Authorization for Expenditure Clause Samples
POPULAR SAMPLE Copied 2 times
Authorization for Expenditure. Within five (5) days after the Borrower receives an Authorization for Expenditure, the Borrower will provide to the Lender a copy of the Authorization for Expenditure and all documents and materials relating to it. The Borrower will elect timely to participate with respect to an Authorization for Expenditure, except where (x) it would not be prudent to do so and the Borrower promptly gives written notice to the Lender that the Borrower is not doing so or (y) unless, at least five (5) days prior to the deadline to make the election, the Borrower has requested in writing to the Lender the Lender’s consent to the Borrower’s electing not to participate and the Lender has so consented. The Borrower will comply with all of the Borrower’s requirements with respect to an Authorization for Expenditure so as to maintain all of the Borrower’s rights under the Authorization for Expenditure in full force and effect unless the Borrower is contesting a requirement in good faith by appropriate action and for which adequate reserves are being maintained in accordance with GAAP and promptly gave the Lender written notice to the Lender that the Borrower would be contesting.
Authorization for Expenditure. AFE") Procedure Subject to the requirements of the Operating Company,
A) If a commitment or expenditure has been approved as part of a Work Program and Budget, and if such commitment or expenditure is estimated to be in excess of one hundred thousand ($100,000) Dollars (U.S.), or if the expenditure or commitment is not included in an approved Work Program and Budget, then prior to making such commitment or expenditure, Operator shall send to each Non-Operator an AFE containing Operator's best estimate of the total funds required to carry out such work, the estimated timing of expenditures, and any other necessary supportive information.
B) If an AFE covers commitments or expenditures within the monetary amounts set out in the Work Program and Budget, it is for informational purposes only, unless:
1) the AFE costs exceed the costs for such operation in the approved budget by more than ten percent (10%) of the applicable line item amount for such operation or by more than five percent (5%) of the total Work Program and Budget; or
2) the AFE is technically incorrect. In the event that the circumstances in either Article 6.6(B)(1) or (2) occur, the Operating Committee shall vote on the AFE. If such AFE is not approved by the Operating Committee, the work in question shall immediately cease.
C) Each AFE proposed by the Operator shall:
1) Identify the operation by specific reference to the applicable line items in the Work Program and Budget;
2) Describe the work in detail;
3) Contain Operator's best estimate of the total funds required to carry out such work;
4) Outline the proposed work schedule;
5) Provide a timetable of expenditures, if known; and
6) Be accompanied by such other supporting information as is necessary for an informed decision.
Authorization for Expenditure. “AFE”) Procedure
(A) Prior to incurring any commitment or expenditure for activities for the Joint Account, which is estimated to be:
(1) in excess of one hundred thousand Dollars ($100,000) in an exploration or appraisal Work Program and Budget;
(2) in excess of two hundred thousand Dollars ($200,000) in a development Work Program and Budget; and
(3) in excess of one hundred thousand Dollars ($100,000) in a production Work Program and Budget, Operator shall send to each Non-Operator an AFE as described in Article 6.7(C). Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to routine operating costs and general and administrative costs that are listed as separate line items in an approved Work Program and Budget.
(B) Prior to making any expenditures or incurring any commitments for work subject to the AFE procedure in Article 6.7(A), Operator shall obtain the approval of the Operating Committee. If the Operating Committee approves an AFE for the operation within the applicable time period under Article 5.12(A), Operator shall be authorized to conduct the operation under the terms of this Agreement. If the Operating Committee fails to approve an AFE for the operation within the applicable time period, the operation shall be deemed rejected. Operator shall promptly notify the Parties if the operation has been rejected, and, subject to Article 7, any Party may thereafter propose to conduct the operation as an Exclusive Operation under Article 7. When an operation is rejected under this Article 6.7(B) or an operation is approved for differing amounts than those provided for in the applicable line items of the approved Work Program and Budget, the Work Program and Budget shall be deemed to be revised accordingly.
(C) Each AFE proposed by Operator shall:
(1) identify the operation by specific reference to the applicable line items in the Work Program and Budget;
(2) describe the work in detail;
(3) contain Operator’s best estimate of the total funds required to carry out such work;
(4) outline the proposed work schedule;
(5) provide a timetable of expenditures, if known; and
(6) be accompanied by such other supporting information as is necessary for an informed decision.
Authorization for Expenditure. “AFE”) Procedure
(A) Prior to incurring any commitment or expenditure for the Project Account not pre-approved in the Annual Work Program and Budget, the Operator will issue an AFE for items of a capital nature and for work, of the original annual budgeted amounts, if such amounts have changed. The above will apply to exploration or appraisal, development and production Work Programs and Budgets. Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to any Minimum Work Obligations, approved in the Annual Budget.
(B) All AFEs shall be for informational purposes only. Approval of an operation in the current Work Program and Budget shall authorize Operator to conduct the operation (subject to Article 6.7) without further authorization from the Parties.
Authorization for Expenditure authorization prepared by the Operator and submitted to the Operating Committee, pursuant to Annex XI, for the expenses required for execution of the Operations in the Contract Area.
Authorization for Expenditure authorization prepared by the Operator and submitted to the Operating Committee, pursuant to ▇▇▇▇▇ ▇▇▇▇, for the expenses required for conduction of the Operations in the Contract Area. Assessment: set of Operations intended to check the commercial feasibility of a Discovery or set of Discoveries of Oil and Gas in the Contract Area.
Authorization for Expenditure. (AFE) means an authorization to expend funds that estimates costs to be incurred for an operation pursuant to the Operating Agreement, defined below.
Authorization for Expenditure any document received by the Borrower with respect to a Borrower Property that, consistent with industry practice, is a notice of a proposed well to be drilled with respect to which the Borrower would have a working interest because of the Borrower Property, including, without limitation, any invitation to participate in drilling received by the Borrower pursuant to Section 38-08 of the North Dakota Century Code and Section 43-02-03 of the North Dakota Administrative Code (or any successor provision to either).
Authorization for Expenditure. AFE") PROCEDURE
9.6.1 At least thirty (30) days prior to incurring any commitment or expenditure for the Joint Account, which is estimated to be in excess of U.S. dollars one hundred thousand dollars (U.S. $100,000.00) in an approved Program and Budget, Operator shall send to each Non-Operator an AFE as described in Article 9.6.
9.6.2 The approval process for each AFE shall be as stated in the Sections 7.3, 7.4 and 7.5 of the Accounting Procedure.
9.6.3 Each AFE proposed by the Operator shall:
(i) Identify the operation by specific reference to the applicable line items in the Work Program and Budget;
(ii) Describe the work in detail;
(iii) Contain Operator's best estimate of the total funds required to carry out such work;
(iv) Outline the proposed work schedule;
(v) Provide a timetable of expenditures, if known; and
(vi) Be accompanied by such other supporting information as is necessary for an informed decision.
Authorization for Expenditure. “AFE”) Procedure
(A) Prior to incurring any commitment or expenditure for the Joint Account, the Operator will issue an AFE for items of a capital nature and for workovers, where the individual item value is in excess of One Hundred U.S. dollars (U.S.$100,000). The above will apply to exploration or appraisal, development and production Work Programs and Budgets. Notwithstanding the above, Operator shall not be obliged to furnish an AFE to the Parties with respect to any Minimum Work Obligations, workovers of ▇▇▇▇▇ and general and administrative costs that are listed as separate line items in an approved Work Program and Budget.
(B) All AFEs shall be for informational purposes only. Approval of an operation in the current Work Program and Budget shall authorise Operator to conduct the operation (subject to Article 6.7) without further authorisation from the Operating Committee.