Document:

ex107magellanseabird

ex107magellanseabird

            DATED     26 October 2012                  MAGELLAN PETROLEUM (OFFSHORE) PTY LTD            AND         SEABIRD EXPLORATION FZ-LLC                     AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES         NT/P82 Bonaparte Basin, Timor Sea   Offshore Northern Territory, Australia                                

 

            REVISION HISTORY      Rev. Date Description By Chkd App.   Rev A 10th January 2012 First version FR     Rev B 16 January 2012 Second draft MVC FR    Rev C 8 October 2012 Third draft IDJ FR    Rev D 13 October 2012 Fourth draft TT     Rev E 16 October 2012 Fifth draft IDJ/MVC     Rev F 26 October 2012 Sixth Draft - Final MB/MVC/TT FR MVC/MB/TT                                  Prepared for Magellan by:      Enquest Pty Ltd      Tel.   +61 418 681 314    Fax   +61 428 681 314   Email  F.Renton@enquest.com.au        

 

         -1-      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      THIS AGREEMENT is made the 26th day of October 2012      BETWEEN      MAGELLAN PETROLEUM (OFFSHORE) PTY LTD (ABN 40 105 292 644) of Level1, 167 Eagle Street,   Brisbane, Queensland 4000      (the "Company") of the one part;      And      SEABIRD EXPLORATION FZ-LLC (ABN 51 140 306 994) of Media City Shatha Tower, PO BOX 500549, Dubai,   United Arab Emirates       (the "Contractor") of the one part;      WHEREAS   A. The Company is engaged in the offshore exploration in Petroleum Exploration Permit NT/P82 in   the Bonaparte Basin and wishes to engage the Contractor to perform the Services.   B. The Contractor is engaged in the business of, and is ready, willing and able to carry out, the   Services under this Agreement on the terms and conditions contained herein.      NOW IT IS AGREED AS FOLLOWS:-      This agreement and the following Annexures attached hereto (“Agreement”) contain the entire contract   between the parties and supersede and replace any oral or written communications between them   relating to the Services:      Annexure A  –  Contract Summary     Attachment 1  –  Contractor Supplied Items   Attachment 2 –  Contractor Supplied Personnel     Attachment 3  –  Company Supplied Items     Attachment 4 –  Schedule of Rates   Annexure B –  Terms and Conditions for Data Acquisition Services   Annexure C  –  Compliance with Statutory Regulations   Annexure D  –  Acquisition Parameters and Quality Control Standards   Annexure E  –  Operations Map and Coordinates   Annexure F - HSE Requirements      Unless otherwise stated, if there is any conflict between the abovementioned documents, the order of   precedence shall be as listed.      NOTES:       The Safety Management Plan and the Environmental Management Plans are not included in this document.      They will be in accord with the contract and legislative and regulatory requirements and will be   developed jointly by the Contractor and Company to cover the Contract period.        

 

    

 

         -3-      ANNEXURE A      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      SUMMARY      1 SERVICES      Acquisition of approximately 135 line kilometres of 2D seismic data and 195 square kilometres (full fold)   3D seismic data in the Bonaparte Basin, offshore Northern Territory, Australia, at the locations as shown   in Annexure E of this Agreement. The map and coordinates shown in Annexure E are subject to the   final results of the migration aperture study.         2 TERM      The Services shall commence on or about the 6 December 2012, but no later than the 14 December 2012,   as agreed between the Company and the Contractor.  The services shall terminate upon the earlier of the   fulfilment of the Parties’ respective obligations unless otherwise terminated as provided in the   Agreement.         3 MODE      The Services shall be conducted 24 hours per day, 7 days per week, except as otherwise directed by the   Company. Acquisition will be most efficient whilst the Survey vessel is able to maintain continuous   production.         4 COMPLIANCE      The Contractor shall:      4.1 Provide the equipment and personnel listed in Attachments 1 and 2 of Annexure A      4.2 Comply with the terms and conditions contained in Annexure B      4.3 Comply with statutory requirements as acknowledged in Annexure C      4.4 Comply with acquisition parameters and quality control standards in Annexure D      4.5 Comply with the Contractor’s Project Plan for the Data Acquisition and the relevant portions of   the Contractor’s QHSE Management Systems       4.6 Comply with the Company’s Environment Plan for the Data Acquisition and the relevant portions   of the Contractor’s QHSE Management Systems      5 REPORTS      In addition to the reports referred to in Clause 3.3 of Annexure B and section 4 of Annexure D, the   Contractor shall provide the following reports which shall be consistent with the requirements of Part 7   Division 3 Subdivision 3.3 the the Offshore Petroleum and Greenhouse Storage (Resource Management and   Administration) Regulations 2011:       5.1 Daily, weekly and monthly progress report of the Services in the format as directed by the   Company.      5.2 Final operations report including comprehensive description of equipment used, system   malfunctions, calibration and test results and all pertinent geometric relations between echo   sounder transponders, sea level, positioning antennae, seismic sources and spread.  Tape channel   identification, digital format information and the like, will be fully documented.  Schematic     

 

         -4-      source array and spread diagram, summary of sea and weather conditions and complete   operational statistics will also be provided.      5.3 2 hard copies and 4 electronic copies of the final operations report on CDs, within 30 days of the   completion of the Services in the Contractor’s standard format.         6 DATA DELIVERY      The Contractor shall deliver the field tapes, observer’s reports and other pertinent field data to the   Company's address for notices as provided in Clause 13 of Annexure A or such other destination as the   Company may direct.          7 PRE-PLOTS       At least 2 weeks before the commencement of the Services, the Contractor shall supply pre-plots of the   program sail lines based on coordinates supplied by the company for the Survey programs.  These pre-   plots shall be provided digitally and in the form of maps and coordinate printouts, using the geodetic   reference system and mapping projection specified in Annexure D.         8 NAVIGATION DATA      The Contractor shall ensure that navigation data shall be recorded digitally. Post-plotted navigation data   will be submitted within one month of completion of the survey on a magnetic tape in UKOOA/SPS format   as defined in Annexure D. The post-plotted navigation data shall show the shot point location relative to   antenna location, centre of the source array and the common mid-point between the source and nearest   receiver, the centre of the receiver array to the receiver location and the location of each gravity and   magnetic survey station.          9 CONTRACTOR’S BASE      The Contractor's Base shall be Dubai.      10 CONTRACTOR'S ITEMS      The Contractor shall provide at its sole cost and expense all Services and equipment, machinery, tools,   spare parts, materials and supplies necessary to efficiently perform the Services, including, without   limitation those items listed in Attachment 1 of Annexure A.  Replenishment of the Contractor's Items   shall be carried out by the Contractor at its expense and the Contractor shall be responsible for   maintaining adequate stock levels.         11 CONTRACTOR'S PERSONNEL      The Contractor shall provide at its sole cost and expense all personnel necessary to perform the Services   including, without limitation to the foregoing, the personnel listed in Attachment 2 of Annexure A and as   requested by the Company.       Adequate provision will be made for rotational leave to ensure all positions are filled at all times with   qualified and competent personnel for the duration of the Operations. Additional personnel, if required by   the Company, will be provided at additional cost to the Company.        All personnel are to be certified to be trained in sea survival and helicopter underwater evacuation to   OPITO standard or equivalent.  The Contractor must provide an HSE training matrix of the crew to   Company at least 2 weeks prior to the start of Operations.        

 

         -5-         12 ITEMS TO BE FURNISHED BY THE COMPANY      The Company will furnish and replace as necessary, at its expense, the equipment, machinery, tools,   supplies, material and Services as specified in Attachment 3 of Annexure A.  The Company shall not be   required to furnish anything not listed therein, except as otherwise agreed in writing by the parties.         13  ADDRESSEES FOR NOTICES      The Company:  Magellan Petroleum (Offshore) Pty Ltd     Level 1, 167 Eagle Street   Brisbane, Qld 4000     Attention: Merv Cowie     Title: Operations Director     Facsimile: +61 (7) 3224 1699     Email: mcowie@magpet.com.au & magadmin@magpet.com.au      The Contractor:                      Seabird Exploration FZ-LLC                                                  Media City Shatha Tower                                                  PO BOX 500549, Dubai,                                                 United Arab Emirates     Attention: _Kjell Mangeroy     Facsimile: +971 4429 0544     Title: Vice President Business Development      Email: kjell.mangeroy@sbexp.com         14 DESIGNATED REPRESENTATIVES:      The Company:       Company shall appoint a Quality Control Supervisor as its Designated Representative pursuant to Clause   15.2 of Annexure B, and shall advise Contractor in writing of the name of the Company’s Designated   Representative.  Company may substitute its Designated Representative at any time, but will give written   notice to the Contractor of any changes.      Company shall, through its appointed Designated Representative, give such advice and information as it   deems necessary for the best conduct of the Operations.  All directions, instructions or requests given or   made by the Company’s Designated Representative shall be deemed to be the directions, instructions or   requests of Company.      Company agrees that whatever operational problems may arise may be discussed by Contractor with the   Company’s Designated Representative and any decision agreed to in writing by the Company’s Designated   Representative shall be binding upon Company.      The Company’s Designated Representative will have the right to stop Operations if the quality control   standards set forth in this Agreement, including Annexure D and the Safety Management Plan are not met.    The Company’s Designated Representative will have the right to suitably deviate or terminate planned   Survey lines and to reduce quality control standards if deemed desirable operationally.      It is acknowledged that the Company’s Designated Representative shall not have authority to agree to any   amendment or variation of any terms or provisions of this Agreement or to waive any of the rights, duties   or liabilities of the Parties and no action of the Company’s Designated Representative shall have such   effect.      The Contractor:      Contractor shall appoint a Quality Control Supervisor as its Designated Representative pursuant to Clause   15.2 of Annexure B, and shall advise Company in writing of the name of the Contractor’s Designated   Representative.  Contractor may substitute its Designated Representative by written notice to Company.   The Company will have final approval on all such substitutions.     

 

         -6-         Contractor shall, through its appointed Designated Representative, give such advice and information, as it   deems necessary for the best conduct of the Operations.  All directions, instructions or requests given or   made by the Contractor’s Designated Representative shall be deemed to be the directions, instructions or   requests of Contractor.      Contractor agrees that whatever operational problems may arise may be discussed by Company with the   Company’s Designated Representative and any decision agreed to in writing by the Contractor’s   Designated Representative shall be binding upon Contractor.      The Contractor’s Designated Representative will have the responsibility to notify the Company if the   quality control standards set forth in this Agreement, including Annexure D and the Safety Management   Plan, are not met and shall advise the Company's Designated Representative immediately the quality of   the data acquisition falls below the Quality Control Standards.          15 SPECIAL CONDITIONS      15.1  COMMENCEMENT TIME      The Commencement Time shall be the time the Contractor achieves acceptable production on the first   line following the mobilisation of all of the Contractor’s items and personnel to Operations Area and the   Contractor is fully capable of performing the remainder of the Services, as confirmed in writing by the   Company’s Quality Control Supervisor.       Should the Contractor be in the Operations Area and unable to acquire data on the first line for conditions   as defined under Standby Rate in Section 3 of Attachment 4, then this time shall be regarded as Standby   Time.  Following any such Standby Time if, in the opinion of the Company, the Contractor is not capable   of performing the Services for reasons other than those defined as Standby Time or equipment problems   directly attributable to Standby Time then the Standby Time shall be reduced by the length of the   subsequent Downtime from the end of the Standby Time until commencement of the Services.      The Contractor shall adhere to Part A. Standard Management Procedures of the EPBC Act Policy   Statement 2.1 – Interaction between offshore seismic exploration and whales (September 2008) using the   2 km low power zone, which must be implemented during the seismic survey operations to minimise   impacts to whales.        

 

         -7-      ATTACHMENT 1      CONTRACTOR SUPPLIED ITEMS         1 RECORDING VESSEL           M/V "Voyager Explorer"      (Full details for the recording vessel be provided by Contractor)      Vessel Name Voyager Explorer   Flag State Panama   Port of Registry Panama   Call Sign 3FTG9   IMO Number 9319052   Classification Society ABS   Classification ID No. 05152281   Owners Koleth (S) PTE LTD  / 1504998  100%   Operators Seabird Exploration FZ-LLC   Where Built CHINA   When Built 2005   Builders Name JIANGSUZHENJIANGSHIPYARDCO.,LTD.   Originally Built As PSV   Last Major Upgrade 2006   Overall Length (LOA) 67.8m   Beam (Max) 16m   Draft (Max) 4.65m   GRT  (National/International) 2943 tons   GRT Canals (Panama/ Suez) -   NRT (National/International) 883 Tons   NRT Canals (Panama/ Suez) -   Lightship Displacement 2331.4   Bollard Pull Capacity at 5 kts. 28 Tones   Main Engines 2 x Caterpillar 3516B, total 4200 hp   Number of Propellers & Blades   2 x 4-blade, variable pitch,2.60-m props,Kort   nozzles   Thrusters    Bow  1 x Cummins 815 BHP @ 1800 RPM   Stern N/A   Azimuth N/A   Main Generator 3 x 350 kW, 415v-3-50hz   Aux Generator Emergency 1 x 78 KW, 415-3-50   Clean Power (UPS/GMDSS) 60Kva UPS Seismic   Incinerator (Garbage) 1 X Incinerator, 1 X Compactor     Capacities    Main Engine Lube Oil  14 m3     

 

         -8-      Cable Oil (Clean/Separated/Dirty) 22m3   Fuel Total/Useful 800.0 m3   Bunkering Connections (Type/Locations) Inline and either side at sea bunker capacity   Fuel Consumption    During Transit 10.0 cub.m per day @ 10 kts,   Whilst Surveying 13 cub.m @ on seismic   Cruising Speed 10 knots   Cruising Range 19,000 nautical miles   Survey Endurance with Tendered Trailing   Equipment 5 Weeks without resupply   Potable Water    Capacity 157.0 cubic meters   Maker Production 13.0 m3/day Reverse Osmosis Desalination System   Radars 1 X Furuno FAR-2137s, 1 X Furuno FAR-2127   Inmarsat Fleet 77   VSAT GIS/MTM 320Kbs C-Band   Bridge Radios   GMDSS station Furuno RC1800-IT-E, areas A1, A2,   A3 (VHF, MF, HF, Inmarsat C).   UHF 8 – ICON UHF Seismic   VHF   1 x Sailor TT-3064A Maritime Telephone    8 x portable VHF, 1 x Sailor RT-2048 VHF   MF/HF   GMDSS station Furuno RC1800-IT-E, areas A1, A2,   A3 (VHF, MF, HF, Inmarsat C).   Aircraft Airband VHF   Helicopter Beacon NDB, Call Sign EXYZ, Frequency 300MHz   Ship’s Navigation 2 x Furuno X and S band   Gyro Compass 1 X Anshutz STD-20 STD-22 (Vessel)   Autopilot   Robertson AP9MkIII & Robtrack STS500   Raytheon NP60   Fathometer Furuno FE - 700 (bridge), Simrad EA400 (Seismic)   GPS Receiver 1 x Furuno GP-90, 1 x Furuno GP-80   Speed Log Furuno DS-80   Weather Facsimile Via GMDSS Station   Navtex Receiver 1 x Furuno NX-500 / Furuno AIS FA-100   ECDIS (Electronic Charting Display) 1 x  Furuno   Radio Direction Finder No, only non-directional beacon for aircraft   Emergency Communication   GMDSS station Furuno RC1800-IT-E, areas A1, A2,   A3 (VHF, MF, HF, Inmarsat C).   Total Berths 48   Conference/Training Rm. HeliDeck Waiting Room   Air Draft (Max Antenna) 22m   Helideck   NDB, Call Sign EXYZ, Frequency 300MHz;   Kongsberg Helideck Monitor System (HMS 100)   Diameter D value = 20   Rating t = 9.3   Deck Markings Standard CAP437     

 

         -9-      Lifeboats N/A   Lifeboat Radios 6x  MDSS VHF, 2 x JOTRON SART   Liferafts   4 x Viking 25DK+ (4 x 25 pers), 1x6 pers Viking   6DK   Lifejackets 108 pcs lifejackets   Survival Suits, thermo-insulated (Number,   Manufacturer, Type) Lalizas, HYF - 54 pcs   Working Suits, thermo-insulated (Number,   Manufacturer, Type) Crewsaver – 8 pcs; Secumar – 10 pcs   MOB 1x6 pers Viking 6DK   Fire Detection & Alarm Systems MINERVA T1016   Fire Main System   Fixed CO2, Water spray systems, Fire main,   Portable foam extinguishers, Foam Over Seismic   Reels   Fire Pumps (Number, Location, Type,   Capacity) 2 x 65 m3/hour, 1 x 35 m3/hour Foam   Fire Boxes    Fire Monitors (Number, Location) Two, Helipad   Fire Fighting Equipment As per SOLAS + helideck   Fixed   HiFog and CO2 for engine spaces, Foam for   seismic reels, Foam helideck   Portable 4x SETS + 16x CYLYNDERS   IOPP Equipment   Approved SOPEP plan and equipment as per   SOLAS   Sludge & Waste Oil Incinerator 1 x Atlas T50SL   Bilge/Oily Water Separator RWO SKIT10   Oily Water/Sludge Holding Tank Capacities 22m3   Oil Spill Absorbent & Damage Control   1 x Main SOPEP station + smaller kits around the   vessel.   Sewage Treatment Plant Hamworthy RT40   Deck Cranes & Freight Elevators    Cranes (Type, Location/Capacity) 2 x PLIMSOL 7ton located top deck centre   Freight Elevators N/A   Certificates, Categories & Compliances ABS   Classification Machinery System YES   Class Approved Maintenance System TM Master v.2 (TEROMARINE)   International Safety Management (ISM)   Code Compliance YES   Safety Equipment Certificate YES   Communication Equipment Class YES   Official Number 3FTG9   Safe Manning Certificate YES   Contact Information    Inmarsat  435348112@inmc.eik.com   Telephone No.   Captain: +47 5164 5675   PC: +47 5164 5677   Telex No. 435348112     

 

         -10-      Fax No. +870 765 090 017 (Fleet 77)   Norsat-Sea Link As per above   Telephone/Fax No.    E-mail Addresses for Vessel   mastervoyager@sbexp.com   pcvoyager@sbexp.com            2 SUPPORT/CHASE VESSEL           (Full details for the support vessel to be provided by Contractor)      Vessel Name First Class   Flag State Australia   Builder Geraldton Boat Builders   Date 1995   Classification – M&H 4189   Classification - USL 2B 12 + 6 (max)   Length overall 23.6 m   Beam 5.5 m   Design draft 1.8 m   Main engines X CAT c18 740 kw at 2,1000 RPM   propulsoipn Twin Screw   Generator X Isuzu 30 kVa   Full operating speed 25 knots @ 300 L/hr   Cruising speed 20 knots @ 250 L/hr   In  poer consumption 100 L/day   Cargo approx. 10 Tonne   Clear deck Approx 50 sq m   Fuel 16,000 L   Water 1,000 L & Desal @ 2,000 L/day   Sewerage 1,000 L   Hull Aluminium Monohull, Fendering on sides   transom 5.5 m open   Radio Marine VHF & HF   Radar Furuno   Echo sounder Furuno   Plotter Maxesa   GPS 2 x Furuno   Auto pilot Saura   AIS Furuno FA-50   Accommodation Galley, fully air-conditioned, shower & toilet   Berths 7   Miscellaneous equipment Medivac stretched, moon pool              

 

         -11-      3 TRANSPORT      3.1 The cost of all air transport of Contractor’s personnel, equipment, spares, replacement parts and   supplies, between completion of mobilisation and start of demobilisation, unless otherwise   provided by Company.      3.2 The cost of any sea transportation of Contractor’s personnel, equipment, spares, replacement   parts and supplies, between completion of mobilisation and start of demobilisation, unless   otherwise provided by Company.         4 MISCELLANEOUS      4.1 Maintenance, spares, replacement parts and supplies to operate Contractor supplied items.      4.2 Any permits, licences, visas and like authorisations for the Contractor to carry on business and its   personnel to work in Australia.      4.3 All Personnel Protective Equipment including life vests and any other requirements such as sun   hats, sunscreen, wetsuit boots, Polaroid sunglasses etc.        

 

         -12-      ATTACHMENT 2      CONTRACTOR SUPPLIED PERSONNEL      (Full details for the all crew members to be provided by Contractor)         MARINE CREW (Seismic Vessel) - NAME/NATIONALITY CREW 1 & NAME/NATIONALITY CREW 2       MARINE CREW (Seismic Vessel)  NAME/NATIONALITY CREW 1   NAME/NATIONALITY CREW 2           Master         Maksym Skrypny-Ukraine Valerii Khytry- Ukraine   Chief Mate           Oleksandr Pipchenko-Ukraine Sergii Koshterek-Ukraine   Second Mate           Andriy Savchuk-Ukraine Anatoly Adamovsky-Ukraine   Chief Engineer                 Oleksandr Chubko-Ukraine Oleksandr Chernenko-Ukraine   First Engineer               not part of crew model not part of crew model   Second Engineer      Volodymyr Mishchenko-Ukraine Sergiy Yablonsky-Ukraine   Integrated Rating     Eladio Ayson-Filipino Roman Strypa-Ukraine   Integrated Rating     Reynaldo Conje-Filipino Cermino Constantino-Filipino   Integrated Rating     Ievgenii Grigoryev-Ukraine Roman Podkhalyuzin -Ukraine   Integrated Rating     Mykhaliv Mykola-Ukraine Ievgen Skrypnyk-Ukraine   Chief Cook        Luis Medina-Filipino Dennis Arshykov-Ukraine   Second Cook    Edgardo Ayson-Filipino Oleg Tymoshchuk-Ukraine   Chief Steward      Alberto Arguilles-Filipino Iulia Parfenova-Ukraine   Second Steward   not part of crew model not part of crew model           SEISMIC CREW               Party Manager              Kenneth Davies-British Martin Kenny-British   Assistant Party Manager      not part of crew model not part of crew model   Chief Observer                Igor Zhigalov-Russian Michael Povey-British   Shift Leader Observer        Iurii Tishkov-Russian Aleksei Zhigalov-Russian   Shift Leader Observer        Vicente Miranda-Filipino Ilia Gai-Russian   Observer                 Raqi Rosla-Malaysian Peter Benedistkiy-Russian   Observer               Rhuari Coe-British Diosdado Primor-Filipino   Chief Gun Mechanic  Sergey Grigoryev-Russian Mikhail Kokhovich-Russian   Shift leader Gun Mechanic Bradley Perry-British Alexey Popov--Russian   Gun Mechanic                  Alex Fityushchenko-Russian Petar Kolev-Bulgarian   Gun Mechanic     Robert Henzell-British Valery Pozdnukhov-Russian   Compressor Mechanic      Dmytro Yurkevych-Ukraine Kostyantyn Goncharuk-Ukraine   Compressor Mechanic       none none   Chief Navigator             Vitaly Proskura-Ukraine Yury Avdeev-Russian   Navigator              Aleksei Kazakov-Russian Michael Laletin   Navigation QC                 Pascal Guillou-French Igor Kuraev   Technician/Safety Officer  Colin Finnigan-American Mykhailo Shypkov   Geophysicist/ QC Supervisor    Nikolay Blokhin-Russian Chong Wee Chen-Malaysian   Geophysicist         Alexander Tatsyuk-Russian Ivan Lukianov-Russian     

 

         -13-                MARINE CREW (Support Vessel) – TBA by Contractor      Master  _________________________ _________________________   Chief Mate  _________________________ _________________________   Second Mate  _________________________ _________________________   Chief Engineer  _________________________ _________________________   First Engineer  _________________________ _________________________   Integrated Rating _________________________ _________________________   Integrated Rating _________________________ _________________________   Integrated Rating _________________________ _________________________   Chief Cook  _________________________ _________________________      ONSHORE PERSONNEL      Vessel Supervisor/Administrator _________________________     

 

         -14-      ATTACHMENT 3       COMPANY SUPPLIED ITEMS               1 OPERATIONS APPROVALS      All governmental approvals and permits necessary for the performance of the Services within the   Operations Area, but excluding those referred to in clause 1 of Attachment 4 to Annexure A.         2 PROGRAM DATA      2.1 A complete description of the Surveys.      2.2 Maps at a suitable scale.      2.3 Coordinates for 2D survey lines and 3D survey boundaries referenced to the datum to be   used for surveys.         3 ADDITIONAL SUPPORT VESSELS AND PERSONNEL      Any supplementary vessels and personnel required to perform any safety and environmental functions   specifically required in the Operations Area.        

 

         -15-      ATTACHMENT 4      SCHEDULE OF RATES         1 MOBILISATION/DEMOBILISATION      The mobilisation fee shall be invoiced at the Commencement Time. The demobilisation fee shall be   invoiced at the Termination Time.       Mobilisation Fee US$600,000   Demobilisation Fee  US$$300,000      These rates shall include provision of all Contractor’s Items and Personnel and Services.  This includes the   following items at no additional cost to Company:       All costs associated with mobilisation and demobilisation of the Contractor supplied items and   personnel including all agencies fees, customs duties or fees and permit fees associated with their   entry to and departure from the Operations Area.      All time involved in required pre-Survey calibrations of any nature.      All costs including vessel time associated with port clearance (in and out), including agencies fees,   Labour fee or any other expense incident to obtaining harbour clearance.      The mobilisation and demobilisation fees are based on this project being awarded as a standalone   project.    -            2 DATA ACQUISITION RATES      The following rates describe the remuneration that will be paid to the Contractor for conducting the   Services over the Term.       These rates shall include all Contractor’s Items and Personnel and Services.  This includes all of the   following items at no additional cost to Company:      (a) The cost of all seismic supplies, all field tapes used to record seismic and navigation data, all   printer paper, echo sounder and seismic sections.  Such supplies shall be warranted to be new,   first class and free from defect.      (b) All costs, other than those incurred during allowed equipment down time, which may be sustained   due to failure of any navigation system signals, or recording or other equipment, or if anything   falls below minimum quality control standards.      (c) All costs of post processed navigation tapes in UKOOA/SPS format in the working datum.      (d)       All reporting costs      (e) All costs associated with Contractor’s survey vessel, and one support/chase vessel if required to   conduct the Operations, including mobilisation/demobilisation, rental, manning, fuel, provisions,   water, waste management, crew changes, spares replacement and resupply, unless provided by   Company.        

 

         -16-      2.1 3D Prime Acquisition Rates      Rates will apply for all data acquisition work where the Contractor meets all Quality Control   Standards agreed for the Work with the recording parameters defined.  The hourly rate will apply   to all times when the vessel is recording seismic data on line or is on line change.      Data acquisition conducted east - west      US$8,431 per Full Fold Square Kilometre       or      US$ 7,285 per hour up to a maximum daily charge of US$174,735 per day         Using 4 streamers at a separation of 100 metres        The rates will not include:      • Standby time as defined below, when the standby rate will apply   • Downtime, when no charges will apply      2.2 3D Infill Acquisition Rates      Rates will apply for all infill data acquisition work where the Contractor meets all Quality Control   Standards agreed for the Work.  The hourly rate will apply to all times when the vessel is   recording infill seismic data on line or is on line change      Data acquisition conducted east - west      US$ 8,875 per Full Fold Square Kilometre       or      US$7,285per hour up to a maximum daily charge of US$174,735 per day             Using 4 streamers at a separation of 100 metres       The rates will not include:      • Standby time as defined below, when the standby rate will apply   • Downtime, when no charges will apply        

 

         -17-      2.3 2D Prime Acquisition Rates      Rates will apply for all data acquisition work where the Contractor meets all Quality Control   Standards agreed for the Work with the recording parameters defined.  The hourly rate will apply   to all times when the vessel is recording seismic data on line or is on line change.      US$ 1,016.66 per full fold  Kilometre       or      US$6,595 per hour up to a maximum daily charge of US$ 158,100 per day                  The rates will not include:      • Standby time as defined below, when the standby rate will apply   • Downtime, when no charges will apply         3 STANDBY RATE      Standby Rate will apply in the following circumstances:      a) During time lost due to weather conditions, sea conditions or atmospheric disturbances, always   provided that this is the only reason that acquisition cannot continue.  Standby rate will also apply   if environmental conditions prevent the repair of trailing equipment.   b) During time lost due to waiting on tides or currents and their effect on streamer feather, provided   such waiting is at the specific request of Company’s Designated Representative, who may decide   what streamer feather is acceptable.   c) During time lost due to third party interference in the Operations Area, such as fishing, drilling,   shipping, military, seismic or similar activities, over which Contractor has no direct control,   inclusive of interruptions due to interference from other vessels at sea, which may be in the form   of unacceptable streamer coherent noise levels and/or obstructions.   d) During time lost due to fishing vessels, nets, traps, buoys or lines obstructing the vessel or fouling   or damaging the trailing equipment or any other object or living creature fouling or damaging the   trailing equipment.   e) During time lost while waiting on suitable environmental conditions of any kind in order to allow   Operations in shallow, or otherwise dangerous, areas.   f) During time spent scouting hazardous areas for obstructions and/or adequate water depths, with   the approval of Company Designated Representative.   h) During time lost due to the failure of Company to provide personnel, instructions, program   details, permits or services for which it is responsible.   i) During time lost due to restrictions imposed by Australian Governmental or military agencies,   provided Contractor has not caused the restrictions to be imposed.   e) During time spent changing from one streamer or source configuration to another, if requested by   Company.   f) During time spent recovering and deploying trailing equipment which is directly associated with   moving from one Operations Area to another.   k) During time spent conducting any experimental work, trials, repeat calibrations or non-   geophysical operations at Company’s request, or time spent moving the vessel at Company’s   request for data drops, personnel or equipment changes not scheduled by Contractor.   l) During time lost due to streamer damage or loss and resulting streamer repair, search and re-   ballasting time caused by collision with fixed subsurface obstructions, unless the locations of such   obstructions are notified to Contractor by Company in writing before the incident.  Company’s   responsibility for payment is limited to payment for time involved.  Payment of such time charges   does not infer or imply any Company liability for damage to Contractor’s equipment, which will   at all times be the sole responsibility of the Contractor.     

 

         -18-      m) During time lost as a result of the presence of cetaceans in the Operations Area, causing cessation   of acquisition in accordance with the Environmental Assessment and Management Plan.   n) When the vessel is in the Operations area, ready to deploy trailing equipment, but cannot do so   because of weather conditions.   o) While standing by for reasons of Force Majeure or any suspension of Services at Company   convenience.   p) During time lost due to absence of usable GPS navigation signals, attributable to reason other than   Contractor or their Subcontractors equipment breakdown, malfunction or operator error.   q) Time during which acquisition is interrupted due to growth of marine life on the streamers (e.g.,   barnacle growth), inclusive of time cleaning the streamers, provided that the Contractor, shall   ensure on-going streamer cleaning whenever possible during non-productive time. The Contractor   shall ensure the streamers are clean of marine growth on the Commencement Date.      US$6,255per hour up to a maximum daily charge of US$150,100 per day         Any time not specifically described under the above circumstances will be to the Contractor’s account.   However if Contractor downtime occurs just before a Standby Time situation, Standby Rate shall apply   from the time when the Contractor has demonstrated that the Contractor’s seismic vessel and equipment   meets specification required under this Agreement or is fully functioning.            4 EXTRA ITEMS       Data transmission charges associated with QC or QA processing will be included in the costs for those   items and will not be chargeable as a separate item.         5 SUPPORT/CHASE VESSEL(S)       One support/chase vessel is included in the acquisition rates (capped at US$12,000/day).  In the event   that additional vessels are required these will be supplied on a reimbursable basis.         6 REIMBURSABLE ITEMS      Additional goods, vessels or third party services provided by Contractor pursuant to this Agreement shall   be acquired only with the prior written approval of the Company. Subject to the provisions of item 3 of   Attachment 3, the Contractor shall be paid at cost (plus 10% administration fee) by Company for   providing the additional goods (including fuel for the additional Vessel and support/chase vessel) or third   party services.       7. EARLIER TERMINATION      If the work is terminated after signing the contract and less than 20 days before the commencement, the   Company shall pay the Contractor the quoted Mob/Demob fees and 25% of the costs of the scheduled work   not performed.     

 

         -19-         ANNEXURE B      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      TERMS AND CONDITIONS          1. INTERPRETATION       1.1 Definitions      In this Agreement the following terms shall have the meaning set out in this Clause unless the context   otherwise implies or requires:   "Agreement" means this document including any annexures, attachments and schedules to it.   "Commencement Time" means the time when Contractor records the first acceptable shotpoint of data.   "Contractor's Items" means all items to be furnished by the Contractor pursuant to Clause 5.1 including   those listed in Annexure A;   "Designated Representative(s)" means the person(s) designated pursuant to Clause 15.2;   "US$” means United States dollars;    "Downtime" has the meaning ascribed in Clause 7.2.2;   "Force Majeure" has the meaning ascribed in Clause 13.1;   “Normal Termination” means the time specified in clause 2.3;   "Parties" means the Company and the Contractor;   "Services" means all or any of the Services referred to in Clause 1 and Annexure A;   "Standby Time" means time during which the Standby Rate is payable;   "Term" means the period from the Commencement Time and continuing until Normal Termination or   earlier termination as provided herein;   "Operations Area" means at or near to the area at which the Services are to be performed;   "Operations" means the seismic data acquisition on the survey or surveys of the Company utilising the   Services;   "Vessel" means any vessel used by the Contractor in conjunction with the Services.      1.2 References      Unless the context otherwise requires: References to Annexures or Attachments are references to   Annexures and Attachments of this Agreement; references to a Clause by a number or a letter and a   number are to clauses of that number in that part of the Agreement in which the reference is made unless   otherwise stated; and plural includes the singular and vice versa.      1.3 Governing Law      All questions arising out of this Agreement or its validity, interpretations, performance or breach shall be   governed by the laws of the State of Queensland (as agreed by both parties) and the parties agree to   submit to the jurisdiction of the Courts of that State and Courts having jurisdiction to hear appeals from   Courts of that State.      1.4 Effect of Captions      The captions appearing in this Agreement are for convenience only, and are not to be used to interpret   the contents of their clauses.      1.5 Effect of Prior Agreements      This Agreement contains the entire agreement between the parties with respect to the subject matter   herein and no prior stipulation, agreement or understanding by the parties or any of their representatives   shall be of any effect.        

 

         -20-      1.6 Variations      If during the continuance of the Agreement the Company or the Contractor wishes to vary any provision   in the Agreement by addition or deletion, each party shall meet with a view to agreeing upon such   variation but such variation shall not be effective until it is recorded in writing and signed by both the   Company and the Contractor.      1.7 Effect of Waiver of Performance      The waiver of, or failure to, require the performance of any covenant or obligation contained herein shall   not be deemed to constitute a waiver of a similar later breach.      1.8 Statutes      Reference to any statute herein shall include a reference to that statute as amended, modified or   replaced and includes orders, ordinances, regulations and rules and by-laws made under or pursuant   thereto.      1.9 Severance      Each of the terms and conditions of the Agreement shall be deemed to be separate and several from the   other of them and if any one or more thereof are determined to be invalid or unenforceable by any Court   of competent jurisdiction, such determination and the consequential severance (if any) shall not   invalidate the rest of the Agreement which shall remain in full force and effect as if such term and   conditions had not been made a part thereof.      1.10 Costs of Obligation      Unless otherwise provided for in this Contract, where in this Contract any obligation is imposed upon or   undertaken by any party the costs of complying with that obligation shall be the responsibility of the party   assuming or undertaking the obligation.         2. TERM OF THE AGREEMENT      2.1 Duration and Commencement Time      This Agreement shall apply to all Services performed by the Contractor for the Company during the Term   commencing on the date and continuing for a period so specified in Annexure A.  The Company shall give   the Contractor notice to commence the Services and upon receipt of the notice from the Company, the   Contractor shall do all things necessary to commence the Services by the date specified in the notice   from the Company.      2.2 Duration of the Services      The Contractor shall complete the Services as described in the Operations with all due diligence.      2.3 Normal Termination Time      The Normal Termination Time shall be the time when the last receiver group is recovered and when the   Operations are completed to the satisfaction of the Company, and the crew is ready to demobilise or to   depart the work area or to commence work for another client.       2.4 Early Termination      Without prejudice to any other rights at law, this Agreement may be terminated prior to the Normal   Termination Time as follows:-      2.4.1 By the Company (without penalty to the Company):      (a) Immediately, in the event of failure by the Contractor to commence the Services as   directed by the Company as provided in Clause 2.1;     

 

         -21-      (b) If the Contractor makes default in the performance or observance of any obligation,   term, condition or stipulation contained in this Agreement which the Contractor is   required to perform or observe, the Company may in addition to any other rights or   remedies it has at law, give the Contractor notice specifying the default and requiring the   Contractor to remedy the same at the Contractor's expense. If within 3 days after such   notice is given, the Contractor fails in the opinion of the Company to so remedy or   provide adequate assurance that the default will be rectified and the Services   satisfactorily completed, then the Company may at any time thereafter by notice take   the Services remaining to be performed out of the hands of the Contractor or terminate   this Agreement;   (c) At any time after the commencement time, provided that the Company gives not less   than 5 days written notice to the Contractor;   (d) For reasons of Force Majeure pursuant to Clause 13.4; or   (e) Immediately in the event that a Receiver or Manager is appointed to manage or control   the affairs or assets of the Contractor under any security or pursuant to any applicable   law or if the Contractor goes into liquidation or if proceedings are commenced for any of   those purposes.      2.4.2 By the Contractor if the Company defaults in the payment of the Contractor's invoice by more   than 30 day and for reasons of Force Majeure pursuant to clause 13.4.      2.5 Consequences of Termination      In the event of termination pursuant to Clause 2.4.1:      2.5.1 The Contractor shall, on receipt of the notice of termination:      (a) perform only the Services specified in the notice;   (b) comply in all respects with any directions contained in the notice; and   (c) immediately give to the Company all deliverables (whether or not they are completed)   relating to the part of the Services to which the termination applies and for which   Contractor has received full payment from Company.      2.5.2 The Company's sole liability arising from the termination shall be to pay to the Contractor such   sums as may be due and owing to the Contractor on the date of termination for Services   performed up to the effective date of termination.       2.5.3 No action taken by the Company under Clauses 2.4 or 2.5 shall operate to the prejudice of the   rights, remedies, powers, authorities and discretions of the Company and accrued liabilities and   obligations of the Contractor (all of which shall continue in full force and effect as if there had   been no such termination) nor, without limiting the generality of the foregoing, shall such action   operate to the prejudice of the rights of the Company to recover from the Contractor all moneys   whatsoever from time to time due and payable to the Company by the Contractor whether under   or in relation to this Agreement or otherwise howsoever.         3. SERVICES      3.1 General      The Contractor shall perform the Services as described in Annexure A at the Company's direction at the   Operations Area using the Contractor's Items.      3.2 Manner of Performing the Services      3.2.1 Standards of Performance      (a) The Contractor represents that it has the technical competence, financial capacity,   management skills, competent and qualified personnel and equipment necessary to   perform the Services.     

 

         -22-      (b) The Contractor shall conduct all Services hereunder in a prompt, diligent, skilful and   workmanlike manner, in accordance with:   (i)  good maritime and oil field practice and sound engineering principles;   (ii)  any specifications and other documents as the Company shall furnish to the   Contractor to detail the Services to be performed;    (iii)  the standards prescribed by law or by Regulatory Authorities having the lawful   right to prescribe minimum standards; and   (iv) Society of Exploration Geophysicists Recommended Practices applicable to the   Contractor's Items and the Services.   (c) The Contractor shall be deemed to have knowledge of the Operations Area and all   matters relating to the conduct of the work in the Operations Area and accordingly the   Contractor shall have no claim for extra remuneration nor shall it be relieved of its   obligations hereunder as a consequence of any actual lack of knowledge as to the nature   of the Operations Area, local facilities or climatic conditions.      3.2.2 Independent Contractor      All of the Services are those of an independent Contractor, and it is not, and none of its   personnel, subcontractors or agents are an employee, subcontractor or agent of the Company.    Use of subcontractors by the Contractor shall not relieve the Contractor from any liability or   obligation under this Agreement.      The Company may instruct and direct the Contractor as to the results to be achieved by the   Contractor, but the Contractor as an independent Contractor shall have the sole and complete   control, supervision and direction over the Contractor's Items and its personnel and over all the   Services and the method and manner of achieving such results.  The presence of, and supervision   of the Services by the Company's Designated Representative at the Operations Area shall not   relieve the Contractor of its obligations hereunder.      It shall be the sole and exclusive responsibility of the Contractor to determine, at all times,   whether Services can be safely undertaken or continued including, without limitation, that the   Contractor's Items are in all respects suitable to undertake any contemplated Services under the   then existing conditions.      3.2.3 Safe Practices      The Contractor shall:      (a) take all measures reasonably necessary or proper to provide safe working conditions;   (b) give notice to all persons engaged in the Services of all safety regulations and standards   including, without limitation, those referred to in Annexure C and the Safety Management   Plan, and emergency procedures to be complied with by them;   (c) ensure that all personnel are fully informed of all such regulations and comply with same;   (d) ensure that its personnel participate in periodical safety drills conducted by the   Contractor;   (e) maintain guards and other safety devices to lessen hazards during the performance of the   Services.      3.2.4 Abnormal and Hazardous Conditions      If at any time while operating the Contractor believes that continuance of the Services will result   in unsafe conditions it shall immediately notify the Company and in the meantime exert best   efforts to overcome the difficulty.  In any such case the Contractor shall be entitled to stop the   Services under the safest possible conditions and consult with the Company.  The Contractor   shall, at the request of the Company’s Designated Representative, provide written reasons why   the Contractor cannot continue to perform the Operations.     

 

         -23-         3.2.5 Compliance with Laws      In addition to any other requirement in this Agreement the Contractor agrees to comply with and   use all reasonable efforts to ensure that its personnel, subcontractors and agents comply with all   laws and regulations pertaining to the Services including, but without limitation, the legislation   and direction referred to in Annexure C.  Where any further directions are given to the Company,   the Company will give copies thereof to the Contractor.  The Contractor further agrees not to do   or omit to do anything which could thereby result in the Company being in breach of any such   laws, regulations or directions and in particular, but without limitation, the Contractor shall   ensure that it complies with the matters listed in Annexure C.      3.2.6 Environmental Protection      The Contractor shall minimise damage to property and the environment and shall comply with   Environmental procedures listed in the Environment Plan.      3.3 Reports      3.3.1 Accurate Logs and Records      The Contractor shall keep a complete and accurate history and a log of all Services performed on   forms approved by the Company, which shall be open at all reasonable times to inspection by the   Company and its Designated Representative.  The daily reports on which invoicing is based shall   be agreed to and signed each day by the Company’s Designated Representative before they are   accepted.      3.3.2 Contractor to Furnish Reports      The Contractor shall furnish the Company's Designated Representative with the following written   legible and accurate reports in the form specified or as approved by the Company:      (a) report of the Services performed as specified in Annexure A;   (b) reports on personnel and equipment movements, safety inspections, equipment   maintenance and equipment failure as requested by the Company;   (c) accident and incident reports as soon as practicable, and in reasonable detail, after   occurrence resulting in injuries to the Contractor's personnel or third parties, or damage   to property, arising out of or during the course of Services and thereafter to review the   cause(s) of the occurrence and put in place appropriate procedures to prevent recurrence;   and   (d) such other reports reasonably required by the Operator.        The Contractor shall immediately report verbally hazards or hazardous incidents, which could lead   to an accident if left unattended.      3.4 Company to Inspect Services      The Contractor shall at all times permit the Company's Designated Representative to inspect all Services   performed and all Contractor's Items supplied hereunder and to witness and check all measurements and   tests made in connection with the Services and to have access to the Contractor's Items and to observe all   the Services at Company's sole risk.        

 

         -24-         4. COMPANY-FURNISHED ITEMS      4.1 Company's General Obligation       4.1.1 The Company will furnish and replace as necessary the equipment, machinery, tools, supplies,   material and Services listed in Annexure A. The Company shall not be required to furnish anything   not listed therein, except as otherwise agreed by the parties.      4.1.2 The Designated Representatives of the Company and the Contractor shall, so far as applicable to   the Services, jointly take a written inventory of all material, supplies and Contractor's Items in   connection with the Services, if any, as of Commencement Time and Normal Termination Time or   earlier termination time as the case may be.         5. CONTRACTOR'S ITEMS      5.1 Equipment, Services, Supplies      Except for those items specifically provided in Clause 4.1 to be furnished by the Company, the Contractor   shall provide all Services and equipment, machinery, tools, spare parts, materials and supplies that may   be necessary or reasonably required for full performance of the Services by the Contractor under this   Agreement, including but without limitation the Contractor's Items listed in Annexure A.  The Contractor   shall maintain adequate stock levels of spares necessary to efficiently perform the Services at the   Operations Area and at the Contractor's Base.      5.2 Maintenance and Compliance      The Contractor must maintain the Contractor's Items during the term of this Agreement in first-class   operating condition and the Contractor must make any necessary replacements or repairs promptly in   order so to do.  To attain this objective the Contractor shall use airfreight or air charter Services, or   both, when and if necessary.  Without prejudice to this obligation, the Company shall endeavour to avail   the Contractor of the transport Services utilised by the Company provided that the Contractor, at the   discretion of the Company, shall reimburse the Company for the costs of transport provided by the   Company.      5.3 Warranty of Suitability      The Contractor warrants that the Contractor's Items, subject to their respective design limitations, will   operate efficiently in the conditions encountered in the Operations Area.  In the event this warranty   should be breached, the Contractor shall replace the same with suitable Items. Where such Contractor’s   Items persistently failed to operate efficiently, Company may, at its option and without waiving any other   remedy it may have for such breach, terminate this Agreement by giving 5 days written notice to the   Contractor and the Contractor will be entitled to compensation at the applicable rate set forth in Clause   7 for all Services completed prior to such termination, but shall be responsible for the cost of demobilising   the Contractor's Items.      5.4 Improved Technology      The Contractor shall advise the Company of any equipment which becomes available for use with   improved technology over the Contractor's Items then supplied and, upon the request of the Company,   shall make the new equipment available to the Company at rates to be agreed.      5.5 Removal of Equipment      The Contractor shall remove all of its items from the Operations Area on completion of the Services   whether or not the Items have been declared total or constructive total loss.      5.6 Contractor’s Warranty      The Contractor warrants that the Services will be performed in accordance with good geophysical and   engineering practices and with all the requirements of this Agreement and will, at the time of     

 

         -25-      performance, comply with the technical and other specifications contained in this Agreement. All other   warranties, express or implied, or whether relating to merchantability, fitness for a particular purpose, or   otherwise, are hereby excluded and disclaimed.      5.7  Interpretation of Data      Any interpretation of seismic data (whether made directly from seismic data provided to or by   Contractor, or by data processing or otherwise) or interpretation of test or other data, and any   recommendation or reservoir description based upon such interpretations, are opinions based upon   inferences from measurements and empirical relationship and assumptions, which inferences and   assumptions are not infallible, and with respect to which professional geophysicists or analysts may differ.    Accordingly, Contractor cannot and does not warrant the accuracy, correctness or completeness of any   such interpretation, recommendation or reservoir description.  Under no circumstances should any such   interpretation, recommendation or reservoir description be relied upon as the sole basis for any drilling,   production, or financial decision or any procedure to be performed by Company or any of its other   contractors.  Company has full responsibility for all such decisions and for all decisions concerning other   procedures relating to the drilling, production or any other of Company's Operations.      5.8 Data transmission       Contractor does not warrant the accuracy of seismic data transmitted to the Company by electronic   processes and will not be responsible for any liability resulting from breach of the integrity of the data,   including any accidental or international interception of such data by others.      5.9 Defective or Inaccurate Data      The parties acknowledge that defective, inaccurate or incorrect data delivered to Company will normally   become apparent within a short time after completion of the Services.  Contractor shall not be liable for   any claims submitted in respect of such data more than three months after completion of the Services.    Contractor’s liability shall be limited to correction of any warranted defect or reimbursement of the   amount originally charged to Company which is directly related to that portion of Contractor’s defective   services or products.  Contractor reserves the right to determine whether to perform corrective measures   or to reimburse Company, but reimbursement or completion of the corrective measures must be made or   completed within one month of the date of the Company’s notification of defective, inaccurate or   incorrect data.  Contractor reserves the right to perform any corrective measures itself.          6. CONTRACTOR'S PERSONNEL      6.1. Personnel to be Supplied      The Contractor shall furnish at all times during the Services all personnel as may be required to perform   the Services including without limitation the personnel specified, if any, in Annexure A Attachment 2.  All   personnel shall be duly qualified, competent and experienced to conduct the tasks required by the   Services.  All the Contractor's personnel shall be subject to approval by the Company prior to   commencement of work in connection with the Services.  This approval shall be on the basis of previous   experience and performance of the personnel.      6.2. Adjustments to Numbers / Classifications      The Contractor shall not vary the numbers and/or classifications of the personnel from those specified in   Annexure A – Attachment 2, without the Company's consent.  At the Company's discretion, the Contractor   shall replace missing personnel immediately at its own cost.  If the Company requests the Contractor to   provide additional personnel to that specified in Annexure A – Attachment 2, the Contractor shall furnish   the additional personnel at rates to be agreed.      6.3. Replacement of Personnel on Request      The Contractor will remove and replace in a reasonable time any of the Contractor's personnel if the   Company so requests in writing, and if the Company can show reasonable grounds for its requirement.           

 

         -26-      6.4. Industrial Relations      6.4.1 The Contractor acknowledges that it is essential to the satisfactory performance of the Services,   that the Contractor shall promptly at all times take such steps as are required to maintain good   labour relations with its personnel to the extent that such requirement is consistent with sound   business practice.      6.4.2 Whenever the Contractor becomes aware of any demand, claim or proposal for increased wages   or reduced hours of work for any of its personnel engaged in performance of the Services or of any   application or threat to make an application to vary or amend any award, rates, conditions or   hours of work for personnel so engaged, or of any other action by whomsoever commenced which   may result in an industrial dispute or a variation of rates of wages or hours of work payable to   personnel so engaged or which could affect other operations of the Company in the Operations   Area, the Contractor shall forthwith give notice and particulars thereof in writing to the   Company.      6.5 Personnel Requirements      The Contractor shall be solely responsible for providing all requirements of all of its personnel, including   but not limited to:      (a) salaries, wages, insurance (including Workers' Compensation Insurance) termination   payments, rest leave allowances and benefits under applicable law including all taxes,   contributions or levies in respect thereof;   (b) medical attention;   (c) fulfilment of immigration requirements, including passports, visas, medical examinations,   personal customs duties and personnel work permits;   (d) transportation and accommodation (except as otherwise provided herein); and   (e) safety and environmental training.         7. COMPENSATION       7.1 Basis of Compensation      The Company will pay the Contractor the fees and applicable rates as set forth in Annexure A in   consideration of and as full compensation for performance by the Contractor of all its obligations under   this Agreement.  No payments shall be due to the Contractor other than those specifically mentioned in   this Agreement.      7.2 Downtime      7.2.1 Contractor shall not be entitled to any payment for Downtime.        7.2.2 "Downtime" means and includes time the Contractor's Items are not available when called upon   for the Services due to repair, replacement, inspection or maintenance of the Items or are   available, but not in proper working order and recording cannot be performed, or any other   reason resulting from Contractor’s inability to provide Services to specification, but does not   include Standby Time, time incurred repairing damage caused by the environment in the   Operations area, providing such damage is not due to negligence by the Contractor.      7.2.3 In the event of any delay in the supply of Contractor’s Items or Personnel at mobilisation or any   mechanical failure, inspection or maintenance of a Contractor's Item during the term which does   not result in a suspension of Services, but results in Services being slowed down or carried out less   efficiently, the amounts payable to the Contractor shall be reduced in a direct relation to the   percentage that Services are carried out less efficiently or are slowed down as agreed by the   Designated Representatives of the respective Parties, but failing agreement by them, as   determined by an Expert pursuant to Clause 18.      7.2.4 No compensation shall be payable for any time incurred to satisfy any work order from the any     

 

         -27-      Government authorities in relation to a matter which is the responsibility of the Contractor during   which the Contractor is not able to perform the Services as directed by the Company.      7.2.5 The provisions of this Clause 7.2 shall be without prejudice to any other remedies the Company   may have at law or otherwise.         8. INVOICES, PAYMENTS, AUDIT      8.1 The Contractor's Invoices      8.1.1 The Contractor shall submit a GST compliant tax invoice to the Company for Services performed   and reimbursable charges incurred hereunder during each calendar month within 15 days of the   end of that month, but in any event not later than 6 months.  The Company shall not be liable   for, and the Contractor hereby releases the Company from, payment of any invoices submitted   more than 6 months after completion by the Contractor of all Services performed notwithstanding   any rule of law to the contrary.      8.1.2 All invoices shall be in accordance with the reports described in Clause 3.3 and other such charges   as have been approved by the Company.  All invoices shall include the Agreement Number.      8.2 Time / Place of Payment       Subject to Clauses 8.5 and 17, the Company shall pay the Contractor's invoices within 30 days of receipt   thereof.  All payments shall be made by the Company in the manner and to the account as stated in the   Contractor's invoice.      8.3 Interest on Late Payments      Undisputed portions of invoices and invoices not paid within 30 days shall bear interest at the rate of 1%   per month or pro-rata for part thereof.      8.4 Currency of Payments      References to monetary amounts herein are (unless otherwise specified) in US$ and all payments required   to be made by the Company to the Contractor pursuant to this Agreement shall be made in US$.  If any   currency conversions are required pursuant to the Agreement, the calculation shall be based on the   Reserve Bank of Australia rate (RBA rate), being the unit of foreign currency per $A calculated by the RBA   at 4:00pm Australian Eastern time on each business day, for the day before the date of issue of the   relevant invoice or as otherwise agreed, permitted or required by applicable GST legislation.      8.5 Withholding from Invoices      The Company will have the right to withhold payment of any portion of any invoice or statement   presented by the Contractor and shall advise the Contractor of the reasons for the withholding within 30   days of the receipt of the invoice for:      (a) reasonable verification thereof until the Contractor has provided the verification to the   satisfaction of the Company.  Interest will not be payable on the amount withheld.  The   Contractor shall not be entitled to discontinue the Services by reason only of non-payment of a   disputed invoice where the dispute has not been resolved;   (b) withholding income tax or other taxes as required by Australian law provided the Company   promptly pays the withheld amount to the respective government authority.  Company shall   provide Contractor with all receipts in respect of payment of the amounts so withheld within 30   days of making such payment; and    (c) amounts owing by the Contractor to the Company pursuant to the provisions of this Agreement.        

 

         -28-      8.6 Disputes      Where there is a dispute as to the amount payable to the Contractor in respect of any invoice, the parties   shall use their best endeavours to resolve the dispute promptly and fairly and the Company shall pay the   amount agreed or found to be due at law within 30 days of such agreement or finding.  Any portion of the   amount which is not in dispute shall be paid in accordance with Clause 8.2.  The Contractor shall continue   to perform the Services pending the resolution of any dispute aforesaid.      8.7 Payment without Prejudice      Payment of an invoice shall not prejudice the right of the Company to question the correctness of the   same provided the question is raised not later than 2 years after the date of payment.      8.8 Audit      The Company or its authorised representatives shall have the right to examine any books, records and   other documents of the Contractor directly pertaining to costs when such costs are the basis of   compensation to the Contractor hereunder.  The Company will give the Contractor reasonable notice of   such intended examination.  The Company recognises that it’s right to examine any books, records or   other documents:-      (a) shall not include any inquiry into the Contractor's general overhead or profit margins, and   (b) shall not require the Contractor to maintain any such books and records for a period in excess of 2   years after the completion of the Services.         9. PAYMENT OF TAXES AND GST      9.1 Taxes      Contractor shall be responsible for, and shall hold Company harmless from, the reporting, filing and   payment of any Australian taxes, duties, charges or fees (and any related fines, penalties or interest)   imposed directly on Contractor or its subcontractors, employees, agents or servants as a result of   Contractor’s performance of this Agreement including:      (a) All income or other Australian taxes imposed upon Contractor or its subcontractors on account of   earnings;   (b) All Australian taxes assessed or levied against or on account of salaries or other benefits paid to   the agents, servants and employees of Contractor or its subcontractors; and   (c) All fines penalties additional Australian taxes (excluding Goods and Services Tax) and interest   pertaining to any of the above taxes arising from or as a result or consequence of the non-   performance by Contractor under this Section.      Prices and rates quoted in this Agreement (including all Annexures and Schedules) are based on fiscal and   other legislation, treaties and agreements in force at the time of commencement, and their current   application in Peru.           9.2 GST      “GST”, “Supply”, “Taxable Supply”, “Tax Invoice”, “Adjustment Note”, “Input Tax Credit”, and   “Recipient” have the same meaning as provided under A New Tax System (Goods and Services Tax) Act   1999 (Commonwealth of Australia).      Unless otherwise agreed, if GST is or becomes payable on any Supply made under this Agreement, the   consideration for that Supply is to be considered exclusive of GST and the person making the Supply may   recover from the Recipient the amount of the GST at the same time and in the same manner as the   consideration for that Supply is payable or at such later time that the person making the Supply becomes   aware of the GST liability.        

 

         -29-      If the Recipient is entitled to withhold a disputed portion of an amount on which GST is payable, the   Recipient is not required to pay the non-withheld portion until the person making the Supply issues a   replacement Tax Invoice or Adjustment Note permitting the Recipient to claim all applicable Input Tax   Credits for the amount not withheld.  Once the dispute regarding the withheld amount is resolved, the   Recipient shall make payment of the applicable amount upon receipt of a further Tax Invoice or   Adjustment Note issued by the person making the Supply.          10. INSURANCE      10.1 Coverage      Without limiting the Contractor's liabilities or obligations contained herein, at all times during the term of   this Agreement the Contractor shall arrange for the following insurances to be maintained with reputable   companies with provision of 30 days' written notice to the Company in the event of cancellation and non-   replacement:      (a) Workers' Compensation Insurance as required by law, including Common Law Liability;   (b) General Public Liability Insurance for death, personal injury and property damage to an amount of   not less than A$20,000,000 for any one occurrence;   (c) Insurance to cover loss of or damage to the Contractor's Items (for their full replacement value)   except such risks as the Company is liable for under Clause 11.1;   (d) Hull and Machinery Insurance on Contractor’s owned Vessel to the full replacement value of the   Vessel;   (e) Protection and Indemnity Insurance in an amount of not less than US$5,000,000 including pollution   originating from above the surface and indemnity in respect of wreck removal.      10.2 Additional Insured      Insurance Policies under Clauses 10.1.(b) and (e) shall provide that the Company is included as   additionally insured as respects work performed by and to the extent of the liabilities assumed by   Contractor under this Agreement and that the underwriters so waive their rights of recourse on the   Company.      10.3 Verification      The Contractor shall furnish certificates of insurance to the Company no later than 30 days prior to   commencement of work and of all renewals thereafter.        10.4 Default      If the Contractor fails to produce certificates of insurance then the Company may, at its option, either   itself arrange such insurance and recover the reasonable premiums payable in respect thereof from the   Contractor or deduct same from any amount due or becoming due to the Contractor, or may refuse to   make any payments otherwise due to the Contractor until such policies or evidence are produced.      10.5 Prejudicial Activities      The Contractor shall not knowingly do any act which provides grounds for an insurer to refuse payment of   any claim.      10.6 Claims      The Contractor shall in the event of any loss, injury, damage or claim do all things necessary to obtain   the full benefit of all the said insurances including, but without limitation, the giving of prompt notice of   any loss or claim.           

 

         -30-      11. LIABILITIES AND INDEMNITIES      11.1 Indemnity       (a) Property      (i) Company Group’s property   The Company shall be responsible for and shall save, indemnify, defend and hold harmless the   Contractor; (ii) its parent, subsidiary and affiliated or related corporation(s), partnership(s), and   limited liability companies; its officers, directors, shareholders, employees, agents, assigns,   representatives, managers, and consultants of all of the foregoing the “Contractor Group” from   and against all claims, losses, damages, costs (including reasonable legal costs) expenses and   liabilities in respect of or resulting from loss of or damage to property of any of the Company   Group (whether owned, hired, leased or otherwise provided by or in the possession or control of   any of the Company Group) arising from or relating to the performance of this Contract   regardless of the negligence in any form or breach of duty (statutory or otherwise) of any member   of Contractor Group.      (ii) Contractor Group’s property   The Contractor shall be responsible for and shall save, indemnify, defend and hold harmless the   Company; (ii) its parent, subsidiary and affiliated or related corporation(s), partnership(s), and   limited liability companies; (iii) the contractors and subcontractors (of every tier) of (i) and (ii)   above; and (iv) the officers, directors, shareholders, employees, agents, assigns, representatives,   managers, and consultants of all of the foregoing “Company Group” from and against all claims,   losses, damages, costs (including reasonable legal costs) expenses and liabilities in respect of or   resulting from loss of or damage to property of any of the Contractor Group (whether owned,   hired, leased or otherwise provided by the Contractor Group) arising from or relating to the   performance of this Contract regardless of the negligence in any form or breach of duty (statutory   or otherwise) of any member of Company Group.         (b) Personnel      (i) Company Group’s personnel   The Company shall be responsible for and shall save, indemnify, defend and hold harmless the   Contractor Group from and against all claims, losses, damages, costs (including reasonable legal   costs) expenses and liabilities in respect of or resulting from personal injury including death or   disease to any person employed by any of the Company Group arising from or relating to the   performance of this Agreement regardless of the negligence in any form or breach of duty   (statutory or otherwise) of any member of Contractor Group.      (ii) Contractor Group’s personnel      The Contractor shall be responsible for and shall save, indemnify, defend and hold harmless the   Company Group from and against all claims, losses, damages, costs (including reasonable legal   costs) expenses and liabilities in respect of or resulting from personal injury including death or   disease to any person employed by any of the Contractor Group arising from or relating to the   performance of this agreement regardless of the negligence in any form or breach of duty   (statutory or otherwise) of any member of Company Group.         (c) THIRD PARTY CLAIMS      (i) THIRD PARTY PERSONNEL AND PROPERTY      The Contractor shall be responsible for and shall save, indemnify, defend and hold harmless the   Company Group from and against all claims, losses, damages, costs (including reasonable legal   costs) expenses and liabilities in respect of or resulting from personal injury including death or   disease to any third party or loss of or damage to the property of any third party to the extent     

 

         -31-      that any such injury, loss or damage is caused by the negligence or breach of duty (whether   statutory or otherwise) of any of the Contractor Group in connection with the performance of this   agreement.   The Company shall be responsible for and shall save, indemnify, defend and hold harmless the   Contractor Group from and against all claims, losses, damages, costs (including reasonable legal   costs) expenses and liabilities in respect of or resulting from personal injury including death or   disease to any third party or loss of or damage to the property of any third party to the extent   that any such injury, loss or damage is caused by the negligence or breach of duty (whether   statutory or otherwise) of any of the Company Group in connection with the performance of this   agreement.   For the purpose of this clause, “third party” shall mean any party other than members of the   Contractor Group and Company Group.        11.2   Consequential Damages      If any breach or default of this Agreement gives a party a right to damages, such damages shall be limited   to damages for direct and reasonably foreseeable loss attributable to such breach or default.    Notwithstanding any other term or condition of this Agreement, each party covenants to the others that it   shall not make any claim or enforce any liability or indemnity against any other party for any loss of   generation, production, revenue or profit (other than revenue or profit derived directly from payments for   goods or services already delivered under the express terms of this Agreement) or business opportunity or   for any other indirect or consequential cost, loss, expense or damage (including any claim for special or   punitive loss or damages) howsoever arising in respect of any circumstances under or in relation to this   Agreement or to the performance or non-performance of the Services.       11.3 Tape Liability      The Contractor shall be responsible to the Company for any loss or damage to any data tapes or records   relating to the Services occurring prior to the delivery of the tapes or records to a Courier selected by the   Company as provided in Annexure A.  In the event of loss or damage to the field tapes prior to delivery to   the courier or if the Company notifies the Contractor of any loss or damage within 21 days of the   Company’s receipt of the data tapes Contractor shall, at the Company’s option, either:      (a) re-record corresponding tapes in order to re-acquire the lost or damaged data, if the   needed recording vessel(s) are still in the general area relating to the services or within a   reasonable time to be agreed with the Company if the vessel is not in the vicinity of the   Operations Area; or   (b) refund the sum payable to another Seismic Contractor for acquiring the lost or damaged   data.   Notwithstanding the above, if Company requires the use of a specific common carrier to transport the   seismic data tapes, then Company shall bear the risk of loss, damage or destruction of the tapes during   such transport and Contractor shall bear no liability therefore.      The above sets out the entire liability of Contractor and Company’s exclusive remedies in the event of   lost or damaged data tapes or records.         11.4 Data Storage      Unless specifically and separately contracted and paid for, Contractor assumes no liability for, and shall   not be responsible for, any gratuitous bailment or storage requested in writing by Company in addition to   the Services of any seismic data, whether on tape, in physical sections, in computer memory or in any   other form whatsoever, Contractor shall not be liable for any damage, destruction, loss or theft of any   such seismic data and Company agrees to defend, indemnify and hold Contractor harmless from any and   all claims brought by third parties in relation to such seismic data.      11.5 Patent Infringement      The Contractor represents and warrants that the use or construction of the Contractor's Items does not   infringe any licence or patent, which has been issued or applied for.  The Contractor further agrees to   indemnify and hold harmless the Company from any claims, demands and causes of action arising out of     

 

         -32-      any infringement of patent, design, trademark, or trade name, copyright or other protected right arising   out of the furnishing of or use of the Contractor's Items by Contractor.      11.6 Indemnity as to charges       11.6.1 The Contractor shall indemnify and hold the Company harmless from and against any costs,   charges fees and losses incurred as a result of defending any charges laid by any governmental   authority against the Company directly arising solely from the Contractor’s wrongful or negligent   act or omission in providing or in connection with the Services.       11.6.2 The Company shall indemnify and hold the Contractor harmless from and against any costs,   charges fees and losses incurred as a result of defending any charges laid by any governmental   authority against the Contractor directly arising solely from the Company’s wrongful or negligent   act or omission in connection with the Services.       11.7 Indemnity Application      11.7.1 Except as otherwise specifically provided in this Agreement, the indemnities and exclusions of   liability contained in this Agreement shall apply without regard to the cause or causes thereof   including, but not limited to strict liability, breach of warranty (express or implied), pre-existing   condition (patent or latent) or the negligence of any party or parties, including the party   indemnified or benefiting from an exclusion of liability and any of its subcontractors employees,   servants or agents and whether such negligence  (excluding gross negligence or wilful misconduct)   be sole, joint or concurrent, active or passive, and whether the claim is based on common law,   civil law, maritime law, or statute.      11.7.2 The indemnities contained in this Agreement :      (a) in favour of the Company shall be deemed to extend to the Participant, its affiliated   companies, its contractors (excluding the Contractor) insurers and their respective   employees, directors, officers and agents all to the extent that they are involved in the   Services;    (b) in favour of the Contractor shall be deemed to extend to the Contractor's sub-Contractors   of any tier, it’s subcontractors’ affiliated companies, and their respective employees,   agents, officers, directors, representatives and agents all to the extent they are involved in   the Services;    (c) in favour of individuals shall be deemed to extend to dependants, heirs, executors and   assigns; and   (d) shall survive the termination of this Agreement for whatever reason and shall be continuing   obligations in regard to equipment furnished, personnel provided, or the Services   performed.   11.8 Pollution      Contractor shall be liable for and shall release, defend, indemnify and hold harmless the Company from   and against any and all claims related to or arising from pollution (including control and removal thereof)   emanating from Contractor’s equipment and vessels during the performance of this agreement regardless   of the negligence in any form or breach of duty (statutory or otherwise) of the Company, its employees,   agents, representatives or subcontractors.      11.9 Exclusion zone   The parties acknowledge that in the performance of the Services, Contractor would not normally be   required to operate within a 500 metre radius of any offshore Installation.  In the event the Company   requires the Contractor to operate within a 500 metre radius of any offshore Installation, then   notwithstanding any provisions to the contrary in this agreement, Company shall be liable for and shall   release, defend, indemnify and hold harmless Contractor, its employees, agents representatives or   subcontractors from and against any and all claims relating to and/or arising from such operations   including claims relating to and/or arising from the loss of or damage to any property of any type,     

 

         -33-      regardless of the negligence in any form  or breach of duty (statutory or otherwise) of the Contractor, its   employees, agents, representatives or subcontractors.      For purpose of this clause, “offshore Installation” shall mean:   (i) a fixed permanent oil and gas platform,    (ii) a floating, production, storage and off take vessel,   (iii) a semi-submersible or jack-up drilling unit,   (iv) a pipe lay vessel,   (v) a well intervention vessel or any other vessel or installation,   (vi) or other object connected to the seafloor or otherwise not readily removable.      12. ASSIGNMENT      The Contractor shall not assign this Agreement in whole or in part, nor sublet or subcontract any portion   of the work under this Agreement, without the prior written consent of the Company, which consent shall   not be unreasonably withheld.  Such consent shall not relieve the Contractor of its obligations hereunder   unless specifically stated therein.  The Company reserves the right to assign its rights under this   Agreement at any time and from time to time during the term.  Such assignment shall not relieve the   Company of their obligations under this Agreement.        13 FORCE MAJEURE      13.1 Definition      For the purposes of this Agreement, Force Majeure means any act, circumstance or event beyond the   reasonable control of either of the parties, including but not limited to earthquakes, cyclones, fires,   storms or other acts of God, whether similar or dissimilar, industrial disputes (except those initiated or   substantially contributed to by Contractor or Contractor's personnel) and dispositions or orders of   governmental authority (whether such authority be actual or assumed) but shall not include lack of funds   or economic hardship or the events listed in section 2.1 of Attachment 4 of Annexure A.         13.2 Relief from Obligations      If, by reason of Force Majeure, the Contractor's performance of this Agreement is prevented or delayed or   the Company is unable to make use of the Contractor's Items and Services under this Agreement, the   party so affected shall be relieved of its obligations under this Agreement (other than payment by the   Company of the Force Majeure Rate) while the Force Majeure continues provided that the Contractor has   strictly complied with clause 13.3.         13.3 Notice      In such event, such party shall give written notice to the other party by the fastest means of   communication available, specifying the circumstances which that party believes constitute Force Majeure   and the estimated duration thereof, and shall make all reasonable efforts to relieve such Force Majeure   condition.         13.4 Extended Suspension      Notwithstanding the foregoing, it is expressly agreed that should an act of Force Majeure occur causing   the suspension of the Services for a period of 7 days or more, the Company shall have the right to   terminate this Agreement by giving the Contractor 5 days written notice to that effect.        

 

         -34-         14 NOTICES      Except as otherwise specifically provided in Clause 15.1 or elsewhere in this Agreement, all notices and   other communications required to be given hereunder must be given in writing.  Transmittal shall be by   prepaid certified or registered mail with delivery confirmation receipt requested, or in person with a copy   of the notice or communication signed as received by the receiving party, or by facsimile at the   appropriate address as provided in Annexure A (or other address from time to time notified by a Party   thereof to the other party) and shall be effective from the time of receipt thereof.  Notices and other   communications shall be deemed to have been received upon delivery or, for those sent by certified or   registered mail on the second day after posting and those sent by facsimile, on the next business day   following successful transmission.         15 DESIGNATED REPRESENTATIVES      15.1. Authority      The Company and the Contractor shall each appoint a Designated Representative (to be present at the   Operations Area) for the purpose of giving or receiving any instruction, information or notice which should   or may be given to or by the party he represents in regard to the Services.  The Designated   Representatives shall not, without express written authority, be entitled to vary or terminate this   Agreement or approve any invoice or compromise or settle any claim by or against, or waive any right of   the party he represents.      15.2. Appointment      The Company and the Contractor hereby appoint the persons as stated in Annexure A respectively as   their Designated Representative.  Such appointments may be changed from time to time by notice in   writing from the appointing party to the other.  The foregoing shall not exclude the giving or receipt of   any instruction, information or notice by any other authorised person or means permitted or required   under this Agreement or at law.         16 CONFIDENTIALITY      16.1 Obligations of the Parties      The Contractor recognises the confidential nature of the Operations of the Company, and the Contractor   shall respect such confidentiality and shall keep secret and confidential and shall not directly or indirectly   disclose to any third party any information relating to the business affairs, work, investigations or   operations of the Company including data, Surveys, specifications, drawings, design features, records,   reports, accounts or other documents or things supplied or which come into the Contractor's possession   and the Contractor shall take or cause to be taken such precautions as may be necessary to maintain such   secrecy and confidentiality and prevent such disclosure of the same and the Contractor will use its best   endeavours to ensure that its employees, agents and sub-Contractors also respect such confidentiality.      Company shall maintain confidential and shall at no time without the prior written agreement of the   Contractor use, reproduce, copy, disclose to, place at the disposal of or use on behalf of any third party   or enable any third party to use, peruse or copy any documents, drawings, data, computer software or   other information belonging to or relating in any way to the business and affairs of the Contractor   (including any specifications, techniques, know-how, procedures or equipment used or provided by the   Contractor in performing the Services) which may be disclosed to or learnt by Company in connection   with this agreement. Company shall endeavour that all contractors, employees, agents or servants of   Company and any other contractors associated with the Services shall observe the same obligations in   respect of any documents, drawings, data, computer software or other information referred to above   which may be disclosed to or learnt by them in connection with or as a result of their activities in   connection with this agreement.     

 

         -35-      16.2 Press Releases      The Contractor shall not issue any news releases, advertising, publicity or promotional material relating   to the Services to be performed herein without the prior written approval of the Company.         17 DEFAULT      17.1 Right to Withhold Payments      Without prejudice to any other provision of this Agreement or any other remedies at law, if the   Contractor fails to perform or observe any obligation, terms, condition or stipulation contained in this   Agreement which is to be performed or observed by it, then the Company may, without prejudice to any   other right that the Company may have under this Agreement and without prior notice to the Contractor,   withhold payment of any amount payable to the Contractor under this Agreement that relates to the   failure to perform or observe any obligation, terms, condition or stipulation until the matter is remedied   or until such earlier time as the Company may determine.      17.2 Notice      The Company shall notify the Contractor of the details of any amount withheld by the Company pursuant   to Clause 17.1 in writing at the time that the payment would, but for this condition, be due to the   Contractor.      18. EXPERT      18.1 Appointment      Where, by the terms of this Agreement, it is provided that any matter in dispute may be referred to an   Expert or in the event of there being any dispute between the parties or any of them (other than any   dispute as to the interpretation of this Agreement) as to the rights obligations or interests of the parties   under any of the other provisions the dispute may by agreement of the parties in dispute in either case be   referred to an Expert in accordance with the following provisions:      (a) if the parties can agree upon the person who is to be appointed as the Expert within 7 days (unless   the Operations are currently underway, then the time shall be reduced to 24 hours) of the Date of   Reference (being the date upon which the parties in dispute agree to refer the matter to an   Expert) the matter in dispute shall thereupon be referred to such Expert;    (b) if the parties cannot agree on the appointment of an Expert within the period of 14 days they will   forthwith and in any event within 1 month of the Date of Reference, each appoint an expert and   those experts between them will appoint an Expert to whom the matter in dispute shall be   referred;   (c) if a party fails to appoint an expert in accordance with the provisions of (b) above then if one   expert has been appointed then that expert shall thereupon be deemed to be the Expert   appointed pursuant to the provisions of this Clause 18 and the matter in dispute shall be referred   to that expert accordingly    (d) if the experts appointed by the parties under (b) above fail to appoint an Expert within 7 days of   the Date of Reference any party to the dispute may ask the Chairman for the time being of   Australian Petroleum Production and Exploration Association Limited to appoint an Expert and the   matter in dispute shall thereupon be referred to the Expert appointed by the Chairman; and   (e) all moneys awarded by an Expert (including all moneys awarded for damages hereunder and/or   the costs of reference to the Expert) shall attract interest at 15% and shall be compounded on a   monthly basis.  Such interest shall accrue on and from the date that each dispute was first   referred for determination in accordance with the provisions of this Clause 18.  All moneys   awarded by an Expert in accordance with the provisions of this Clause 18 (including interest due   thereon) shall be paid within one month of the Expert's determination.     

 

         -36-      18.2 Performance to Continue      Notwithstanding the fact that any matter in dispute between the parties is to be referred or has already   been referred to an Expert, the parties shall continue to observe and perform their respective obligations   and duties hereunder as if no such dispute had arisen.      18.3 Determination Binding      In the event of a reference to an Expert, his opinion shall be final and binding on the parties in dispute.       18.4 Not Arbitration      In making his determination the Expert shall act as an expert and not as an arbitrator and the provisions   of the Commercial Arbitration Act 1985 shall not apply.     

 

         -37-      ANNEXURE C      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      COMPLIANCE WITH STATUTORY REGULATIONS      (PART 1 - THE CONTRACTOR)      In addition to any other requirement of the Agreement, the Contractor shall comply and take all   reasonable efforts to ensure that the Contractor's Personnel comply with the requirements of the   provisions of all statutory requirements and regulations, and with the lawful requirements of public,   municipal and other authorities in any way affecting or applicable to the performance of the Services.       Without limiting the generality of the foregoing the Contractor shall ensure that:   (a) any Contractor's Items to be supplied or furnished by it hereunder shall comply with the   requirements and standards of all laws, regulations and directions;   (b) each person employed by the Contractor (either directly or indirectly through a subcontractor or   third party) is familiar with the Schedule and emergency response manuals to the extent relevant to   that person's employment or purpose at the worksite upon arrival at the worksite or prior to the   performance of any work or services as the case may be and that each person will observe and   comply with, the requirements applicable to the area of operation while at the worksite during the   performance of the Services; and   (c) provide confirmation that each person referred to in (b) above confirms in writing in a form provided   by Operator that he has been made familiar with the requirements of the Schedule and an   undertaking that he will so comply.   The Contractor shall ensure that each subcontractor provides to the Operator an undertaking to   comply with the "Specific Requirements" on the form in Part 2 or other approved Form.         Dated this                 day of                                  2012         For and on behalf of the Contractor:                    (Signature)  (Name of authorised signatory)     

 

         -38-         (PART 2 - SUBCONTRACTORS)            Name of Contractor  ________________________________________    Name of Subcontractor  ________________________________________    Subcontract Services  ________________________________________          The undersigned is a subcontractor to the Contractor for the performance of the services and hereby   confirms that it and its personnel are familiar with the requirements of the statutes and regulations to the   extent that those requirements apply to the Subcontract Services:               Dated this                 day of                                  2012      For and on behalf of the Sub-Contractor:           (Sub-Contractor’s name)  (Name of authorised signatory)             (Signature)          

 

         -39-         ANNEXURE D      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      ACQUISITION PARAMETERS & QUALITY CONTROL STANDARDS      1 GENERAL       1.1 Location      The Surveys are located as shown in Annexure E of this agreement      1.2 Survey Size      3D data acquisition will total approximately 195 square kilometres in size.   2D data acquisition will total approximately 135 line kilometres in size      The Company reserves the right to increase/decrease the program by a factor of 25% of the stated totals.    Notification of any modification to the program size will be made in writing to the Contractor prior to   completion of the assigned program.       1.3 Water Depth      The data acquisition is in open water with no surface obstructions. The 3D survey area covers a number of   shoal areas which, according to marine charts rise to approximately 22 metres (LAT) in the shallowest   area. These areas may result in unpredictable currents and feathering. Tides in this area are of low   magnitude, 1 to 2 metres. Recognition of these facts will allow the Contractor to complete the assigned   program safely, as prevailing conditions allow, without endangering the personnel, vessels or equipment   and without causing delays as a result of the water depths.      1.4 Start Date      The start date for the Operations will be 6 December 2012, but no later than the 14 December 2012,      1.5 Vessel Positioning and Navigation      Contractor will supply the navigation and positioning systems required to conduct the Operations to the   required specifications.       1.6 Supervision      The Contractor will provide qualified and experienced QC personnel capable of providing total quality   control of all seismic and navigation data acquired.  The Company will also supply qualified and   experienced QA personnel.      2 ACQUISITION PARAMETERS      2.1       For 3D Data Acquisition Services       Streamer    Number of streamers    :  Minimum 4    Streamer length  : 6000m    Group interval     :  12.5m    Streamer Separation    :  100m    Streamer Depth     :  7 metres       Source     Type  : Tuned Airgun Array     Source volume  : 3080_ cubic inches    Number of sources    :  2    Number of sub arrays/source              :               2     

 

         -40-       Source operating pressure  :  2000 psi    Source Separation    :  50 metres    Shot Point Interval    :  18.75m flip-flop     Source Depth   : 5 metres     Offset   : Approximately 120 metres        Recording System    Low Cut  : 3Hz @ 12dB/Oct (or similar)    High Cut  : 206Hz @ 276dB/Octave (or similar)    Record Length  : 6 secs    Sample Rate  : 2 ms    Recording Format  : SEG-D    Media  : IBM 3590/3592      2.2       For 2D Data Acquisition Services       Streamer    Number of streamers   :  1    Streamer length : 8000m    Group interval    :  12.5m    Streamer Separation   :  100m    Streamer Depth    :  7 metres       Source     Type : Tuned Airgun Array     Source volume : 3080 cubic inches    Number of sources   :  1               Number of sub arrays                   :           2    Source operating pressure  :  2000 psi    Shot Point Interval   :  25 metres     Source Depth  : 5 metres     Offset  : Approximately 120 metres         Recording System    Low Cut : 3Hz @ 12dB/Oct (or similar)    High Cut : 206Hz @ 276dB/Octave (or similar)    Record Length : 8 secs    Sample Rate : 2 ms    Recording Format : SEG-D    Media : IBM 3590/3592         3 QUALITY CONTROL STANDARDS      3.1 Standards      These standards will be strictly adhered to.  However, the Company’s Quality Control Supervisor will have   the right to suitably alter them in order to accommodate the variable operating conditions.      Contractor shall evaluate data quality using all available systems.  At the start of the Operations all   equipment shall comply with all technical specifications.  During each 24-hour period, daily instrument   tests shall be undertaken and analysed, and results submitted to the Company’s quality control supervisor   for approval.       3.2 Requirements During Mobilisation      During mobilisation Contractor shall undertake the following and inform Company’s quality control   supervisor of the results before sailing:   • Provide a copy of recent performance statistics for streamer compasses.   • Provide recent Gyro compass calibration, calculated from static or dynamic observations.   • Monthly seismic instrument tests, which must be no less than 48 hours old.     

 

         -41-      • Provide a list of onboard equipment spares.      When on location during streamer deployment Contractor shall provide the following:   • Streamer configuration and deployment diagrams   • Antenna diagrams and location of any navigation reference points   • Printout of all Survey parameters input into INS   • Results of analysis of monthly instrument tests      3.3 Unacceptable Misfire Rates      A line or line segment shall not be accepted if there are:      8 or more consecutive misfires,    12 misfires in any 24 consecutive records,    16 misfires in any 40 consecutive records      The cumulative misfires shall not exceed 5.0% for a line or line segment or 2.0% for the Survey.      Definition of a Misfire      Any one of the following shall be considered as a misfire:      • No seismic data recorded (or incomplete record)   • No navigation data recorded (or incomplete record)   • Loss of time zero   • No shot fired   • Tape parity error   • Data extraction errors   • Source synchronisation error   • Acquisition/recording parameters do not meet performance specification   • Recording instruments do not meet performance specification   • Streamer parameters and performance do not meet performance specification   • Streamer feathering exceeds performance specifications   • Streamer noise levels exceeds performance specifications   • Streamer balance/depth do not meet performance specification   • Number of bad streamer channels do not meet performance specification   • Source signature does not meet performance specification   • Source volume does not meet performance specification   • Air pressure does not meet performance specification   • Source timing and/or synchronisation does not meet performance specification   • Source depth does not meet performance specification   • Failure of source depth indicators for any particular gunstring   • Vessel primary positioning does not meet performance specification   • Source positioning does not meet performance specification    • No gyro information   • Fathometer not operating for more than 5 kilometres unless an alternate method of depth   determination is readily available.   • Any QA system not operating for more than 5 kilometres, in real time or post processing.      3.4 Acquisition Procedures and Minimum Line Lengths      All of the following acquisition procedures and minimum line lengths shall be met/ adhered to:      • Line run-in distance shall be sufficient to ensure that the streamer is optimally positioned prior to the   start of acquisition on each sail line, unless otherwise approved by the Company Quality Control   Supervisor   • Guns shall be fired in sufficient time prior to start of line to allow for warming up and tuning.   • Source firing shall be initiated with a single gun or cluster.    • Single guns or clusters will be added to the source after each 3 shots until operational volume is   achieved.     

 

         -42-      • Line run outs to achieve full fold coverage are required at the end of each line    • The minimum acceptable line segment shall not be less than 1 streamer length.   • The maximum number of allowable line segments per line shall be 3.   • Any line re-shoot shall be recorded in the same direction as the original line.    • Line naming convention will be as follows    Sail line numbers will have the format CCYYLLLLXSSS, where:     CC is the Company/Survey Identifier     YY is the Year of Acquisition     LLLL is the Sail Line Number     X is the Shooting Code     P for prime,    A/B/C for reshoot or resumed line,    J/K/L for infill     SSS is the Acquisition Sequence Number    • Resumed lines will bear a suffix such that A represents a second attempt, B a third attempt etc.   • Every line attempt shall be accorded a unique consecutive number regardless of whether the line is   accepted or subsequently rejected (Sequence Number).   • Shot number convention will be such that the ends of the lines with the lowest shot numbers will all   be aligned towards one side of the Survey.  As such lines will have incrementing or decrementing shot   numbers depending on the direction of shooting.   • The practice of incrementing shotpoints by 1,000 or 10,000 etc. for re-shoots shall not be used.      3.5 Energy Source      For each of the airgun arrays used for the Operations, a synthetic signature report and the Frequency   Spectra must be supplied together with the exact gun sizes, depth, the delay time for the guns and any   other data used to produce the above report and the frequency spectra.  Synthetic signatures shall also be   run to support proposed gun drop specifications.  No change in the airgun parameters, including gun drop   specifications, must take place without re-running the synthetic signature and gaining approval from the   Company’s Quality Control Supervisor.  Validity of the above information will be established prior to   the start of the Operations.      Source Minimum Requirements      Energy source shall meet all of the following minimum requirements.   • The air pressure shall be displayed in the recording room and recorded on the seismic tape;   • Individual guns shall be monitored by a hydrophone and/or a transducer located as close to the centre   of explosion as practical;   • Source controller systems shall be able to:   o detect and display the fire time of each individual gun relative to the fire command time to   an accuracy of 0.25 milliseconds;   o display individual timing errors graphically;   o synchronise all guns within a specific time window;   o provide alarms for:   ? autofiring guns; and   ? out of sequence firing (flip/flop); and   ? single gun misfires.   o determine standard deviation of timing errors for each gun at each shot and display   graphically; and   o at the end of each line produce a summary of gun performance during the line and display   graphically.      Source Performance Specifications      A gun is considered to have misfired and shall be shut down under any one of the following conditions:      • autofiring;   • air leak;   • variations in the near field signature, and/or   • synchronisation more than ±1.25 millisecond from time zero.        

 

         -43-      The following specifications shall govern the operation of the source(s). Individual records which do not   meet these specifications shall be considered as a misfire:      • malfunction of source controller system;   • source depth exceeds ±1 metre from specified depth;   • autofiring gun(s);   • variations or inconsistencies in signature from shot to shot;    • Average deviation in the 10 to 70 Hz bandwidth form the spectrum of the full array exceeds +/-1.5 dB.   • Maximum deviation from the spectrum of the full array exceeds +/- 3 dB anywhere in the 10-70 Hz   bandwidth.   • loss of time break.      Source QC Checks and Tests      The following checks shall be undertaken prior to start of Operations and at any other time at Company’s   Quality Control Supervisor's request:      • signature evaluation using seismic QC and/or processing systems;   • verification of delay between start of record and field time break;   • verification that record length and speed are compatible with source re-cycle times;   • measurement of towing ropes, wires and chains;   • correct operation of source mask (flip/flop) identifier using single trace recorder or seismic QC   system; and   • verification of in-line source to near trace offset.           3.5.2 Gun Drop Specifications      Full set of drop out specifications are inserted in Annexure G .      3.6 Seismic Streamers      Contractor’s seismic streamers shall meet the following minimum requirements, performance   specifications, and QC checks and tests.       Streamer Minimum Requirements      Contractor’s seismic streamer(s) shall meet the following minimum requirements.   • The streamer skin shall be suitable for the area of operation;   • Towing speed shall be between 4.5 and 5.5 knots (through the water);   • Initial balancing shall be undertaken in the area of Operations, with depth controllers and modules in   place and the vessel at Survey speed (nominally 5.0 knots) until the streamer is neutrally buoyant at   the specified depth;   • After streamer balancing, wing angles of depth controllers shall not permanently exceed 5o ;   • Depth controllers shall be spaced not more than 300 metres apart;   • Depth controllers shall be fitted with depth indicators; and   • Streamer section depth indicators (other than depth controllers) shall be equally spaced midway   between each depth controller (i.e. nominally 300 metres apart).      Streamer Performance Specifications      At a minimum, Contractor’s seismic streamer(s) shall meet the following performance specifications.    Contractor shall endeavour to reduce the number of any bad traces at each new streamer deployment.    The following specifications shall govern the operation of the streamer(s).  Individual records which do not   meet these specifications shall be considered as a misfire:      • at the start of, or during a line the maximum number of bad traces per streamer shall not exceed:   • 2 randomly distributed in any 80 or   • 4 randomly distributed in any 160 or   • 8 randomly distributed in any 320 or   • 16 randomly distributed in any 640     

 

         -44-      • the near trace shall always be operational   • there shall be no more than 2 adjacent bad traces   • the maximum number of bad traces in the near third of each streamer shall not be more than 1% of   the total number of traces   • average streamer depth shall not vary by more than ±1 metre from specified depth; and   • maximum distance between depth indicators shall not exceed 400 metres.      Bad Trace Definitions      Any of the following conditions shall qualify as a bad trace:      • Any hydrophone within a group is reversed polarity    • Sensitivity down by more than 3 dB from manufacturer’s specifications;   • Trace is dead;   • Trace is spiking or wild; or   • Signal distorted or out of phase by more than 30o or 1 millisecond.      Streamer Noise Definitions      Streamer noise shall be given in microbars RMS (Root Mean Square) and measured over the full recording   cycle with recording filters and with the streamer at the specified tow depth.       The following guidelines shall be used for determination of acceptable levels of coherent noise and swell   noise, but shall depend on geophysical objectives.  Whenever possible the use of onboard processing/QC   systems shall be used to further evaluate the effects of noise on the data.  In any case the final decision   shall rest with Company in consultation with its Designated Representative.      Ambient noise levels shall not exceed 250/(L) μbar for the first 10 traces, 100/(L) μbar for traces near   the depth controllers and modules; and 62.5/(L) μbar, for all other traces, where L = group length in   metres, and noise levels are measured through an 8 Hz low cut filter.      Swell noise of up to 25 μbar can be tolerated if appearing on less than 5% of shot records on any line and   is less than 2 seconds in duration.  Higher noise levels may be acceptable subject to Company Quality   Control Supervisor’s approval.      Coherent noise shall be assessed according to the following:      • amplitude of the interfering signal;   • duration of the noise;   • repetition and synchronisation of the interference; and   • moveout of the interference.      Constant interference up to 10 μbar shall only be tolerated up to a maximum duration of 4 seconds;       As a general rule, coherent noise shall not exceed the following limits:      Noise coming from astern of the streamer:       Moveout   Max. Noise (μbar RMS)   More than 250 milliseconds   25 μbar   125-250 milliseconds   12 μbar   0-125 milliseconds   5 μbar      Noise coming from ahead of the streamer:       Moveout   Max. Noise (μbar RMS)   More than 2000 milliseconds   25 μbar   1400-2000 milliseconds   12 μbar   0-700 milliseconds   5 μbar        

 

         -45-      Streamer Feathering      As agreed with the Company’s on board Quality Control Supervisor and dependent on sea conditions.    However, consistent matching of streamer feather angles on adjacent sail lines will be a critical factor in   the data acquisition process. Maximum streamer feathering should be less than 10 degrees (<10 degress)       Streamer QC Checks and Tests      Trace polarity shall be in accordance with SEG (Society of Exploration Geophysicists) convention namely a   compression wave shall produce a negative number on tape, downward deflection on camera monitor and   a white trough on the trace recorder.      Streamer sensitivity, electrical resistance, crossfeed and insulation shall be verified daily or at any time if   requested by Company’s Quality Control Supervisor.  Streamer sensitivity shall be evaluated from a series   of fixed gain displays.      Streamer noise tests shall be undertaken on the run in and at the end of every line and recorded on the   production tape.  A reference signal shall also be recorded on an auxiliary channel.       During noise tests:      • the vessel shall be at Survey speed (nominally 4.75 knots);   • the recording settings shall be as per the specified acquisition parameters; and   • the streamer shall be at the specified depth.      The source to near trace in-line offset shall be verified at the start of each line by using waterbreak   phones or acoustic devices or any other reliable method.  A change in linear source to near trace offset of   more than 1/2 group length from the mean shall be investigated and remedied.      3.7 Recording System      Contractor’s recording system shall meet the following minimum requirements; performance   specifications; and QC checks and tests.      Recording System Minimum Requirements      Contractor’s recording system shall meet all of the following minimum requirements:      • The equipment shall be calibrated and meet manufacturer’s specifications;   • Polarity shall be in accordance with SEG convention    • Only new recording media shall be used.    • Acceptable media is IBM 3590/3592 compatible cartridge tapes;   • No data shall be recorded after the end of tape marker;   • The last record on each tape shall be followed by a double EOF (End of File); and   • The seismic channels shall be displayed on oscilloscopes.      Recording System Performance Specifications      Individual records which exhibit any of the following do not meet these specifications and shall be   considered as a misfire:      • loss of time zero;   • tape parity errors;   • data extraction errors;   • loss of synchronisation between field time break and start of data;   • loss of more than 3 channels;   • performance below manufacturer’s specifications;   • no data recorded;   • incomplete record;   • loss of multichannel monitor or section plotter for more than one (1) km   • loss of fathometer for more than one (1)km     

 

         -46-         Recording Instruments QC Checks and Tests      Instrument tests shall be performed in accordance with manufacturer’s recommendations and/or   Contractor's procedures approved by Company’s Quality Control Supervisor and shall comprise all of the   following:      Monthly tests for IFP (Instant Floating Point) systems shall comprise, but not be limited to, the following:      • Preamplifier calibration;   • Amplifier RMS noise and DC offset;   • Equivalent input noise and offset referenced to 1 μvolt (with and without low cut filter);   • Hydrophone group sensitivity;   • Filter impulse response;   • Harmonic distortion;   • Cross feed checks; and   • Dynamic range determination.      Daily tests for IFP systems shall comprise, but not be limited to, the following:      • Dynamic range determination;   • Equivalent input noise and offset referenced to 1 μvolt (with and without low cut filter);   • Streamer noise test;   • Streamer continuity and leakage test;   • Data transmission validity; and   • Amplifier RMS noise and DC offset.      Daily tests shall be recorded on media equivalent to that of the production tapes.  Monthly tests shall be   processed by Contractor onboard the vessel.  Equipment which does not meet manufacturer’s   specifications shall be replaced and another set of tests performed.  A set of monthly tests shall be   undertaken following any software and/or hardware changes.  A polarity check shall be made at the start   of the Operations and whenever a streamer section is replaced.  Polarity may be determined by a tap test   or evaluation of first break arrivals (if feasible).  Multi-channel camera records shall be taken every 1   kilometre.      Tapes      All seismic data will be recorded on new magnetic tapes of Company approved manufacture and brand.    Tape labels will be systematically annotated.  Proper precautions will be observed in storing and   transporting both new and recorded tapes.      3.8 Positioning and Data Quality Assurance      3.8.1 Integrated Navigation System (INS)      Contractor’s integrated navigation system shall meet all of the following minimum requirements, binning   display minimum requirements, recording requirements and filtering requirements.      INS Minimum Requirements      The system shall be able to determine in real time the location of the vessel, sources and all receiver   arrays by integration of satellite positioning data, gyro compass data, streamer compass data, laser   systems data (if used) and acoustic systems data at the same instant in time.  Where time de-skewing is   required to correct for age of data, this shall be kept to a minimum.      The system shall be able to:      • interface positioning data from satellite systems    • record up to 20 lines of position and use up to 10 lines of position in a single computation, using a   least squares solution, for both vessel, headbuoys and tailbuoys;   • compute and display in real time residual range values for each LOP (Line of Position);     

 

         -47-      • mix LOP's from multiple interfaced systems in a single computation;   • compute and display in real time,    • position differences between primary, secondary and tertiary systems    • the locations of all positioning nodes on the towed Survey spread;   • the location of all source and receiver positions in the Survey spread   • compute and display in real time LOP geometry and the standard deviation of the least squares   solutions;   • navigate between 2 points in either great circle or grid line mode;   • undertake seven parameter datum transformation calculations;   • compute Survey line pre-plots;   • display vessel progress along each Survey line to include speed and distance off-line;   • compute and display coordinates in either geographic or rectangular coordinate systems referenced to   the specified Survey datum, spheroid and projection;   • generate an unambiguous remote display to facilitate steering of the vessel along the Survey line;   • produce end of line QC plots in the form of histograms, scatter grams and time series plots for each   system used for positioning and for each computation made by the INS, for end of line statistical   analysis; and   • generate shotpoint closures in either time or distance mode.         INS Recording Requirements      The system shall record to industry standard 3590 cartridge tapes, all raw positions solutions and sensor   data in UKOOA (United Kingdom Offshore Operators Association) P2/94 format (other formats require   Company approval).      As minimum at each shot the following parameters shall be recorded:      • time (UTC);   • shot number;   • all raw positioning data for all systems and sensors (radio, satellite, laser etc.);   • primary position;   • secondary position;   • number of GPS (Global Positioning System) SV's (Satellite Vehicles) and ID's (Identifications) used with   elevations;   • GPS HDOP (Horizontal Dilution of Precision) and PDOP (Position Dilution of Precision) values;   • standard deviation of the least squares position for primary system (or 95% horizontal error ellipse for   DGPS (Differential Global Positioning System) systems);   • standard deviation of the least squares position for secondary system (or 95% horizontal error ellipse   for DGPS systems)   • gyro heading and water depth.      All C-O's, delays, propagation velocity factors shall be input into the INS software not the mobiles.    Before  the start of line a file containing all initialization paramaters shall be recorded containing:   i) spheroid/datum parameters   ii) projection parameters   iii) wide area differential station locations   iv) all antenna and other fixed offsets      INS Filtering      Where any form of filtering is applied to raw sensor data, the minimum filter value that is consistent with   non-erratic navigation, shall be selected.  In any case all raw unfiltered data shall be retained and   recorded as specified. Company’s Quality Control Supervisor shall be informed regarding the application   of smoothing filters.         3.8.2 Positioning      Contractor shall verify all geodetic parameters, station coordinates and datum transformation parameters   to be used for the work and shall ensure that these are correct and appropriate for the area of operation.     

 

         -48-         Contractor shall provide the necessary onboard positioning and navigation quality control computers to   achieve the specified accuracy and tolerances.      DGPS Positioning      Contractor’s DGPS positioning system shall meet all of the following specifications; including network   minimum requirements; performance specifications; height aiding requirements; mobilisation   requirements; QC checks and tests; streamer compasses; and towing geometry.      Any Differential Global Positioning System supplied by Contractor shall have an acceptable proven QC   system.      Statistical testing utilising the F-test and W-test shall be carried out for each position fix to identify and   eliminate systematic bias errors and range outliers.      The 95% a-posteriori horizontal error ellipse of the 2-dimensional position shall be used as the basis for   acceptance.       For vessel positioning, the semi-major axis of the a-posteriori horizontal error ellipse shall not exceed 5   metres for at least 90% of shot points on a line and shall not exceed 7 metres for more than 5% of   shotpoints on a line.      In instances when the Marginally Detectable Error (MDE) indicates a possible horizontal movement of   greater than 5 metres, the positions will be carefully investigated and other pertinent QC parameters   checked..      Data latency shall be better than 10 seconds.  Computation update rates shall be better than 3 seconds.      DGPS Network Minimum Requirements      Contractor’s DGPS network shall meet all of the following minimum requirements:      • A minimum of 4 reference stations shall be continuously monitored from the mobile site;   • Reference stations and mobile station shall monitor the same satellite constellation;   • There shall be at least one monitoring station which shall be continuously manned (such monitoring   station may be located at a reference station);   • Spares complement of 100% (preferably in "hot standby" mode) including emergency generating   power, for each reference station and monitor station;   • Spares complement at the mobile installation shall be 100% to include receivers, antennas, cabling,   power supply and computer hardware and software;   • Transmission formats shall adhere to recognised standards e.g. RTCM-104 (Radio Transmission   Common Code);   • Distances from the Operations area to individual reference stations shall be kept to a minimum;   • For “Local” DGPS systems, maximum distance from reference stations to Operations area shall not be   more than 2000 kilometres.  Wide Area DGPS systems with multi-reference station options shall be   considered on a case by case basis.   • Satellite prediction software with latest updated almanac shall be available throughout the   Operations. Such software shall be used to plan Operations and identify any poor coverage windows.   • Contractor or its subcontractor shall make every effort to verify there are no additional users of   equipment, operating in or near to the Operations area, which transmit on a frequency or   frequencies, likely to impair the performance of the system.      DGPS Performance Specifications      The following specifications shall govern the operation of the DGPS.  Individual records which do not meet   these specifications shall be considered as a misfire:      For Vessel Positioning:      Whenever possible the maximum available number of healthy satellites which meet minimum elevation   criteria shall be used in any computation. A multiple reference station derived position may be used     

 

         -49-      subject to the above requirements.      Height Aiding      Height aiding (i.e. where the equipotential surface is treated as a pseudo position line) may only be used   if:   • the physical variation in antenna height due to tide, pitch, roll and heave, is less than 2 metres    • an average ellipsoid height has been determined from a statistically analysed dataset of   continuous readings whose standard deviations are less than 2 metres.   • it's use is minimal and in any case for never more than 30 minutes on any single Survey line       DGPS Requirements During Mobilisation       During mobilisation if possible, Contractor’s DGPS system shall meet all of the following requirements:      • Integrity Monitor Check (as detailed in 2.5 not found??)   • During the verification the complete fully interfaced installation, to include all reference stations,   Contractor's INS, all hardware and software shall be verified;   • During mobilisation the DGPS shall be installed in the proposed configuration for the Operations while   the vessel is stationary at the dockside where the differential corrections can be correctly received;   • DGPS positions shall be determined over a period of 30 minutes of good satellite coverage    • A scatter plot shall be  produced showing the distribution about the coordinated location from which   the following shall be determined and provided:   • mean excursion eastings;   • maximum excursion eastings   • mean excursion northings;   • maximum excursion northings;   • mean excursion height; and   • maximum excursion height.   • A similar check may be required at the end of the Operations or at any time during the Operations if   necessary or if requested by Company’s Quality Control Supervisor.      If Contractor cannot meet the above mobilisation requirements an alternative method of DGPS system   calibration, acceptable to the Company, shall be clearly delineated and executed by the Contractor.      DGPS QC Checks and Tests      Contractor shall conduct all of the following QC checks and tests on Contractor’s DGPS system:      • As a matter of routine monitor station information concerning status and health of all satellites shall   be continuously available and monitored;   • Internally generated quality control indicators such as HDOP, GDOP, PDOP, VDOP shall be continuously   available and monitored;      Streamer Compasses      Where streamer compasses are to be used for determination of streamer feathering the following shall   apply:      • the latest value of magnetic declination (horizontal intensity) to be used shall be obtained from either   latest IGRF (International Geomagnetic Reference Field) published tables or from a recognised   magnetic observatory, and/or   • Contractor shall provide information on the most recent dynamic verification check.      Towing Geometry      When the required geometry has been established, towing wires and chains shall be marked to ensure the   geometry remains the same following each deployment.      Near trace offset (i.e. the linear distance between centre source and centre near trace) shall not vary by   more than ± 1/2 group length unless such variation is as a result of tides and/or currents influencing     

 

         -50-      towing characteristics.      During mobilisation the following components shall be accurately measured and documented:      Streamer front end:   • lead in;   • stretch sections;   • gun locations and distances;      3.9 Ancillary Equipment      The following minimum requirements shall apply to all of Contractor’s ancillary equipment.      Gyro Compass Minimum Requirements       The following minimum requirements apply to Contractor’s gyrocompass:      • One or more units are required and shall be interfaced to the INS;   • The unit shall be calibrated against a known azimuth, during mobilisation while the vessel is   stationary at the dockside or using statistics derived from dynamic observations;     • Dockside calibrations shall be undertaken by an experienced Surveyor. Each gyro heading shall agree   with the Surveyed azimuth to within 0.5o;   • No dockside calibration shall be started until the gyrocompass has been allowed to stabilise for 2   hours;   • Additional calibrations shall be undertaken during the course of the Operations and at the end of the   Operations if requested by Company’s Quality Control Supervisor;   • Contractor shall provide historical information regarding previous gyro calibration results;      Single Trace Recorder Minimum Requirements      The following minimum requirements shall apply to Contractor’s single trace recorder:      • As minimum Contractor shall provide a method for displaying near trace data throughout the   Operations. Such system shall be able to be used to assist in the detection of source out of sequence   firing in multi-source Operations.      Shot Record Monitor Minimum Requirements      The following minimum requirements shall apply to Contractor’s shot record monitor:      • Contractor shall provide a means for monitoring and displaying all seismic channels from which dead,   weak, or otherwise bad or noisy channels may be identified and the level of noise quantified;   • Records shall be annotated with date, line number and shot number and shall be taken at the   beginning and end of each line and at intervals of 1 kilometre or as requested by Company Designated   Representative.      Fathometer Minimum Requirements      The following minimum requirements shall apply to Contractor’s fathometer:      • A dual frequency digital fathometer shall be available throughout the Operations;   • The unit shall be calibrated in accordance with manufacturer’s specifications;   • Every opportunity shall be taken throughout the course of the Operations to verify fathometer   accuracy during port calls and/or when crossing well locations;   • A diagram showing location of fathometer transducer relative to the primary antenna or navigation   reference point shall be provided.      Sound Velocity Measures      A properly calibrated and working system shall be available throughout the Operations to periodically   determine velocity of sound in water (from surface to sea bed) for use with all acoustic devices and for     

 

         -51-      processing purposes.      4 DELIVERABLES      4.1 Brute Stack:      A processing sequence should be implemented such that a single brute stack is produced for each   vessel pass, the choice of source and streamer should be rotated between lines.  The processing   sequence should be designed such that noise is not attenuated and a true representation of recorded   data is presented. Such a processing sequence may include (without limitation) the following steps;      Trace Decimation   Gain Recovery   DBS   Swell Noise and Linear Noise attenuation   NMO correction – using either a regional function supplied by the client   Post NMO mute – picked by onboard contractor processing staff   Stack   Gun and Cable correction   TVF   Amplitude balancing and display      4.2 Shot Gathers:      Every 20 shots (configurable) – viewed interactively online, every shot.      4.3 f-k Plots:      Every 20 shots (configurable)   Rectangular time/trace window selected by client      4.4 RMS Analysis:      Computed in two rectangular time/trace windows.   One of the time trace windows is further analysed in three frequency windows.      4.5 Low Fold Cube      A processing sequence should be implemented to allow the production of a Low Fold Cube which will   include the near trace.  The low fold cube should be merged with available navigation data and processed   to a time of 1.0 second TWT.      4.6 SEG D Header Analysis      Multiple SegD header attributes.       4.7 SEG Y Deliverables      Concatenated brute stacks in SEGY format.   Single Trace Cube in SEGY format preferred trace is 3 or 4.      4.8 On Line Displays      Brute stacks   Attribute analysis to optionally include Header Attributes, RMS analysis attributes   Shot gathers (optional shot increment)   f-k Plots (optional shot increment)      4.10 Survey Data Deliverables      Contractor shall provide the following on completion of the Operations:        

 

         -52-      • Dual copies of all seismic field tapes.   • Digital Copies of all observer’s logs and instrument test results in pdf format.   • Dual copies of Post plotted positioning data tapes in UKOOA P1/90 format upon completion of seismic   data acquisition;   • Dual copies of All field raw positioning data tapes in UKOOA P2/94 format;   • Six copies of final post mission report of all field activity in pdf format; and   • Six copies of final post mission report of all navigation processing in pdf format.      Positioning Post Processing      Wherever possible Contractor shall process all positioning data onboard the Survey vessel and provide   UKOOA P1/90 format tapes on completion of the work. Full quality control and processing of all   positioning data is required.      Contractor shall undertake additional QC as necessary at Contractor’s offices onshore, on lines, which   have been identified as being problematic, by either Quality Control Supervisor.      Contractor shall provide a full description of the equipment and algorithms used for the post plotting of   all navigation and positioning data, together with a description of the quality control procedures for each   phase of the processing.         5 OPERATIONS DATUM AND MAPPING PARAMETERS      All navigation systems used during acquisition will be operated using WGS84 as the reference datum.    Ancillary systems which may require to work on a plane will use the following projection on the reference   spheroid.      Projection   : U.T.M.   Zone   : 52 S   Central Meridian  : 52 S   Zone Width   : 6°   False Northing   : 10,000,000    False Easting   : 500,000   Scale Factor along C.M.  : 0.9996     

 

         -53-      6   CMP BINNING REQUIREMENTS FOR 3D ACQUISITION       The CMP binning system shall be capable of dividing each streamer into at least four equal (or near equal)   segments to monitor offset distribution.  The data shall be collected utilising flexible bins as specified   below.  Each of the selected segments of each streamer shall contain the full number of unique offset   traces as specified below.  The binning system shall utilise suitable graphical display capabilities so as far   as to ensure that the required offset CMP distribution specifications have been achieved.      Cell flex is defined herein as the distance from the bin centre to the edge of the flexed cell, i.e. for a 25   metre bin width, a 100% flex is defined as each side of the cell being flexed by 12.5 metres (giving a total   flexed cell width from edge to edge of 50 metres).      The following set of bin flexing parameters will be applied.       The spread will be steered to maximise the coverage on the Near Segment.      Binning Parameters Streamer Segments    Nears Near / Mids Far / Mids Far   Offset Range (metres) 0 - 1500 1500 - 3000 3000 - 4500 4500 – 6000   Nominal Fold Coverage 20 fold 20 fold 20 fold 20 fold   Flex Binning Technique Linear taper Linear taper Linear taper Linear taper   Static Bin Width 25 metres 25 metres 25 metres 25 metres   Flex at beginning of Segment 100% 150% 220% 320%   Flex at end of Segment 150% 225% 320% 450%   Near Trace Bin Width (Flexed) 50 metres 62.5 metres 81.25 metres 105 metres   Far Trace Bin Width (Flexed) 62.5 metres 81.25 metres 105 metres   137.5   metres   Coverage Parameters   (with Flex applied) Coverage (%) Minimum Fold   Near trace coverage ≥90% 18   Near-Mid trace coverage ≥80% 16   Near-Far trace coverage ≥70% 14   Far trace coverage ≥60% 12   Total  60        

 

         -54-      ANNEXURE E   AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      OPERATIONS MAP AND COORDINATES      The following map and coordinates are subject to the final results of the migration aperture   study.               195 SQUARE KILOMETRES 3D BOUNDARY COORDINATES   E N Latitude Longitude   537523 8826166 10 37 07.11 S 129 20 34.95 E   537523 8817716 10 41 42.26 S 129 20 35.26 E   556432 8817716 10 41 41.40 S 129 30 57.73 E   556432 8818977 10 41 00.32 S 129 30 57.66 E   561124 8818977 10 41 00.06 S 129 33 32.11 E   561124 8826166 10 37 06.00 S 129 33 31.68 E          3 x 2D LINES 105 KILOMETRES FULL FOLD IN TOTAL         E N Latitude Longitude   Line 1   599610 8848628 10 24 51.79 S 129 54 36.10 E            608036 8823925 10 38 15.16 S 129 59 15.76 E   Line 2  605193 8823244 10 38 37.62 S 129 57 42.2 E           606610 8849685 10 24 16.70 S 129 58 26.2 E   Line 3  609747 8831646 10 34 03.63 S 130 00 11.25 E              557959 8824039 10 38 15.44 S 129 31 47.65 E         BEGULA-1 WELL LOCATION         E N Latitude Longitude              605608 8831150 10 34 20.20S 129 57 55.12E     

 

         -55-      ANNEXURE F      AGREEMENT FOR 2D AND 3D DATA ACQUISITION SERVICES      HSE REQUIREMENTS      1.1 All activities will be carried out in accordance with the Company’s Environmental Plan for the   Operations. If the Company employs a Marine Mammal Observer(s) to implement the   Environmental Plan then all Contractor staff must accept the authority of the Marine Mammal   Observer on matters involving marine mammals.   1.2 All activities will be carried out in accordance with the Project Management Plan, which will be   developed by the Contractor and approved by the Company prior to commencement of the   Operations.   1.3 Without limiting or in any way affecting the obligations of the Contractor to perform the   Services, the Contractor shall comply with all legislative and Company health, safety and   environment requirements relating to the safety of persons in relation to the provision of the   Services in relation to the services.    1.4 The Contractor shall:   (a) take necessary and reasonably practicable precautions to ensure the safety and   health of its employees, Consultants, Subcontractors, suppliers, or any other person   who may work on the data acquisition or any other place where Services under this   Agreement are being performed, and shall take the same precautions in respect of   all Company employees, agents, consultants, separate contractors, members of the   public and any third party;   (b) before commencing any work on data acquisition, provide and obtain Company’s   approval of a HSE Policy and Management System which:   (i) includes a risk assessment based on Oil & Gas Industry standard of   activities to be performed to determine areas of risk, their level based   upon an assessment and mitigation strategies to reduce the level of risk to   ALARP (as low as reasonably practicable).  A copy of the risk register is to   be supplied to Company as well as updates against Risk Register actions   including reports on progress of closure of actions;   (ii) details how the Contractor will comply with its HSE obligations under the   Services Agreement and in particular this Schedule;   (iii) is consistent with Company's HSE Policies;   (iv) is applied to all work performed under this agreement and which is   incorporated into all subcontracts entered into by the Contractor; and   (v) details the management structure for the Services including the   management of subcontractor relationships.   (c) maintain and administer the HSE Policy and management system to discharge its   safety obligations under this Agreement and in particular this Schedule;   (d) institute an induction program approved by Company to ensure all employees,   consultants, subcontractors, suppliers, separate contractors and any other person   visiting or performing work on or near the Operations Area receive appropriate   instruction in relation to health and safety issues, the Safety Management Plan and   any HSE protocols prepared by the Contractor;    (e) if requested by the Company’s Designated Representative, be responsible for the   preparation of a HSE audit schedule in consultation with Company and,     

 

         -56-      (i) provide Company with the option to participate as an observer during   HSEMS audits, and   (ii) supply Company with a copy of the report.   (f) Notwithstanding the above audit requirements, Company reserves the right to   conduct system audits and/or random audits of the Contractor’s HSEMS;   (g) maintain and provide to the Company’s Designated Representative (or any person   nominated by him or her in writing), if so requested, all documentary evidence that   the Contractor has developed and implemented such safety protocols, plans,   induction programs and training programs required in order to discharge the   Contractor's obligations under this Agreement in particular this Schedule;   (h) immediately discontinue any practice or remove any equipment considered by the   Company’s Designated Representative to be dangerous;   (i) promptly remove from the survey vessel or project any person employed by the   Contractor who Company requests to be removed;   (j) ensure that all necessary and adequate supervision is provided at all times to ensure   compliance with Legislative Requirements and this Agreement;   (k) comply with any reasonable direction given by the Company’s Designated   Representative to improve or rectify the Contractor's safety precautions;   (l) provide prompt and thorough incident reporting to Company and facilitate any   requirement by Company to investigate an incident.  The transfer of information   between the Contractor and Company, which shall:    (i) in the first instance, and as soon as possible after the incident event   becomes known to the Contractor but not later than 4 hours after the   event, be reported verbally to the Company’s Designated Representative ;   and   (ii) be followed up in writing using an agreed format within 1 business day of   the initial notification; and    (iii) be the subject to an investigation of a standard approved by Company   with the outcome of such investigation being provided to Company,   (iv) include written reporting and plans detailing measures to prevent future   occurrence and to rectify any deficiencies identified during the   investigation.   (m) shall comply with the relevant Acts and Regulations in relation to injury management   and rehabilitation and put a system in place to manage the rehabilitation and return   to work of injured persons;   (n) introduce an inspection program that maintains high standards of workplace   housekeeping.   1.5 HSE performance data is to be provided by the Contractor to Company at the end of the   Operations.   This information shall include, but not be limited to the following:   - Number of employees   - Number of contractors   - Hours worked by (a) employees and (b) contractors;     

 

         -57-      - Number of inductions;   - Number of Lost Time Cases (LTC) as agreed by Company;   - Number of Return to Work Cases (RWC) as above;   - Number of Medical Treatment Cases (MTC) as above;   - Number of First Aid cases (as above);   - Number of Near Misses (as above);   - Number of Hazard reports lodged.   From time to time Company may require additional information to be provided in such reports.                  

 

         -58-      ANNEXURE G         LINE COORDINATES      FARFIELD SIGNATURE LISTING      Farfield signature was generated by Nucleus+ version 2.1.0   Farfield signature was generated by Marine source modelling version 1.5.0      Name of farfield dataset    : 3080_050_2000      Source array name           : 3080_050_2000   Total array volume (cu.in.) : 3080.0   Source average depth (m)    : 5.0   Average pressure (psi)      : 2000.0   Ghost strength              : -1.00   Primary amplitude (bar m)   : 44.82   Peak-peak amplitude (bar m) : 91.67   Pulse/Bubble ratio          : 25.74   Bubble period (+) (ms)      : 98.88   Bubble period (-) (ms)      : 164.62   Geometrical spreading       : 2.00   Sea water temperature (C)   : 20.0   Sea water velocity (m/s)    : 1521.6      Filter parameters                  Filter type               : Sercel SEAL mp_3/6-200/370     Low cut frequency (Hz)    : 3.0     High cut frequency (Hz)   : 200.0     Low cut slope (dB/oct)    : 6.0     High cut slope (dB/oct)   : 370.0     Start time (ms)           : -64.0     Index of time zero        : 129      Sample interval (ms)        : 0.5      Farfield position                  Farfield distance (m)     : 9000.0     Dip angle (degrees)       : 0.0     Azimuth angle (degrees)   : 0.0      Amplitudes are in bar m   Time is increasing horizontally           0.000     0.000     0.000     0.000     0.000     0.000    -0.000       -0.000    -0.000     0.000     0.000     0.000     0.000     0.000       -0.000    -0.000    -0.000    -0.000    -0.000     0.000     0.000        0.000     0.000     0.000    -0.000    -0.000    -0.001    -0.001       -0.000     0.000     0.001     0.002     0.002     0.001    -0.001       -0.002    -0.003    -0.003    -0.001     0.002     0.005     0.006        0.005     0.002    -0.004    -0.009    -0.011    -0.009    -0.002        0.008     0.017     0.019     0.014     0.001    -0.016    -0.029       -0.031    -0.020     0.002     0.029     0.047     0.049     0.028       -0.009    -0.049    -0.076    -0.073    -0.037     0.022     0.082        0.117     0.106     0.046    -0.045    -0.131    -0.175    -0.148       -0.052     0.083     0.204     0.254     0.201     0.052    -0.144       -0.307    -0.361    -0.265    -0.039     0.237     0.450     0.499        0.338     0.007    -0.375    -0.647    -0.678    -0.419     0.058        0.575     0.915     0.906     0.503    -0.172    -0.865    -1.280       -1.198    -0.587     0.363     1.289     1.789     1.586     0.665       -0.681    -1.935    -2.541    -2.135    -0.727     1.244     3.023     

 

         -59-           3.800     3.035     0.728    -2.469    -5.378    -6.608    -4.996       -0.002     8.053    18.022    28.222    36.885    42.636    44.824       43.607    39.770    34.353    28.244    21.879    15.170     7.679       -1.035   -11.046   -21.819   -32.201   -40.676   -45.794   -46.629      -43.108   -36.082   -27.117   -18.066   -10.574    -5.662    -3.529       -3.626    -4.937    -6.379    -7.156    -6.969    -6.022    -4.836       -3.988    -3.851    -4.452    -5.484    -6.446    -6.855    -6.434       -5.209    -3.488    -1.730    -0.375     0.307     0.296    -0.203       -0.862    -1.359    -1.496    -1.252    -0.767    -0.259     0.070        0.113    -0.106    -0.458    -0.769    -0.892    -0.768    -0.433       -0.004     0.377     0.599     0.617     0.464     0.228     0.014       -0.099    -0.081     0.044     0.213     0.357     0.427     0.410        0.330     0.232     0.165     0.157     0.212     0.307     0.407        0.479     0.504     0.481     0.429     0.373     0.337     0.331        0.355     0.397     0.438     0.467     0.475     0.465     0.448        0.433     0.428     0.438     0.458     0.482     0.502     0.514        0.516     0.511     0.504     0.500     0.501     0.509     0.520        0.533     0.543     0.551     0.555     0.557     0.559     0.562        0.568     0.576     0.585     0.593     0.600     0.606     0.610        0.614     0.618     0.623     0.629     0.636     0.642     0.649        0.655     0.660     0.665     0.670     0.676     0.682     0.688        0.694     0.700     0.706     0.711     0.716     0.722     0.727        0.733     0.738     0.744     0.750     0.755     0.760     0.765        0.770     0.775     0.781     0.787     0.793     0.798     0.803        0.806     0.808     0.808     0.807     0.804     0.801     0.798        0.794     0.791     0.788     0.785     0.783     0.783     0.783        0.786     0.790     0.796     0.804     0.813     0.823     0.834        0.844     0.855     0.865     0.874     0.884     0.894     0.904        0.914     0.925     0.935     0.945     0.954     0.963     0.971        0.978     0.985     0.991     0.996     1.000     1.004     1.006        1.008     1.008     1.008     1.006     1.003     0.999     0.995        0.990     0.984     0.978     0.972     0.965     0.958     0.951        0.944     0.937     0.930     0.924     0.918     0.911     0.904        0.897     0.889     0.879     0.869     0.857     0.844     0.828        0.811     0.792     0.771     0.747     0.722     0.695     0.666        0.635     0.604     0.573     0.542     0.511     0.483     0.455        0.431     0.409     0.390     0.374     0.360     0.350     0.341        0.334     0.328     0.321     0.314     0.305     0.294     0.279        0.260     0.237     0.208     0.174     0.134     0.089     0.039       -0.016    -0.075    -0.136    -0.199    -0.262    -0.324    -0.383       -0.437    -0.485    -0.526    -0.557    -0.577    -0.588    -0.587       -0.577    -0.556    -0.527    -0.490    -0.446    -0.398    -0.345       -0.289    -0.231    -0.172    -0.114    -0.056     0.001     0.056        0.110     0.162     0.214     0.264     0.314     0.362     0.410        0.456     0.500     0.543     0.583     0.621     0.656     0.690        0.721     0.751     0.778     0.802     0.824     0.843     0.859        0.872     0.882     0.889     0.894     0.897     0.896     0.893        0.885     0.872     0.852     0.825     0.790     0.743     0.684        0.610     0.520     0.410     0.280     0.127    -0.048    -0.243       -0.456    -0.682    -0.918    -1.156    -1.390    -1.614    -1.824       -2.012    -2.176    -2.312    -2.417    -2.492    -2.536    -2.552       -2.542    -2.510    -2.462    -2.401    -2.333    -2.262    -2.191       -2.121    -2.056    -1.993    -1.935    -1.879    -1.825    -1.771       -1.719    -1.665    -1.610    -1.553    -1.493    -1.430    -1.364       -1.296    -1.226    -1.154    -1.083    -1.012    -0.942    -0.875       -0.809    -0.746    -0.687    -0.630    -0.576    -0.525    -0.478       -0.434    -0.393    -0.355    -0.320    -0.287    -0.256    -0.229       -0.203    -0.181    -0.160    -0.143    -0.128    -0.115    -0.104       -0.095    -0.089    -0.084    -0.082    -0.081    -0.083    -0.086       -0.091    -0.098    -0.105    -0.114    -0.122    -0.131    -0.139       -0.147    -0.154    -0.160    -0.164    -0.168    -0.169    -0.169       -0.167    -0.164    -0.159    -0.152    -0.144    -0.135    -0.125     

 

         -60-          -0.114    -0.102    -0.090    -0.077    -0.064    -0.051    -0.037       -0.023    -0.009     0.005     0.018     0.032     0.046     0.059        0.073     0.086     0.098     0.111     0.123     0.135     0.147        0.158     0.169     0.179     0.189     0.199     0.208     0.217        0.225     0.233     0.241     0.248     0.255     0.261     0.267        0.272     0.278     0.282     0.286     0.290     0.294     0.297        0.299     0.301     0.303     0.304     0.305     0.306     0.306        0.305     0.304     0.303     0.301     0.298     0.296     0.292        0.288     0.284     0.279     0.274     0.269     0.262     0.256        0.249     0.241     0.233     0.224     0.215     0.205     0.195        0.184     0.173     0.161     0.149     0.137     0.125     0.112        0.100     0.088     0.075     0.063     0.052     0.040     0.029        0.019     0.010     0.001    -0.008    -0.015    -0.022    -0.028       -0.032    -0.036    -0.039    -0.041    -0.043    -0.043    -0.042       -0.041    -0.038    -0.035    -0.031    -0.027    -0.022    -0.016       -0.009    -0.003     0.005     0.012     0.021     0.029     0.038        0.047     0.056     0.066     0.076     0.086     0.096     0.106        0.116     0.126     0.137     0.147     0.157     0.167     0.178        0.188     0.198     0.208     0.218     0.228     0.237     0.247        0.257     0.266     0.276     0.285     0.294     0.303     0.312        0.321     0.330     0.338     0.347     0.356     0.364     0.373        0.381     0.389     0.397     0.405     0.414     0.422     0.430        0.438     0.446     0.454     0.462     0.470     0.477     0.485        0.493     0.501     0.508     0.516     0.523     0.531     0.538        0.545     0.551     0.558     0.564     0.570     0.576     0.581        0.586     0.590     0.593     0.596     0.599     0.600     0.601        0.600     0.599     0.597     0.593     0.589     0.583     0.575        0.567     0.557     0.546     0.533     0.519     0.504     0.487        0.469     0.449     0.428     0.406     0.382     0.357     0.332        0.305     0.278     0.250     0.221     0.192     0.163     0.134        0.105     0.076     0.047     0.018    -0.010    -0.039    -0.068       -0.097    -0.126    -0.154    -0.183    -0.211    -0.240    -0.267       -0.294    -0.320    -0.345    -0.369    -0.392    -0.414    -0.434       -0.453    -0.470    -0.486    -0.501    -0.515    -0.528    -0.540       -0.551    -0.562    -0.572    -0.581    -0.591    -0.599    -0.607       -0.615    -0.622    -0.629        

 

         -61-      DROPOUT SIGNATURE      DROPOUT SIGNATURE STATISTICS FILE      File format number   : 5   Statistics created by Nucleus+ version 2.1.0   Statistics created by Marine source modelling version 1.5.0      User reference       :      Computed dropout signature statistics.   Correlation measure  : Cross correlation.      Project name               : Voyager   Dropout signature dataset  : 3080_050_ALL_DropOut_Listing   Dropout array name           : 3080_050_DO_2000   Reference array name       : 3080_050_DO_2000   Instrument filter          : Sercel SEAL mp_3/6-200/370      Primary pick window (ms)   :  -64.00  -   30.00   Bubble pick window (ms)    :  50.00 - 200.00      Amplitude option           : Positive peak amplitude.   Frequency analysis option  : Average absolute spectral deviation.   Bandwidth of analysis (Hz) :  10.00  -   70.00      Water velocity (m/s)       :   1521.65   Water temperature (C)      :     20.00   Reflection coefficient     :     -1.00   Farfield dip angle (deg)   :      0.00   Farfield azimuth (deg)     :      0.00   Farfield distance (m)      :   9000.00      In the table below :      Peak   - Primary positive peak amplitude      %ch    - Percentage change      P/B    - Primary/Bubble ratio      X-cor  - Cross correlation coefficient (normalized)      AvgdB  - Average absolute deviation (dB)      MaxdB  - Maximum absolute deviation (dB)      (Negative gun number means activated spare gun)      Index Dropped gun numbers Gun volumes Peak %ch P/B %ch X-cor AvgdB MaxdB   1 Full Array 0 45.8 0 28.4 0 1 0 0   2 1 1 100 44.2 -3.5 30.2 6.5 0.9996 0.33 -1   3 1 2 100 44.3 -3.4 30 5.7 0.9996 0.32 -1   4 1 3 110 44.3 -3.3 26.1 -8.1 0.9996 0.22 0.5   5 1 4 250 44 -4.1 28.8 1.6 0.9955 0.77 -3.6   6 1 5 250 44 -4 29.6 4.3 0.9955 0.77 -3.6   7 1 6 150 44.4 -3.2 33.3 17.5 0.9994 0.33 1.6   8 1 7 150 44.4 -3.1 33.5 18.1 0.9994 0.32 1.6   9 1 8 40 45 -1.7 27.8 -1.9 0.9997 0.07 0.2   10 1 9 90 44.2 -3.7 25.7 -9.3 0.9997 0.23 0.6   11 1 10 150 44 -4 25 -11.9 0.9989 0.48 -2.3   12 1 11 150 44 -4 24.8 -12.6 0.9989 0.48 -2.4   13 2 1 100 44.3 -3.4 30 5.7 0.9996 0.32 -1   14 2 2 100 44.2 -3.5 30.2 6.5 0.9996 0.33 -1   15 2 3 110 44.3 -3.3 26.1 -8.1 0.9996 0.22 0.5   16 2 4 250 44 -4 29.6 4.3 0.9955 0.77 -3.6   17 2 5 250 44 -4.1 28.8 1.6 0.9955 0.77 -3.6     

 

         -62-      Index Dropped gun numbers Gun volumes Peak %ch P/B %ch X-cor AvgdB MaxdB   18 2 6 150 44.4 -3.1 33.5 18.1 0.9994 0.32 1.6   19 2 7 150 44.4 -3.2 33.3 17.5 0.9994 0.33 1.6   20 2 8 40 45 -1.7 27.8 -1.9 0.9997 0.07 0.2   21 2 9 90 44.2 -3.7 25.7 -9.3 0.9997 0.23 0.6   22 2 10 150 44 -4 24.8 -12.6 0.9989 0.48 -2.4   23 2 11 150 44 -4 25 -11.9 0.9989 0.48 -2.3   24 1 1 1 2 100 100 42 -8.4 26.4 -6.9 0.9995 0.66 1.3   25 1 1 1 3 100 110 42.6 -7.1 25.1 -11.6 0.9992 0.56 1.4   26 1 1 1 4 100 250 42.4 -7.6 30.9 9.1 0.9959 0.93 -3.2   27 1 1 1 5 100 250 42.4 -7.5 30.5 7.7 0.9958 0.93 -3.2   28 1 1 1 6 100 150 42.8 -6.6 34.4 21.2 0.9994 0.54 1   29 1 1 1 7 100 150 42.8 -6.5 34.5 21.8 0.9994 0.53 1   30 1 1 1 8 100 40 43.5 -5.2 30 5.9 0.9992 0.38 1.1   31 1 1 1 9 100 90 42.6 -7.1 30.5 7.5 0.9993 0.52 1.1   32 1 1 1 10 100 150 42.4 -7.5 28.4 0.3 0.9987 0.73 3   33 1 1 1 11 100 150 42.4 -7.5 28.3 -0.1 0.9986 0.73 3   34 1 1 2 1 100 100 42.7 -6.9 23.4 -17.4 0.9982 0.67 2   35 1 1 2 2 100 100 42.6 -7 23.6 -16.8 0.9983 0.67 2   36 1 1 2 3 100 110 42.7 -6.7 28 -1.2 0.9992 0.52 1.5   37 1 1 2 4 100 250 42.4 -7.5 28.3 -0.1 0.995 0.96 -3.6   38 1 1 2 5 100 250 42.4 -7.6 27.8 -1.9 0.9951 0.97 -3.5   39 1 1 2 6 100 150 42.8 -6.6 36.6 29 0.9992 0.54 1.1   40 1 1 2 7 100 150 42.8 -6.6 36.4 28.3 0.9992 0.55 1.1   41 1 1 2 8 100 40 43.5 -5.2 30.1 6 0.9992 0.38 1.2   42 1 1 2 9 100 90 42.6 -7.1 30.5 7.6 0.9993 0.51 1.1   43 1 1 2 10 100 150 42.4 -7.5 28.1 -0.8 0.9986 0.72 3   44 1 1 2 11 100 150 42.4 -7.5 28.2 -0.4 0.9987 0.73 3   45 1 2 1 3 100 110 42.6 -7 24.9 -12.1 0.9991 0.55 1.4   46 1 2 1 4 100 250 42.4 -7.5 31 9.2 0.9959 0.92 -3.2   47 1 2 1 5 100 250 42.4 -7.4 30.6 7.8 0.9958 0.91 -3.2   48 1 2 1 6 100 150 42.8 -6.6 34.2 20.8 0.9994 0.53 1   49 1 2 1 7 100 150 42.9 -6.5 34.4 21.4 0.9993 0.52 1   50 1 2 1 8 100 40 43.5 -5.1 29.8 5.2 0.9991 0.37 1.1   51 1 2 1 9 100 90 42.6 -7.1 30.3 6.7 0.9992 0.51 1.1   52 1 2 1 10 100 150 42.4 -7.4 30 5.9 0.9987 0.72 3   53 1 2 1 11 100 150 42.5 -7.4 28.3 -0.3 0.9986 0.71 3   54 1 2 2 1 100 100 42.7 -6.8 23.3 -17.8 0.9981 0.66 2   55 1 2 2 2 100 100 42.7 -6.9 23.4 -17.4 0.9982 0.67 2   56 1 2 2 3 100 110 42.8 -6.7 28 -1.2 0.9991 0.51 1.5   57 1 2 2 4 100 250 42.4 -7.5 28.4 0 0.9949 0.95 -3.6   58 1 2 2 5 100 250 42.4 -7.5 27.8 -2.1 0.995 0.96 -3.5   59 1 2 2 6 100 150 42.9 -6.5 36.3 28.1 0.9991 0.53 1.1   60 1 2 2 7 100 150 42.8 -6.6 36.3 27.9 0.9992 0.54 1.1   61 1 2 2 8 100 40 43.5 -5.1 29.9 5.3 0.9991 0.37 1.2   62 1 2 2 9 100 90 42.6 -7 30.3 6.9 0.9992 0.51 1.1   63 1 2 2 10 100 150 42.5 -7.4 28 -1.1 0.9986 0.71 3   64 1 2 2 11 100 150 42.4 -7.4 29.8 5 0.9987 0.72 3   65 1 3 1 4 110 250 42.2 -7.8 31 9.5 0.9955 0.93 -3.2   66 1 3 1 5 110 250 42.3 -7.8 30.6 8 0.9954 0.92 -3.3   67 1 3 1 6 110 150 42.9 -6.4 33.6 18.5 0.9987 0.54 2   68 1 3 1 7 110 150 42.9 -6.4 33.7 19 0.9986 0.53 2   69 1 3 1 8 110 40 43.6 -4.9 25.8 -9.1 0.9987 0.29 0.6   70 1 3 1 9 110 90 42.7 -6.9 26.2 -7.5 0.9988 0.45 0.9   71 1 3 1 10 110 150 42.5 -7.3 23.1 -18.5 0.9984 0.69 2.3   72 1 3 1 11 110 150 42.5 -7.3 22.9 -19.1 0.9982 0.68 2.4   73 1 3 2 1 110 100 42.8 -6.7 28 -1.2 0.9991 0.51 1.5   74 1 3 2 2 110 100 42.7 -6.7 28 -1.2 0.9992 0.52 1.5   75 1 3 2 3 110 110 42.8 -6.5 23.7 -16.5 0.9985 0.45 1   76 1 3 2 4 110 250 42.5 -7.3 28.3 -0.1 0.9947 0.91 -3.6   77 1 3 2 5 110 250 42.5 -7.4 27.6 -2.5 0.9948 0.91 -3.5   78 1 3 2 6 110 150 42.9 -6.3 29.4 3.6 0.9985 0.53 1.9     

 

         -63-      Index Dropped gun numbers Gun volumes Peak %ch P/B %ch X-cor AvgdB MaxdB   79 1 3 2 7 110 150 42.9 -6.4 29.2 3.1 0.9986 0.53 1.9   80 1 3 2 8 110 40 43.6 -5 25.5 -10.1 0.9987 0.29 0.6   81 1 3 2 9 110 90 42.7 -6.9 26 -8.5 0.9988 0.45 0.8   82 1 3 2 10 110 150 42.5 -7.2 22.7 -19.8 0.9982 0.68 2.4   83 1 3 2 11 110 150 42.5 -7.3 22.9 -19.2 0.9983 0.69 2.3   84 1 4 1 5 250 250 41.8 -8.8 34.4 21.4 0.9974 0.81 3.1   85 1 4 1 6 250 150 42.4 -7.6 21.2 -25.2 0.995 0.94 4.2   86 1 4 1 7 250 150 42.4 -7.4 20.5 -27.5 0.995 0.92 4.3   87 1 4 1 8 250 40 43.2 -5.9 27.7 -2.4 0.9951 0.81 -3.5   88 1 4 1 9 250 90 42.3 -7.7 26 -8.1 0.9947 0.96 3.8   89 1 4 1 10 250 150 42.1 -8.1 25.6 -9.7 0.9949 1.02 3.7   90 1 4 1 11 250 150 42.1 -8.1 25.5 -10 0.9949 1.01 3.6   91 1 4 2 1 250 100 42.4 -7.5 27.8 -2.1 0.995 0.96 -3.5   92 1 4 2 2 250 100 42.4 -7.6 27.8 -1.9 0.9951 0.97 -3.5   93 1 4 2 3 250 110 42.5 -7.4 27.6 -2.5 0.9948 0.91 -3.5   94 1 4 2 4 250 250 42.1 -8.1 10.9 -61.6 0.9774 1.68 7.6   95 1 4 2 5 250 250 42.1 -8.2 10.7 -62.1 0.9774 1.69 7.7   96 1 4 2 6 250 150 42.5 -7.2 26.8 -5.5 0.9927 1.03 5.5   97 1 4 2 7 250 150 42.5 -7.3 26.6 -6.3 0.9927 1.04 5.5   98 1 4 2 8 250 40 43.2 -5.8 28.2 -0.5 0.9951 0.81 -3.5   99 1 4 2 9 250 90 42.3 -7.7 26.3 -7.4 0.9947 0.95 3.9   100 1 4 2 10 250 150 42.1 -8.1 25.4 -10.5 0.9945 1.04 3.6   101 1 4 2 11 250 150 42.1 -8.1 25.3 -10.7 0.9946 1.04 3.7   102 1 5 1 6 250 150 42.4 -7.4 20 -29.5 0.9948 0.93 4.4   103 1 5 1 7 250 150 42.4 -7.4 20.2 -28.6 0.9947 0.93 4.3   104 1 5 1 8 250 40 43.2 -5.8 28.3 -0.1 0.9949 0.81 -3.5   105 1 5 1 9 250 90 42.3 -7.7 26.4 -6.7 0.9946 0.95 3.9   106 1 5 1 10 250 150 42.1 -8.1 26.1 -7.8 0.995 1.01 3.8   107 1 5 1 11 250 150 42.2 -8 26.1 -8.1 0.9949 1 3.7   108 1 5 2 1 250 100 42.4 -7.5 28.4 0 0.9949 0.95 -3.6   109 1 5 2 2 250 100 42.4 -7.5 28.3 -0.1 0.995 0.96 -3.6   110 1 5 2 3 250 110 42.5 -7.3 28.3 -0.1 0.9947 0.91 -3.6   111 1 5 2 4 250 250 42.1 -8 11 -61.1 0.9774 1.66 7.6   112 1 5 2 5 250 250 42.1 -8.1 10.9 -61.6 0.9774 1.68 7.6   113 1 5 2 6 250 150 42.6 -7.1 27.6 -2.6 0.9926 1.02 5.5   114 1 5 2 7 250 150 42.5 -7.2 27.4 -3.3 0.9926 1.03 5.6   115 1 5 2 8 250 40 43.2 -5.8 29 2.2 0.9949 0.81 -3.6   116 1 5 2 9 250 90 42.3 -7.7 26.8 -5.5 0.9946 0.95 4   117 1 5 2 10 250 150 42.2 -8 25.9 -8.8 0.9945 1.03 3.7   118 1 5 2 11 250 150 42.1 -8 25.8 -8.9 0.9945 1.04 3.8   119 1 6 1 7 150 150 42.5 -7.2 36.2 27.7 0.9985 0.6 2   120 1 6 1 8 150 40 43.4 -5.3 32.5 14.7 0.9989 0.41 1.8   121 1 6 1 9 150 90 42.7 -6.8 27.5 -3 0.9989 0.54 2.2   122 1 6 1 10 150 150 42.5 -7.2 26.9 -5.3 0.9982 0.76 -2.2   123 1 6 1 11 150 150 42.6 -7.1 26.6 -6.3 0.9981 0.75 -2.3   124 1 6 2 1 150 100 42.8 -6.6 36.3 27.9 0.9992 0.54 1.1   125 1 6 2 2 150 100 42.8 -6.6 36.4 28.3 0.9992 0.55 1.1   126 1 6 2 3 150 110 42.9 -6.4 29.2 3.1 0.9986 0.53 1.9   127 1 6 2 4 150 250 42.5 -7.2 27.4 -3.3 0.9926 1.03 5.6   128 1 6 2 5 150 250 42.5 -7.3 26.6 -6.3 0.9927 1.04 5.5   129 1 6 2 6 150 150 43 -6.2 31.6 11.4 0.9973 0.66 3.6   130 1 6 2 7 150 150 42.9 -6.3 31.4 10.7 0.9974 0.67 3.6   131 1 6 2 8 150 40 43.6 -4.9 32.3 13.9 0.9988 0.39 1.8   132 1 6 2 9 150 90 42.7 -6.8 33.3 17.6 0.9988 0.53 2.3   133 1 6 2 10 150 150 42.6 -7.2 26.2 -7.6 0.9982 0.75 -2.2   134 1 6 2 11 150 150 42.5 -7.2 26.4 -6.8 0.9983 0.75 -2.1   135 1 7 1 8 150 40 43.5 -5.2 32.7 15.2 0.9987 0.4 1.8   136 1 7 1 9 150 90 42.7 -6.8 27.6 -2.6 0.9987 0.53 2.2   137 1 7 1 10 150 150 42.6 -7.1 26.9 -5.1 0.9982 0.75 -2.3   138 1 7 1 11 150 150 42.6 -7.1 26.6 -6.1 0.9981 0.75 -2.4   139 1 7 2 1 150 100 42.9 -6.5 36.3 28.1 0.9991 0.53 1.1     

 

         -64-      Index Dropped gun numbers Gun volumes Peak %ch P/B %ch X-cor AvgdB MaxdB   140 1 7 2 2 150 100 42.8 -6.6 36.6 29 0.9992 0.54 1.1   141 1 7 2 3 150 110 42.9 -6.3 29.4 3.6 0.9985 0.53 1.9   142 1 7 2 4 150 250 42.6 -7.1 27.6 -2.6 0.9926 1.02 5.5   143 1 7 2 5 150 250 42.5 -7.2 26.8 -5.5 0.9927 1.03 5.5   144 1 7 2 6 150 150 43 -6.2 31.8 12.1 0.9972 0.65 3.6   145 1 7 2 7 150 150 43 -6.2 31.6 11.4 0.9973 0.66 3.6   146 1 7 2 8 150 40 43.6 -4.8 32.4 14.4 0.9987 0.38 1.8   147 1 7 2 9 150 90 42.7 -6.7 33.5 18.1 0.9987 0.52 2.3   148 1 7 2 10 150 150 42.6 -7.1 26.3 -7.3 0.9981 0.74 -2.3   149 1 7 2 11 150 150 42.6 -7.1 26.5 -6.6 0.9982 0.74 -2.2   150 1 8 1 9 40 90 43.1 -6 24.7 -12.8 0.9987 0.35 0.8   151 1 8 1 10 40 150 43.2 -5.8 24.8 -12.5 0.9986 0.55 -2.3   152 1 8 1 11 40 150 43.2 -5.7 24.6 -13.2 0.9985 0.55 -2.3   153 1 8 2 1 40 100 43.5 -5.1 29.9 5.3 0.9991 0.37 1.2   154 1 8 2 2 40 100 43.5 -5.2 30.1 6 0.9992 0.38 1.2   155 1 8 2 3 40 110 43.6 -5 25.5 -10.1 0.9987 0.29 0.6   156 1 8 2 4 40 250 43.2 -5.8 29 2.2 0.9949 0.81 -3.6   157 1 8 2 5 40 250 43.2 -5.8 28.2 -0.5 0.9951 0.81 -3.5   158 1 8 2 6 40 150 43.6 -4.8 32.4 14.4 0.9987 0.38 1.8   159 1 8 2 7 40 150 43.6 -4.9 32.3 13.9 0.9988 0.39 1.8   160 1 8 2 8 40 40 44.3 -3.4 27.3 -3.8 0.9988 0.14 0.4   161 1 8 2 9 40 90 43.4 -5.4 25.3 -10.8 0.9988 0.3 0.8   162 1 8 2 10 40 150 43.2 -5.7 24.3 -14.2 0.9985 0.54 -2.3   163 1 8 2 11 40 150 43.2 -5.8 24.5 -13.5 0.9986 0.55 -2.3   164 1 9 1 10 90 150 42.1 -8.1 23.8 -16.1 0.9989 0.71 -1.9   165 1 9 1 11 90 150 42.2 -8 23.7 -16.4 0.9987 0.71 -2   166 1 9 2 1 90 100 42.6 -7 30.3 6.9 0.9992 0.51 1.1   167 1 9 2 2 90 100 42.6 -7.1 30.5 7.6 0.9993 0.51 1.1   168 1 9 2 3 90 110 42.7 -6.9 26 -8.5 0.9988 0.45 0.8   169 1 9 2 4 90 250 42.3 -7.7 26.8 -5.5 0.9946 0.95 4   170 1 9 2 5 90 250 42.3 -7.7 26.3 -7.4 0.9947 0.95 3.9   171 1 9 2 6 90 150 42.7 -6.7 33.5 18.1 0.9987 0.52 2.3   172 1 9 2 7 90 150 42.7 -6.8 33.3 17.6 0.9988 0.53 2.3   173 1 9 2 8 90 40 43.4 -5.4 25.3 -10.8 0.9988 0.3 0.8   174 1 9 2 9 90 90 42.5 -7.3 24.7 -12.8 0.9988 0.48 1.2   175 1 9 2 10 90 150 42.3 -7.7 24.5 -13.5 0.9985 0.69 -2.2   176 1 9 2 11 90 150 42.3 -7.7 24.7 -12.9 0.9986 0.69 -2.1   177 1 10 1 11 150 150 41.5 -9.5 23.9 -15.6 0.9994 0.85 2   178 1 10 2 1 150 100 42.4 -7.4 29.8 5 0.9987 0.72 3   179 1 10 2 2 150 100 42.4 -7.5 28.2 -0.4 0.9987 0.73 3   180 1 10 2 3 150 110 42.5 -7.3 22.9 -19.2 0.9983 0.69 2.3   181 1 10 2 4 150 250 42.1 -8 25.8 -8.9 0.9945 1.04 3.8   182 1 10 2 5 150 250 42.1 -8.1 25.3 -10.7 0.9946 1.04 3.7   183 1 10 2 6 150 150 42.6 -7.1 26.5 -6.6 0.9982 0.74 -2.2   184 1 10 2 7 150 150 42.5 -7.2 26.4 -6.8 0.9983 0.75 -2.1   185 1 10 2 8 150 40 43.2 -5.8 24.5 -13.5 0.9986 0.55 -2.3   186 1 10 2 9 150 90 42.3 -7.7 24.7 -12.9 0.9986 0.69 -2.1   187 1 10 2 10 150 150 42.2 -8 23 -18.9 0.9948 0.99 -4.3   188 1 10 2 11 150 150 42.1 -8.1 23.1 -18.4 0.9949 0.99 -4.2   189 1 11 2 1 150 100 42.5 -7.4 28 -1.1 0.9986 0.71 3   190 1 11 2 2 150 100 42.4 -7.5 28.1 -0.8 0.9986 0.72 3   191 1 11 2 3 150 110 42.5 -7.2 22.7 -19.8 0.9982 0.68 2.4   192 1 11 2 4 150 250 42.2 -8 25.9 -8.8 0.9945 1.03 3.7   193 1 11 2 5 150 250 42.1 -8.1 25.4 -10.5 0.9945 1.04 3.6   194 1 11 2 6 150 150 42.6 -7.1 26.3 -7.3 0.9981 0.74 -2.3   195 1 11 2 7 150 150 42.6 -7.2 26.2 -7.6 0.9982 0.75 -2.2   196 1 11 2 8 150 40 43.2 -5.7 24.3 -14.2 0.9985 0.54 -2.3   197 1 11 2 9 150 90 42.3 -7.7 24.5 -13.5 0.9985 0.69 -2.2   198 1 11 2 10 150 150 42.2 -8 22.9 -19.2 0.9946 0.99 -4.3   199 1 11 2 11 150 150 42.2 -8 23 -18.9 0.9948 0.99 -4.3   200 2 1 2 2 100 100 42 -8.4 26.4 -6.9 0.9995 0.66 1.3     

 

         -65-      Index Dropped gun numbers Gun volumes Peak %ch P/B %ch X-cor AvgdB MaxdB   201 2 1 2 3 100 110 42.6 -7 24.9 -12.1 0.9991 0.55 1.4   202 2 1 2 4 100 250 42.4 -7.4 30.6 7.8 0.9958 0.91 -3.2   203 2 1 2 5 100 250 42.4 -7.5 31 9.2 0.9959 0.92 -3.2   204 2 1 2 6 100 150 42.9 -6.5 34.4 21.4 0.9993 0.52 1   205 2 1 2 7 100 150 42.8 -6.6 34.2 20.8 0.9994 0.53 1   206 2 1 2 8 100 40 43.5 -5.1 29.8 5.2 0.9991 0.37 1.1   207 2 1 2 9 100 90 42.6 -7.1 30.3 6.7 0.9992 0.51 1.1   208 2 1 2 10 100 150 42.5 -7.4 28.3 -0.3 0.9986 0.71 3   209 2 1 2 11 100 150 42.4 -7.4 30 5.9 0.9987 0.72 3   210 2 2 2 3 100 110 42.6 -7.1 25.1 -11.6 0.9992 0.56 1.4   211 2 2 2 4 100 250 42.4 -7.5 30.5 7.7 0.9958 0.93 -3.2   212 2 2 2 5 100 250 42.4 -7.6 30.9 9.1 0.9959 0.93 -3.2   213 2 2 2 6 100 150 42.8 -6.5 34.5 21.8 0.9994 0.53 1   214 2 2 2 7 100 150 42.8 -6.6 34.4 21.2 0.9994 0.54 1   215 2 2 2 8 100 40 43.5 -5.2 30 5.9 0.9992 0.38 1.1   216 2 2 2 9 100 90 42.6 -7.1 30.5 7.5 0.9993 0.52 1.1   217 2 2 2 10 100 150 42.4 -7.5 28.3 -0.1 0.9986 0.73 3   218 2 2 2 11 100 150 42.4 -7.5 28.4 0.3 0.9987 0.73 3   219 2 3 2 4 110 250 42.3 -7.8 30.6 8 0.9954 0.92 -3.3   220 2 3 2 5 110 250 42.2 -7.8 31 9.5 0.9955 0.93 -3.2   221 2 3 2 6 110 150 42.9 -6.4 33.7 19 0.9986 0.53 2   222 2 3 2 7 110 150 42.9 -6.4 33.6 18.5 0.9987 0.54 2   223 2 3 2 8 110 40 43.6 -4.9 25.8 -9.1 0.9987 0.29 0.6   224 2 3 2 9 110 90 42.7 -6.9 26.2 -7.5 0.9988 0.45 0.9   225 2 3 2 10 110 150 42.5 -7.3 22.9 -19.1 0.9982 0.68 2.4   226 2 3 2 11 110 150 42.5 -7.3 23.1 -18.5 0.9984 0.69 2.3   227 2 4 2 5 250 250 41.8 -8.8 34.4 21.4 0.9974 0.81 3.1   228 2 4 2 6 250 150 42.4 -7.4 20.2 -28.6 0.9947 0.93 4.3   229 2 4 2 7 250 150 42.4 -7.4 20 -29.5 0.9948 0.93 4.4   230 2 4 2 8 250 40 43.2 -5.8 28.3 -0.1 0.9949 0.81 -3.5   231 2 4 2 9 250 90 42.3 -7.7 26.4 -6.7 0.9946 0.95 3.9   232 2 4 2 10 250 150 42.2 -8 26.1 -8.1 0.9949 1 3.7   233 2 4 2 11 250 150 42.1 -8.1 26.1 -7.8 0.995 1.01 3.8   234 2 5 2 6 250 150 42.4 -7.4 20.5 -27.5 0.995 0.92 4.3   235 2 5 2 7 250 150 42.4 -7.6 21.2 -25.2 0.995 0.94 4.2   236 2 5 2 8 250 40 43.2 -5.9 27.7 -2.4 0.9951 0.81 -3.5   237 2 5 2 9 250 90 42.3 -7.7 26 -8.1 0.9947 0.96 3.8   238 2 5 2 10 250 150 42.1 -8.1 25.5 -10 0.9949 1.01 3.6   239 2 5 2 11 250 150 42.1 -8.1 25.6 -9.7 0.9949 1.02 3.7   240 2 6 2 7 150 150 42.5 -7.2 36.2 27.7 0.9985 0.6 2   241 2 6 2 8 150 40 43.5 -5.2 32.7 15.2 0.9987 0.4 1.8   242 2 6 2 9 150 90 42.7 -6.8 27.6 -2.6 0.9987 0.53 2.2   243 2 6 2 10 150 150 42.6 -7.1 26.6 -6.1 0.9981 0.75 -2.4   244 2 6 2 11 150 150 42.6 -7.1 26.9 -5.1 0.9982 0.75 -2.3   245 2 7 2 8 150 40 43.4 -5.3 32.5 14.7 0.9989 0.41 1.8   246 2 7 2 9 150 90 42.7 -6.8 27.5 -3 0.9989 0.54 2.2   247 2 7 2 10 150 150 42.6 -7.1 26.6 -6.3 0.9981 0.75 -2.3   248 2 7 2 11 150 150 42.5 -7.2 26.9 -5.3 0.9982 0.76 -2.2   249 2 8 2 9 40 90 43.1 -6 24.7 -12.8 0.9987 0.35 0.8   250 2 8 2 10 40 150 43.2 -5.7 24.6 -13.2 0.9985 0.55 -2.3   251 2 8 2 11 40 150 43.2 -5.8 24.8 -12.5 0.9986 0.55 -2.3   252 2 9 2 10 90 150 42.2 -8 23.7 -16.4 0.9987 0.71 -2   253 2 9 2 11 90 150 42.1 -8.1 23.8 -16.1 0.9989 0.71 -1.9   254 2 10 2 11 150 150 41.5 -9.5 23.9 -15.6 0.9994 0.85 2        

 

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         -74-ExecutivePerformanceIncentivePlan EX10.1

Exhibit 10.1
PRECISION CASTPARTS CORP. 
EXECUTIVE PERFORMANCE INCENTIVE PLAN 
1. PURPOSES. This Plan is intended to enable the Company to attract, retain, motivate and reward qualified executive officers by providing them with the opportunity to earn competitive compensation directly linked to their annual performance and the achievement of Company business objectives. This Plan is also intended to qualify the compensation paid under the Plan as “performance-based compensation” within the meaning of Section 162(m), so as to exempt such eligible compensation from the deduction limits imposed by Section 162(m) and to make such compensation deductible by the Company for Federal income tax purposes. 
2. DEFINITIONS. The following words as used in this Plan have the meanings ascribed to each below: 
(a) “162(m) Performance Goals” means one or more targeted levels of performance for a fiscal year with respect to one or more of the following objective measures with respect to the Company or any Business Unit: net income, operating profit, operating profit after set-asides, gross margins, earnings per share, earnings before interest and taxes (“EBIT”), earnings before interest, taxes, depreciation and amortization (“EBITDA”), sales, total revenues, manufacturing output to the shipping dock or other specified point in the production process, market share, cash flow, generation of free cash, operating working capital, working capital, retained earnings, stock price, total shareholder return, operating expense ratios, return on sales, return on equity, return on capital, return on net assets, return on investments, and inventory turns, in each case either before or after the effect of acquisitions not included in the fiscal year budget, divestitures, changes in accounting method, restructuring charges, asset impairment charges, foreign currency translations or other specified non-recurring charges (as determined according to criteria pre-established by the Committee). 
(b) “Award” means an annual cash compensation award granted in accordance with Section 4 of the Plan. 
(c) “Board” means the Board of Directors of the Company. 
(d) “Business Unit” means any Subsidiary, division, line of business, product line or other unit of the Company. 
(e) “Committee” means the Compensation Committee of the Board, which shall be comprised solely of two or more “outside directors” as defined in regulations promulgated under Section 162(m). 
(f) “Company” means Precision Castparts Corp. 
(g) “Participant” means (i) each executive officer of the Company and (ii) each other key employee of the Company or a Subsidiary, whom the Committee designates as a participant under the Plan. 
(h) “Plan” means the Precision Castparts Corp. Executive Performance Incentive Plan, as set forth herein and as may be amended from time to time. 
(i) “Section 162(m)” means Section 162(m) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. 
(j) “Subsidiary” means an entity, a majority of whose outstanding voting securities or interests are owned by the Company, either directly or through one or more intermediaries. 
3. ADMINISTRATION. The Committee will administer and interpret the Plan. In accordance with Section 4 of the Plan, the Committee will establish target bonuses and performance goals for the applicable year. In accordance with Section 5 of the Plan, the Committee will certify whether such performance goals have been met and determine the amount of bonuses to be paid. The Committee’s determinations under the Plan will be final and conclusive. 
 
4. TARGET BONUSES AND PERFORMANCE GOALS. To make an Award to any Participant for any fiscal year under the Plan, the Committee shall establish in writing (i) a target cash bonus amount for the Participant for performance in that fiscal year, (ii) the 162(m) Performance Goals, (iii) the methodology for determining the 

bonus amounts to be paid based on the level of achievement of the 162(m) Performance Goals and (iv) the timing of payment and any other conditions to payment under the Award. The 162(m) Performance Goals for any fiscal year shall be established no later than the 90th day of that fiscal year. The Committee may, in its sole discretion, reduce the resulting cash bonus under any Award prior to payment on such terms as determined by the Committee. The Committee may determine that no Award is payable to any Participant (i) who knowingly falsifies any financial or other certification, knowingly provides false information relied on by others in a financial or other certification, engages in other fraudulent activity, or knowingly fails to report any such conduct by others, or (ii) as otherwise required by law. The terms of Awards shall be promptly communicated to Participants. 
5. COMPUTATION AND CERTIFICATION OF BONUS. Following the conclusion of any fiscal year, prior to the payment of any cash bonuses under the Plan with respect to that year, the Committee shall certify in writing the levels of attainment of the 162(m) Performance Goals for the year, and the calculation of the total bonus amount for each Participant. No component of a bonus shall be paid if the related performance goal is not met. 
6. MAXIMUM BONUS. The maximum cash bonus that may be paid or accrued for any Participant with respect to performance in any fiscal year shall be $8,000,000. 
7. GENERAL PROVISIONS. 
(a) Effective Date. This Plan has been adopted by the Board and is effective beginning with Awards made to Participants for performance in the Company’s fiscal years beginning on and after April 2, 2007. The Plan is subject to approval of the Company’s shareholders and was approved at the 2007 Annual Meeting of Shareholders. 
(b) Termination; Amendment. The Board may at any time amend or terminate the Plan, except that no amendment will be effective without approval by the Company’s shareholders if such approval is necessary to qualify amounts payable hereunder as “performance-based compensation” under Section 162(m). Unless it is re-approved by the shareholders, the Plan shall terminate on the date of the first shareholder meeting that occurs in the fifth year after the year in which the Plan was last approved or re-approved by shareholders. No termination of the Plan shall affect performance goals and related Awards established by the Committee prior to such termination. 
(c) No Employment Rights; Effect of Termination of Employment. 
1) Nothing in this Plan will be construed as conferring upon any Participant any right to continue in the employment of the Company or any of its Subsidiaries. 
2) If a Participant’s employment terminates due to his death, total disability or retirement, and the termination occurs prior to the payment date of the award for which the Committee certifies that the 162(m) Performance Goals have been met and the Award is payable, such Participant will receive an Award (subject to reduction by the Committee under the provisions of Section 4 of the Plan) equal to (i) the amount the Participant would have received as an annual Award if such Participant had remained an employee through payment date of the award, (ii) multiplied by a fraction, the numerator of which is the number of days that elapsed during the fiscal year in which the termination occurs before and including the date of the Participant’s termination of employment, and the denominator of which is 365. 
3) If a Participant’s employment terminates for any other reason before the payment date of the award, the Participant will not be entitled to an Award under this Plan. 
(d) Designation of Beneficiary. Each participant may designate a beneficiary or beneficiaries (which beneficiary may be an entity other than a natural person) to receive any payments that may be made following the Participant’s death. Such designation may be changed or canceled at any time without the consent of any such beneficiary. Any such designation, change or cancellation must be made in a form approved by the Committee and will not be effective until received by the Committee. If no beneficiary has been named, or the designated beneficiary or beneficiaries will have predeceased the Participant, the beneficiary will be the Participant’s spouse or, if no spouse survives the Participant, the Participant’s estate. If a Participant designates more than one beneficiary, the rights of such beneficiaries will be payable in equal shares, unless the Participant has designated otherwise. 

(e) Nonalienation of Benefits. Except as expressly provided herein or otherwise required by applicable law, no Participant or beneficiary will have the power or right to alienate, transfer, sell, assign, pledge, attach, or otherwise encumber the Participant’s interest under this Plan. 
(f) Withholding. Any Award payable to a Participant or a beneficiary under this Plan will be subject to any applicable Federal, state and local income and employment taxes and any other amounts that the Company or a Subsidiary is required by law to deduct and withhold from such Award. 
(g) Plan Unfunded. The entire cost of the Plan shall be paid from the general assets of the Company. The rights of any Participant or beneficiary to receive an Award under the Plan shall be only those of a general unsecured creditor, and neither the Company nor the Board or the Committee shall be responsible for the adequacy of the general assets of the Company to meet and discharge Plan liabilities. 
(h) Severability. If any provision of this Plan is held unenforceable, the remainder of the Plan will continue in full force and effect without regard to such unenforceable provision and will be applied as though the unenforceable provision were not contained in the Plan. 
(i) Governing Law. The Plan will be construed in accordance with and governed by the laws of the State of Oregon, without reference to the principles of conflict of laws. 
(j) Headings. Headings are inserted in this Plan for convenience of reference only and are to be ignored in any construction of the provisions of the Plan.

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