Common use of Government’s share of Profit Clause in Contracts

Government’s share of Profit. Natural Gas (per cent %) The Government’s share of Profit Natural Gas shall not, on any occasion, result in a negative value and shall be determined each Month based on each of the percentages in the table below. The Government’s share shall be determined on an incremental basis. Production Tier Natural Gas Price Class A B C D Production up to 60 MMcfd Production in excess Of 60 MMcfd and to 100 MMcfd Production in excess of 100 MMcfd and up to 150 MMcfd Production in excess of 150 MMcfd and up to 225 MMcfd Production in excess of 225 MMcfd and up to 300 MMcfd Production in excess Of 300 MMcfd Where: Price Class A refers to Government’s share for a Natural Gas price greater than zero or equal to Two United States Dollars and twenty five United States cents (US$2.25) per Mcf. Price Class B refers to Government’s share for a Natural Gas price greater than Two United States Dollars and twenty five United States cents(US$2.25)per Mcf but less than or equal to Four United States Dollars (US$4.00) per Mcf. Price Class C refers to Government’s share for a Natural Gas price greater than Four United States Dollars (US$4.00) per Mcf but less than or equal to Six United States Dollars (US$6.00) per Mcf. Price Class D, Natural Gas price greater than Six United States Dollars (US$6.00) per Mcf, the Government’s share of Profit Natural Gas is equal to: BR + 70% [(P – US$6.00) / P] (1-BR) where: BR refers to the Base Rates set out in Price Class D, and P is the Natural Gas price.