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5. Capital Costs

5. Capital Costs:

All expenses incurred by a petroleum Industry for goods  that normally have a commercial life or value of more than One year, shall be treated as Capital Costs, including the following expenses:
(a) All expenditures related to Petroleum Operations prior to  Commercial Production day, to the extent not covered in Clauses (b)  through (f) below.
(b) All expenses relating to exploration and appraisal work undertaken  in a Contract Area after the Commercial Production Day, and all   expenses incurred in drilling, testing and completing development  wells, and for construction of permanent facilities for the production, treatment, storage and transport of petroleum.
(c) Expenses incurred for providing education and training to Nepali  nationals.
(d) Fees paid to Government of Nepal for purchase of seismic and other information and report.
(e) Expenses incurred in connection with the acquisition or transfer of rights under a Petroleum Agreement.
(f) All other capital expenses related to Petroleum Operations under a Petroleum Agreement after the Commercial Production Day.

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