Common use of Proportionate Reduction Clause in Contracts

Proportionate Reduction. If the Lessor owns a less interest in the Leased Premises than the entire and undivided fee simple therein, then the Royalties and other payments herein provided for shall be paid to the Lessor only in the proportion which such interest bears to the whole and undivided fee. If the Leased Premises is owned by two or more parties, or the ownership of any interest therein should hereafter be transferred by sale, devise or operation of law, the Leased Premises, nevertheless, may be held, developed and operated as an entirety, and the Royalties and other payments herein provided for shall be divided among and paid to such several owners in the proportion that the acreage owned by each such owner bears to the entire Leased Premises.