Valuation of petroleum

(1) Petroleum sold to third parties shall be valued at the net realised price at the Delivery Point. (2) Crude Oil sold to other than third parties shall be valued as follows– (a) by using the weighted average unit price received from sales to third parties at the Delivery Point, net of any commissions and brokerages paid in relation to such third party sales, during the ninety (90) days preceding such sale, adjusted as necessary for quality, grade and gravity, and taking into consideration any special circumstances with respect to such sales, unless less than fifty percent (50%), by volume, of Crude Oil sales during such period are made to third parties, in which case Crude Oil sold to other than third parties shall be valued in accordance with paragraph (b); (b) if no third party sales have been made during such period of time, then– (i) on the basis used to value other Crude Oil from Belize of similar quality, grade and gravity (or, if not similar, adjusted as necessary for quality, grade and gravity) and taking into consideration transportation cost differentials and any special circumstances with respect to sales of such Crude Oil, or (ii) if there is no other Crude Oil from Belize, on the basis used to value Crude Oil from other sources in Central America, Columbia and Venezuela of similar quality, grade and gravity and taking into consideration transportation cost differentials and any special circumstances with respect to sales of such similar Crude Oil. (3) Natural Gas sold to other than third parties shall be valued by agreement between the Government and the Contractor, provided, however, that such value shall reflect the following– (a) the quantity and quality of the Natural Gas; (b) the price at which sales of Natural Gas from other sources in Belize, if any, are then being made; (c) the price at which sales, if any, of Natural Gas imported into Belize are being made; (d) the purpose for which the Natural Gas is to be used; and (e) the international market price of competing or alternative fuels of feed stocks. (4) Third party sales referred to in this section shall mean sales other than barter sales made by the Contractor to purchasers which are not affiliated Companies of the Contractor in arms length transactions and with whom (at the time the same is made) the Contractor has no contractual interest involving directly or indirectly any joint interest. 73 (5) Commissions or brokerages incurred in connection with sales to third parties, if any, shall not exceed the customary and prevailing rate.