OK here you go DB....during phase 1, TXM has to look after all the mining plot related stuff, however, they can bill all of the work to the joint account. I would not be the least bit surprised if TXM sends the bill for most of their employees to Exxon. That would explain why their payroll expenses didn't change, even though they went from 11 to 42 employees.
TXM's responsibilities
(A) Prior to work being conducted pursuant to the Appraisal Work Program and while TXM is the
sole holder of the Mining Plot, TXM shall have the following responsibilities with the costs charged to the Joint Account:
(1) acquire all permits, consents, approvals, and surface or other rights that may be required for or in connection with the conduct of Joint Operations;
(2) submit to the Government the Technical Operation Plans for approval;
(3) undertake to maintain the Mining Plot in full force and effect;
blah blah blah....
(B) The Parties shall plan for the transition of the TXM responsibilities in Article 4.13(A) to Operator at the earliest date practical and prior to work conducted under the Appraisal Work Program.
