Overhead - Fixed Rate Basis Sample Clauses

Overhead - Fixed Rate Basis. 1. Operator shall charge the following rates per well per month: Drilling Well Rate $ [to be determined by JOA] (Prorated for less than a full month) Producing Well Rate $ [to be determined by JOA] 2. Application of Overhead - Fixed Rate Basis shall be as follows: i. Drilling Well Rate (a) Charges for drilling ▇▇▇▇▇ shall begin on the date the well is spudded and terminate upon completion of the well except that no charge shall be made during suspension of drilling or completion operations for fifteen (15) or more consecutive calendar days. (b) 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. Such 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. ii. Producing Well Rates (a) 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. (b) 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. (c) 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. (d) 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. (e) 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 agreement to which this Exhibit 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 Petroleum and Gas Production Workers for the last calendar year compared to the calendar year preceding as shown by the index of average w...