Fixed Rate Basis Clause Samples
The Fixed Rate Basis clause establishes that a specified interest rate, rather than a variable or floating rate, will apply to a financial obligation or contract. In practice, this means that payments such as loan interest or lease charges are calculated using a predetermined, unchanging rate for the duration of the agreement. For example, a loan agreement might stipulate a 5% fixed annual interest rate, ensuring that the borrower's payments remain consistent regardless of market fluctuations. This clause provides predictability and stability for both parties by eliminating uncertainty about future payment amounts.
Fixed Rate Basis. Operator shall charge the Joint Account at the following rates per well per month: See Attached Addenda Drilling Well Rate $___ (Prorated for less than a full month) Producing Well Rate $___
Fixed Rate Basis. (1) Operator shall charge the Joint Account at the following rates per well, per month: Drilling Well Rate $10,000; Drilling $10,000 Completion. (Prorated for less than a full month) Producing Well Rate $1,000
(2) Application of Overhead – Fixed Rate Basis shall be as follows:
(a) Drilling Well Rate.
(1) Charges for drilling ▇▇▇▇▇ shall begin on the date the well is spudded and terminate on the date the drilling rig, completion rig, or other units used in completion of the well is released, whichever is later, except that no charge shall be made during suspension of drilling or completion operations for fifteen (15) or more consecutive calendar days.
(2) Charges for ▇▇▇▇▇ undergoing any type of workover or recompletion for a period of five (5) consecutive work days or more shall be made at the drilling well rate. These charges shall be applied for the period from date workover operations, with rig or other units used in workover, commence through date of rig or other unit release, except that no charge shall be made during suspension of operations for fifteen (15) or more consecutive calendar days.
Fixed Rate Basis. (1) Operator shall charge the Joint Account at the following rates per well, per month: Drilling Well Rate $5,000 Drilling $5,000 Completion. (Prorated for less than a full month) Producing Well Rate $500.
(2) Application of Overhead – Fixed Rate Basis shall be as follows:
(a) Drilling Well Rate.
(1) Charges for drilling ▇▇▇▇▇ shall begin on the date the well is spudded and terminate on the date the drilling rig, completion rig, or other units used in completion of the well is released, whichever is later, except that no charge shall be made during suspension of drilling or completion operations for fifteen (15) or more consecutive calendar days.
(2) Charges for ▇▇▇▇▇ undergoing any type of workover or recompletion for a period of five (5) consecutive work days or more shall be made at the drilling well rate. These charges shall be applied for the period from date workover operations, with rig or other units used in workover, commence through date of rig or other unit release, except that no charge shall be made during suspension of operations for fifteen (15) or more consecutive calendar days.
(b) Producing Well Rates.
(1) An active well either produced or injected into for any portion of the month shall be considered as a one-well charge for the entire month.
(2) Each active completion in a multi-completed well in which production is not commingled down hole shall be considered as a one-well charge providing each completion is considered a separate well by the governing regulatory authority.
(3) An inactive gas well shut in because of overproduction or failure of purchaser to take the production shall be considered as a one-well charge providing the gas well is directly connected to a permanent sales outlet.
(4) A one-well charge shall be made for the month in which plugging and abandonment operations are completed on any well. This one-well charge shall be made whether or not the well has produced except when drilling well rate applies.
(5) All other inactive ▇▇▇▇▇ (including but not limited to inactive ▇▇▇▇▇ covered by unit allowable, lease allowable, transferred allowable, etc.) shall not qualify for an overhead charge.
(3) The well rates shall be adjusted as of the first day of April each year following the effective date of the Operating Agreement to which this Accounting Procedure is attached. The adjustment shall be computed by multiplying the rate currently in use by the percentage increase or decrease in the average weekly earnings of Crude Petr...
Fixed Rate Basis. The rate of interest on the participation of each Lender in a Fixed Rate Loan for each interest period commencing after the date of fixing in accordance with Clause 9.4 (Fixed Rate Loans) above, and continuing for a period up to the Final Repayment Date, shall be the rate determined by the Global Agent (instructed by the Lenders) to be the aggregate of:
(a) the Margin;
(b) the applicable Fixed Interest Rate; and
(c) the Mandatory Cost, if any, applicable to the Lender’s participation in the Fixed Rate Loan.
Fixed Rate Basis. If and for so long as a Fixed Rate Basis applies, ----------------- interest shall accrue at the fixed rate of interest per annum established in accordance with the provisions overleaf under the heading "Interest" or (as the case may be) agreed pursuant to Condition 5.3 or 5.