Common use of Royalty Payment Clause in Contracts

Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall be paid by Lessee to Lessor as follows: (a) For oil and other liquid hydrocarbon separated at Lessee’s separator facilities, the royalty shall be One Eighth (1/8th) of such production, to be delivered at Lessee’s option to Lessor at the wellhead or to Lessor’s credit at the oil purchaser’s transportation facilities, provided that Lessee shall have the continuing right to sell such production to itself or an affiliate at the wellhead market price then prevailing in the same field ( or if there is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; (b) for gas ( including casinghead gas) and all other substances covered hereby, the royalty shall be One Eighth (1/8th) of the proceeds realized by Lessee from the sale thereof, provided that Lessee shall have the continuing right to sell such production to itself or an affiliate at the prevailing wellhead market price for production of similar quality in the same field (or if there if no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) pursuant to comparable purchase arrangements entered into on the same or nearest preceding date as the date on which Lessee or its affiliate commences its purchases hereunder; and (c) in calculating royalties on production hereunder, Lessee may deduct Lessor’s proportionate part of any production and excise taxes. If at the end of the primary term or any time thereafter one or more wxxxx on the leased premises or lands pooled therewith are capable of producing oil or gas or other substances covered hereby in paying quantities, but such well or wxxxx are either shut in or production therefrom is not being sold by Lessee, such well or wxxxx shall nevertheless be deemed to be producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well or wxxxx are shut in or production therefrom is not being sold by Lessee, then Lessee shall pay an aggregate shut-in royalty annually of one dollar ($1.00) per acre then covered by this lease, such payment to be made to Lessor on or before the end of said 90-day period and thereafter on or before each anniversary of the end of each annual period while the well or wxxxx are shut in or production therefrom is not being sold by Lessee; provided that is this lease is otherwise being maintained by operations, or if production is being sold by Lxxxxx from another well or wxxxx on the leased premises or lands pooled therewith, no shut-in royalty shall be due until the 90-day period next following cessation of such operations or production. Lessee’s failure to properly pay shut-in royalty shall render Lessee liable for the amount due, but shall not operate to terminate this lease.

Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall The royalties to be paid by Lessee to the Lessor as followsare: (a) For oil On oil, 1/8th of that produced and other liquid hydrocarbon separated at Lessee’s separator facilitiessaved from said land, the royalty shall be One Eighth (1/8th) of such production, same to be delivered at Lessee’s option to Lessor at the wellhead xxxxx or to the Lessor’s 's credit at into the oil purchaser’s transportation facilities, provided that pipelines to which the xxxxx may be connected. Lessee shall have the continuing right to sell purchase such production to itself or an affiliate at the wellhead market price then prevailing in the same field ( (or if there is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity. Lessee may sell any royalty oil in its possession and pay Lessor the price received by Lessee for such oil computed at the well; (b) for For gas ( (including casinghead gas) and all other substances covered herebyhereby (i) if used off the leased premises or used in the manufacture of gasoline or other products, the royalty shall be One Eighth market value at the well of one-eighth (1/8th1/8) of the proceeds gas so used, or (ii) if sold on or off the leased premises, one-eighth (1/8) of the amount realized by Lessee from such sale, provided the amount realized from the sale thereofof gas on or off the leased premises shall be the price established by the Gas Sales Contract entered into in good faith by Lessee and gas purchaser, provided that on gas sold by Lessee the market value shall have not exceed the continuing right to sell amount received by Lessee for such production to itself or an affiliate gas computed at the prevailing wellhead market price for production mouth of similar quality in the same field (or if there if no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) pursuant to comparable purchase arrangements entered into on the same or nearest preceding date as the date on which Lessee or its affiliate commences its purchases hereunderwell; and (c) in calculating royalties on production hereunder, Lessee may deduct Lessor’s proportionate part of any production and excise taxes. If at the end of the primary term or any time thereafter one or more wxxxx a well on the leased premises or lands pooled therewith are is capable of producing oil or gas or any other substances substance covered hereby in paying quantities, but such well or wxxxx are is either shut shut-in or production therefrom is not being sold or purchased by LesseeLessee or royalties on production therefrom are not otherwise being paid to Lessor, and if this lease is not otherwise maintained in effect, such well or wxxxx shall nevertheless be deemed to be considered as though it were producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well , whether during or wxxxx are shut in or production therefrom is not being sold by Lesseeafter the primary term, then and Lessee shall pay an aggregate tender a shut-in royalty annually payment of one dollar ($1.00) One Dollar per acre then covered by this lease, such payment to be made to Lessor at 0000 Xxxxxxxxx, Xxxxxxxxx, XX 00000, or to Lessor's credit in the depository designated above, on or before 90 days after the end next ensuing anniversary date of said 90-day period this lease, and thereafter on or before each anniversary of the end of each annual period date hereof while the well or wxxxx are shut is shut-in or production therefrom is not being sold or purchased by Lessee; provided that is this lease is Lessee or royalties on production therefrom are not otherwise being maintained by operations, or if production paid to Lessor. This lease shall remain in force so long as such well is being sold by Lxxxxx from another well or wxxxx on the leased premises or lands pooled therewith, no shut-in royalty shall be due until the 90-day period next following cessation capable of such operations or production. producing and Lessee’s 's failure to properly pay shut-in royalty payment shall render Lessee liable for the amount due, due but shall not operate to terminate this lease. The intermittent production from any well during such year shall not render necessary any new or additional shut-in payments with respect to such well or the acreage ascribed thereto.

Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall The royalties to be paid by Lessee to the Lessor as followsare: (a) For oil On oil, ONE-FIFTH (1/5) of that produced and other liquid hydrocarbon separated at Lessee’s separator facilitiessaved from said land, the royalty shall be One Eighth (1/8th) of such production, same to be delivered at Lessee’s option to Lessor at the wellhead wells or to the Lessor’s 's credit at into the oil purchaser’s transportation facilities, provided that pipelines to which the wellx xxx be connected. Lessee shall have the continuing right to sell pxxxxxse such production to itself or an affiliate at the wellhead market price then prevailing in the same field ( (or if there is no such price then prevailing in In the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; . Lessee may sell any royalty oil in its possession and pay Lessor the price received by Lessee for such oil computed at the well, (b) for For gas ( (including casinghead gas) and all other substances covered herebyhereby (i) if used off the leased premises or used in the manufacture of gasoline or other products, the royalty shall be One Eighth market value at the well of ONE-FIFTH (1/8th1/5) of the proceeds gas so used, or (ii) if sold on or off the leased premises, ONE-FIFTH (1/5) of the amount realized by Lessee from such sale, provided the amount realized from the sale thereofof gas on or off the leased premises shall be the price established by the Gas Sales Contract entered into in good faith by Lessee and gas purchaser, provided that on gas sold by Lessee the market value shall have not exceed the continuing right to sell amount received by Lessee for such production to itself or an affiliate gas computed at the prevailing wellhead market price for production mouth of similar quality the well. This lease may be maintained in effect in the same field (event that gas is capable of being produced but because of market conditions is unable to be produced by the paying of shut-in royalty payments of $10.00 per acre. The shut-in payments are due at or if there if no such price then prevailing in prior to the same field, then in the nearest field in which there is such a prevailing price) pursuant to comparable purchase arrangements entered into on the same or nearest preceding date as the date on which Lessee or its affiliate commences its purchases hereunder; and (c) in calculating royalties on production hereunder, Lessee may deduct Lessor’s proportionate part of any production and excise taxes. If at the end expiration of the primary term or any time thereafter one or more wxxxx on and at the leased premises or lands pooled therewith are capable first anniversary of producing oil or gas or other substances covered hereby in paying quantities, but such well or wxxxx are either shut in or production therefrom is not being sold by Lessee, such well or wxxxx shall nevertheless be deemed to be producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well or wxxxx are shut in or production therefrom is not being sold by Lessee, then Lessee shall pay an aggregate that date (shut-in royalty annually of one dollar ($1.00) per acre then covered by this lease, such payment to be made to Lessor on or before payments only maintain the end of said 90-day period and thereafter on or before each anniversary of the end of each annual period while the well or wxxxx are shut in or production therefrom is not being sold by Lessee; provided that is this lease is otherwise being maintained by operations, or if production is being sold by Lxxxxx from another well or wxxxx on the leased premises or lands pooled therewith, no shut-in royalty shall be due until the 90-day period next following cessation of such operations or production. Lessee’s failure to properly pay shut-in royalty shall render Lessee liable for the amount due, but shall not operate to terminate this leasean additional two years).

Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall The royalties to be paid by Lessee to the Lessor as followsare: (a) For oil On oil, 1/5th of that produced and other liquid hydrocarbon separated at Lessee’s separator facilitiessaved from said land, the royalty shall be One Eighth (1/8th) of such production, same to be delivered at Lessee’s option to Lessor at the wellhead xxxxx or to the Lessor’s 's credit at into the oil purchaser’s transportation facilities, provided that pipelines to which the xxxxx may be connected. Lessee shall have the continuing right to sell purchase such production to itself or an affiliate at the wellhead market price then prevailing in the same field ( (or if there is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; . Lessee may sell any royalty oil in its possession and pay Lessor the price received by Lessee for such oil computed at the well, (b) for For gas ( (including casinghead gas) and all other substances covered herebyhereby (i) if used off the leased premises or used in the manufacture of gasoline or other products, the royalty shall be One Eighth market value at the well of one-fifth (1/8th1/5) of the proceeds gas so used, or (ii) if sold on or off the leased premises, one-fifth (1/5) of the amount realized by Lessee from such sale, provided the amount realized from the sale thereofof gas on or off the leased premises shall be the price established by the Gas Sales Contract entered into in good faith by Lessee and gas purchaser, provided that on gas sold by Lessee the market value shall have not exceed the continuing right to sell amount received by Lessee for such production to itself or an affiliate gas computed at the prevailing wellhead market price for production mouth of similar quality in the same field (or if there if no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) pursuant to comparable purchase arrangements entered into on the same or nearest preceding date as the date on which Lessee or its affiliate commences its purchases hereunderwell; and (c) in calculating royalties on production hereunder, Lessee may deduct Lessor’s proportionate part of any production and excise taxes. If at the end of the primary term or any time thereafter one or more wxxxx a well on the leased premises or lands pooled therewith are is capable of producing oil or gas or any other substances substance covered hereby in paying quantities, but such well or wxxxx are is either shut shut-in or production therefrom is not being sold or purchased by LesseeLessee or royalties on production therefrom are not otherwise being paid to Lessor, and if this lease is not otherwise maintained in effect, such well or wxxxx shall nevertheless be deemed to be considered as though it were producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well lease whether, during or wxxxx are shut in or production therefrom is not being sold by Lesseeafter the primary term, then and Lessee shall pay an aggregate tender a shut-in royalty annually payment of one dollar ($1.00) One Dollar per acre then covered by this lease, such payment to be made to Lessor on or before 90 days after the end next ensuing anniversary date of said 90-day period this lease, and thereafter on or before each anniversary of the end of each annual period date hereof while the well or wxxxx are shut is shut-in or production therefrom is not being sold or purchased by Lessee; provided that is this lease is Lessee or royalties on production therefrom are not otherwise being maintained by operationspaid to Lessor. All payments or tenders may be made in currency, or if production by check, or by draft, and such payments or tenders to Lessor or to the depository by deposit in the U.S. Mails in a stamped envelope addressed to the depository or to the Lessor at the last address known to Lessee shall constitute proper payment. This lease shall remain in force so long as such well is being sold by Lxxxxx from another well or wxxxx on the leased premises or lands pooled therewith, no shut-in royalty shall be due until the 90-day period next following cessation capable of such operations or production. producing and Lessee’s 's failure to properly pay shut-in royalty payment shall render Lessee liable for the amount due, due but shall not operate to terminate this lease. The intermittent production from any well during such year shall not render necessary any new or additional shut-in payments with respect to such well or the acreage ascribed thereto.

Royalty Payment. Royalties on oil, gas and other substances produced and saved hereunder shall be paid by Lessee to Lessor as follows: (a) For oil and other liquid hydrocarbon separated at Lessee’s separator facilities, the royalty shall be One Eighth (1/8th) of such production, to be delivered at Lessee’s option to Lessor at the wellhead or to Lessor’s credit at the oil purchaser’s transportation facilities, provided that Lessee shall have the continuing right to sell such production to itself or an affiliate at the wellhead market price then prevailing in the same field ( or if there is no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) for production of similar grade and gravity; (b) for gas ( including casinghead gas) and all other substances covered hereby, the royalty shall be One Eighth (1/8th) of the proceeds realized by Lessee from the sale thereof, provided that Lessee shall have the continuing right to sell such production to itself or an affiliate at the prevailing wellhead market price for production of similar quality in the same field (or if there if no such price then prevailing in the same field, then in the nearest field in which there is such a prevailing price) pursuant to comparable purchase arrangements entered into on the same or nearest preceding date as the date on which Lessee or its affiliate commences its purchases hereunder; and (c) in calculating royalties on production hereunder, Lessee may deduct Lessor’s proportionate part of any production and excise taxes. If at the end of the primary term or any time thereafter one or more wxxxx on the leased premises or lands pooled therewith are capable of producing oil or gas or other substances covered hereby in paying quantities, but such well or wxxxx are either shut in or production therefrom is not being sold by Lessee, such well or wxxxx shall nevertheless be deemed to be producing in paying quantities for the purpose of maintaining this lease. If for a period of 90 consecutive days such well or wxxxx are shut in or production therefrom is not being sold by Lessee, then Lessee shall pay an aggregate shut-in royalty annually of one dollar twenty-five dollars ($1.0025.00) per acre then covered by this lease, such payment to be made to Lessor on or before the end of said 90-day period and thereafter on or before each anniversary of the end of each annual period while the well or wxxxx are shut in or production therefrom is not being sold by Lessee; provided that is this lease is otherwise being maintained by operations, or if production is being sold by Lxxxxx Lessee from another well or wxxxx on the leased premises or lands pooled therewith, no shut-in royalty shall be due until the 90-day period next following cessation of such operations or production. Lessee’s failure to properly pay shut-in royalty shall render Lessee liable for the amount due, but shall not operate to terminate this lease.