Produced Gas definition
Produced Gas means a mixture consisting primarily of methane but including other constituents (which may include natural gas liquids, other liquid or liquefiable hydrocarbon substances, and other impurities) that is recoverable through a well from an underground reservoir and that is in a gaseous state when its volume is measured at the wellhead, as such substances exist prior to Processing. For purposes of this Conveyance, condensate produced in association with Produced Gas shall be treated as Oil.
Produced Gas which includes: gas sold, utilized, flared or vented, casing head, plant products such as gasoline, distillate or other liquid hydrocarbons and petroleum products, and residue gas, if gas is run through a gas plant, and stored. In the event that a compulsory unit is established or a voluntary unit is agreed upon in which the Operating Tract, either in whole or in part, participates, the SPI shall be calculated on the decimal participation of the Operating Tract within the said unit. For the purposes of this Agreement unless otherwise shown to the contrary to the satisfaction of the State by the Operator in the form of sales contracts or other such written agreements, the fair market value (“Fair Market Value”), of: