Common use of Work Program and Budget Clause in Contracts

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBM. The Operator shall make its best efforts to perform the CBM Operations in accordance with the approved annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the Contract. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergencies. The Operator shall report the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basis. 10.2.2 For the efficient performance of the CBM Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the ContractCon­tract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Calen­dar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications mod­ifica­tions agreed by the Parties. The adopted annual Work Program and budget bud­get shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMC. Within fifteen fif­teen (15) days following the receipt of the annual Work Program and budget, CUCBM shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasonsrea­sons. If CUCBM requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM fails to notify JMC in writing of its approval or disapproval disap­proval or any modification modifi­cation within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved ap­proved by CUCBM. The Operator shall make its best efforts to perform the CBM Operations in accordance with the approved ap­proved annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets bud­gets so approved ap­proved by CUCBM shall be sufficient to allow the Operator to fulfill ful­fill the Work Programs including those Work Programs under Article 7.3.1 hereof and its the obligations under the Contract. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved ap­proved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling drill­ing of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator Opera­tor shall report the aggregate amount of all such excess expenditures expen­ditures to JMC for confirmation on a Calendar Quarter basis. 10.2.2 For the efficient performance of the CBM Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure expendi­ture of One Hundred Thousand U.S. Dollars dollars (U.S.$100,000), but the Operator Op­erator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually actual­ly needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBMCNPC. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM CNPC for review and approval within one (l1) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM CNPC shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM CNPC requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM CNPC fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBMCNPC. The Operator shall make its best efforts to perform the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For As required for reviewing Work Program and budget by JMC, the Operator shall provide submit to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the Contractas detailed as possible. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator shall report quarterly the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basisconfirmation. 10.2.2 For the efficient performance of the CBM Petroleum Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000U.S. $100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Articlefor

Work Program and Budget. 10.1 After 8.1 Before the of each Calendar Year after the Effective Date of Commencement of the Implementation of the Contract, the Operator CONTRACTOR shall propose submit and submit present to JMC the DEPARTMENT for review and approval its annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget Budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMCYear. Within fifteen forty five (1545) days following the receipt of the annual Work Program and budgetBudget, CUCBM the DEPARTMENT shall notify JMC the CONTRACTOR in writing of its approval or disapproval or any suggest modifications thereto with its detailed reasons. If CUCBM the DEPARTMENT requests any modifications to on the aforesaid annual Work Program and budgetBudget, the Parties shall promptly hold meetings to make discuss modifications and any all suggested modifications will be respectively considered by the CONTRACTOR. Any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM the DEPARTMENT fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, act on the proposed annual Work Program and budget adopted by JMC Budget within forty five (45) days from receipt, the proposed annual Work Program and Budget shall be deemed to have been approved by CUCBMthe DEPARTMENT. The Operator CONTRACTOR shall make its best efforts to perform the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the ContractBudget. 10.2 8.2 The Operator CONTRACTOR may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budgetBudget, provided that the objectives of in the approved Work Program and budget Budget are not changed. 10.2.1 (a) In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator CONTRACTOR may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator CONTRACTOR shall report inform the DEPARTMENT in writing of such possible excess of aggregate amount of all ten (10) days prior to incurring such excess expenditures to JMC and explain the need for confirmation on a Calendar Quarter basissuch expenditures. 10.2.2 (b) For the efficient performance of the CBM Petroleum Operations, the Operator CONTRACTOR may, without approvalapproval of the DEPARTMENT, undertake certain individual projects case of emergency works which are not included in the Work Program and budgetBudget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000)US$100,000.00, but the Operator CONTRACTOR shall, within ten fifteen (1015) days after such expenditures are incurred, make a written report the same to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 hereinDEPARTMENT. 10.2.3 (c) In the event that the aggregate of excess expenditures under Article 10.2.1 Section 8.2(a) herein and expenditures under Article 10.2.2 Section 8.2(b) herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator CONTRACTOR shall present its reasons therefore to JMC the DEPARTMENT in writing and obtain its also meet with the DEPARTMENT to discuss the expenditures for approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After 7.01 Before the Date end of Commencement October of each Calendar Year after the Implementation effectivity of the Contract, the Operator CONTRACTOR shall propose submit and submit present to JMC the DEPARTMENT for review and approval of its annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget Budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMCYear. Within fifteen forty-five (1545) calendar days following the receipt of the annual Work Program and budgetBudget, CUCBM the DEPARTMENT shall notify JMC the CONTRACTOR in writing of its approval or disapproval or any suggest modifications thereto with its detailed reasons. If CUCBM the DEPARTMENT requests any modifications to on the aforesaid annual Work Program and budgetBudget, the Parties shall promptly hold meetings to make discuss modifications and any all suggested modifications will be respectively considered by the CONTRACTOR. Any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM the DEPARTMENT fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, act on the proposed annual Work Program and budget adopted by JMC Budget within forty-five (45) calendar days from receipt, the proposed annual Work Program and Budget shall be deemed to have been approved by CUCBMthe DEPARTMENT. The Operator CONTRACTOR shall make its best efforts to perform conduct the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the ContractBudget. 10.2 7.02 The Operator CONTRACTOR may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budgetBudget, provided that the objectives of in the approved Work Program and budget Budget are not changed.. The CONTRACTOR shall advise the DEPARTMENT of any significant changes on the Work Program and Budget, as follows: 10.2.1 (a) In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator CONTRACTOR may, if necessary, incur excess expenditures expenditure(s) of no more than ten fifty percent (1050%) of the budgeted amount except in amount. However, any excess beyond fifty percent (50%) shall only be allowed for cost-recovery if the case of emergencies. The Operator shall report CONTRACTOR is able to provide the aggregate amount of all DEPARTMENT justification for incurring such excess expenditures to JMC for confirmation on a Calendar Quarter basisexpenditure(s). 10.2.2 (b) For the efficient performance of the CBM Petroleum Operations, the Operator CONTRACTOR may, without approvalapproval of the DEPARTMENT, undertake certain individual projects case of emergency works, including but not limited to preventive measures for blowout and oil spill which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000)Budget, but the Operator CONTRACTOR shall, within ten fifteen (1015) calendar days after such emergency expenditures are incurred, make a written report and request for approval of supplemental budget to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 hereinDEPARTMENT. 10.2.3 (c) In the event that the aggregate of excess expenditures under Article 10.2.1 Section 7.02(a) herein and expenditures under Article 10.2.2 Section 7.02(b) herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five fifteen percent (515%) of the approved annual budget for that Calendar Year. If the aforesaid However, any excess is expected to be in excess of five beyond fifteen percent (515%) of shall only be allowed for cost-recovery if the annual budget, CONTRACTOR is able to provide the Operator shall present its reasons therefore to JMC and obtain its approval prior to DEPARTMENT justification for incurring such expendituresexcess expenditure(s). 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval consent within one (l) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM shall notify JMC in writing of its approval consent or disapproval dissent or any modifications thereto with its detailed reasons. If CUCBM requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM fails to notify JMC in writing of its approval consent or disapproval dissent or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved consented by CUCBM. The Operator shall make its best efforts to perform the CBM Operations in accordance with the approved consented annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved consented by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs including those Work Programs under Article 7.3.1 hereof and its the obligations under the Contract. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved consented Work Program and budget are not changed. 10.2.1 In carrying out an approved consented budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator shall report the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basis. 10.2.2 For the efficient performance of the CBM Operations, the Operator may, without approvalconsent, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars dollars (U.S.$100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBMCNPC. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM CNPC for review and approval within one (l1) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM CNPC shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM CNPC requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM CNPC fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBMCNPC. The Operator shall make its best efforts to perform the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For As required for reviewing Work Program and budget by JMC, the Operator shall provide submit to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the Contractas detailed as possible. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator shall report quarterly the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basisconfirmation. 10.2.2 For the efficient performance of the CBM Petroleum Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000U.S. $100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 Article 1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBMCNPC. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM CNPC for review and approval within one (l1) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Work. Program and budget, CUCBM CNPC shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM CNPC requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM CNPC fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBMCNPC. The Operator shall make its best efforts to perform the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For As required for reviewing Work Program and budget by JMC, the Operator shall provide submit to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the Contractas detailed as possible. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator shall report quarterly the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basisconfirmation. 10.2.2 For the efficient performance of the CBM Petroleum Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000U.S. $100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Articlefor

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBM. The Operator shall make its best efforts to perform the CBM Operations in accordance with the approved annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs including those Work Programs under Article 7.3.1 hereof and its the obligations under the Contract. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergenciesamount. The Operator shall report the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basis. 10.2.2 For the efficient performance of the CBM Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After 7.01 Before the Date end of Commencement October of each Calendar Year after the Implementation effectivity of the Contract, the Operator CONTRACTOR shall propose submit and submit present to JMC the GOVERNMENT for review and approval of its annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget Budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMCYear. Within fifteen forty-five (1545) calendar days following the receipt of the annual Work Program and budgetBudget, CUCBM the GOVERNMENT shall notify JMC the CONTRACTOR in writing of its approval or disapproval or any suggest modifications thereto with its detailed reasons. If CUCBM the GOVERNMENT requests any modifications to on the aforesaid annual Work Program and budgetBudget, the Parties shall promptly hold meetings to make discuss modifications and any all suggested modifications will be respectively considered by the CONTRACTOR. Any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM the GOVERNMENT fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, act on the proposed annual Work Program and budget adopted by JMC Budget within forty-five (45) calendar days from receipt, the proposed annual Work Program and Budget shall be deemed to have been approved by CUCBMthe GOVERNMENT. The Operator CONTRACTOR shall make its best efforts to perform conduct the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the ContractBudget. 10.2 7.02 The Operator CONTRACTOR may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budgetBudget, provided that the objectives of in the approved Work Program and budget Budget are not changed.. The CONTRACTOR shall advise the GOVERNMENT of any significant changes on the Work Program and Budget, as follows: 10.2.1 (a) In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator CONTRACTOR may, if necessary, incur excess expenditures expenditure(s) of no more than ten fifty percent (1050%) of the budgeted amount except in amount. However, any excess beyond fifty percent (50%) shall only be allowed for cost-recovery if the case of emergencies. The Operator shall report CONTRACTOR is able to provide the aggregate amount of all GOVERNMENT justification for incurring such excess expenditures to JMC for confirmation on a Calendar Quarter basisexpenditure(s). 10.2.2 (b) For the efficient performance of the CBM Petroleum Operations, the Operator CONTRACTOR may, without approvalapproval of the GOVERNMENT, undertake certain individual projects case of emergency works, including but not limited to preventive measures for blowout and oil spill which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000)Budget, but the Operator CONTRACTOR shall, within ten fifteen (1015) calendar days after such emergency expenditures are incurred, make a written report and request for approval of supplemental budget to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 hereinGOVERNMENT. 10.2.3 (c) In the event that the aggregate of excess expenditures under Article 10.2.1 Section 7.02(a) herein and expenditures under Article 10.2.2 Section 7.02(b) herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five fifteen percent (515%) of the approved annual budget for that Calendar Year. If the aforesaid However, any excess is expected to be in excess of five beyond fifteen percent (515%) of shall only be allowed for cost-recovery if the annual budget, CONTRACTOR is able to provide the Operator shall present its reasons therefore to JMC and obtain its approval prior to GOVERNMENT justification for incurring such expendituresexcess expenditure(s). 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After the Date of Commencement of the Implementation of the Contract, the Operator shall propose and submit to JMC the annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMC. Within fifteen (15) days following the receipt of the annual Work Program and budget, CUCBM shall notify JMC in writing of its approval or disapproval or any modifications thereto with its detailed reasons. If CUCBM requests any modifications to the aforesaid annual Work Program and budget, the Parties shall promptly hold meetings to make modifications and any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, the annual Work Program and budget adopted by JMC shall be deemed to have been approved by CUCBM. The Operator shall make its best efforts to perform the CBM Operations in accordance with the approved annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the <PAGE> exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the Contract. 10.2 The Operator may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budget, provided that the objectives of the approved Work Program and budget are not changed. 10.2.1 In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator may, if necessary, incur excess expenditures of no more than ten percent (10%) of the budgeted amount except in the case of emergencies. The Operator shall report the aggregate amount of all such excess expenditures to JMC for confirmation on a Calendar Quarter basis. 10.2.2 For the efficient performance of the CBM Operations, the Operator may, without approval, undertake certain individual projects which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000), but the Operator shall, within ten (10) days after such expenditures are incurred, report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 herein. 10.2.3 In the event that the aggregate of excess expenditures under Article 10.2.1 herein and expenditures under Article 10.2.2 herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five percent (5%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five percent (5%) of the annual budget, the Operator shall present its reasons therefore to JMC and obtain its approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Articleand

Work Program and Budget. 10.1 After 7.01 Before the Date end of Commencement October of each Calendar Year after the Implementation effectivity of the Contract, the Operator CONTRACTOR shall propose submit and submit present to JMC the DEPARTMENT for review and approval of its annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget Budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMCYear. Within fifteen forty-five (1545) calendar days following the receipt of the annual Work Program and budgetBudget, CUCBM the DEPARTMENT shall notify JMC the CONTRACTOR in writing of its approval or disapproval or any suggest modifications thereto with its detailed reasons. If CUCBM the DEPARTMENT requests any modifications to on the aforesaid annual Work Program and budgetBudget, the Parties PARTIES shall promptly hold meetings to make discuss modifications and any all suggested modifications will be respectively considered by the CONTRACTOR. Any modifications agreed upon by the Parties PARTIES shall be effected immediately. In case CUCBM the DEPARTMENT fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, act on the proposed annual Work Program and budget adopted by JMC Budget within forty-five (45) calendar days from receipt, the proposed annual Work Program and Budget shall be deemed to have been approved by CUCBMthe DEPARTMENT. The Operator CONTRACTOR shall make its best efforts to perform conduct the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the ContractBudget. 10.2 7.02 The Operator CONTRACTOR may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budgetBudget, provided that the objectives of in the approved Work Program and budget Budget are not changed. The CONTRACTOR shall advise the DEPARTMENT of any significant changes to the Work Program and Budget. 10.2.1 a) In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator CONTRACTOR may, if necessary, incur excess expenditures expenditure(s) of no more than ten fifty percent (1050%) of the budgeted amount except in amount. However, any excess beyond fifty percent (50%) shall only be allowed for cost-recovery if the case of emergencies. The Operator shall report CONTRACTOR is able to provide the aggregate amount of all DEPARTMENT justification for incurring such excess expenditures to JMC for confirmation on a Calendar Quarter basisexpenditure(s). 10.2.2 b) For the efficient performance of the CBM Petroleum Operations, the Operator CONTRACTOR may, without approvalapproval of the DEPARTMENT, undertake certain individual projects case of emergency works, including but not limited to preventive measures for blowout and oil spill which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000)Budget, but the Operator CONTRACTOR shall, within ten fifteen (1015) calendar days after such emergency expenditures are incurred, make a written report and request for approval of supplemental budget to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 hereinDEPARTMENT. 10.2.3 c) In the event that the aggregate of excess expenditures under Article 10.2.1 Section 7.02(a) herein and expenditures under Article 10.2.2 Section 7.02(b) herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five fifteen percent (515%) of the approved annual budget for that Calendar Year. If the aforesaid However, any excess is expected to be in excess of five beyond fifteen percent (515%) of shall only be allowed for cost-recovery if the annual budget, CONTRACTOR is able to provide the Operator shall present its reasons therefore to JMC and obtain its approval prior to DEPARTMENT justification for incurring such expendituresexcess expenditure(s). 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article

Work Program and Budget. 10.1 After 8.01 Before the end of October of each Calendar Year after the Effective Date of Commencement of the Implementation of the Contract, the Operator CONTRACTOR shall propose submit and submit present to JMC the DEPARTMENT for review and approval its annual Work Program and budget for the remainder of the same Calendar Year at the first regular meeting of JMC. Before the fifteenth (15th) day of September of each Calendar Year, the Operator shall complete and submit to JMC for its review an annual Work Program and budget Budget for the next Calendar Year except as otherwise agreed by CUCBM. JMC shall either adopt the annual Work Program and budget as submitted or make such modifications agreed by the Parties. The adopted annual Work Program and budget shall be submitted to CUCBM for review and approval within one (l) month as of the date on which they are submitted to JMCYear. Within fifteen forty-five (1545) working days following the receipt of the annual Work Program and budgetBudget, CUCBM the DEPARTMENT shall notify JMC the CONTRACTOR in writing of its approval or disapproval or any suggest modifications thereto with its detailed reasons. If CUCBM the DEPARTMENT requests any modifications to on the aforesaid annual Work Program and budgetBudget, the Parties shall promptly hold meetings to make discuss modifications and any all suggested modifications will be respectively considered by the CONTRACTOR. Any modifications agreed upon by the Parties shall be effected immediately. In case CUCBM the DEPARTMENT fails to notify JMC in writing of its approval or disapproval or any modification within fifteen (15) days, act on the proposed annual Work Program and budget adopted by JMC Budget within forty-five (45) working days from receipt, the proposed annual Work Program and Budget shall be deemed to have been approved by CUCBMthe DEPARTMENT. The Operator CONTRACTOR shall make its best efforts to perform conduct the CBM Petroleum Operations in accordance with the approved or modified annual Work Program and budget. For reviewing Work Program and budget by JMC, the Operator shall provide to JMC the supporting data when requested. During the exploration period, the budgets so approved by CUCBM shall be sufficient to allow the Operator to fulfill the Work Programs and its obligations under the ContractBudget. 10.2 8.02 The Operator CONTRACTOR may, in accordance with the following provisions, incur excess expenditures or expenditures outside the budget in carrying out the Work Program and budgetBudget, provided that the objectives of in the approved Work Program and budget Budget are not changed.. The CONTRACTOR shall advise the DEPARTMENT of any significant changes on the Work Program and Budget, as follows: 10.2.1 (a) In carrying out an approved budget for a single item, such as for the drilling of a well, the Operator CONTRACTOR may, if necessary, incur excess expenditures of no more than ten fifty percent (1050%) of the budgeted amount except in the case of emergenciesamount. The Operator CONTRACTOR shall report inform the DEPARTMENT in writing of such possible excess of aggregate amount of all ten (10) working days prior to incurring such excess expenditures to JMC and explain the need for confirmation on a Calendar Quarter basissuch expenditures. 10.2.2 (b) For the efficient performance of the CBM Petroleum Operations, the Operator CONTRACTOR may, without approvalapproval of the DEPARTMENT, undertake certain individual projects case of emergency works, including but not limited to blowout and oil spill corrective measures which are not included in the Work Program and budget, for a maximum expenditure of One Hundred Thousand U.S. Dollars (U.S.$100,000)Budget, but the Operator CONTRACTOR shall, within ten fifteen (1015) working days after such emergency expenditures are incurred, make a written report to JMC for confirmation. In case of emergency, the Operator may incur emergency expenditures for the amount actually needed but shall report such expenditures to JMC as soon as they are made. However, the said emergency expenditures shall not be subject to Articles 10.2.3 and 10.2.4 hereinDEPARTMENT. 10.2.3 (c) In the event that the aggregate of excess expenditures under Article 10.2.1 Section 8.02(a) herein and expenditures under Article 10.2.2 Section 8.02(b) herein incurred in a Calendar Year cause the total expenditures of that Calendar Year to exceed the approved annual budget, such excess shall not exceed five fifteen percent (515%) of the approved annual budget for that Calendar Year. If the aforesaid excess is expected to be in excess of five fifteen percent (515%) of the annual budget, the Operator CONTRACTOR shall present its reasons therefore thereof to JMC the DEPARTMENT in writing and obtain its also meet with the DEPARTMENT to discuss the expenditures for approval prior to incurring such expenditures. 10.2.4 When JMC confirms the excess expenditures mentioned in Articles 10. 2.1 herein, and the expenditures mentioned in Article