Common use of Distribution of Production Clause in Contracts

Distribution of Production. All oil in storage above the pipeline connection (or less tank bottoms) or gas beyond the meters which was owned by Seller at the Effective Time shall be credited to Seller, less applicable royalties and severance, production and excise Taxes. For Seller-operated Assets, Seller has gauged the oil in storage above the pipeline connection (or less tank bottoms) and read all gas meter charts as of the Effective Time. For Seller non-operated Assets, the quantity of such marketable oil in storage or gas beyond the meters that was owned by Seller as of the Effective Time shall be determined on the same basis as that used for Seller-operated Assets based on operator reports or applicable state regulatory agency production reports or records. As part of the Closing Settlement Statement, the price for such oil in storage that was owned by Seller as of the Effective Time shall be at the price that Seller has contracted to sell the oil on the Effective Time. If there is no such price, the price shall be the average of the two highest prices that are posted at the Effective Time (plus any premium) by other purchasing companies, as determined by Seller in the field or locality where the Assets are located for oil of like grade and gravity. Title to such oil in storage shall pass to Buyer as of the Effective Time, and an upward adjustment on account of such oil determined and calculated in accordance with this Section 13.1 shall be made to the Base Purchase Price due at Closing, less applicable royalties and severance, production and excise Taxes.

Distribution of Production. All marketable oil in storage above the pipeline connection (or less tank bottoms) in tanks or marketable gas beyond the meters which was owned by Seller at the Effective Time shall be credited to SellerSellers, less applicable royalties royalties, severance or production Taxes and severanceany other costs and expenses paid or assumed by Buyer that are directly incurred with respect to such oil and that are not otherwise reimbursed to Buyer by a third Person, production and excise Taxesexcluding the effects of any futures, options, swap or other derivatives. For Seller-operated Assets, Seller has Sellers have gauged the oil in storage above the pipeline connection (or less tank bottoms) and read all gas meter charts as of the Effective Time. For Seller non-operated Assets, the quantity of such marketable oil in storage or gas beyond the meters that was owned by Seller as of the Effective Time shall be determined on the same basis as that used for Seller-operated Assets based on operator reports or applicable state regulatory agency production reports or records. As part of the Closing Settlement Statement, the price for such oil in storage that was owned by Seller as of the Effective Time shall be at the price that Seller has Sellers have contracted to sell the oil on the Effective Time. If there is no such price, the price shall be the average of the two highest prices that are posted at the Effective Time (plus any premium) by other purchasing companies, as determined by Seller Sellers in the field or locality where the Assets are located for oil of like grade and gravity. Title to such the oil in storage for both Seller-operated and Seller non-operated Assets shall pass to Buyer as of the Effective Time, and an upward adjustment on account of such oil determined and calculated in accordance with this Section 13.1 shall be made to the Base Purchase Price due at Closing, less applicable royalties and severance, production and excise TaxesClosing pursuant to the foregoing.

Distribution of Production. All oil in storage above the storage, including Seller’s tankage and pipeline connection (or less tank bottoms) volumes, or gas beyond the meters which was owned by Seller at the Effective Time shall be credited to Seller, less applicable royalties and severance, production and excise severance Taxes. For Seller-operated Assets, Seller has gauged the oil in storage above the pipeline connection (or less tank bottoms) and read all gas meter charts as of the Effective Time. For Seller non-operated Assets, the quantity of such marketable oil in storage or gas beyond the meters that was owned by Seller as of the Effective Time shall be determined on the same basis as that used for Seller-operated Assets based on operator reports or applicable state regulatory agency production reports or records. As part of the Closing Settlement Statement, the price for such oil in storage that was owned by Seller as of the Effective Time shall be at the price that Seller has contracted to sell the oil on the Effective Time, taking into account applicable royalties and severance Taxes. If there is no such price, the price shall be the average of the two highest prices that are posted at the Effective Time (plus any premium) by other purchasing companies, as determined by Seller in the field or locality where the Assets Interests are located for oil of like grade and gravity. Title to such the oil in storage for both Seller-operated and Seller non-operated Assets shall pass to Buyer upon Closing, effective as of the Effective Time, and an upward adjustment on account of such oil determined and calculated in accordance with this Section 13.1 shall be made to the Base Purchase Price due at Closing, less applicable royalties and severance, production and excise severance Taxes.