Common use of Assignment of Production Proceeds Clause in Contracts

Assignment of Production Proceeds. As further security for the payment and performance of the Obligations, the Trustor hereby absolutely and unconditionally assigns and transfers to the Beneficiary, effective upon and during the continuance of an Event of Default, all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands and, effective automatically upon and during the continuance of an Event of Default, the Trustor hereby transfers, assigns, warrants and conveys to the Beneficiary all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands. Upon the occurrence and during the continuance of an Event of Default, all persons producing, purchasing or receiving such Minerals or the Proceeds therefrom are authorized and directed to treat the Beneficiary as the person entitled in the Trustor’s place and stead to receive the same; and further, those persons will be fully protected in so treating the Beneficiary and will be under no obligation to see to the application by Beneficiary of any Proceeds received by it. The Trustor agrees that, if, after the occurrence and during the continuance of an Event of Default, any Proceeds from such Minerals are paid to the Trustor, such proceeds shall constitute trust funds in the hands of the Trustor, shall be segregated from all other funds of the Trustor and separately held by the Trustor, and shall be forthwith paid over by the Trustor to the Beneficiary. Upon the occurrence and during the continuance of an Event of Default, the Trustor shall, if and when requested by the Beneficiary, execute and file with any production purchaser a transfer order or other instrument declaring the Beneficiary to be entitled to the Proceeds of severed Minerals and instructing such purchaser to pay such Proceeds to the Beneficiary. After the occurrence and during the continuance of an Event of Default, should any purchaser fail to make payment promptly to the Beneficiary of the proceeds derived from the sale thereof, the Beneficiary shall have the right, subject only to any contractual rights of such purchaser or any operator, to designate another purchaser to purchase and take such Products, without liability of any kind on the Beneficiary in making such selection so long as ordinary care is used in respect thereof.

Assignment of Production Proceeds. As further security for the payment and performance of the Secured Obligations, the Trustor Mortgagor hereby absolutely and unconditionally assigns and transfers to the BeneficiaryMortgagee, effective upon and during the continuance of an Event of DefaultDefault (as defined in the Loan Agreement), all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands and, effective automatically upon and during the continuance of an Event of Default, the Trustor Mortgagor hereby transfers, assigns, warrants and conveys to the Beneficiary Mortgagee all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands. Upon the occurrence and during the continuance of an Event of Default, all persons producing, purchasing or receiving such Minerals or the Proceeds therefrom are authorized and directed to treat the Beneficiary Mortgagee as the person entitled in the TrustorMortgagor’s place and stead to receive the same; and further, those persons will be fully protected in so treating the Beneficiary Mortgagee and will be under no obligation to see to the application by Beneficiary Mortgagee of any Proceeds received by it. The Trustor Mortgagor agrees that, if, after the occurrence and during the continuance of an Event of Default, any Proceeds from such Minerals are paid to the TrustorMortgagor, such proceeds shall constitute trust funds in the hands of the TrustorMortgagor, shall be segregated from all other funds of the Trustor Mortgagor and separately held by the TrustorMortgagor, and shall be forthwith paid over by the Trustor Mortgagor to the BeneficiaryMortgagee. Upon the occurrence and during the continuance of an Event of Default, the Trustor Mortgagor shall, if and when requested by the BeneficiaryMortgagee, execute and file with any production purchaser a transfer order or other instrument declaring the Beneficiary Mortgagee to be entitled to the Proceeds of severed Minerals and instructing such purchaser to pay such Proceeds to the BeneficiaryMortgagee. After the occurrence and during the continuance of an Event of Default, should any purchaser fail to make payment promptly to the Beneficiary Mortgagee of the proceeds derived from the sale thereof, the Beneficiary Mortgagee shall have the right, subject only to any contractual rights of such purchaser or any operator, to designate another purchaser to purchase and take such Products, without liability of any kind on the Beneficiary Mortgagee in making such selection so long as ordinary care is used in respect thereof.

Assignment of Production Proceeds. As further security for the payment and performance of the Obligations, the Trustor Grantors hereby absolutely and unconditionally assigns assign and transfers transfer to the Beneficiary, effective upon and during the continuance of an Event of Default, all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands and, effective automatically upon and during the continuance of an Event of Default, the Trustor Grantors hereby transferstransfer, assignsassign, warrants warrant and conveys convey to the Beneficiary all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands. Upon the occurrence and during the continuance of an Event of Default, all persons producing, purchasing or receiving such Minerals or the Proceeds therefrom are authorized and directed to treat the Beneficiary as the person entitled in the Trustora Grantor’s place and stead to receive the same; and further, those persons will be fully protected in so treating the Beneficiary and will be under no obligation to see to the application by Beneficiary of any Proceeds received by it. The Trustor agrees Grantors agree that, if, after the occurrence and during the continuance of an Event of Default, any Proceeds from such Minerals are paid to the Trustora Grantor, such proceeds shall constitute trust funds in the hands of the TrustorGrantors, shall be segregated from all other funds of the Trustor Grantors and separately held by the TrustorGrantors, and shall be forthwith paid over by the Trustor Grantors to the Beneficiary. Upon the occurrence and during the continuance of an Event of Default, the Trustor Grantors shall, if and when requested by the Beneficiary, execute and file with any production purchaser a transfer order or other instrument declaring the Beneficiary to be entitled to the Proceeds of severed Minerals and instructing such purchaser to pay such Proceeds to the Beneficiary. After the occurrence and during the continuance of an Event of Default, should any purchaser fail to make payment promptly to the Beneficiary of the proceeds derived from the sale thereof, the Beneficiary shall have the right, subject only to any contractual rights of such purchaser or any operator, to designate another purchaser to purchase and take such Products, without liability of any kind on the Beneficiary in making such selection so long as ordinary care is used in respect thereof.

Assignment of Production Proceeds. As further security for the payment and performance of the Obligations, the Trustor Grantor hereby absolutely and unconditionally assigns and transfers to the BeneficiaryLender, effective upon and during the continuance of an Event of Default, all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands and, effective automatically upon and during the continuance of an Event of Default, the Trustor Grantor hereby transfers, assigns, warrants and conveys to the Beneficiary Lender all Minerals (and the Proceeds therefrom) which are produced, extracted or severed from or attributable to the Lands. Upon the occurrence and during the continuance of an Event of Default, all persons producing, purchasing or receiving such Minerals or the Proceeds therefrom are authorized and directed to treat the Beneficiary Lender as the person entitled in the TrustorGrantor’s place and stead to receive the same; and further, those persons will be fully protected in so treating the Beneficiary Lender and will be under no obligation to see to the application by Beneficiary Lender of any Proceeds received by it. The Trustor Grantor agrees that, if, after the occurrence and during the continuance of an Event of Default, any Proceeds from such Minerals are paid to the TrustorGrantor, such proceeds shall constitute trust funds in the hands of the TrustorGrantor, shall be segregated from all other funds of the Trustor Grantor and separately held by the TrustorGrantor, and shall be forthwith paid over by the Trustor Grantor to the BeneficiaryLender. Upon the occurrence and during the continuance of an Event of Default, the Trustor Grantor shall, if and when requested by the BeneficiaryLender, execute and file with any production purchaser a transfer order or other instrument declaring the Beneficiary Lender to be entitled to the Proceeds of severed Minerals and instructing such purchaser to pay such Proceeds to the BeneficiaryLender. After the occurrence and during the continuance of an Event of Default, should any purchaser fail to make payment promptly to the Beneficiary Lender of the proceeds derived from the sale thereof, the Beneficiary Lender shall have the right, subject only to any contractual rights of such purchaser or any operator, to designate another purchaser to purchase and take such Products, without liability of any kind on the Beneficiary Lender in making such selection so long as ordinary care is used in respect thereof.