Common use of Tangible Costs Clause in Contracts

Tangible Costs. Those costs associated with property acquisition and the drilling and completion of oil and gas w▇▇▇▇ which are generally accepted as capital expenditures pursuant to the provisions of the Code. This includes all costs of equipment, parts and items of hardware used in drilling and completing a well, and those items necessary to deliver acceptable oil and gas production to purchasers to the extent installed downstream from the wellhead of any well and which are required to be capitalized pursuant to applicable provisions of the Code and Regulations. Tangible Costs also includes, for all purposes under this Agreement, any and all Tangible Costs which are attributable to mineral interests owned by third parties in any w▇▇▇▇, but which costs are charged to the Partnership under participation agreements, farmout agreements, operating agreements, drilling contracts and any other agreements, or any other interests in favor of third parties which burden any well or to which the Partnership is subject, even though payment by the Partnership of Tangible Costs in excess of the Partnership’s permanent share of the Working Interest in the well may be treated under the Code as payment of depletable Lease Acquisition Costs for tax purposes and therefore not depreciable as Tangible Costs.