No Balancing From Other Properties. Except to the extent, if any, that a Subject Interest is subject to such a balancing arrangement before it becomes subject to this Conveyance and such fact is disclosed to (and accepted by) Grantee as an express exception to Section 4.1(k) of the Purchase Agreement, Grantor will not allow any Subject Interest to be subject to any production balancing arrangement under which one or more third Persons may take a portion of the production attributable to such Subject Interest without payment (or without full payment) therefor as a result of production having been taken from, or as a result of other actions or inactions with respect to, properties other than such Subject Interest.
Appears in 1 contract
Sources: Production Payment Conveyance (Transtexas Gas Corp)
No Balancing From Other Properties. Except to the extent, if any, that a Subject Interest is subject to such a balancing arrangement before it becomes subject to this Conveyance and such fact is disclosed to (and accepted by) Grantee as an express exception to Section 4.1(k4.1(j) of the Purchase Agreement, Grantor will not allow any Subject Interest to be subject to any production balancing arrangement under which one or more third Persons may take a portion of the production attributable to such Subject Interest without payment (or without full payment) therefor as a result of production having been taken from, or as a result of other actions or inactions with respect to, properties other than such Subject Interest.
Appears in 1 contract
Sources: Production Payment Conveyance (Transtexas Gas Corp)