COSTS AND RISKS Sample Clauses
The "COSTS AND RISKS" clause defines which party is responsible for bearing specific expenses and potential liabilities that may arise during the execution of a contract. Typically, this clause outlines whether costs such as shipping, insurance, taxes, or damages are to be paid by the buyer, seller, or another involved party, and may also specify how risks transfer from one party to another at certain points in the transaction. Its core practical function is to allocate financial responsibility and risk exposure clearly between the parties, thereby reducing disputes and ensuring both sides understand their obligations.
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COSTS AND RISKS. Farmoutee shall be responsible for all costs, risks, liabilities and expenses associated with (i) all Well Operations performed by or on behalf of Farmoutee in any Farmout Well under the terms of this Agreement, (ii) all hook-up (including but not limited to all related facility, structural, equipment, pipeline or flowline work) required to place all such well▇ ▇▇ production through to Farmoutor's processing facilities as designated by Farmoutor well by well, and (iii) all flow back of completion fluids and spent acids from each such well, LESS AND EXCEPT any proportionate share of the cost, risk, liability and expense of Well Operations in which Farmoutor (and/or any third party having the right) has elected to participate under the terms of this Agreement.
COSTS AND RISKS. Purchaser returning Products must pay transportation charges and bear risks of loss or damage to Products while in transit to and from MSI. MSI reserves the right to impose a restocking charge on returned Products.
COSTS AND RISKS. Unless this Agreement provides otherwise:
(a) Gascor shall not be liable to the Agent for any costs or risks associated with Contract Gas to be delivered under this Agreement; and
(b) the Agent must bear all costs and risks associated with that Contract Gas after the Point of Delivery.
COSTS AND RISKS. Except as may otherwise herein be provided or agreed, the drilling of the Phase I and Phase II obligation well▇ ▇▇▇ all other well▇ ▇▇▇lled hereunder, their plugging and abandonment, if a dry hole, or the completion and equipping for production, if a producer, and the cleaning and restoration of each well site (including the removal of any structures constructed or used by Farmoutee for drilling or operations hereunder), shall be performed at Farmoutee's sole cost, risk, and expense. The parties acknowledge that the costs of drilling, completing and connecting each of the two Phase 1 farmout obligation well▇ ▇▇▇e or are to be shared as Chevron 40%, EPL 40% and W-A 20% and that the ownership in production, from first production and the bearing of operating costs and risks thereafter, is and shall be, until any escalation of the Chevron interest after Payout, Chevron 49%, EPL 34% and W-A 17%.