Common use of EXPENDITURE AUDITS Clause in Contracts

EXPENDITURE AUDITS. A. A Non-Operator, upon written notice to the Operator and all other Non-Operators, shall have the right to audit the Operator’s accounts and records relating to the Joint Account within the twelve (12) month period following the end of such calendar year in which such xxxx was rendered; however, conducting an audit shall not extend the time for the taking of written exception to and the adjustment of accounts as provided for in Section I.4. When there are two or more Non-Operators, the Non-Operators shall make every reasonable effort to conduct a joint audit in a manner that will result in a minimum of inconvenience to the Operator. The Operator shall bear no portion of the Non-Operators’ audit cost incurred under this paragraph unless agreed to by the Operator. The audits shall not be conducted more than once each year without prior approval of the Operator, except upon the resignation or removal of the Operator, and shall be made at the expense of those Non-Operators approving such audit. The Non-Operator leading the audit (hereinafter “lead audit company”) shall issue the audit report within ninety (90) days after completion of the audit testing and analysis; however, the ninety (90) day time period shall not extend the twenty-four (24) month requirement for taking specific detailed written exception as required in Section I.4.A (Adjustments) above. All claims shall be supported with sufficient documentation. A timely filed written exception or audit report containing written exceptions (hereinafter “written exceptions”) shall, with respect to the claims made therein, preclude the Operator from asserting a statute of limitations defense against such claims, and the Operator hereby waives its right to assert any statute of limitations defense against such claims for so long as any Non-Operators continue to comply with the deadlines for resolving exceptions provided in this Accounting Procedure. If the Non-Operators fail to comply with the additional deadlines in Section I.5.B or I.5.C, the Operator’s waiver of its rights to assert a statute of limitations defense against the claims brought by the Non-Operators shall lapse, and such claims shall then be subject to the applicable statute of limitations, provided that such waiver shall not lapse in the event that the Operator has failed to comply with the deadlines in Section I.5.B or I.5.C.

EXPENDITURE AUDITS. A. Except for the audit of payout accounts, this Article 5 does not apply to revenue items or rev audits. A Non-Operator, upon written notice to the Operator and all other Non-Operators, Operators shall have the right to conduct an audit the Operator’s 's expenditure accounts and records relating to the Joint Account within the twelve twenty-four (1224) month period following the end of such calendar year in which such xxxx bill was rendered; however, conducting an audit shall not extend xxxxnd the time for the taking of written exception to and the adjustment of accounts as provided for in Section I.41.4 (Adjustments). When Any Party that is subject to payout accounting under the Agreement shall have the right to audit the accounts and records of the Party responsible for preparing the payout statements, or of the party furnishing information to the Party responsible for preparing payout statements. Audits of payout accounts may include the volumes of hydrocarbons produced and saved and proceeds received for such hydrocarbons as they pertain to payout accounting required under the Agreement. Unless otherwise provided in the Agreement, audits of a payout account shall be conducted within the twenty-four (24) month period following the end of the calendar year in which the payout statement was rendered. STWDJOA - Exhibit "C" 5 2005 COPAS Accounting Procedure Where there are two or more NonXxx-Operators, the Non-Operators shall make every reasonable effort to conduct a joint audit in a manner that will result in a minimum of inconvenience to the Operator. The Operator shall bear no portion of the Non-Operators’ ' audit cost incurred under this paragraph unless agreed to by the Operator. The audits shall not be conducted more than once each year without prior approval of the Operator, except upon the resignation or removal of the Operator, and shall be made at the expense of those Non-Operators approving such audit. The Non-Operator leading the audit (hereinafter “"lead audit company”") shall issue the audit report within ninety (90) days after completion of the audit testing and analysis; however, the ninety (90) day time period shall not extend the twenty-four (24) month requirement for taking specific detailed written exception as required in Section I.4.A (Adjustments) above. All claims shall be supported with sufficient documentation. A timely filed written exception or audit report containing written exceptions (hereinafter “written exceptions”) shall, with respect to the claims made therein, preclude the Operator from asserting a statute of limitations defense against such claims, and the Operator hereby waives its right to assert any statute of limitations defense against such claims for so long as any Non-Operators continue to comply with the deadlines for resolving exceptions provided in this Accounting Procedure. If the Non-Operators fail to comply with the additional deadlines in Section I.5.B or I.5.C, the Operator’s waiver of its rights to assert a statute of limitations defense against the claims brought by the Non-Operators shall lapse, and such claims shall then be subject to the applicable statute of limitations, provided that such waiver shall not lapse in the event that the Operator has failed to comply with the deadlines in Section I.5.B or I.5.C..

EXPENDITURE AUDITS. A. A Non-Operator, upon written notice in writing to the Operator and all other Non-OperatorsOperators including any non-participating Parties, shall have the right to audit the Operator’s accounts and records relating to the Joint Account for any calendar year within the twelve twenty-four (1224) month period following the end of such calendar year in which such xxxx was renderedyear; however, conducting an audit shall not extend the time for the taking of written exception to and the adjustment of accounts as provided for in Paragraph 4 of this Section I.4. When I. Where there are two or more Non-Operators, the Non-Operators shall make every reasonable effort to conduct a joint audit in a manner that which will result in a minimum of inconvenience to the Operator. The Operator shall bear no portion of the Non-Operators’ audit cost incurred under this paragraph unless agreed to by the Operator. The audits shall not be conducted more than once each year without prior approval of the Operator, except upon the resignation or removal of the Operator, and shall be made at the expense of those Non-Operators approving such audit. The Non-Operator leading the audit (hereinafter “lead audit company”) shall issue the ’s audit report shall be issued within ninety (90) days after completion of the audit testing and analysisanalysis but no later than ninety (90) days after the end of the calendar year in which the audit was commenced; however, the ninety (90) day time period shall not extend the twenty-four (24) month requirement for taking specific detailed written exception as required in Section I.4.A (Adjustments) Paragraph 4,A above. All claims shall be supported with sufficient documentation. Failure to issue the report within the prescribed time or to take specific written exception within the twenty-four (24) month period will preclude the Non-Operator from taking exception to any charge billed within the time period audited. A timely filed written exception or audit report containing written exceptions (hereinafter “written exceptions”) shall, with respect to or any timely submitted response thereto shall suspend the claims made therein, preclude the Operator from asserting a running of any applicable statute of limitations defense against such claimsregarding claims made in the audit report. While any audit claim is being resolved, and the Operator hereby waives its right to assert any applicable statute of limitations defense against such claims for so long as any Non-Operators continue will be suspended; however, the failure to comply with the deadlines for resolving exceptions provided in this Accounting Procedure. If herein shall cause the Non-Operators fail statute to comply with the additional deadlines in Section I.5.B or I.5.C, the Operator’s waiver of its rights to assert a statute of limitations defense against the claims brought by the Non-Operators shall lapse, and such claims shall then be subject to the applicable statute of limitations, provided that such waiver shall not lapse in the event that the Operator has failed to comply with the deadlines in Section I.5.B or I.5.C.commence running again.

EXPENDITURE AUDITS. A. A Non-Operator, upon written notice in writing to the Operator and all other Non-OperatorsOperators including any non-participating Parties, shall have the right to audit the Operator’s accounts and records relating to the Joint Account for any calendar year within the twelve twenty-four (1224) month period following the end of such calendar year in which such xxxx was renderedyear; however, conducting an audit shall not extend the time for the taking of written exception to and the adjustment of accounts as provided for in Paragraph 4 of this Section I.4. When I. Where there are two or more Non-Operators, the Non-Operators shall make every reasonable effort to conduct a joint audit in a manner that which will result in a minimum of inconvenience to the Operator. The Operator shall bear no portion of the Non-Operators’ audit cost incurred under this paragraph unless agreed to by the Operator. The audits shall not be conducted more than once each year without prior approval of the Operator, except upon the resignation or removal of the Operator, and shall be made at the expense of those Non-Operators approving such audit. The Non-Operator leading the audit (hereinafter “lead audit company”) shall issue the ’s audit report shall be issued within ninety (90) days after completion of the audit testing and analysisanalysis but no later than ninety (90) days after the end of the calendar year in which the audit was commenced; however, the ninety (90) day time period shall not extend the twenty-four (24) month requirement for taking specific detailed written exception as required in Section I.4.A (Adjustments) Paragraph 4,A above. All claims shall be supported with sufficient documentation. A timely filed Failure to issue the report within the prescribed time or to take specific written exception or audit report containing written exceptions within the twenty-four (hereinafter “written exceptions”24) shall, with respect to the claims made therein, month period will preclude the Operator from asserting a statute of limitations defense against such claims, and the Operator hereby waives its right to assert any statute of limitations defense against such claims for so long as any Non-Operators continue to comply with the deadlines for resolving exceptions provided in this Accounting Procedure. If the Non-Operators fail Operator from taking exception to comply with any charge billed within the additional deadlines in Section I.5.B or I.5.C, the Operator’s waiver of its rights to assert a statute of limitations defense against the claims brought by the Non-Operators shall lapse, and such claims shall then be subject to the applicable statute of limitations, provided that such waiver shall not lapse in the event that the Operator has failed to comply with the deadlines in Section I.5.B or I.5.C.time period audited.