Limitation on Overriding Royalties. Lessor reserves the right to disapprove the creation of an overriding royalty or production payment that would, in Lessor’s reasonable discretion, constitute an unreasonable economic burden upon operation of the Lease. In exercising its discretion to disapprove the creation of an overriding royalty, Lessor shall consult with Lessee and any third parties involved and shall prepare findings to evidence the basis of its decision. Any transfer in interest which would create a cumulative overriding royalty burden in excess of 20% shall not be approved.
Limitation on Overriding Royalties. No overriding royalty, production payment or other similar interest may be granted without the express written consent of Lessor, which may be granted or withheld in Lessor’s sole discretion.
Limitation on Overriding Royalties. Lessee shall not create, grant, assign, or otherwise convey any overriding royalty interest or payment out of production that reduces the net revenue interest under this Lease to less than eighty percent (80%) without the prior written consent of Lessor. Any conveyance in violation hereof will be void ab initio and have no legal effect unless and until approved in writing by Lessor.
Limitation on Overriding Royalties. Lessor reserves the right to disallow the creation of an overriding royalty or payment out of production that would have the effect of reducing the net revenue interest under this Lease by more than twenty percent (20%), including any production royalty set out in this Lease.
Limitation on Overriding Royalties. Lessor reserves the right to disapprove the creation of an overriding royalty or production payment that would, in Lessor’s reasonable discretion, constitute an unreasonable economic burden upon operation of the Lease. In exercising its discretion to disapprove the creation of an overriding royalty, Lessor shall consult with Lessee and any third parties involved and shall prepare findings to evidence the basis of its decision. Cumulative overriding royalties of 2% or less shall be deemed presumptively reasonable unless special circumstances are shown by Lessor to exist. ML 51191-OBA-COAL
