DEVELOPMENT AND OPERATING CHARGES Sample Clauses
The 'Development and Operating Charges' clause defines the financial obligations related to the costs incurred during the development and ongoing operation of a project or asset. It typically outlines which party is responsible for paying for initial development expenses, such as construction or setup, as well as recurring operating costs like maintenance, utilities, or management fees. By clearly allocating these charges, the clause helps prevent disputes over financial responsibility and ensures that both parties understand their respective cost commitments throughout the life of the agreement.
DEVELOPMENT AND OPERATING CHARGES. Subject to limitations hereinafter prescribed, Operator shall charge the joint account with the cost of the following items:
1. RENTALS AND ROYALTIES Rentals, when such rentals are paid by Operator for the joint account; royalties, when not paid direct to royalty owners by the purchaser of the oil, gas, casing-head gas, or other products.
2. LABOUR, TRANSPORTATION AND SERVICES Labour, transportation, and other services necessary for the development, maintenance, and operation of the joint property. Labour shall include salaries and wages of Operator's employees, other than employees compensated for under paragraphs (11), (12) and (13) of this Section II, directly engaged in operations of the joint property and (A) Operator's cost of vacation, sickness and disability benefits of employees, and expenditures or contributions imposed or assessed by Governmental authority applicable to such salaries and wages, and (B) Operator's current cost of established plans for employees' group life insurance, hospitalization, pension, retirement, stock purchase, thrift, bonus, and other benefit plans of like nature, applicable to Operator's payroll; provided that the charges under part (B) of this paragraph shall not exceed twelve percent (12%) of the total of such salaries and wages charged to the joint account.
DEVELOPMENT AND OPERATING CHARGES. Subject to limitations hereinafter prescribed, Operator shall charge the joint account with the cost of the following items:
1. Rentals and Royalties All deposits, rentals, renewal and extension fees, payments in lieu of actual production (where applicable), and royalties, paid by Operator for the joint account.
DEVELOPMENT AND OPERATING CHARGES. Subject to limitations hereinafter prescribed, Operator shall charge the joint account with the following items: 12 <PAGE> A. Rental and Royalties: Delay or other rentals, when such rentals are paid by Operator for the joint account, royalties, when not paid directly to royalty owners by the purchaser of the oil, gas, casinghead gas, or other products.
DEVELOPMENT AND OPERATING CHARGES. Subject to the limitations hereinafter prescribed. Operator will charge Owner with the following items used in the operation of the Owners ▇▇▇▇▇ pipelines, compressor stations and leases:
a. Land owner Royalties and other royalties not paid directly by the purchaser of the oil and gas or other products. Delay or other rentals, when such rentals are paid by the Operator for the Owner.
b. Materials, equipment and supplies purchased and/or furnished by the Operator on the ▇▇▇▇▇, pipelines, compressor stations and leases.
c. Utility costs including electric and water paid directly by the Operator
d. Outside and third party services necessary for the development, maintenance and operation of the Owners properties (does not include contract pumpers utilized by Operator).
e. All taxes paid for the benefit of the Owner including ad valorem, property, gross production and any other taxes assessed against Owners properties as described herein.
f. Insurance premiums paid for the benefit of the Owner.
g. Overhead Charges for ▇▇▇▇▇, pipeline, compressor stations and leases, which shall be in lieu of any charges for any part of the compensation, insurance, salaries or taxes of Operator employees (including contract pumpers), office expenses, and vehicle charges including fuel and insurance.
1. $800 per well per month for the first twenty (20) producing ▇▇▇▇▇.
2. $400 per well for the second twenty (20) producing ▇▇▇▇▇.
3. $200 per well for all ▇▇▇▇▇ over forty (40) producing ▇▇▇▇▇.
4. $1500 per month for each drilling well, beginning on the date the well is spudded and terminating when the well is on production or is plugged.
5. $2000 per month flat rate charge for pipeline and compressor station operation. The above specific overhead rates may be amended from time to time by agreement between Operator and Owner if, in practice they are found to be insufficient or excessive.