Title Defect Values Clause Samples

Title Defect Values. In determining the value of a Title Defect, it is the intent of the Parties to include, to the extent possible, only that portion of the Subject Interests, whether an undivided interest, separate interest or otherwise, materially and adversely affected by the Title Defect. The Title Defect value shall in no event exceed the Allocated Value of the affected Subject Interest. Subject to such limitation, the Title Defect value shall be determined by the Parties in good faith taking into account all relevant factors.

Title Defect Values. In determining the value of a Title Defect, it is the intent of the Parties to include, to the extent possible, only that portion of the lands, leases and well▇, ▇▇ether an undivided interest, separate interest or otherwise, affected by the defect. The Title Defect value shall be determined by the parties in good faith taking into account all relevant factors, including, but not limited to, the following: (i) the Allocated Value of the leases, lands and well affected by the Title Defect; (ii) the potential or actual reduction in the net revenue interest shown on Exhibit B or the amount by which the expense interest is greater than the expense interest set forth on Exhibit B. (iii) the productive or prospective status of the Title Defect Property (i.e., proved developed producing, etc.) and the present value of the future income expected to be produced therefrom; (iv) if the Title Defect represents only a possibility of title failure, the probability that such failure will occur; (v) the legal effect of the Title Defect; (vi) if the Title Defect is a lien or encumbrance on the leases, lands or well▇, ▇▇e cost of removing such lien or encumbrance. Notwithstanding anything to the contrary that may be contained in this Article 8, Buyer understands and agrees that the Allocated Values set forth on Exhibit B are only for (i) currently producing zones and that any loss of depth rights or acreage will not have a Title Defect Value unless such loss causes a change in expense or net revenue interest in the currently producing zone and (ii) the proven undeveloped locations and the behind pipe zones specifically set forth on Exhibit B.

Title Defect Values. In determining the value of a Title Defect, it is the intent of the Parties to include, to the extent possible, only that portion of the lands, leases and ▇▇▇▇▇, whether an undivided interest, separate interest or otherwise, materially and adversely affected by the Title Defect. The Title Defect Value shall in no event exceed the Allocated Value of the affected Asset. Subject to such limitation, the Title Defect Value shall be determined by the Parties in good faith taking into account all relevant factors, including, but not limited to, the following: (a) the Allocated Value of the leases, lands and well affected by the Title Defect; (b) the reduction in the warranted net revenue interest of the Asset affected by the Title Defect, or the amount by which the cost sharing percentage for such property is greater than the warranted working interest; (c) the productive status of the Asset affected by the Title Defect (i.e., proved developed producing, etc.) and the present value of the future income reasonably expected to be produced therefrom; (d) the legal effect of the Title Defect; and (e) if the Title Defect is a lien or encumbrance on the leases, lands or ▇▇▇▇▇, the cost of removing such lien or encumbrance.