Common use of Calculation of Present Value Clause in Contracts

Calculation of Present Value. of the Partnership's Estimated Future Net Revenues. In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders pursuant to Section 10.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production Partnership's Producing Properties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).

Calculation of Present Value. of the -------------------------------------------------------------- Partnership's Estimated Future Net Revenues. ------------------------------------------- In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders pursuant to Section 10.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production Partnership's Producing Properties Net Profits Interests and Royalties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).

Calculation of Present Value. of the Partnership's Estimated Future Net Revenues. In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders pursuant to Section 10.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production NPI Partnership's Producing Properties Net Profits Interests and Royalties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).

Calculation of Present Value. of the ----------------------------------------------------------------- Partnership's Estimated Future Net Revenues. ------------------------------------------- In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders pursuant to Section 10.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production NPI Partnership's Producing Properties Net Profits Interests and Royalties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).

Calculation of Present Value. of the Partnership's Estimated Future Net Revenues. Revenues ----------------------------------------------------------- In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders Limited Partners pursuant to Section 10.4C 9.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production Partnership's Producing Properties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).

Calculation of Present Value. of the -------------------------------------------------- Partnership's Estimated Future Net Revenues. ------------------------------------------- In calculating the present value of the Partnership's Estimated Future Net Revenues the General Partner shall use the petroleum engineering reports and other petroleum reserve information required to be furnished to the Unit Holders pursuant to Section 10.4C of the Agreement. Future gross revenues expected to be derived from the production and sale of the Proved Reserves attributable to the Production Partnership's Producing Properties shall be estimated using either (i) escalations of future sales prices of Hydrocarbons supplied by the General Partner (the "Escalated Case") or (ii) sales prices of Hydrocarbons provided by Regulation S-X adopted by the Securities and Exchange Commission (the "SEC Case"), as the General Partner may determine in its sole discretion. Future net revenues shall be calculated by deducting anticipated expenses (using either (i) escalations of future costs supplied by the General Partner if the General Partner adopted the Escalated Case with respect to future sales prices of Hydrocarbons or (ii) constant future costs if the General Partner adopted the SEC Case with respect to future sales prices of Hydrocarbons) from estimated future gross revenues. The present value of the future net revenues shall be calculated by discounting the estimated future net revenues at either 10% (if the General Partner employed future pricing criteria in accordance with the SEC Case) or that rate per annum which is one percentage point higher than the prime rate of interest of The Chase Manhattan Bank, N.A. or any successor bank, as of the Appraisal Date (if the General Partner employed pricing criteria in accordance with the Escalated Case, provided, however, that such discount rate will not exceed 18% per annum and will be no less than 10% per annum).