Common use of Limitation on Warranty Clause in Contracts

Limitation on Warranty. 10.01 The Commonwealth is considered to be the owner of the oil and gas rights under the leased premises but makes no warranty as to the presence of oil and gas, nor as to its ownership thereof. In the event of a determination by compromise or by a final judgment of a court of competent jurisdiction that the Commonwealth does not have title to all or part of the oil and gas rights on the lands hereby leased, the Lessee shall pay the Department royalties thereafter accruing in proportion to the Commonwealth’s ownership. Any sums of money previously paid pursuant to the terms of the lease shall not be reimbursable to Lessee, except as hereinafter provided in this paragraph. In the event of an adverse claim affecting title to all or a portion of the oil and gas rights under the leased premises, notice of such claim will be given to Department which may, with the approval of the Attorney General, enter into an escrow arrangement for future royalties accruing to such disputed portion under terms and conditions proper to safeguard the rights and interests of the Commonwealth. In the event an adverse claimant files suit against the Commonwealth or against Lessee claiming title to all or a portion of the oil and gas rights under the leased premises, or if the Lessee, after receiving notice of an adverse claim, institutes litigation in a court of competent jurisdiction to secure an adjudication of the validity of the claim, the royalties accruing to the litigated portion shall be placed in an escrow account until such time as the ownership of the disputed interest shall be determined by a court of competent jurisdiction. The royalties placed in escrow shall be refunded at the direction of the court in an amount proportionate to the outstanding title if it is finally determined by compromise or by a court of competent jurisdiction that all or part of such rights are not owned by the Commonwealth.

Limitation on Warranty. 10.01 The Commonwealth is considered to be the owner of the oil and gas rights under the leased premises but makes no warranty as to the presence of oil and gas, nor as to its ownership thereof. In the event of a determination it is determined by compromise or by a final judgment of a court of competent jurisdiction that the Commonwealth does not have title to all or part of the oil and gas rights on the lands hereby leased, the Lessee shall pay the Department royalties thereafter accruing from any part as to which this lease covers less than the full interest in proportion such oil and gas rights, shall thereafter be paid only in the portion which the interest therein, if any, covered by this lease bears to the Commonwealth’s ownership. Any whole and undivided fee simple estate therein; but any sums of money previously paid pursuant to the terms of the lease shall not be reimbursable to LesseeXxxxxx, except as hereinafter provided in this paragraph. In the event of an adverse claim to the premises affecting title to all or a portion of the oil and gas rights under the leased premises, notice of such claim will be given to Department which may, with the approval of the Attorney General, enter into an escrow arrangement for future royalties accruing to such disputed portion under terms and conditions that he feels proper to safeguard the rights and interests of the Commonwealth. In the event an adverse claimant files suit against the Commonwealth or against Lessee Xxxxxx claiming title to all or a portion of the oil and gas rights under the leased premises, or if the Lessee, after receiving notice of an adverse claim, institutes litigation in a court of competent jurisdiction to secure an adjudication of the validity of the claim, the royalties accruing to the litigated portion shall be placed in an escrow account until such time as the ownership of the disputed interest shall be determined by a court of competent jurisdiction. The royalties placed in escrow shall be refunded at the direction of the court in an amount proportionate to the outstanding title if it is finally determined by compromise or by a court of competent jurisdiction that all or part of such rights are not owned by the Commonwealth.