Library / Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024
Page 1 of 35 MIDSTREAM PETROLEUM HOST COMMUNITIES DEVELOPMENT TRUST REGULATIONS, 2024
Page 19 of 35
Page 19 of 35 (8) Where the Authority approves a change contemplated in sub-regulation (7) of this regulation, the Board of Trustees shall within ten working days of making such a change submit to the Authority the information and documents set out in sub-regulation (6) of this regulation. 24 (1) A licensee shall make an annual contribution to the applicable host communities development fund of an amount equal to 3% of its actual operating expenditure for the preceding financial year in the midstream operations affecting the host communities for which the applicable host communities Fund was established, provided that the actual operating expenditure is calculated as direct cost minus raw materials cost and original equipment manufacturer cost. (2) The licensee shall make its first annual contribution to the Fund within one month after the Fund has been established by the Board of Trustees, and thereafter make contributions on a yearly basis within three months to the end of each year. (3) The annual contribution made in the preceding year shall not form part of the operating expenditure for the determination of annual contribution for the succeeding year. (4) Where the licensee is responsible for host communities in different areas of operation, the 3% share of the operating costs due to each community shall be determined based on the operating costs that are proportionally attributable to each area of operation. (5) Where the licensee establishes “any other community” as a host community, the licensee, subject to the prior approval of the Authority, shall allocate a share of the operating cost to the new community. (6) Contributions for littoral communities shall be pooled and distributed amongst beneficiary trusts equitably. (7) In determining operating expenditure, the licensee shall take into consideration non-capital production costs, cost of sales, administrative expenses and any other expenses incurred for the operations of the business on a day-to-day basis as included in the audited financial report provided that such expenditures shall not Contribution to the Fund
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