Common use of Voluntary Reduction in Participation Clause in Contracts

Voluntary Reduction in Participation. Except with respect to a Participant's obligation to make contributions toward the Venture's operating cost requirements under the most recent approved Program and Budget (as to which no election is permitted), a Participant may elect to limit its contributions toward the Venture's Capital Expenditures which are a part of an approved Program and Budget as follows: (a) to some amount less than its respective Participating Interest; or (b) not at all. Subject to section 5.7, if a Participant then elects to contribute to an approved Program and Budget some amount toward Capital Expenditures less than its respective Participating Interest, or not at all, the Participating Interest of that Participant shall be recalculated at the time of such election by dividing the sum of, (i) such Participant’s initial contribution set forth in section 5.1; (ii) the total of all of such Participant’s contributions toward the Venture’s Capital Expenditures to the date of such election; and (iii) the amount, if any, that such Participant elects to contribute toward the Venture’s Capital Expenditures in the approved Program and Budget, by the sum of (i), (ii) and (iii) above for both Participants; and then multiplying the result by 100. The Participating Interest of the other Participant shall thereupon become the difference between 100% and the recalculated Participating Interest of the Participant that made such election pursuant to this section 5.4. This resulting Participating Interest shall be contingent upon the actual expenditures incurred for that approved Program and Budget being equal to at least 90% of the amount initially required of the other contributing Participant.

Voluntary Reduction in Participation. Except with respect (a) Pursuant to a Participant's obligation to make contributions toward the Venture's operating cost requirements under the most recent approved Program and Budget (as to which no election is permitted)Section 9.6, a Participant may elect to limit its contributions toward the Venture's Capital Expenditures which are a part of to an approved adopted Program and Budget as follows:to some lesser amount than its Participating Interest share of program expenditures in the affected Exploration or Production Area, or (2) elect to make no contribution. (ab) If a Participant elects to contribute to an adopted Program and Budget in some amount less than its respective Participating Interest; or (b) not at all. Subject to section 5.7, if a Participant then elects to contribute to an approved Program and Budget some amount toward Capital Expenditures less than its respective Participating InterestInterest in the relevant Exploration or Production Area, or not to contribute at all, then the Participating Interest of that each Participant in the relevant Area shall be recalculated at the time of such election by dividing the sum of, dividing: (i) the sum of (1) the agreed value of the Participant's initial contribution, apportioned to such Participant’s initial contribution set forth in section 5.1; Area pursuant to Sections 5.1 and 6.2, plus (ii2) the total of all of the Participant's prior contributions to such Participant’s contributions toward the Venture’s Capital Expenditures Area under Section 5.2 or allocated to the date of such election; and Area under Section 6.2, plus (iii3) the amount, if any, that such which the Participant elects has elected to contribute toward to the Venture’s Capital Expenditures in the approved adopted Program and Budget, ; by (ii) the sum of (i1), (ii2) and (iii3) above for both all Participants; and then multiplying the result by 100. The Participating Interest of one hundred. (c) If the other Participant shall thereupon become the difference between 100% and the recalculated Participating Interest of the Participant that made such election pursuant consenting Participant(s) in a Non-Consent Program fail(s) to this section 5.4. This resulting Participating Interest shall be contingent upon the actual expenditures incurred for that approved Program and Budget being equal to spend at least 90% of the amount initially required Budget associated with the relevant Program, then the non-consenting Participant shall be entitled, within 30 days of being notified of completion of the other contributing Participantreduced Program, to pay its share of the expenditures actually made by the consenting Participant and thereby maintain its Participating Interest in the affected Area. If the non-consenting Participant fails to contribute within such 30 day period, its Participating Interest shall be reduced in accordance with the foregoing provisions.