NRI Factor definition

NRI Factor means, with respect to each Development Well, the fraction obtained by dividing Assignor’s Net Revenue Interest for such well by 56.9828%. For example, if Assignor’s Net Revenue Interest in a Development Well is 80%, the computation would be: 80% / 56.9828% = 1.4039. Therefore, such Development Well would have a NRI Factor of 1.4039.

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NRI Factor has the meaning given such term in the Development Agreement.

NRI Factor means with respect to each Development Well other than the last Development Well, the fraction obtained by dividing Assignor’s Net Revenue Interest for such well by 52%; provided that, with regard to the last Development Well, the Assignor’s Net Revenue Interest used to calculate the NRI Factor shall be reduced to that percentage that will result in an NRI Factor equal to the difference between 118 and the cumulative sum of the Adjusted Development Well Amounts for all prior Development ▇▇▇▇▇ drilled or caused to be drilled by Assignor. For example, if Assignor’s Net Revenue Interest in a Development Well is 80%, the NRI Factor for such Development Well would be: 80% / 52% = 1.5385. Additionally, by way of example, if (i) the cumulative sum of all the Adjusted Development Well Amounts for all Development ▇▇▇▇▇ drilled or caused to be drilled by Chesapeake equals 117.5, (ii) the Lateral Distance Factor for the next Development Well is 1.0 and (iii) Assignor’s Net Revenue Interest in the next Development Well is 52%, the Assignor’s Net Revenue Interest used to calculate the NRI Factor shall be 26% resulting in an NRI Factor for the last Development Well of 0.5. The NRI Factor shall be rounded to the nearest ten thousandth (i.e., four decimal places to the right of the decimal point).

Examples of NRI Factor in a sentence

Following the determination of the Adjusted Development Well Amount for a Development Well, Assignor shall execute and deliver a recordable stipulation in the form of Exhibit C attached hereto, to be acknowledged and countersigned by Assignee, identifying (i) the Development ▇▇▇▇▇ drilled to date (including an API number for each such Development Well) and (ii) Assignor’s Net Revenue Interest warranted by Assignor and used to calculate the NRI Factor for each of the Development ▇▇▇▇▇ drilled to date.
Each stipulation shall establish the Assignor’s Net Revenue Interest used to calculate the NRI Factor for such Development Well pursuant to the Development Agreement for the purpose of the warranty of title provided in Section 1.05(a) of this Conveyance; provided that, such stipulation shall not waive or otherwise limit Assignee’s rights with respect to any claim for breach of warranty regarding each Development Well or Assignor’s Net Revenue Interest therein.
Each stipulation shall establish the Assignor’s Net Revenue Interest used to calculate the NRI Factor for such Development Well pursuant to the Development Agreement for the purpose of the warranty of title provided in Section 1.04(a) of this Conveyance; provided that, such stipulation shall not waive or otherwise limit Assignee’s rights with respect to any claim for breach of warranty regarding each Development Well or Assignor’s Net Revenue Interest therein.
Pursuant to Section 1.05 of the Conveyance Assignor stipulates that Exhibit A attached hereto is a true and correct schedule identifying, as of the Effective Date (i) the Development ▇▇▇▇▇ drilled to date (including the API number for each such Development Well), and (ii) Assignor’s Net Revenue Interest used to calculate the NRI Factor for each of the Development ▇▇▇▇▇ drilled to date.
Pursuant to Section 1.06 of the Conveyance, Assignor stipulates that Exhibit A attached hereto is a true and correct schedule identifying, as of the Effective Date (i) the Development ▇▇▇▇▇ drilled to date (including the API number for each such Development Well), and (ii) Assignor’s Net Revenue Interest used to calculate the NRI Factor for each of the Development ▇▇▇▇▇ drilled to date.

More Definitions of NRI Factor

NRI Factor means, with respect to each Development Well, the fraction obtained by dividing Assignor’s Net Revenue Interest for such well by [69.3]%. For example, if Assignor’s Net Revenue Interest in a Development Well is [86.6]%, the computation would be [86.6]% / [69.3]% = [1.2496]. Therefore, such Development Well would have a NRI Factor of [1.2496]. The NRI Factor for each Development Well shall be rounded to the nearest ten thousandth (i.e., four decimal places to the right of the decimal point).