Common use of LEASED SUBSTANCES Clause in Contracts

LEASED SUBSTANCES. 1.1 The word “products” (collectively “leased substances”) as used herein, means thermal energy in the form of hot water, steam, by-products thereof, steam condensates, as well as or electrical and other energy derived, generated or manufactured from water, steam condensates and other by-products derived or obtained from the geothermal leasehold estate. The phrase “sufficient commercial quantities” as used herein, means that amount and character of products extracted from the subsurface geothermal estate which can be produced from the leasehold sufficient for commercial sale thereof, or which would warrant construction of facilities for processing or sale of such product or of products. This mineral lease grants Lessee the right, subject to the terms and conditions set forth herein, to extract the leased substances. In the event that minerals or materials other than the leased substances are discovered during lease operations, Lessee shall promptly notify the Lessor and shall not further disturb or remove the other minerals or materials without Lessor’s written permission. Upon notifying Lessor of such discovery the Lessee shall have preference in making application to the Lessor for a lease or permit covering the unleased minerals or materials that are discovered. There has not been determined to date by judicial decision whether geothermal steam, hot water and other water not associated with chemicals constituting minerals at depths below the surface where potable water may be developed by drilling, constitutes part of the surface estate sold by the State of Utah with a reservation of minerals to the State. Nor has it been determined by scientific discoveries or analysis to date, whether geothermal steam and hot water at depths where the same may be discovered below the surface of the earth, are unassociated with and independent of chemicals constituting minerals of the mineral estate reserved to the State of Utah. The State claims said substances geologically are part of the mineral estate and the surface owner other than the State of Utah in not legally entitled to said resources and substances. In the event the surface owner in said lands sold or conveyed by the State of Utah with reservation of the minerals to the State, shall make any claim to geothermal steam, hot water, and other water, whether by executing a geothermal energy lease or otherwise makes claim, and a dispute arises between the State of Utah and the surface owner as to whether any geothermal steam, hot water or any other substance or source of energy generated below the surface, is nonmineral in character and independent of minerals reserved to the State of Utah, when and if there is an adjudication by the Supreme Court of the State of Utah adjudging such geothermal steam, hot water or any other underground source of energy to be nonmineral in character and independent of and not part of the mineral estate and to belong to or to be part of the surface estate, the State of Utah as Lessor shall refund that portion of the royalty which can be ascertained to have been paid for any substances adjudged to be independent of and not part of the mineral estate, upon ascertainment of what recovered substances is mineral and what is nonmineral and the proportionate value of the materials or substances nonmineral in character, to which the surface owner would be entitled by virtue of such judicial determination. Under no conditions will any rental paid by the lessee to the lessor be refunded.

LEASED SUBSTANCES. 1.1 The word “products” (collectively products”(collectively “leased substances”) as used herein, means thermal energy in the form of hot water, steam, by-products thereof, steam condensates, as well as or electrical and other energy derived, generated or manufactured from water, steam condensates and other by-products derived or obtained from the geothermal leasehold estate. The phrase “sufficient commercial quantities” as used herein, means that amount and character of products extracted from the subsurface geothermal estate which can be produced from the leasehold sufficient for commercial sale thereof, or which would warrant construction of facilities for processing or sale of such product or of products. This mineral lease grants Lessee the right, subject to the terms and conditions set forth herein, to extract the leased substances. In the event that minerals or materials other than the leased substances are discovered during lease operations, Lessee shall promptly notify the Lessor and shall not further disturb or remove the other minerals or materials without Lessor’s written permission. Upon notifying Lessor of such discovery the Lessee shall have preference in making application to the Lessor for a lease or permit covering the unleased minerals or materials that are discovered. There has not been determined to date by judicial decision whether geothermal steam, hot water and other water not associated with chemicals constituting minerals at depths below the surface where potable water may be developed by drilling, constitutes part of the surface estate sold by the State of Utah with a reservation of minerals to the State. Nor has it been determined by scientific discoveries or analysis to date, whether geothermal steam and hot water at depths where the same may be discovered below the surface of the earth, are unassociated with and independent of chemicals constituting minerals of the mineral estate reserved to the State of Utah. The State claims said substances geologically are part of the mineral estate and the surface owner other than the State of Utah in not legally entitled to said resources and substances. In the event the surface owner in said lands sold or conveyed by the State of Utah with reservation of the minerals to the State, shall make any claim to geothermal steam, hot water, and other water, whether by executing a geothermal energy lease or otherwise makes claim, and a dispute arises between the State of Utah and the surface owner as to whether any geothermal steam, hot water or any other substance or source of energy generated below the surface, is nonmineral in character and independent of minerals reserved to the State of Utah, when and if there is an adjudication by the Supreme Court of the State of Utah adjudging such geothermal steam, hot water or any other underground source of energy to be nonmineral in character and independent of and not part of the mineral estate and to belong to or to be part of the surface estate, the State of Utah as Lessor shall refund that portion of the royalty which can be ascertained to have been paid for any substances adjudged to be independent of and not part of the mineral estate, upon ascertainment of what recovered substances is mineral and what is nonmineral and the proportionate value of the materials or substances nonmineral in character, to which the surface owner would be entitled by virtue of such judicial determination. Under no conditions will any rental paid by the lessee to the lessor be refunded.