Common use of Oil in Storage Clause in Contracts

Oil in Storage. (a) All Oil in storage at the Effective Time, including working inventory, attributable to the Beta Interests, shall belong to Aera. Subject to Buyer's payment for such Oil as set forth below, title to Oil in storage that was produced from the Beta Unit and is attributable to the Beta Interests will transfer to Buyer at the Closing, but effective as of the Effective Time. (b) All Oil in the SPBP Tangible Assets downstream of the LACT Unit on Platform Elly at the Effective Time, including Oil in stock tanks, wash tanks, heater treaters, flowlines, and pipelines, shall belong to Aera. At the Effective Time, Aera will either run or gauge the Oil in storage with respect to the Beta Unit. At the Escrow Opening, Buyer will pay to the Escrow Agent, and at the Closing, Buyer will cause the Escrow Agent to pay to Aera an amount equal to $750,000.00, which amount is agreed to be a good faith estimate of the value of Aera's Oil in storage and in pipelines as of the Effective Time (the "INVENTORY CLOSING AMOUNT"). Such amount shall be subject to adjustment after the Closing in the preparation of a Final Settlement Statement to account for the difference between the value of (x) the actual amount of Oil in storage and attributable to the Beta Interests and the value of such Oil (determined pursuant to SECTION 13.01(d)), and (y) the amount of the Inventory Closing Amount. (c) Aera will use measured Oil inventories in a Final Settlement Statement, if available or, if not available, then estimated Oil inventories. The estimates will be based on the average month-end inventories of the three (3) most recent calendar months prior to the Effective Time. If there is a difference between the value of the estimated Oil in storage and the value of inventories run or gauged at the Effective Time, Aera may include the difference in a Final Settlement Statement. (d) Oil inventories will be priced, at Aera's option, at either (i) the average of the two highest prices, as determined by Aera, posted by other purchasing companies in the field or locality where the Beta Interest is located, for Oil of like grade and gravity, in effect at the Effective Time; or (ii) the average, actual price received from the sale of Oil shipped from the Beta Unit by Buyer during the month in which the Effective Time occurs.

Oil in Storage. (a) All Oil in storage at the Effective Time, including working inventory, attributable to the Beta Interests, shall belong to AeraShell. Subject to Buyer's payment for such Oil as set forth below, title to Oil in storage that was produced from the Beta Unit and is attributable to the Beta Interests will transfer to Buyer at the Closing, but effective as of the Effective Time. (b) All Shell shall retain its ownership in its portion of Oil in the SPBP Tangible Assets downstream of the LACT Unit on Platform Elly at the Effective Time, including Oil in stock tanks, wash tanks, heater treaters, flowlines, and pipelines, shall belong to Aera. At the Effective Time, Aera will either run or gauge the Oil in storage with respect to the Beta Unit. At the Escrow Opening, Buyer will pay to the Escrow Agent, and at the Closing, Buyer will cause the Escrow Agent to pay to Aera Shell an amount equal to $750,000.00126,760.56, which amount is agreed to be a good faith estimate of the value of AeraShell's Oil in storage and in pipelines as of the Effective Time (the "INVENTORY CLOSING AMOUNTInventory Closing Amount"). Such amount shall be subject to adjustment after the Closing in the preparation of a the Final Settlement Statement to account for the difference between the value of (x) the actual amount of Oil in storage and attributable to the Beta Interests and the value of such Oil (determined pursuant to SECTION 13.01(dSection 13.01 (d)), and (y) the amount of the Inventory Closing Amount. (c) Aera Shell will use measured Oil inventories in a the Final Settlement Statement, if available or, if not available, then estimated Oil inventories. The estimates will be based on the average month-end inventories of the three (3) most recent calendar months prior to the Effective Time. If there is a difference between the value of the estimated Oil in storage and the value of inventories run or gauged at the Effective Time, Aera Shell may include the difference in a the Final Settlement Statement. (d) Oil inventories will be priced, at AeraShell's option, at either (i) the average of the two highest prices, as determined by AeraShell, posted by other purchasing companies in the field or locality where the Beta Interest is located, for Oil of like grade and gravity, in effect at the Effective Time; or (ii) the average, actual price received from the sale of Oil shipped from the Beta Unit by Buyer during the month in which the Effective Time occurs.