Common use of Additional Costs and Expenses Clause in Contracts

Additional Costs and Expenses. Centurion and/or EXXI will incur additional costs and expenses (exclusive of well costs) associated with the Gridiron AMI and the Prospects as defined below in Section 3.01. It is hereby agreed that EXXI shall be designated as the Operator of the Gridiron AMI as to field operations associated with the drilling, completing, equipping, operating and maintenance of ▇▇▇▇▇ and subsequent oil and gas production; however, on a Prospect-by-Prospect basis, Centurion shall continue to provide substantially the same land, permitting and administrative services which were otherwise necessary for the management of the Leasehold Assets and the Prospects prior to the date of this Agreement (i.e. leasing, payment of rentals, negotiating farmouts, securing title opinions, unitization applications, regulatory and mitigation matters), on an ongoing basis through and until May 1, 2007, including the payment of rentals due through June 30, 2007. The Parties agree to pay their proportionate shares of all such actual costs and expenses incurred within fifteen (15) days of being billed for same. Failure to make such payments on a timely basis will be considered a material breach of this Agreement and will be treated as a Dispute under Article 10 of this Agreement.