INTANGIBLE DRILLING AND COMPLETION ALLOCATIONS Sample Clauses

INTANGIBLE DRILLING AND COMPLETION ALLOCATIONS. For the purpose of calculations under Section 12.10, 12.11 and 12.12, intangible drilling and completion costs, including non-controllable material costs, shall be allocated between zones, including the interval from the lowest completed zone to total depth, on a drilling day ratio basis where the factor for each zone is determined by a fraction for which the numerator is the number of drilling and completion days applicable to that zone and the denominator is the total number of days spent on the well, beginning on the day the rig arrives on location and terminating when the rig is released.