Common use of Operating and Maintenance Charges Clause in Contracts

Operating and Maintenance Charges. If a Party takes its share of production in kind under Article 15 (Disposition of Hydrocarbon Production), that Party shall advise the Operator (in writing on or before the tenth day of the month following the month in which the Hydrocarbon production is sold or used off the premises) of the volumes of Hydrocarbons sold or used off the premises and the prices received for those Hydrocarbons so that the Operator may calculate the balance of any Hydrocarbon Recoupment amounts. The calculation of the balance of Hydrocarbon Recoupment shall be accomplished as follows: [Select one of the following.] ☐ The Operator shall prepare the monthly statement of the quantities of oil and gas produced and saved, and the amounts of the proceeds from the sale of all Non-Participating Parties’ relinquished production based on the proceeds received for the Operator’s share of production. When Operator’s payout calculation indicates that payout has occurred, the Operator shall promptly notify all Parties. The Participating Parties shall then provide the Operator all information pertaining to the cumulative proceeds received from the sale of the Non-Participating Parties’ relinquished production. The Operator shall revise the payout date using the actual proceeds from the sale of the Non-Participating Party’s relinquished production and administer subsequent adjustments between the Parties. ☐ Each Party who bears a portion of the Non-Participating Interest Share shall maintain the balance of the Hydrocarbon Recoupment attributable to the Non-Participating Interest Share borne by that Party and shall advise the Operator and Non-Participating Parties when Complete Recoupment has been reached.

Operating and Maintenance Charges. If a Party takes its share of production in kind under Article 15 (Disposition of Hydrocarbon Production), that Party shall advise the Operator (in writing on or before the tenth day of the month following the month in which the Hydrocarbon production is sold or used off the premises) of the volumes of Hydrocarbons sold or used off the premises and the prices received for those Hydrocarbons so that the Operator may calculate the balance of any Hydrocarbon Recoupment amounts. The calculation of the balance of Hydrocarbon Recoupment shall be accomplished as follows: [Select one of the following.] ☐ The Operator shall prepare the monthly statement of the quantities of oil and gas produced and saved, and the amounts of the proceeds from the sale of all Non-Participating Parties’ relinquished production based on the proceeds received for the Operator’s share of production. When Operator’s payout calculation indicates that payout has occurred, the Operator shall promptly notify all Parties. The Participating Parties shall then provide the Operator all information pertaining to the cumulative proceeds received from the sale of the Non-Participating Parties’ relinquished production. The Operator shall revise the payout date using the actual proceeds from the sale of the Non-Participating Party’s relinquished production and administer subsequent adjustments between the Parties. ☐ Each Party who bears a portion of the Non-Participating Interest Share shall maintain the balance of the Hydrocarbon Recoupment attributable to the Non-Participating Interest Share borne by that Party and shall advise the Operator and Non-Participating Parties when Complete Recoupment has been reached.. Multiple Completions Non-Consent Operations shall not be conducted in a well having multiple completions unless:

Operating and Maintenance Charges. If a Party takes its share of production in kind under Article 15 (Disposition of Hydrocarbon Production), that Party shall advise the Operator (in writing on or before the tenth day of the month following the month in which the Hydrocarbon production is sold or used off the premises) of the volumes of Hydrocarbons sold or used off the premises and the prices received for those Hydrocarbons so that the Operator may calculate the balance of any Hydrocarbon Recoupment amounts. The calculation of the balance of Hydrocarbon Recoupment shall be accomplished as follows: [Select one of the following.] ☐  The Operator shall prepare the monthly statement of the quantities of oil and gas produced and saved, and the amounts of the proceeds from the sale of all Non-Participating Parties’ relinquished production based on the proceeds received for the Operator’s share of production. When Operator’s payout calculation indicates that payout has occurred, the Operator shall promptly notify all Parties. The Participating Parties shall then provide the Operator all information pertaining to the cumulative proceeds received from the sale of the Non-Participating Parties’ relinquished production. The Operator shall revise the payout date using the actual proceeds from the sale of the Non-Participating Party’s relinquished production and administer subsequent adjustments between the Parties. ☐  Each Party who bears a portion of the Non-Participating Interest Share shall maintain the balance of the Hydrocarbon Recoupment attributable to the Non-Participating Interest Share borne by that Party and shall advise the Operator and Non-Participating Parties when Complete Recoupment has been reached.