Common use of Application of Overhead Clause in Contracts

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis under Paragraph 1.B. of this Section III., development shall include all costs in connection with drilling, redrilling, deepening, or any remedial operations on any or all ▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Property; also, preliminary expenditures necessary in preparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. of this Section III. All other costs shall be considered as operating.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepeningor deepening of any or all wells, or any and shall also include ▇▇▇ remedial operations requiring a period of five (5) consecutive work days or more on any or all wells; also, preliminary expendi▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Property; also, preliminary expenditures necessary in preparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operatingOperating except that catastrophe costs shall be assessed overhead as provided in Section III, Paragraph 3.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. lB of this Section III., development shall include all costs in connection with drilling, redrilling, deepening, or any remedial operations on any or all ▇w▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Property; also, preliminary expenditures necessary in preparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operating.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepeningor deepening of any or all wells, or and shall also include any remedial operations requirin▇ ▇ period of five (5) consecutive work days or more on any or all ▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Propertywells; also, preliminary expenditures necessary in preparation prep▇▇▇▇▇on for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operatingOperating except that catastrophe costs shall be assessed overhead as provided in Section III, Paragraph 3.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepeningdeepening of any or all wells, or and shall also include any remedial operations ▇▇quiring a period of five (5) consecutive work days or more on any or all ▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Propertywells; also, preliminary expenditures necessary in preparation ▇▇eparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost costs of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operatingOperating except that catastrophe costs shall be assessed overhead as provided in Section III, Paragraph 3.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepeningdeepening of any or all wells, or and shall also include any remedial operations ▇▇▇uiring a period of five (5) consecutive work days or more on any or all ▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Propertywells; also, preliminary expenditures necessary in preparation ▇▇▇paration for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost costs of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operatingOperating except that catastrophe costs shall be assessed overhead as provided in Section III, Paragraph 3.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepening, or any remedial operations on any or all ▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Property; also, preliminary expenditures necessary in preparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operating.

Application of Overhead. Percentage Basis shall be as follows: For the purpose of determining charges on a Percentage Basis percentage basis under Paragraph 1.B. 1B of this Section III., development shall include all costs in connection with drilling, redrilling, deepeningdeepening of any or all wells, and shall also include any r▇▇▇▇▇al operations requiring a period of five (5) consecutive work days or any remedial operations more on any or all wells; also, preliminary expendi▇▇▇▇▇ involving the use of drilling rig and crew capable of drilling to the producing interval on the Joint Property; also, preliminary expenditures necessary in preparation for drilling and expenditures incurred in abandoning when the well is not completed as a producer, and original cost costs of construction or installation of fixed assets, the expansion of fixed assets and any other project clearly discernible as a fixed asset, except Major Construction as defined in Paragraph 2. 2 of this Section III. All other costs shall be considered as operatingOperating except that catastrophe costs shall be assessed overhead as provided in Section III, Paragraph 3.