Periodic Review In Natural Resource Contracts

Abstract

Periodic contract review mechanisms, which are provisions in contracts that
formally require parties to meet at particular intervals to review the terms of
the contract, are mechanisms that may facilitate the process of negotiating
contractual changes to accommodate changing circumstances over the term
of extractive industries contracts. Through the review of existing extractive
industries agreements, this article considers how such review mechanisms
have been incorporated into existing contracts and the use of such mechanisms
as a tool for maintaining good relationships between the parties. In addition,
the article suggests a new approach to the drafting of these mechanisms by
negotiating objective criteria to be incorporated into the contract at the
commencement of the contractual relationship in order to facilitate the timing
and parameters of contract renegotiation when certain triggers occur.