Common use of Effective Time; Proration of Costs and Revenues Clause in Contracts

Effective Time; Proration of Costs and Revenues. (a) Sabine shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets after 7:01 a.m., Central Time, on July 1, 2014 (the “Effective Time”), and all products and proceeds attributable thereto and (ii) all other income, proceeds, receipts and credits earned with respect to the Assets after the Effective Time, and Sabine shall be responsible for all Property Costs incurred or attributable to the period after the Effective Time. (b) Flatonia shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets prior to and at the Effective Time, and all products and proceeds attributable thereto and (ii) all other income, proceeds, receipts and credits earned with respect to the Assets prior to and at the Effective Time, and Flatonia shall be responsible for, and entitled to any refunds with respect or attributable to (including, for the avoidance of doubt, any Tax benefit (including refunds, credits or rebates), any reduction in severance Taxes that may be realized after the Effective Time but that results from payments or production for periods prior to and at the Effective Time), and all Property Costs incurred or attributable to the period prior to and at the Effective Time. (c) Should Sabine receive after the Closing any proceeds or other income to which Flatonia is entitled under Section 2.4(b), Sabine shall fully disclose, account for and promptly remit the same to Flatonia. If, after the Closing, Flatonia receives any proceeds or other income with respect to the Assets to which Sabine is entitled under Section 2.4(a), Flatonia shall fully disclose, account for, and promptly remit same to Sabine. (d) Should Sabine pay after the Closing any Property Costs for which Flatonia is responsible under Section 2.4(b), Flatonia shall reimburse Sabine promptly after receipt from Sabine of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. Should Flatonia pay after the Closing any Property Costs for which Sabine is responsible under Section 2.4(a), Sabine shall reimburse Flatonia promptly after receipt from Flatonia of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. (e) Notwithstanding the foregoing, Flatonia shall have no further entitlement to amounts earned from the sale of Hydrocarbons produced from or attributable to the Assets and other income earned with respect to the Assets and no further responsibility for Property Costs (other than Property Taxes specifically allocated to Flatonia as provided in Article 14) incurred with respect to the Assets following the final determination and payment of the Cash Settlement in accordance with Section 11.5(b). (f) Right-of-way fees, insurance premiums and other Property Costs (other than Property Taxes) that are paid periodically shall be prorated based on the number of days in the applicable period falling before and the number of days in the applicable period falling on or after the day of the Effective Time. Property Taxes shall be prorated as set forth in Section 14.2. In each case, Sabine shall be responsible for the portion allocated to the period after the Effective Time, and Flatonia shall be responsible for the portion allocated to the period before the Effective Time.

Effective Time; Proration of Costs and Revenues. (a) Sabine Possession of the Assets shall be transferred from Seller to Purchaser at the Closing, but certain financial benefits and burdens of the Assets shall be transferred effective as of April 1, 2007 (the “Effective Date”). (b) Purchaser shall be entitled to (i) all hydrocarbon production of Hydrocarbons from or attributable to the Assets Leases, Units and Xxxxx at and after 7:01 a.m., Central Time, on July 1, 2014 the Effective Date (the “Effective Time”), and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets at or after the Effective TimeDate, and Sabine shall be responsible for (and entitled to any refunds with respect to) all Property Costs incurred or attributable to the period at and after the Effective Time. (b) Flatonia Date. Seller shall be entitled to (i) all Hydrocarbon production of Hydrocarbons from or attributable to the Assets Leases, Units and Xxxxx prior to and at the Effective Time, Date (and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets prior to and at the Effective TimeDate, and Flatonia shall be responsible for, for (and entitled to any refunds with respect or attributable to (including, for the avoidance of doubt, any Tax benefit (including refunds, credits or rebates), any reduction in severance Taxes that may be realized after the Effective Time but that results from payments or production for periods prior to and at the Effective Time), and to) all Property Costs incurred or prior to the Effective Date. “Earned” and "incurred”, as used in this Agreement, shall be interpreted in accordance with generally accepted accounting principles and Council of Petroleum Accountants Society (XXXXX) standards. “Property Costs” means all costs attributable to the period prior to ownership and at operation of the Effective Time. Assets (cincluding without limitation costs of insurance and ad valorem, property, severance, hydrocarbon production and similar taxes based upon or measured by the ownership or operation of the Assets or the production of hydrocarbons therefrom, but excluding any other taxes) Should Sabine receive after and capital expenditures incurred in the Closing any proceeds ownership and operation of the Assets in the ordinary course of business and, where applicable, in accordance with the relevant operating or other income to which Flatonia is entitled under Section 2.4(b)unit agreement, Sabine shall fully discloseif any, account and customary and usual overhead costs for and promptly remit similar operations in the same to Flatonia. If, after the Closing, Flatonia receives any proceeds or other income with respect area charged to the Assets to which Sabine is entitled under Section 2.4(a), Flatonia shall fully disclose, account for, and promptly remit same to Sabine. (d) Should Sabine pay after the Closing any Property Costs for which Flatonia is responsible under Section 2.4(b), Flatonia shall reimburse Sabine promptly after receipt from Sabine of an invoice, accompanied by copies of the relevant vendor operating agreement or other invoice and proof of paymentunit agreement, with respect if any, but excluding any costs incurred to such Property Costscure any Title Defects pursuant to Section 3.5 (b) below. Should Flatonia pay after the Closing any Property Costs for which Sabine is responsible under Section 2.4(a)Taxes, Sabine shall reimburse Flatonia promptly after receipt from Flatonia of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. (e) Notwithstanding the foregoing, Flatonia shall have no further entitlement to amounts earned from the sale of Hydrocarbons produced from or attributable to the Assets and other income earned with respect to the Assets and no further responsibility for Property Costs (other than Property Taxes specifically allocated to Flatonia as provided in Article 14) incurred with respect to the Assets following the final determination and payment of the Cash Settlement in accordance with Section 11.5(b). (f) Rightright-of-way fees, insurance premiums and other Property Costs (other than Property Taxes) that are paid periodically shall be prorated based on the number of days in the applicable period falling before and the number of days in the applicable period falling on at or after the day of the Effective Time. Property Taxes Date, except that hydrocarbon production, severance and similar taxes shall be prorated based on the number of units actually produced, purchased or sold or proceeds of sale, as set forth in Section 14.2applicable, before, and at or after, the Effective Date. For clarification, the date an item or work is ordered is not the date of a pre-Effective Date transaction for settlement purposes, but rather the date on which the item ordered is delivered to the job site, or the date on which the work ordered is performed, shall be the relevant date. In each case, Sabine Purchaser shall be responsible for the portion allocated to the period at and after the Effective Time, Date and Flatonia Seller shall be responsible for the portion allocated to the period before the Effective TimeDate.

Effective Time; Proration of Costs and Revenues. (a) Sabine Ownership and possession of the Assets shall be entitled transferred from Seller to (i) all production of Hydrocarbons from or attributable Buyers at the Closing, but certain financial benefits and burdens with respect to the Assets after 7:01 a.m.shall be transferred effective as of 12:00 A.M., Central Mountain Standard Time, on July February 1, 2014 2019 (the “Effective Time”), and as described below. (b) Buyers shall be entitled to all products and proceeds attributable thereto and (ii) all other income, proceeds, receipts and credits earned with respect to the Assets at or after the Effective Time, and Sabine shall be responsible for (and entitled to any refunds with respect to) all Property Costs incurred or attributable to the period periods from and after the Effective Time. (b) Flatonia . Seller shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets prior to and at the Effective Time, and all products and proceeds attributable thereto and (ii) all other income, proceeds, receipts and credits earned with respect to the Assets prior to and at the Effective Time, and Flatonia shall be responsible for, for (and entitled to any refunds with respect or to) all Property Costs attributable to (including, for the avoidance of doubt, any Tax benefit (including refunds, credits or rebates), any reduction in severance Taxes that may be realized after the Effective Time but that results from payments or production for periods prior to and at the Effective Time). “Earned” and “attributable to,” as used in this Agreement, shall be interpreted in accordance with GAAP, but for purposes of this Section 2.4, determination of whether income, proceeds, receipts and all Property Costs incurred credits with respect to any sales of any materials or water related to or obtained from the Assets are earned or attributable to the period prior to and at before or after the Effective Time. (c) Should Sabine receive after Time shall be based on when the Closing materials or water is delivered. For clarification, the date a contract for the sale of any proceeds materials or other income to which Flatonia is entitled under Section 2.4(b), Sabine shall fully disclose, account for and promptly remit the same to Flatonia. If, after the Closing, Flatonia receives any proceeds or other income with respect water related to the Assets to which Sabine is entitled under Section 2.4(a), Flatonia shall fully disclose, account for, and promptly remit same to Sabine. (d) Should Sabine pay after not the Closing any Property Costs date of a pre-Effective Time transaction for which Flatonia is responsible under Section 2.4(b), Flatonia shall reimburse Sabine promptly after receipt from Sabine of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such settlement purposes. “Property Costs. Should Flatonia pay after the Closing any Property Costs for which Sabine is responsible under Section 2.4(a), Sabine shall reimburse Flatonia promptly after receipt from Flatonia of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. (e) Notwithstanding the foregoing, Flatonia shall have no further entitlement to amounts earned from the sale of Hydrocarbons produced from or ” means all costs attributable to the ownership and operation of the Assets including, without limitation, costs of insurance and ad valorem, property, and similar Taxes based upon or measured by the acquisition, ownership or operation of the Assets (but excluding any other income earned with respect income, franchise or similar Taxes), but for purposes of this Section 2.4, determination of whether Property Costs are attributable to the Assets and no further responsibility period before or after the Effective Time shall be based on when services are rendered, when the goods are delivered or when the work is performed. For clarification, the date an item or work is ordered is not the date of a pre-Effective Time transaction for Property Costs (other than Property Taxes specifically allocated to Flatonia as provided in Article 14) incurred with respect settlement purposes, but rather the date on which the item ordered is delivered to the Assets following job site, or the final determination and payment date on which the work ordered is performed, shall be the relevant date. Seller shall provide to Buyers, no later than 5 Business Days prior to the Scheduled Closing Date, all data necessary to support any estimated allocation for purposes of establishing the Cash Settlement in accordance with adjustment to the Purchase Price pursuant to Section 11.5(b). (f) Right3.2 hereof that will be used to determine the Closing Payment. Taxes, right-of-way fees, insurance premiums and other Property Costs (other than Property Taxes) that are paid periodically shall be prorated based on the number of days in the applicable period falling before and the number of days in the applicable period falling on at or after the day of the Effective Time. Property Taxes shall be prorated as set forth in Section 14.2. In each case, Sabine Buyers shall be responsible for the portion allocated to the period at and after the Effective Time, Time and Flatonia Seller shall be responsible for the portion allocated to the period before the Effective Time.

Effective Time; Proration of Costs and Revenues. (a) Sabine Possession of the Transferred Interests shall be transferred from Sellers to Buyers at the Closing, but the title to and risk of loss in and certain financial benefits and obligations of the Transferred Interest shall be transferred from Sellers to Buyers effective as of January 1, 2018, at 7:00 a.m., Central Time Zone (the “Effective Time”). (b) Buyers shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets Transferred Interest at and after 7:01 a.m., Central Time, on July 1, 2014 the Effective Time (the “Effective Time”), and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets Transferred Interest at or after the Effective Time, Time and Sabine shall be responsible for (and entitled to any refunds with respect to) all Property Costs incurred or attributable to the period at and after the Effective Time. (bc) Flatonia Sellers shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets Transferred Interest prior to and at the Effective Time, Time (and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets Transferred Interest prior to and at the Effective Time, Time and Flatonia shall be responsible for, for (and entitled to any refunds with respect or attributable to (including, for the avoidance of doubt, any Tax benefit (including refunds, credits or rebates), any reduction in severance Taxes that may be realized after the Effective Time but that results from payments or production for periods prior to and at the Effective Time), and to) all Property Costs incurred or attributable to the period prior to and at the Effective Time. (cd) Should Sabine a Buyer receive after the Closing any proceeds or other income to which Flatonia any Seller is entitled under Section 2.4(b1.9(c), Sabine such Buyer shall fully disclose, account for and promptly remit the same to Flatoniasuch Seller. If, Should a Seller receive after the Closing, Flatonia receives Closing any proceeds or other income with respect to the Assets Transferred Interests to which Sabine a Buyer is entitled under pursuant to Section 2.4(a1.9(b), Flatonia such Seller shall fully disclose, account for, and promptly remit same to Sabinesuch Buyer. (de) Should Sabine a Buyer pay after the Closing any Property Costs for which Flatonia a Seller is responsible under Section 2.4(b1.9(c), Flatonia such Seller shall reimburse Sabine such Buyer promptly after receipt from Sabine of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. Should Flatonia a Seller pay after the Closing any Property Costs for which Sabine a Buyer is responsible under Section 2.4(a1.9(b), Sabine such Buyer shall reimburse Flatonia such Seller promptly after receipt from Flatonia of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. (ef) Notwithstanding the foregoing, Flatonia Sellers shall have no further entitlement to amounts earned from the sale of Hydrocarbons produced from or attributable to the Assets Transferred Interest and other income earned with respect to the Assets Transferred Interest and no further responsibility for Property Costs (other than Property Taxes specifically allocated to Flatonia as provided in Article 14) incurred with respect to the Assets Transferred Interest following the final determination and payment of the Cash Settlement Adjusted Purchase Price in accordance with Section 11.5(b1.7(b). (f) Right-of-way fees, insurance premiums and other Property Costs (other than Property Taxes) that are paid periodically shall be prorated based on the number of days in the applicable period falling before and the number of days in the applicable period falling on or after the day of the Effective Time. Property Taxes shall be prorated as set forth in Section 14.2. In each case, Sabine shall be responsible for the portion allocated to the period after the Effective Time, and Flatonia shall be responsible for the portion allocated to the period before the Effective Time.

Effective Time; Proration of Costs and Revenues. (a) Sabine Buyer shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets Leases, Units and Xxxxx at and after 7:01 a.m., Central Time, on July 1, 2014 the Effective Time (the “Effective Time”), and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets at or after the Effective Time, Time and Sabine shall be responsible for (and entitled to any refunds with respect to) all Property Costs incurred or attributable to the period at and after the Effective Time. (b) Flatonia Except for the Hydrocarbons described in Section 2.1(l) for which adjustment to the Purchase Price was made pursuant to Section 3.3(a)(i), Sellers shall be entitled to (i) all production of Hydrocarbons from or attributable to the Assets Leases, Units and Xxxxx prior to and at the Effective Time, Time (and all products and proceeds attributable thereto thereto), and (ii) to all other income, proceeds, receipts and credits earned with respect to the Assets prior to and at the Effective Time, Time and Flatonia shall be responsible for, for (and entitled to any refunds with respect or attributable to (including, for the avoidance of doubt, any Tax benefit (including refunds, credits or rebates), any reduction in severance Taxes that may be realized after the Effective Time but that results from payments or production for periods prior to and at the Effective Time), and to) all Property Costs incurred or attributable to the period prior to and at the Effective Time. (c) Should Sabine Buyer receive within 12 months after the Closing any proceeds or other income to which Flatonia is Sellers are entitled under Section 2.4(b), Sabine Buyer shall fully disclose, account for and promptly remit the same to FlatoniaSellers. If, within 12 months after the Closing, Flatonia receives Sellers receive any proceeds or other income with respect to the Assets to which Sabine Buyer is entitled under pursuant to Section 2.4(a), Flatonia Sellers shall fully disclose, account for, and promptly remit same to SabineBuyer. (d) Should Sabine Buyer pay within 12 months after the Closing any Property Costs for which Flatonia is Sellers are responsible under Section 2.4(b), Flatonia Sellers shall reimburse Sabine Buyer promptly after receipt from Sabine of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs. Should Flatonia Sellers pay within 12 months after the Closing any Property Costs for which Sabine Buyer is responsible under Section 2.4(a), Sabine Buyer shall reimburse Flatonia Sellers promptly after receipt from Flatonia of an invoice, accompanied by copies of the relevant vendor or other invoice and proof of payment, with respect to such Property Costs; provided that prior to paying the same, Sellers shall have notified Buyer of the proposed payment and obtained Buyer’s consent to such payment which consent shall not be unreasonably withheld. Upon request, Sellers or Buyer, as the case may be, will make available for review, during normal business hours, the relevant vendor or other invoices supporting their request for reimbursement, together with proof of their payment thereof. (e) Notwithstanding the foregoing, Flatonia shall have no further entitlement to amounts earned from the sale of Hydrocarbons produced from or attributable to the Assets and other income earned with respect to the Assets and no further responsibility for Property Costs (other than Property Taxes specifically allocated to Flatonia as provided in Article 14) incurred with respect to the Assets following the final determination and payment of the Cash Settlement in accordance with Section 11.5(b). (f) Right-of-way fees, insurance premiums and other Property Costs (other than Property Taxes) that are paid periodically shall be prorated based on the number of days in the applicable period falling before before, and the number of days in the applicable period falling on or after the day of after, the Effective Time. Property Taxes shall be prorated as set forth in Section 14.2. In each case, Sabine Buyer shall be responsible for the portion allocated to the period on and after the Effective Time, Time and Flatonia Sellers shall be responsible for the portion allocated to the period before the Effective Time. Notwithstanding the foregoing, for the avoidance of doubt, Buyer shall not be obligated to reimburse Sellers for any payment of delayed rental, shut-in royalties and other lease-maintenance costs incurred or paid prior to the Effective Time.