Common use of Additional Property Acquired For Subsequent Operation Clause in Contracts

Additional Property Acquired For Subsequent Operation. For purposes of depletion, the Joint Venture shall allocate to the Managing Venturer and to each Participating Venturer in a Subsequent Operation on or before the date of acquisition of any oil and gas property acquired for purposes of undertaking a Subsequent Operation, a portion of the adjusted basis of such property. Such basis shall be allocated 1% to the Managing Venturer and 99% to the Participating Venturers in such Subsequent Operation (and to each such Participating Venturer in the proportion that the interest of such Participating Venturer in such Subsequent Operation bears to the total interests of all such Participating Venturers in such Subsequent Operation).