Common use of Authorization for Expenditure Clause in Contracts

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 Subject to the requirements of the Operating Company,PROCEDURE (A) If a Prior to incurring any commitment or expenditure has been approved as part expenditure, which is estimated to be: (1) In excess of a U.S. dollars fifty thousand (U.S. $50,000) in an exploration or appraisal Work Program and Budget, and if such commitment or expenditure is estimated to be in ; (2) In excess of one hundred U.S. dollars fifty thousand (U.S. $100,00050,000) Dollars (U.S.), or if the expenditure or commitment is not included in an approved a development Work Program and Budget, then prior to making such commitment or expenditure, ; and (3) In excess of U.S. dollars fifty thousand (U.S. $50,000) in a production Work Program and Budget. 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. These AFEs shall be for informational purposes only and Operator shall not be required to obtain approval for such AFE prior to commencement of work. (B) If Prior to incurring any commitment or expenditure estimated to be in excess of $200,000 in an AFE covers commitments or expenditures within the monetary amounts set out in the approved Work Program and Budget, it Operator shall send to each Non-Operator and AFE containing the same information as established in (A). Operator shall obtain the Operating Committee approval to such AFE prior to incurring commitment of expenditure. Any Party voting to disapprove an AFE issued in furtherance of an approved Work Program and Budget shall demonstrate that such disapproval is for informational purposes only, unless: 1) duly justified and shall state the AFE costs exceed the costs reasons for such operation disapproval. (C) Prior to incurring any commitment or expenditure which is not contained in the an 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, Operator shall send to each Non-Operator an AFE containing the same information as established in (A) and shall obtain the AFE is technically incorrect. In Parties' approval regardless the event that the circumstances in either Article 6.6(B)(1) or (2) occur, the Operating Committee shall vote on the amount of such AFE. If such AFE is not approved by the Operating Committee, the work in question shall immediately cease. C(D) Each AFE proposed by the Operator shall: 1) Identify the operation by specific reference The restrictions contained in this Article shall be without prejudice 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 rights to carry make expenditures as set out such work; 4in Article 4.2(B)(11) 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.and Article 13