Common use of PROCEDURE FOR DEADLOCK Clause in Contracts

PROCEDURE FOR DEADLOCK. In the event of a dead-lock of the Management Committee respecting the approval of or operation of Programs, Feasibility Reports, Operating plans, mine maintenance plans, mine closure plans, or any other matters respecting the exploration, development, operation, maintenance, production, or sale of Products of or from the Property, then the matter in dispute shall be referred to a recognized engineering or geological consultant (the "CONSULTANT") selected by the Operator. A dead-lock shall be irrevocably deemed to occur upon the Management Committee having failed to agree on a matter in two (2) successive meetings. Upon a dead-lock occurring: (a) any party (the "SENDING PARTY") may forthwith give notice (the "NOTICE") in writing to the other parties (the "RECEIVING PARTIES") declaring a dead-lock, specifying the issue (or issues) in contention; (b) the Operator shall, within ten (10) days of receipt or issuance of the written notice, select a Consultant to examine and give an opinion on the matter, and thereupon give written notice to the parties naming the Consultant and giving the Consultant's estimate of the cost to have the Consultant determine the issue; (c) within thirty (30) days (or such longer period as the Consultant may allow, but it shall not be required to give any extension) of the written notice of the Operator naming the Consultant, the parties shall submit to the Consultant such materials as they deem advisable, in respect to the issue or issues, for consideration by the Consultant and, if a party fails to submit such materials, then the Consultant shall conduct its inquiries from the submitted materials of the other parties and from its own resources and researchers; (d) the parties and the Management Committee shall allow the Consultant complete access to all records and files regarding the Property, whether on the premises of the parties or the Management Committee or elsewhere, and the Consultant shall have access to all other persons having knowledge of the Property and shall have complete access to the Property and shall have the right to conduct all such tests and researches as it may determine including sampling, trenching, drilling or other activities as it may deem advisable; (e) upon having familiarized itself with the materials, the Consultant shall hold a meeting with the parties to hear their representations and to query the parties as to their opinions and to attempt to seek majority consensus of the parties with the Consultant's assistance; (f) if the parties cannot reach majority consensus, the Consultant shall submit its reports and recommendations to the parties in respect to the issue or issues submitted to it and such report and recommendations shall be final and binding upon the parties unless modified by majority vote of the parties; and (g) the cost of the Consultant shall be a cost charged to the Joint Venture Account.