued prior to December 31, 2000.
(i) If, between January 1, 2001 and December 31, 2005, an additional 400,000,000 STB of Proved Reserves (that is, 400,000,000 STB of Proved Reserves in addition to the 100,000,000 STB of Proved Reserves that are referred to in Section 4.4(a) and the 200,000,000 STB of Proved Reserves that are referred to in Section 4.4(b)) have not been added to Current Reserves (before taking into account any production therefrom), then for the year 2006 and each year thereafter Chargeable Costs as set forth in the table above shall be reduced, as of January 1 of each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between (1) 400,000,000 STB of Proved Reserves and (2) the sum of (i) the actual number of STB of Proved Reserves so added to Current Reserves from January 1, 2001 through December 31, 2010 plus (ii) the excess, if any, of the number of STB of Proved Reserves so added to Current Reserves from January 1, 1988 through December 31, 2000 over 300,000,000 STB of Proved Reserves (provided that the sum of (i) and (ii) shall not exceed 400,000,000 STB of Proved Reserves) and the denominator of which shall be 400,000,000 STB of Proved Reserves.
(ii) If between January 1, 2001 and December 31, 2005, an additional 100,000,000 STB of Proved Reserves (that is, 100,000,000 STB of Proved Reserves in addition to any and all STB of Proved Reserves that are added to Current Reserves prior to January 1, 2001) have not been added to Current Reserves (before taking into account any production therefrom), then for the year 2006 and each year thereafter Chargeable Costs as set forth in the table above shall be reduced, as of January 1 of each such year, by an amount equal to the lesser of (A) $1.20 or (B) the product of $1.20 and a fraction, the numerator of which shall be the difference between 100,000,000 STB of Proved Reserves and the number of STB of Proved Reserves added to Current Reserves from January 1, 2001 through December 31, 2005 and the denominator of which shall be 100,000,000 STB of Proved Reserves. Grantor shall report to Grantee the amount of Proved Reserves added in any year, taking into account the reductions, if any, to Proved Reserves resulting from modifications of Grantor’s estimates which were made of Proved Reserves for prior years, it being agreed that only the net amount of Proved Reserves (that is, additions net of reductions resulting from modifications of previous estimates of Proved Reserves) shall be utilized in determining whether the requisite number of STB of Proved Reserves have been added pursuant to the provisions of this Section 4.4.
Appears in 1 contract
Sources: Overriding Royalty Conveyance (Bp Prudhoe Bay Royalty Trust)