Common use of Statement and Payment Clause in Contracts

Statement and Payment. On or before the fifteenth (15th) day following each Month, Gatherer will send to Producer a detailed statement for each Measurement Point and Redelivery Point, setting forth the preceding Month’s (except for clause (iv) below, which shall be provided for each Month on the statement following Gatherer’s receipt of the Permitted Undelivered Volumes for such Month from Producer as provided in Section 2.5(b)(vi)) calculations for: (i) the total volume, in Barrels, of Producer’s Produced Water delivered to each Measurement Point, (ii) the total volume, in Barrels, of Produced Water redelivered to Producer to each Redelivery Point (including the allocation of such Produced Water to the applicable Measurement Points based on the allocation methodology provided by Producer to Gatherer), (iii) the Service Fees [***] (iv) the total volume, in Barrels, of Permitted Undelivered Volumes and the Service Fees [***] due for such Permitted Undelivered Volumes (allocated on a Measurement Point basis), (v) Producer Taxes that Gatherer has paid or will pay on behalf of Producer for with respect to such previous Month’s Services, and (vi) the total amount owed by Producer to Gatherer for such previous Month’s Services, [***] any other amount due Producer hereunder for such previous Month. Gatherer shall net any outstanding amounts owed by Gatherer to Producer under this Agreement against outstanding amounts owed by Producer to Gatherer under this Agreement and any details associated with any such netted amounts shall be shown on the Monthly statement. If the information necessary for Gatherer’s calculation or payment of the amounts due Producer under this Agreement is in Producer’s or Producer’s designee’s possession, including information with respect to calculating the Reference Oil Price hereunder, it is Producer’s responsibility to provide Gatherer with such information promptly after the same is requested by Gatherer. If such information is not promptly provided by Producer in response to a request from Gatherer, then Gatherer may, in a reasonable manner, estimate the invoice amount subject to adjustment upon receipt of the applicable information. Producer will pay any undisputed net amounts owed Gatherer within thirty (30) days of receipt of a correct and proper invoice for payment by direct deposit (ACH) in accordance with the ACH instructions provided by Gatherer to Producer. Any undisputed amount which shall remain unpaid after thirty (30) days from the date of Producer’s receipt of the applicable invoice shall accrue interest, starting on the date such invoice becomes overdue, at the Overdue Rate, until the date the unpaid balance is paid. Should Gatherer not receive payment in full for any amounts that are not disputed in good faith within ninety (90) days of Producer’s receipt of any invoice, Gatherer may refuse to receive Produced Water until such past-due amount is paid in full. Gatherer will pay any amount due Producer on or before the last day of the Month immediately following the Month in which amount accrues.