Common use of DIRECTED INVENTORIES Clause in Contracts

DIRECTED INVENTORIES. With an interval of not less than five years, physical inventories shall be performed by the Operator upon written request of a majority in working interests of the Non-Operators. Expenses of directed inventories will be borne by the Joint Account and may include the following: A. Audit per diem rate for each inventory person in accordance with the auditor rates recommended by ▇▇▇▇▇ at the time the inventory is conducted The per diem should also be applied to a reasonable number of days for pre-inventory work and for report preparation. The amount of time required for this additional work may vary from inventory to inventory. B. Actual travel including Operator-provided transportation and Personal Expenses for the inventory team C. Reasonable charges for report typing and processing The Operator is expected to exercise judgment in keeping expenses within reasonable limits. Unless otherwise agreed, costs associated with any post-report follow-up work in settling the inventory will be absorbed by the Party incurring such costs. Any anticipated disproportionate costs should be discussed and agreed upon prior to commencement of the inventory. When directed inventories are performed, all Parties shall be governed by the results of such inventory.