Deepening or Sidetracking Cost Adjustments Sample Clauses
Deepening or Sidetracking Cost Adjustments. If a proposal is made to Deepen or Sidetrack a Non-consent Well, a well cost adjustment will be performed as follows:
(a) Intangible drilling will be valued at the actual cost incurred by the Participating Parties.
(b) Tangible materials will be valued at the actual cost incurred by the Participating Parties.
(c) For Sidetracking operations, the values determined in Articles 13.4(a) and 13.4(b) shall be reduced by the amount allocated to that portion of the well from the surface to one hundred feet (100') below the point at which the Sidetracking was initiated. Such allocations shall be consistent with the guidelines recommended by the applicable Council of Petroleum Accountants Societies ("COPAS") Guideline, as amended from time to time.
(d) Amor▇▇▇▇▇ion/depreciation shall be applied to both intangible and tangible values at the rate of ten percent (10%) per annum from the date the well commenced Hydrocarbon production to the date operations commence to Deepen or Sidetrack the well, provided however, the value of tangible materials after applying depreciation shall never be less than fifty percent (50%) of the value determined in Article 13.4(b).
Deepening or Sidetracking Cost Adjustments. 46 13.5 SUBSEQUENT OPERATIONS IN NON-CONSENT WELL ............................47 13.6 OPERATIONS IN A PRODUCTION INTERVAL ..................................47 13.7 OPERATIONS UTILIZING A NON-CONSENT PLATFORM AND/OR DEVELOPMENT FACILITIES ...........................................................47 13.7.1 Forfeiture of Initial Platform or Development Facilities ....
Deepening or Sidetracking Cost Adjustments. If a proposal is made to Deepen or Sidetrack a Non- consent Well, a well cost adjustment will be performed as follows:
(A) Intangible drilling will be valued at the actual cost incurred by the Participating Parties.
(B) Tangible materials will be valued as transfers of new material in accordance with the provisions of Exhibit"C."
(C) For Sidetracking operations, the values determined in Articles 13.4(A) and 13.4(B) shall be reduced by the amount allocated to that portion of the well one hundred (100) feet below the point of Sidetrack Such allocations shall be accomplished consistent with guidelines recommended by the Council of Petroleum Accountants Societies (COPAS) in COPAS Bulletin No. 2, Determination of ▇▇▇▇es fo▇ ▇▇▇l Cost ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇tions, September 1965, as amended from time to time.
(D) Amortization/depreciation shall be applied to both intangible and tangible values at the rate of ten percent (10%) per annum from the date the well commenced Hydrocarbon production to the date operations commence to Deepen or Sidetrack the well, provided, however, the value of tangible MODEL FORM OF OFFSHORE OPERATING AGREEMENT materials after applying depreciation shall never be less than fifty percent (50%) of the value determined in Article 13.4(B).