In the event thecontractor and other contractor are

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In the event theContractor and Other Contractor are not able to come to a consensus, the Government (acting through DGH), at the cost of the Contractor and Other Contractor, shall call for a joint development plan from an independent agency, which agency, may make such a proposal after taking into account the position of the Contractor and Other Contractor in this regard. Such a joint development plan, if approved by Government, shall be binding on the Contractor and Other Contractor, notwithstanding their disagreement with the plan. However, the Contractorand the Other Contractor may in case of any disagreement on the issue of joint development or the proposed joint development plan, prepared in accordance with Article 12.4 or within forty five (45) Business Days of the plan approval as aforesaid in this Article, notify the Government that they elect to surrender their rights in the Reservoir in lieu of participation in a joint development. ARTICLE 13 MEASUREMENT OF PETROLEUM 13.1 Petroleum used for internal consumption, Petroleum Operations, flared, saved and sold from the Contract Area shall be measured for volume, weight and quality by methods and appliances generally accepted and customarily used in Modern Oil Field and Petroleum Industry Practices and approved by the Management Committee.
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36 13.2 The Government may, at all reasonable times, inspect and test the appliances used for measuring the volume and determining the quality of Petroleum, provided that any such inspection or testing shall be carried out in such a manner so as not to unduly interfere with Petroleum Operations and may at any time be at variance with Article 13.3(b). 13.3 Before commencement of production from the Contract Area, the Parties shall mutually agree on: (a) the point or points at which Petroleum shall be measured and the respective Revenue Sharesallocated to the Parties in accordance with the terms of this Contract; (b) the frequency of inspections and testing of measurement appliances and relevant procedures relating thereto; (c) the consequences of a determination of an error in measurement; (d) reconciliation mechanism between Petroleum Produced and Saved and Petroleum sold; and (e) methods to be employed for measurement of volume, weight and quality. 13.4 The Contractor shall undertake to measure the volume and quality of the Petroleum Produced and Saved from the Contract Area at the agreed measurement point consistent with generally accepted Modern Oil Field and Petroleum Industry Practices with the frequency and according to procedures agreed pursuant to Article 13.3. The Contractor shall not make any alteration in the agreed method or procedures for measurement or to any of the approved appliances used for that purpose without the written consent of the Management Committee.
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  • Winter '14
  • Bijay K Behra
  • Government, Petroleum Operations, Contract Area

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