Common use of Non-electric Commercial Production Clause in Contracts

Non-electric Commercial Production. The Royalty rate for any Geothermal Resources or associated energy consumed, processed, produced, sold, shipped or utilized for non-electric commercial purposes shall be ten percent (10%) of the gross proceeds from the sale or use of such Geothermal Resources. This Section shall not apply to Geothermal Resources which are waste Geothermal Resources used in good faith by Lessee primarily for the production of electrical energy and for which the Royalty is paid in accordance with Section 4.2.1.