Geologist ORRI’s Clause Samples

Geologist ORRI’s. All references to ORRI’s in this Section 2(i) are to be proportionately reduced. On any leasehold interest acquired at less than or equal to a 81.25% NRI (proportionately reduced), the Geologist will receive an ORRI based on HUSKY’s existing obligations as follows: (i) a 2% ORRI for leases providing less than or equal to an 81.25% NRI and greater than or equal to an 80% NRI; (ii) a 1% ORRI for leases providing less than an 80% NRI but greater than a 75% NRI; and (iii) a 0% proportionately reduced ORRI for leases less than or equal to a 75% NRI. In addition, any NRI that is greater than 81.25% will be split one-third (1/3) to the 100% WI owners and two-thirds (2/3) to the Geologist. For example, if the NRI is 85.25%, the WI owners shall receive an 80.58% NRI [79.25% + (85.25% - 81.25%)/3], and the Geologist shall receive a 2.66% ORRI.