Common use of Shared Costs Clause in Contracts

Shared Costs. Subject to the terms of this Article III, the Participants shall bear the following costs associated with the Transmission Project, (a) All out-of-pocket costs incurred by IID, whether incurred prior to or after the date of this Agreement, in order to plan, permit, design, engineer, acquire and construct the Transmission Project and to acquire the right of way for the Transmission Project, including by way of illustration and not limitation, the following: (1) The cost of acquisition of all lands, rights, rights of way, easements and interests acquuired or used for the Transmission Project, including the cost of any mitigation requirements; provided, however, that any real property interests owned by IID and necessary or useful for the Project shall be contributed by IID at no charge and shall not be included in the Shared Costs. (2) The cost of all materials, supplies, machinery and equipment and of all labor and services necessary to construct the Transmission Project. (3) The cost of engineering, financial services, plans, specifications, studies, surveys, expenses of recordation and printing, and other expenses necessary or incident to determining the feasibility of constructing the Transmission Project or incident to the construction thereof. (4) The cost of (i) comprehensive general liability and property insurance with respect to the Project, as required by Section 2.08, for the period prior to the Completion Date, and (ii) property insurance with respect to the Project, as required by Section 2.08, for the period from the Completion Date until the end of the Credit Installment Period. If the property insurance referred to in (ii) above can reasonably be purchased for a single lump-sum premium payable in advance, the cost of such insurance shall be the amount of such premium. If the property insurance referred to in (ii) above cannot reasonably be purchased for a lump-sum premium payable in advance, the cost of such insurance for purposes of this paragraph (4) shall be deemed to be an amount equal to 6.7 times the annual premium payable therefor for coverage during the first year following the Completion Date. (5) The cost of legal services and court costs necessary or incident to the planning or construction of the Project, unless IID is reimbursed for such costs by insurance or otherwise, provided that any such costs incurred in connection with legal actions brought against IID with respect to personal injury or property damage shall be included in the Shared Costs only if IID is ultimately successful in defending the action. (6) The cost of expanding the interconnection facilities at Edison's Mirage substation to accommodate the electric power to be delivered by the Participants or their Associated Producers to Edison, in an amount up to the Normal Transmission Capacity of the Project, whether such work is performed by or on behalf of IID or by or on behalf of Edison and reimbursed by IID. (7) The cost of relocating IID's "E" line to accommodate a portion of the Project, if such relocation is necessary. (8) In the event of the termination of the Project pursuant to Section 3.08, any costs incurred in (i) maintaining and holding the property related to the Project for the three (3) year period referred to in paragraph (b) thereof or (ii) restoring real property