Program Year. Each calendar year (or portion of a calendar year if the Primary Term ends at the end of any calendar quarter during such year other than December 31 of such year) during the Primary Term of this Agreement. A cost under this Agreement for purposes of Payout shall be attributable to the Program Year in which the first Exploratory Well is spudded on the Lease to which such cost relates. If an Exploratory Well is not spudded on a Lease during the Primary Term of this Agreement, the costs relating to such Lease shall be used in the calculation of Payout for the Program Year in which they were incurred. Net Proceeds shall be attributable to the Program Year in which the first Exploratory Well is spudded on the Lease to which such proceeds relate. Section 2.1 of the Agreement is deleted and the following new Section 2.1 is substituted therefor:
Appears in 2 contracts
Sources: Employment Agreement (Keyspan Corp), Exploration Agreement (Houston Exploration Co)