Common use of Operator’s Authority Clause in Contracts

Operator’s Authority. ‌ The approval or deemed approval in accordance with this Agreement (whether with or without alteration) of a Program and Budget by the Management Committee will be authority for the Operator to undertake the Joint Venture Activities specified in and incidental to the Approved Program and Budget and to incur on behalf of the Participants the Joint Venture Expenditures estimated in and incidental to the Approved Program and Budget but the Operator must not incur Expenditures in the performance of the Joint Venture Activities specified in an Approved Program and Budget in an amount which exceeds by more than ten percent (10%) of the total of the Joint Venture Expenditures estimated within an Approved Program and Budget except: (a) subject to Section 9.6, in an emergency, as considered by the Operator necessary to maintain and preserve the Joint Venture Property or to preserve or protect life, limb, property or the environment in respect of the Joint Venture Property; (b) to effect and maintain insurances as required by Section 6.10(h); (c) in accordance with a prior approval obtained from the Management Committee under Section 8.7 or 8.10, as the case may be; or (d) as necessary to comply with any law or requirement of a Governmental Authority having jurisdiction where reference to the Management Committee is impracticable and until such reference becomes practical.

Operator’s Authority. ‌ The approval or deemed approval in accordance with this Agreement (whether with or without alteration) of a Program and Budget by the Management Committee will be authority for the Operator to undertake the Joint Venture Activities specified in and incidental to the Approved Program and Budget and to incur on behalf of the Participants the Joint Venture Expenditures estimated in and incidental to the Approved Program and Budget but the Operator must not incur Expenditures in the performance of the Joint Venture Activities specified in an Approved Program and Budget in an amount which exceeds by more than ten percent (10%) of the total of the Joint Venture Expenditures estimated within an Approved Program and Budget except: (a) subject to Section 9.6, in an emergency, as considered by the Operator necessary to maintain and preserve the Joint Venture Property or to preserve or protect life, limb, property or the environment in respect of the Joint Venture Property; (b) to effect and maintain insurances as required by Section 6.10(h); (c) in accordance with a prior approval obtained from the Management Committee under Section 8.7 or 8.10, as the case may be; or (d) as necessary to comply with any law or requirement of a Governmental Authority having jurisdiction where reference to the Management Committee is impracticable and until such reference becomes practical.