Failure to Take in Kind. If any PARTY fails to take in kind or dispose of its share of the oil and condensate, OPERATOR may either (a) purchase oil or condensate at OPERATOR'S posted price or, in the absence of a posted price, in no event less than the price prevailing in the area for oil of the same kind, gravity and quality, or (b) sell such oil or condensate to others at the best price obtainable by OPERATOR, subject to revocation by the non-taking PARTY upon thirty (30) days advance notice. All contracts of sale by OPERATOR of any PARTY'S share of oil or condensate shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but in no event shall any contract be for a period in excess of one (1) year. Proceeds of all sales made by OPERATOR pursuant to this Section shall be paid to the PARTIES entitled thereto. Unless required by governmental authority or judicial process, no PARTY shall be forced to share an available market with any non-taking PARTY.
Failure to Take in Kind. If any Party fails to take in kind or dispose of its share of the gas, oil and/or condensate produced from a Prospect Area, at the request of such Party, the Operator will market that Party's share of production from the Contract Area ratably with Operator's own production in a manner maintaining as near as practicable a zero gas imbalance at the end of each production month. With regard to oil and/or condensate, Operator may either (a) purchase the non-taking Party's share of the oil and/or condensate production at the Operator's, or a third party's posted price or, in the absence of a posted price or a disagreement as to Operator's or the third party's posted price, at the price no less than the price prevailing in the area for oil and/or condensate of similar kind subject to adjustments for gravity, quality, and less transportation to market, or, with regard to gas, oil and/or condensate, (b) sell such gas, oil and/or condensate to others under the same terms and conditions as Operator is selling its own share of production (including any applicable taxes, fees and costs deducted by the purchaser or transporter or paid to third parties for marketing arrangements and consultation), provided that if the production is sold to an affiliate of Operator the price received shall not be less than the price prevailing in the area for gas, oil, or condensate of the same kind, gravity and quality. All contracts of sale by Operator of any Party's share of gas, oil, or condensate shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but in no event shall any contract be for a period in excess of three (3) months. Proceeds of all sales made by Operator pursuant to this Section shall be paid to the Parties entitled thereto.
Failure to Take in Kind. Should any party fail to take in kind or separately dispose of its share of Production, the following provisions shall apply:
Failure to Take in Kind. At and during such time or times as Unit Operator is selling any other Party's proportionate part of the Production, as set forth in Paragraph 6.5 hereof, Unit Operator shall pay or arrange for the payment of all production, severance, gathering, sales or similar taxes imposed upon such part.
Failure to Take in Kind. If any Party fails to take in kind and dispose of its share of the oil and/or condensate, Operator shall have the option, but not the obligation, to either (a) purchase oil and/or condensate at Operator's posted price for liquids of the same kind, gravity, and quality in the field where the Leases are located or, in the absence of such posted price, at the price prevailing in the field or area for oil and/or condensate of the same kind, gravity, and quality, or (b) sell such oil and/or condensate to others under commercially reasonable terms negotiated by Operator in good faith , subject to revocation at will by the non-taking Party. All contracts of sale by Operator of any Party's share of oil and/or condensate shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but in no event shall any contract be for a period in excess of one hundred and eighty (180) days. Proceeds of all sales made by Operator pursuant to this Section shall be paid to the Parties entitled thereto. Unless required by governmental authority or judicial process, no Party shall be forced to share an available market with any non-taking Party. If any Party fails to take in kind or dispose of its share of gas, such gas shall be accounted for in accordance with the provisions of Exhibit "D", Gas Balancing Agreement, attached hereto and made a part hereof.
Failure to Take in Kind. Unless otherwise agreed to by Royalty Payor and Royalty Owner, if and only if Royalty Owner elects to take its Overriding Royalty share of Petroleum Substances in kind, but fails to (or is deemed to have failed to) take possession thereof at the Point of Sale, Royalty Payor shall take possession of such Petroleum Substances as agent of Royalty Owner and shall dispose of those Petroleum Substances by:
(i) selling those Petroleum Substances at Market Price or such lower price as is reasonable in the circumstances, in such case only, to the Point of Sale in an amount not to exceed the reasonable costs and expenses incurred by Royalty Owner to bring those Petroleum Substances to the Point of Sale; or
(ii) purchasing those Petroleum Substances for Royalty Payor's own account (or the account of an Affiliate) at Market Price and accounting to Royalty Owner therefor, and in either case Royalty Payor shall be entitled to, and paid, a marketing fee equal to 2.5% of the price received.
Failure to Take in Kind. (a) If Producer fails to take or otherwise adequately dispose of Producer Outlet Substances, Operator may, at its sole option, so long as such failure continues, for the account and at the expense of Producer, sell on the open market or, if a purchaser is not available, store Producer Outlet Substances or cease to accept Producer Inlet Substances.
(b) In the event of a failure to take in kind and a subsequent sale by Operator of Producer Outlet Substances, Operator shall remit to Producer within a reasonable period of time the proceeds of such sale less all direct costs of the sale and less a marketing charge as specified in Exhibit “C”.
(c) The authority of Operator to enter into contracts for the sale of Producer Outlet Substances shall be restricted to contracts that are for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but not in excess of a one Month period. Subject to such contracts, Producer may commence or resume taking Producer Outlet Substances in kind at any time if it has given notice to Operator of at least thirty
Failure to Take in Kind. If any Party fails to take in kind or dispose of its share of the oil and gas, Operator may sell such oil or gas to others at the best reasonable price obtainable by Operator, subject to revocation at will by the non-taking Party upon thirty (30) days advance written notice. All contracts of sale by Operator of any Party's share of oil or gas shall be only for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but in no event shall any contract be for a period in excess of one (1) year. Operator will collect all proceeds from the sales of Owner's Gas made each month hereunder and will pay to the Parties such proceeds, net of deductions for or payments on account of (i) all severance, gross production and other similar taxes; (ii) all royalties and overriding royalties, (iii) Operator's marketing fee of $.04 per mmbtu and $.50 per bbl for crude, condensate and retrograde, (iv) all post-production costs, including without limitation, gathering, processing, compression, dehydration, treating, blending and transportation costs and (v) pipeline or gathering imbalance penalties. The undersigned agrees to hold Operator harmless from any and all claims made by governmental authorities in connection with taxes attributable to the undersigned's share of production, and all claims made by owners of royalty, overriding royalty, and other non-participating interest attributable to the undersigned's share of production. Proceeds of all sales made by Operator pursuant to this Section shall be paid to the Parties entitled thereto.
Failure to Take in Kind. If Producer fails to take or otherwise adequately dispose of its share of Residue Gas or Plant Products, Operator may, so long as such failure continues, for the account and at the expense of Producer, sell on the open market or, if a purchaser is not available, store Producer's share of Residue Gas or Plant Products or, at Operator's option, cease to accept delivery of Producer's Gas. In the event of a sale by Operator of Producer's share of Residue Gas or Plant Products, Operator shall remit to Producer within a reasonable period of time the proceeds of such sale less all direct costs of the sale and less a marketing charge of 2% of net revenue (after the processing charges payable hereunder). The authority of Operator to enter into contracts for the sale of Producer's share of Residue Gas or Plant Products shall be restricted to contracts that are for such reasonable periods of time as are consistent with the minimum needs of the industry under the circumstances, but not in excess of a one (1) month period. Subject to such contracts, Producer may commence or resume taking its share of Residue Gas or Plant Products in kind at any time if it has given notice to Operator of at least thirty (30) days prior to the expiration of the current sales contract that it intends to take its share in kind.
Failure to Take in Kind. If a Participant fails to take in kind or separately dispose of its share of Products as required by Section 11.1 after 10 days notice by the Manager, the Manager may either charge the delinquent Participant 150% of the cost and expense of storing such Products or the Manager may act as the delinquent Participant's agent to have an independent contractor remove the Products and store them for the delinquent Participant's account.
