Month: July 2009

A portion of produced oil that the operator applies on an annual basis to recover defined costs specified by a production sharing contract.

Use of money from saloe of oil and gas to cover expenses

For instance if natural gas is not available through the fault of the gas supplier or the transmission company, it could be incumbent upon the party in breach of the contract to pay the burden of the cost of alternative fuels (usually limited in time and scope). Under the gas transportation agreement between INGL and gas consumers in Israel it appears that if gas is not supplied (due to negligence or FM) that the consumer will have to bear the burden of the cost of the alternative fuels as well as additional damages caused. Only if INGL can be held responsible for the damage caused will they have to compensate the consumers for the cost of alternative fuels, but only up to a cap of 15% thereof.