GAS ROYALTY Clause Samples

GAS ROYALTY. To pay to the Lessor twenty percent (20%) royalty based upon the gross proceeds paid to Lessee for the gas marketed and used off the Leased Premises, including casinghead gas or other gaseous substance, and produced from each well drilled thereon, computed at the wellhead from the sale of such gas substances so sold by Lessee in an arms-length transaction to an unaffiliated bona fide purchaser, or if the sale is to an affiliate of Lessee, the price upon which royalties are based shall be comparable to that which could be obtained in an arms-length transaction (given the quantity and quality of the gas available for sale from the Leased Premises and for a similar contract term) and without any deductions or expenses. For purposes of this Lease, “gross proceeds” means the total consideration paid for oil, gas, associated hydrocarbons, and marketable by-products produced from the Leased Premises without deductions of any kind except for tax obligations as described in Paragraph 2(b)(3) below. (i) Lessee shall pay to the Lessor royalty on any monetary settlement received by Lessee from any breach of contract by Lessee’s purchaser relating to the marketing, pricing, purchasing, or taking of oil or gas production from the Leased Premises. (ii) All royalties that may become due hereunder shall commence to be paid within 120 days after the first day of the month following the month during which any well commences production into a pipeline for sale of such production. Thereafter, all royalties on oil shall be paid to Lessor on or before the last day of the second month following the month of production, and all royalties on gas shall be paid to Lessor on or before the last day of the third month following the month of production. Each royalty payment shall contain a statement showing the name of the purchaser, the volume of production purchased, and said price paid. Any sums not paid by Lessee when due shall bear interest at the rate of one and one-half percent (1.5%) per month. (iii) Lessor and Lessee each shall pay their respective share of all Ad Valorem taxes, Lessor’s share to be equal to the percentage of royalty paid to Lessor.

GAS ROYALTY a. Payment to Seller shall begin on the earlier of (i) twenty-four (24) months from the date of this Agreement or (ii) COD. If COD has not occurred prior to the twenty-four

GAS ROYALTY. 5.1 Lessee shall install at the wellhead of each well drilled horizontally into the Leased Premises a discrete well meter to measure all the natural gas produced from that individual well; alternatively, Lessee shall provide a method for measuring production for all ▇▇▇▇▇ drilled horizontally into the Leased premises that is acceptable to the Department. Any such alternative method must be approved in writing by the Department prior to being utilized. Lessee shall ensure that all meters are maintained according to industry standards. 5.2 Lessee shall pay to the Department, as royalty, Thirty-Five Cents ($0.35) per thousand cubic feet (Mcf) based on the volume measured at the wellhead, or Eighteen Percent (18%) of the fair market value multiplied by the Commonwealth’s fractional interest, whichever is higher, for all marketable natural gas, marketable casinghead gas, or other marketable gaseous substances, (referred to collectively as “natural gas”), produced and measured at the wellhead from each natural gas well associated with the Leased Premises, free of all expenses of production and post-production expenses and deductions. 5.3 There shall be no deductions from any royalty payment for any costs of post-production handling, processing, conditioning, transporting or marketing that may be necessary to deliver a marketable product between the wellhead and the point of sale where fair market value is received. The gross royalty reserved to the Department shall be free of all costs of and subsequent to production, whether incurred before, at or after the point of sale. 5.4 In the event that oil or natural gas is sold at less than fair market value to an affiliated party of the Lessee, or used by the Lessee on or in connection with the Leased Premises, then the royalty due shall be paid to the Department based upon a price that could have otherwise been obtained in an arms-length sale by Lessee to a nonaffiliated third-party purchaser during the month in which such sale or use occurred. 5.5 For purposes of this Lease, the term “fair market value” shall be defined as the first point of sale where the natural gas is transferred from the Lessee to a nonaffiliated third-party purchaser in an arms-length transaction. 5.6 Lessee shall pay the Department for any natural gas which is flared from a well which is planned to produce natural gas from the Leased Premises. Payment shall be made for any gas flared beyond the initial twenty-four hour period of flaring follow...

GAS ROYALTY. 4.01 Lessee must operate each well with a discrete well meter at the well site, which will measure all the gas produced from that well. Lessee will ensure that all meters are maintained according to industry standards. 4.02 Lessee shall pay to Department, as royalty, THIRTY-FIVE CENTS ($0.35) per thousand cubic feet (Mcf) or SIXTEEN PERCENT (16%) of the market value, whichever is higher, for all marketable natural gas, marketable casinghead gas, or other marketable gaseous substances produced and sold or utilized by Lessee at the wellhead from each gas well drilled on the leased premises; the amount to be paid to Department will be the royalty rate (either $0.35/Mcf or 16% of the market value; whichever is higher) multiplied by the fractional interest held by Department and shall be payable monthly at the market price received for natural gas at the sales meter at the time of delivery. 4.03 Department may, at its option, however, demand that Lessee deliver to the credit of Department, as royalty, free of cost, in the pipeline to which Lessee may connect its ▇▇▇▇▇, the equal 16% part of all marketable gas and other marketable gaseous substances produced and saved from the leased premises; the amount to be delivered to Department will be the SIXTEEN PERCENT (16%) part of the gas produced multiplied by the fractional interest held by Department in the oil and gas rights. Lessee shall act to calculate and deliver a gas balancing statement on a quarterly basis to the Department in order to ensure that the Department does not exceed its SIXTEEN PERCENT (16%) share of the marketable gas production. Adjustments for overage or underage delivery of the Department’s SIXTEEN PERCENT (16%) royalty share shall be made by reducing or increasing future delivery gas volumes to the Department’s account.

GAS ROYALTY. Producer shall pay to the Commission a gas royalty, as specified herein and in Exhibit B (Terms Sheet). The applicable royalty percentage applies to gross proceeds received by Producer for the sale of all natural gas, casinghead gas, or other gaseous substances produced and measured at the wellhead OR to a publicly published market value of all the natural gas, casinghead gas, or other gaseous substances of like quality, from each gas well unitized with the Premises, whichever the greater. In no circumstances shall the Commission receive less than the minimum royalty rate per thousand cubic feet (Mcf) based on the volume measured at the wellhead, as specified in Exhibit B (Terms Sheet).