Common use of Interests of Parties in Costs and Production Clause in Contracts

Interests of Parties in Costs and Production. Unless changed by other provisions, all costs and liabilities incurred in operations under this Agreement shall be borne and paid, and all equipment and materials acquired in operations on the Contract Area shall be owned by the parties as their interests are set forth in Exhibit “A” as it may be amended from time-to-time and in accordance with the terms of the Participation Agreement. In the same manner, the parties shall also own all production of Oil and Gas from the Contract Area subject, however, to the payment of royalties and other burdens on production as described hereafter. Each party shall pay or deliver, or cause to be paid or delivered, all burdens on its share of the production from the Contract Area as indicated in Exhibit “A” hereto and shall indemnify, defend and hold the other parties free from any liability therefor. Each party so burdened shall assume and alone bear all such excess obligations and shall indemnify, defend and hold the other parties hereto harmless from any and all claims attributable to such excess burden. Nothing contained in this Article III.A. shall be deemed an assignment or cross-assignment of interests covered hereby.