Common use of Independent Preparation of Feasibility Report Clause in Contracts

Independent Preparation of Feasibility Report. Notwithstanding the provisions of Section 14.1, if a Member (the “Proponent”) is of the view that a Feasibility Report should be prepared, such Member will give notice thereof to the Manager and the Manager will call a Management Committee meeting to consider the matter. If the Management Committee fails to approve the preparation of the Feasibility Report supported by the Proponent, the Proponent may, either alone or with other parties, at its or their sole cost, prepare a Feasibility Report. If such Feasibility Report indicates that production from the Property would be profitable to the Proponent, the Proponent will deliver the Feasibility Report to the Manager who will then call a Management Committee meeting to consider the Proponent’s Feasibility Report. If the Management Committee adopts the Feasibility Report it will become a Feasibility Report for all purposes, and the non-contributing Member may either pay the Proponent an amount equal to one hundred and fifty percent (150%) of their respective proportionate costs of the preparation of the Feasibility Report, or will suffer reduction of their respective Ownership Interests pursuant to Section 15.4.

Independent Preparation of Feasibility Report. Notwithstanding the provisions of Section 14.1, if a Member (the “Proponent”) is of the view that a Feasibility Report should be prepared, such Member will give notice thereof to the Manager and the Manager will call a Management Committee meeting to consider the matter. If the Management Committee fails to approve the preparation of the Feasibility Report supported by the Proponent, the Proponent may, either alone or with other partiesParties, at its or their sole cost, prepare a Feasibility Report. If such Feasibility Report indicates that production from the Property would be profitable to the Proponent, the Proponent will deliver the Feasibility Report to the Manager who will then call a Management Committee meeting to consider the Proponent’s Feasibility Report. If the Management Committee adopts the Feasibility Report it will become a Feasibility Report for all purposes, and the non-contributing Member Parties may either pay the Proponent an amount equal to one hundred and fifty percent (150%) of their respective proportionate costs of the preparation of the Feasibility Report, or will suffer reduction of their respective Ownership Interests pursuant to Section 15.415.5 .