Description:

The 2012 Accounting Procedure includes revisions to the rights of a Non-Operator to obtain Joint Account information from the Operator; clarification of the Cash Call procedure; allows Operator to Cash Call itself if the 2012 operating agreement provides that the Operator may not commingle monies received for the Joint Account; clarifies that the monthly statement from the Operator may also serve as an invoice for costs not covered by Cash Calls; coordinates collection by Operator of interest on late payments of a Cash Call or billing with the default provisions of the 2012 JOA; clarifies the audit procedures applicable to Operator affiliates; creates an optional audit procedure for Designated Affiliate Charges of the Operator; consolidates audit rights as to certain unscheduled charges to the Joint Account; updates and clarifies the direct charges the Operator may make to the Joint Account removing unnecessary optional and alternative provisions; coordinates the 2012 Accounting Procedure with the applicable provisions of the 2012 JOA concerning Operator charges for Operator owned and Affiliate owned equipment, facilities and utilities and services of Operator Affiliates; and streamlines the provisions on Premium Prices for Material by deleting the option of the Non-Operators to furnish their share of such Material in kind.