: (1) Petroleum produced by the contractor from the contract area for the purpose of distribution of production means the total petroleum produced from each site within the contract area (minus the quantity used in petroleum work) remaining at the main collection center of each site or at such other center as may be mutually agreed upon. Means petroleum measured by a measuring device.
(2) Distribution of petroleum produced by the contractor from the contract area shall be done as follows:-
(a) According to section 13 of the Act, the Government of Nepal shall pay royalty 12. will keep the percentage.
(b) After storing the petroleum in the quantity as per clause (a), the contractor will have the right to take petroleum in the amount equal to the remaining petroleum expenses of the current and previous years.
(c) The petroleum remaining after distribution in accordance with clauses (a) and (b) shall be distributed according to the following schedule:-- Explanation : "Petroleum itself ” means the petroleum available to be shared between the Government of Nepal and the contractor after paying the royalties and petroleum expenses.