Common use of OVEREXPENDITURES OF PROGRAMS AND BUDGETS Clause in Contracts

OVEREXPENDITURES OF PROGRAMS AND BUDGETS. 9.7.1 For expenditures on any line item of an approved Program and Budget, Operator shall be entitled to incur without further approval of the Operating Committee an overexpenditure for such line item up to ten percent (10 %) of the authorized amount for such line item; provided that the cumulative total of all overexpenditures for a Calendar Year shall not exceed five percent (5%) of the total Program and Budget in question. 9.7.2 At such time that Operator is certain that the limits of Article 9. 7.1 will be exceeded, Operator shall furnish a supplemental AFE for the estimated overexpenditures to the Operating Committee for its review and shall provide the Parties with full details of such overexpenditures. Operator shall promptly give notice of the amounts of overexpenditures when actually incurred. 9.7.3 The restrictions contained in this Article 9.7 shall be without prejudice to Operator's rights to make expenditures as set out in Article 5.8.