Common use of Exploration Expenditures Clause in Contracts

Exploration Expenditures. Subject to the limitations provided in this Agreement, McMoRan shall be entitled to expend monies for Exploration Expenditures of the Program on behalf of itself and Participant without the prior approval of Participant. The term "Exploration Expenditures" means all actual charges allocable to each Prospect in accordance with generally accepted industry standards, which charges are incurred by the Program prior to (i) the completion of the first Exploratory Well drilled by the Program on an Onshore Prospect that is completed as a well capable of production in Paying Quantities or (ii) the plugging, or the temporary abandonment if not plugged, of the first two Exploratory ▇▇▇▇▇ drilled by the Program on an Offshore Prospect, as applicable, and such other costs applicable to exploration activities in the Program Area as are otherwise provided for in this Agreement, which charges, among others, shall include the following: