Common use of DIRECTED INVENTORIES Clause in Contracts

DIRECTED INVENTORIES. Physical inventories shall be performed by the Operator upon written request of the Owner (hereinafter, “directed inventory”); provided, however, the Operator shall not be required to perform directed inventories more frequently than once every years. Directed inventories shall be commenced within one hundred eighty (180) days after the Operator receives written notice that the Owner has requested the inventory. All parties shall be governed by the results of any directed inventory. Expenses of directed inventories will be borne by the Well Account; provided, however, costs associated with any post-report follow-up work in settling the inventory will be absorbed by the Party incurring such costs. The Operator is expected to exercise judgment in keeping expenses within reasonable limits. Any anticipated disproportionate or extraordinary costs should be discussed and agreed upon prior to commencement of he inventory. Expenses of directed inventories may include the following: A. A per diem rate for each inventory person, representative of actual salaries, wages, and payroll burdens and benefits of the personnel performing the inventory or a rate agreed to by the Parties pursuant to Section I.5.A (General Matters). The per diem rate shall also be applied to a reasonable number of days for pre-inventory work and report preparation. B. Actual transportation costs and Personal Expenses for the inventory team. C. Reasonable charges for report preparation and distribution to the Owner.