Common use of Income Tax Election Clause in Contracts

Income Tax Election. Notwithstanding any other provision herein, the rights and liabilities hereunder are several and not joint or collective and this Agreement shall not constitute a partnership. If for federal income tax purposes this Agreement and the operations or activity hereunder are regarded as a partnership, then for federal income tax purposes each party elects to be excluded from the application of all provisions of Subchapter K, Chapter 1, Subtitle A, Internal Revenue Code of 1986 as amended ("Code"), as permitted and authorized by Section 761 of said Code and the regulations promulgated thereunder. Texaco is hereby authorized and directed to execute on behalf of each party such evidence of this election as may be required, including specifically, but not by way of limitation, all of the returns, statements and data required by law. Should there be any requirement that each party further evidence this election, each party agrees to execute such documents and furnish such other evidence as may be required. Each party further agrees not to give any notices or take any other action inconsistent with the election made hereby. If any present or future income tax law of the United States or any state contains provisions similar to those contained in Subchapter K, Chapter 1, Subtitle "A" of the Code, under which an election similar to that provided by Section 761 of said Subchapter K is permitted, each party agrees to make such election as may be permitted by such laws. In making this election, each party states that the income derived by it from the operations or activities under this Agreement can be adequately determined without the computation of partnership taxable income. The provisions of this Article 15 shall not affect or demise the Parties rights and obligations under any Farmout Agreement or Sublease entered into pursuant to this Agreement. ARTICLE 16

Income Tax Election. Notwithstanding any other provision herein, the rights and liabilities hereunder are several and not joint or collective and this Agreement shall not constitute a partnership. If for federal income tax purposes this Agreement and the operations or activity hereunder are regarded as a partnership, then for federal income tax purposes each party elects to be excluded from the application of all provisions of Subchapter K, Chapter 1, Subtitle A, Internal Revenue Code of 1986 as amended ("Code"), as permitted and authorized by Section 761 of said Code and the regulations promulgated thereunder. Texaco Chevron is hereby authorized and directed to execute on behalf of each party Party such evidence of this election as may be required, including specifically, but not by way of limitation, all of the returns, statements and data required by law. Should there be any requirement that each party Party further evidence this election, each party Party agrees to execute such documents and furnish such other evidence as may be required. Each party Party further agrees not to give any notices or take any other action inconsistent with the election made hereby. If any present or future income tax law of the United States or any state contains provisions similar to those contained in Subchapter K, Chapter 1, Subtitle "A" of the Code, under which an election similar to that provided by Section 761 of said Subchapter K is permitted, each party Party agrees to make such election as may be permitted by such laws. In making this election, each party Party states that the income derived by it from the operations or activities under this Agreement can be adequately determined without the computation of partnership taxable income. The provisions of this Article 15 14 shall not affect or demise the Parties rights and obligations under any Farmout Operating Agreement or Sublease entered into pursuant to this Agreement. ARTICLE 16Notwithstanding anything herein to the contrary under this Article 14, for purposes of operations to be conducted under the applicable Operating Agreements, the Parties hereto agree to use that form of tax partnership as shown on Exhibit "F" of Exhibit "E."

Income Tax Election. Notwithstanding any other provision herein, the rights and liabilities hereunder are several and not joint or collective and this Agreement shall not constitute a partnership. If for federal income tax purposes this Agreement and the operations or activity hereunder are regarded as a partnership, then for federal income tax purposes each party elects to be excluded from the application of all provisions of Subchapter K, Chapter 1, . Subtitle A, Internal Revenue Code of 1986 as amended ("Code"), as permitted and authorized by Section 761 of said Code and the regulations promulgated thereunder. Texaco Chevron is hereby authorized and directed to execute on behalf of each party Party such evidence of this election as may be required, including specifically, but not by way of limitation, all of the returns, statements and data required by law. Should there be any requirement that each party Party further evidence this election, each party Party agrees to execute such documents and furnish such other evidence as may be required. Each party Party further agrees not to give any notices or take any other action inconsistent with the election made hereby. If any present or future income tax law of the United States or any state contains provisions similar to those contained in Subchapter K, Chapter 1, Subtitle "A" of the Code, under which an election similar to that provided by Section 761 of said Subchapter K is permitted, each party Party agrees to make such election as may be permitted by such laws. In making this election, each party Party states that the income derived by it from the operations or activities under this Agreement can be adequately determined without the computation of partnership taxable income. The provisions of this Article 15 14 shall not affect or demise the Parties rights and obligations under any Farmout Operating Agreement or Sublease entered into pursuant to this Agreement. ARTICLE 16Notwithstanding anything herein to the contrary under this Article 14, for purposes of operations to be conducted under the applicable Operating Agreements, the Parties hereto agree to use that form of tax partnership as shown on Exhibit "F" of Exhibit "E."

Income Tax Election. Notwithstanding any other provision herein, provisions herein that the rights and liabilities hereunder are several and not joint or collective and collective, or that this Agreement and operations hereunder shall not constitute a partnership. If , if for federal income tax purposes this Agreement and the operations or activity hereunder are regarded as a partnership, then for federal income tax purposes each party Person hereby affected elects to be excluded from the application of all of the provisions of Subchapter K, Chapter 1l, Subtitle A, A of the Internal Revenue Code of 1986 1986, as amended ("Code")amended, as permitted and authorized by Section 761 of said the Code and the regulations promulgated thereunder. Texaco Unit Operator is hereby authorized and directed to execute on behalf of each party Person hereby affected such evidence of this election as may be requiredrequired by the Secretary of the Treasury of the United States or the federal Internal Revenue Service, including specifically, but not by way of limitation, all of the returns, statements statements, and the data required by lawFederal Regulations 1.761-l (a) and 2. Should there be any requirement that each party Person hereby affected give further evidence of this election, each party agrees to such Person shall execute such documents and furnish such other evidence as may be requiredrequired by the federal Internal Revenue Service or as may be necessary to evidence this election. Each party further agrees not to No such Person shall give any notices or take any other action inconsistent with the election made hereby. If any present or future income tax laws of the state or states in which the Unit Area is located or any future income tax law of the United States or any state contains contain provisions similar to those contained in Subchapter K, Chapter 1, Subtitle "A" , of the CodeInternal Revenue Code of l986, as amended, under which an election similar to that provided by Section 761 of said Subchapter K the Code is permitted, each party agrees to make Person affected hereby makes such election as may be permitted or required by such laws. In making this the foregoing election, each party such Person states that the income derived by it such Person from the operations or activities under this Agreement Unit Operations can be adequately determined without the computation of partnership taxable income. The provisions of this Article 15 shall not affect or demise the Parties rights and obligations under any Farmout Agreement or Sublease entered into pursuant to this Agreement. ARTICLE 16.