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Contractor's expenses for development
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Contractor's development costs - i) expenditures incurred prior to the commencement of industrial production that are directly related to the development of the production potential of the area specified in the contract and related activities for operations under the contract in all cases except those specified in subpoint "n", in accordance with generally accepted accounting principles, including, among other things, the cost of machinery, equipment, vessels, processing plants, construction, buildings, land, roads, exploration and reconnaissance in the area specified in the contract, research and development, interest payments, necessary rent, licenses and fees; and ii) expenditures similar to those set out in (i) above incurred after the commencement of industrial production and necessary for the implementation of the work plan, excluding costs allocated to operating expenses1.
United Nations Convention on the Law of the Sea, as amended on 1 December 1997, article 13-2. ↩
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