Provisions common to Associated and Non-Associated Natural Gas Sample Clauses
This clause establishes rules and terms that apply equally to both associated and non-associated natural gas within a contract. In practice, it sets out shared procedures, rights, or obligations—such as measurement standards, delivery requirements, or pricing mechanisms—that are relevant regardless of whether the gas is produced alongside oil (associated) or independently (non-associated). By consolidating these provisions, the clause ensures consistency and avoids duplication, streamlining the contract and reducing the risk of conflicting terms.
Provisions common to Associated and Non-Associated Natural Gas. 22.3.1 In the event of a Natural Gas Discovery, the Parties shall consult as soon as possible to define the legal, financial and fiscal conditions for the development of the Discovery. These provisions shall be the subject of a special agreement, in accordance with the terms of Article 31.2 of this Contract.
22.3.2 For the purpose of recovering Petroleum Costs pertaining to Natural Gas, the CONTRACTOR may lift free of charge, for each Calendar Year, Reimbursement Gas equal to--------- percent ------%) of the Available Production of Natural Gas, or only such lesser percentage that is necessary and sufficient to allow recovery of the Petroleum Costs.
22.3.3 The value of the Reimbursement Gas as defined in the preceding paragraph shall be calculated in accordance with the provisions of Article 22.3.6