(a) Government will share the relevant capital expenditure and hard operating cost effects arising from a Change in Law (per event) in accordance with a three tiered cost sharing mechanism as follows:
(i) the private party will bear 100 per cent of the capital expenditure and hard operating cost effect up to a specified threshold (first threshold);
(ii) the private party and government will share the capital expenditure and hard operating cost effect above the first threshold on a percentage share basis (to be agreed on a project-specific basis) until a higher threshold (second threshold) is reached; and
(iii) government will bear 100 per cent of the capital expenditure and hard operating cost effect above the second threshold.
(b) The thresholds for hard operating costs and capital expenditure will differ, in that the thresholds for hard operating costs will be lower.