Common use of Inventory Accounting Clause in Contracts

Inventory Accounting. All costs of articles bought for inventory will be recoverable from the Calendar Year in which the materials and equipment were used in Petroleum Operations in the Contract Area. ARTICLE3 OTHER CLASSIFICATION OF COSTS AND EXPENDITURES (Accounting methods to estimate Income Tax liability) During any Calendar Year in which Oil Operations occur, the Costs of Oil Operations will include the following:

Inventory Accounting. All costs of articles bought for inventory will be recoverable from the Calendar Year in which the materials and equipment were used in Petroleum Operations in the Contract Area. ARTICLE3 OTHER CLASSIFICATION OF COSTS AND EXPENDITURES (Accounting methods to estimate Income Tax liability) During any Calendar Year in which Oil Petroleum Operations occur, the Petroleum Operations Costs of Oil Operations will include the following: