Method by Production Scales Sample Clauses

Method by Production Scales. Will be applied according to the Fiscalized Production of Liquid Hydrocarbons and/or Natural Gas Liquids. The Fiscalized Production volumes and the Royalty percentages to be used are the following: Volumes of Fiscalized Production From Block M.B.C.D.* Royalty Expressed in Percentages < 5 5 5-100 5-20 > 100 20 *M.B.C.D. = Thousand barrels per calendar day For a Fiscalized Production of less than 5 M.B.C.D., the applicable percentage royalty is 5%. For a Fiscalized Production greater than 100 M.B.C.D. the applicable percentage royalty is 20%. For a Fiscalized Production in the range from 5 M.B.C.D. to 100 M.B.C.D., the applicable percentage royalty results from interpolation by the linear method. In the case of Fiscalization Production of Natural Gas, the Fiscalized Production levels and the Royalty percentages will be the same as those for Liquid Hydrocarbons, utilizing the following equivalency: Barrels will be equivalent to Natural Gas volume expressed in standard cubic feet divided by a factor of 5,626.
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