Overriding Royalties. The Lessee shall not create overriding royalties of less than one-quarter (1/4) of one percent of the value of output nor in excess of 50 percent of the rate of royalty due to the Lessor specified in Sec. 3 of this lease except as otherwise authorized by the regulations. The Lessee expressly agrees that the creation of any overriding royalty which does not provide for the prorated reduction of all overriding royalties so that the aggregate rate of royalties does not exceed the maximum rate permissible under this section, or the failure to suspend an overriding royalty during any period when the royalties due to the Lessor have been suspended pursuant to the terms of this lease, shall constitute a violation of the lease terms.
Overriding Royalties. Chevron's reserved overriding royalty as described in Section 5.3 above shall be free and clear of all cost, of exploring, operating, and developing on, and producing from, the acreage farmed-out, and maintaining said lease in force and effect, as well as all cost for plugging, abandoning, clean-up and restoration, but shall bear its proportionate share of all severance, production and other taxes which are now or which may hereafter become applicable thereto. Said overriding royalty shall be computed and paid at the same time and in the same manner as royalties are computed and paid to the lessor under the leases farmed-out. If Chevron elects to participate for a working interest at "payout" in a farmed-out well, Chevron will proportionately share in any royalty relief granted based on its working interest starting at that time of Chevron's election, but in no event should Chevron be entitled to any royalty relief granted prior to payout. However, should a farmed-out well be unsuccessful and the MMS grants royalty relief on the Lease drilled, the owners of the shallow production on such Lease in which royalty relief is granted shall be entitled to the royalty relief so granted if any.
Overriding Royalties. Chevron's reserved overriding royalty as described in Section 5.2 above shall be free and clear of all costs of exploring, operating, and developing on, and producing from, the acreage farmed-out, and maintaining said Lease(s) in force and effect, as well as all cost for plugging, abandoning, clean-up and restoration, but shall bear its proportionate share of all severance, production and other taxes which are now or which may hereafter become applicable thereto. Said overriding royalty shall be computed and paid to or taken in kind by Chevron, whichever Chevron prefers, from time to time, at the same time and in the same manner as royalties are computed and paid to or taken in kind by the lessor under the Leases(s), except that said overriding royalty shall be paid to or taken in kind by Chevron regardless of any applicable lessor royalty relief.
Overriding Royalties. (a) Subject to the approval of the Secretary, an overriding royalty interest may be created by an assignment pursuant to section 8(e) of the Act. The Secretary may deny approval of an assignment which creates an overriding royalty on a lease whenever that denial is determined to be in the interest of conservation, necessary to prevent premature abandonment of a producing mine, or to make possible the mining of economically marginal or low-grade ore deposits. In any case, the total of applicable overriding royalties may not exceed 2.5 percent or one-half the base royalty due the Federal Government, whichever is less.
Overriding Royalties. The Advisor shall deliver to the Company Working Interests under leases that, in almost all cases, will result in a Net Revenue Interest of 81.25% for a one hundred percent (100%) Working Interest. If the Net Revenue Interest to the Company under a lease is less than 81.25%, the Company must approve, in writing, its participation prior to the commencement of drilling operations under that particular lease.
Overriding Royalties. To the extent that the Sole Shareholder or any of its Affiliates hold any overriding royalty interests burdening the Leases on Exhibit A-1 with amounts listed under the column “Net Acres B,” the Sole Shareholder shall assign, or cause its Affiliates to assign (as applicable), all right, title and interest in and to the applicable overriding royalty interests to the Surviving Company.
Overriding Royalties. Any overriding royalties reserved by Texaco pursuant to any Farmout Agreement or Sublease shall be delivered or paid to Texaco as herein- below provided:
Overriding Royalties. Assignor reserves an overriding royalty interest equal to the difference between 26% and existing leasehold burdens (inclusive of the landowner's royalty) determined on a lease-by-lease basis, it being the intent of this Assignment that Assignor convey to Assignee a net revenue interest of 74.0% in the Leases and Lands. The production produced attributable to the overriding royalty interest retained by UHC may be taken in "kind" at the option of UHC. Any reserved overriding royalty interest is subject to proportionate reduction as set out in paragraph 12, below. Further, any reserved overriding royalty interest shall be free of development, production and operating expenses, but shall bear its proportionate share of post-production costs incurred by Assignee (including without limitation all costs associated with compressing, processing, separating, treating, dehydrating, gathering, pipelines, transporting and marketing) as well as its proportionate share of all ad valorem, production, severance, excise and all other taxes assessed against the production subject to such overriding royalty interest.
Overriding Royalties. In the event the working interest of a party hereto is presently subject to other than the Hembdt royalty or may hereafter become subject to any overriding royalty, production payment or other burden and the same is not charged to the joint account of the parties, such royalty, payment or burden shall be borne by the party creating the same or against whom the same is enforced. Provided that if a party hereto shall conduct any operation or make any election as a result of which it becomes entitled to receive the working interest production otherwise belonging to the other party hereto, the party entitled to receive the working interest production of the non-participating party shall receive such production free and clear of all royalties, payments and burdens (other than those charged to the joint account as aforesaid) against such production which may have been created prior to or subsequent to this Operating Procedure and the party creating such royalties, payments or burdens shall save the party acquiring such interest harmless with respect to the receipt of such working interest production. The Hembdt royalty is to be charged to the joint account.
Overriding Royalties. 24 5.7 Joint Operations for Earned Depths .....................................24 Chevron / Ridgewood EPA 9-1-05.doc Final Agreement
