Exploration Obligation Control Accounts Sample Clauses
The 'Exploration Obligation Control Accounts' clause establishes a system for tracking and managing the financial obligations related to exploration activities under an agreement. Typically, this involves creating dedicated accounts where all costs, expenditures, and payments associated with exploration commitments are recorded and monitored. For example, parties may be required to deposit funds or report expenses into these accounts to ensure transparency and accountability. The core function of this clause is to provide a clear and auditable method for verifying that exploration obligations are being met, thereby reducing disputes and ensuring compliance with contractual requirements.
Exploration Obligation Control Accounts. CONTRACTOR will establish an Exploration Obligation Control Account and an offsetting contra account to control therein the total amount of Exploration expenditures reported on Statements of activity prepared per Article I (b) (1) of this Annex, less any reductions agreed to by EGPC and CONTRACTOR following written exceptions taken by a non-operator pursuant to Article I (c)
(1) of this Annex, in order to determine when minimum Exploration obligations have been met.