Indirect Charges. Operator may charge the Joint Account for indirect costs either by use of an allocation of district expense items plus the rate for administrative overhead, and plus the warehousing charges, all as provided for in Paragraph 1 of this Section III or by combining all three of said items under the rates provided for in Paragraph 2 or 3 of this Section III, as indicated next below: o Paragraph 1. (District Expense, Administrative Overhead and Warehousing) x Paragraph 2. (Combined Rates - Well Basis) o Paragraph 3. (Combined Rates - Percentage Basis) The cost and expense of services from outside sources in connection with matters of taxation, traffic, accounting or matters before or involving governmental agencies shall be considered as included in the overhead rates provided for in the above selected Paragraph of this Section III unless such cost and expense are agreed to by Operator and Non-Operators as a direct charge to the Joint Account. A. x shall o shall not include salaries and personal expenses of first-level supervisors in the field. B. x shall o shall not include salaries, wages and personal expenses of technical employees temporarily assigned to and directly employed on the Joint Property. C. x shall o shall not include salaries, wages and personal expenses of technical employees either temporarily or permanently assigned to and directly employed in the operation of the Joint Property. 1. District Expense, Administrative Overhead and Warehousing A. District Expense B. Administrative Overhead (1) o Well Basis
Appears in 2 contracts
Sources: Unit Agreement (Resaca Exploitation, Inc.), Unit Agreement (Resaca Exploitation, Inc.)