Fabrication AFE definition

Fabrication AFE. No later than six (6) months from the date of the last Election for the Final Design AFE as provided in Article 12.7 above, unless such additional time is necessary due to circumstances beyond Operator's control, Operator shall submit a Fabrication AFE for the Initial Production System to all Parties for their Election. The Fabrication AFE shall consist of separate AFEs for each major component in the construction, fabrication and installation of the Initial Production System identified in the approved Development Plan and Final Design AFE. If the Operator does not timely submit the Fabrication AFE, any Party may submit a Fabrication AFE for the Development Plan. The Fabrication AFE shall consist of a separate AFE for: (i) the structural components of the Initial Production System, (ii) the equipment and Facilities to be located on the Designated Prospect (or located off the Designated Prospect but serving the Designated Prospect), and (iii) any pipelines or other Facilities for handling Hydrocarbon production. The Election regarding the Fabrication AFE shall be a single Election and not an Election as to the individual AFEs comprising the Fabrication AFE.
View Source
Fabrication AFE means the individual AFEs as described in Article 12.8 (Fabrication AFE) collectively submitted pursuant to an approved Development Plan for the procurement, fabrication, construction and installation of a Production System.
View Source

Examples of Fabrication AFE in a sentence

  • Each Non-Operator Participating Party shall have the option to attend regularly scheduled meetings between the Operator and any contractors constructing the Initial Production System or Facilities specified in the Fabrication AFE as well as visits to the construction sites.

  • If such construction has not commenced in a timely manner, then the approved Fabrication AFE shall be deemed withdrawn with the effect as if the Fabrication AFE had never been submitted.

  • In view of the significantly greater risks associated with Exploratory Operations for each of the remaining undrilled Designated Prospects(s), and the Fabrication AFE for the Initial Production System, the Parties agree that upon timely commencement of such operations, the Participating Parties shall be entitled to an assignment of the Non-Participating Party's right, title and interest (including operating rights) in all of the Leases comprising a Designated Prospect.

  • Overruns on Fabrication AFE: If it appears (based upon Operator's reasonable estimate) that the actual Costs associated with any separate AFE submitted under the Fabrication AFE will exceed the latest approved Fabrication AFE by twenty-five percent (25%) or ten million dollars ($10,000,000), whichever is less, Operator shall submit a supplemental AFE to the Participating Parties to make an Election as to their further participation in the Fabrication AFE.

  • For purposes of this paragraph, a minor modification shall mean a modification which does not cause the estimated Cost of any separate AFE submitted under the Fabrication AFE to increase by more than twenty-five percent (25%) or Two Million Dollars ($2,000,000), whichever is less, and does not change the type of Production System, the number of Development Wells, the capacity of the Facilities ▇▇ the Hydrocarbon transmission system of the Development Plan.

  • Any Non-Participating Party shall be subject to Article 16.2 (Acreage Forfeiture Provisions) and the Participating Parties shall elect to either: (i) proceed with the Fabrication AFE with the interest of the Non-Participating Party shared by the Participating Parties on the basis of their respective Working Interests, unless otherwise agreed, or (ii) change its Election to become a Non-Participating Party.

  • By making an Election to participate in the Fabrication AFE, each Participating Party commits to pay its Participating Interest share of the Costs, risks and liabilities of the Initial Production System as set out in the Fabrication AFE.

  • If one or more Participating Party(s) proceed with timely operations for the Initial Production System as authorized in the Fabrication AFE as a Non-Consent Operation, the Non-Participating Party(s) shall relinquish and assign to the Participating Party(s) one hundred percent (100%) of the Non-Participating Party's right, title and interest in and to all of the Leases comprising the Designated Prospect, and any wells drilled thereon.

  • The Operator shall commence, or cause to be commenced, the construction of the Initial Production System in any Designated Prospect(s) within one (1) year from the last Party's Election for the Fabrication AFE.

  • Elections involving the construction and installation of a Production System shall require a response within one hundred eighty (180) days after receipt of the Fabrication AFE.