Common use of Spud Fee Clause in Contracts

Spud Fee. In addition to the amounts Liberty is required to pay pursuant to Section 3.1, Liberty shall pay to Nytis a spud fee for each Well drilled pursuant to this Agreement equal to $10,000.00, proportionately reduced to Nytis’ initial working interest in such Well (the “Spud Fee”). The Spud Fee shall be paid by wire transfer of immediately available funds in accordance with the invoicing provisions set forth in Section 4.2.

Spud Fee. In addition to the amounts Liberty is required to pay pursuant to Section 3.1, Liberty shall pay to Nytis a spud fee for each Well drilled pursuant to this Agreement within the Program Area equal to $10,000.00, proportionately reduced Proportionately Reduced to Nytis’ initial working interest in such Well (the “Spud Fee”). The Spud Fee shall be paid by wire transfer of immediately available funds in accordance with the invoicing provisions set forth in Section 4.2.