Overriding Royalty Interest. MI agrees to convey to the Agent, for the pro rata benefit of the Lenders based on their respective Percentage Shares at the time of receipt by the Agent of amounts due pursuant to the Assignment of ORRI, on the Closing Date and pursuant to the Assignment of ORRI, the Lenders ORRI. The following provisions are applicable to the Lenders ORRI, notwithstanding the fact that such provisions do not appear in the Assignment of ORRI:
(a) upon the one year anniversary of the Closing Date and if during the term of this Agreement up to such point in time no Event of Default has occurred, one-half of the Lenders ORRI shall revert to MI;
(b) following the twelve month anniversary of the final payoff of the Loan, but only if such final payoff occurs as scheduled herein, all scheduled reductions of the Loan Balance have been paid when due hereunder and all payments of interest due hereunder have been paid when due hereunder, one-half of the portion of the Lenders ORRI held by the Agent at the Maturity Date shall revert to MI; and
(c) MI shall have the right (exercisable by written notice to the Agent), but not the obligation, and only if such final payoff occurs as scheduled herein, all scheduled reductions of the Loan Balance have been paid when due hereunder and all payments of interest due hereunder have been paid when due hereunder, to repurchase, at any time during the 24-month period immediately following the final payoff of the Loan and at a purchase price equal to 100% of the PV-10 value of the PDP Reserves attributable to such remaining portion of the Lenders ORRI using the higher of (i) Base Prices or (ii) NYMEX Strip Prices, determined as of a date within 45 days of such written notice to the Agent (the “Remaining Lenders ORRI Repurchase Closing Date”) and on the basis of the Reserve Report provided to the Agent in satisfaction of the requirement below in this Section 2.19. In connection with such purchase by MI from the Agent, MI shall deliver to the Agent a Reserve Report prepared by a nationally-recognized or regionally-recognized petroleum engineer or firm of petroleum engineers approved by the Agent and with an effective date of the Remaining Lenders ORRI Repurchase Closing Date. The Agent shall execute recordable conveyances in favor of MI, in form and substance reasonably satisfactory to the Agent and MI, necessary to give effect to the provisions of the immediately preceding sentence of this Section 2.20. Furthermore, the provisions of this Section 2....
Overriding Royalty Interest. With respect to the App Energy H-33 well and the next three xxxxx to be drilled thereafter pursuant to the Operating Agreement (provided, however, that if the App Energy H-34 well is further developed before three other xxxxx are drilled, it shall be considered one of such next three xxxxx), the Company shall, within thirty (30) days of drilling each well, deliver to Maximilian with respect to such well a Conveyance of Overriding Royalty Interest in substantially the form attached hereto as Exhibit A (the “Override Agreement”). The overriding royalty interest shall be subject to a 50% reduction, as set forth in each Override Agreement, if the Daybreak Loan Payoff (as defined below) occurs on or prior to the Target Payoff Date (as defined below).
Overriding Royalty Interest. Infinity shall be entitled to retain (or --------------------------- receive, if the Leases are assigned to PGP by the current owner) an overriding royalty interest ("Overriding Royalty Interest") not to exceed 5% of 8/8 in and to production from the Leases assigned to PGP at Closing. The size of the Overriding Royalty Interest in each case shall be determined by subtracting .81 from the Lease Revenue Interest (before reduction by the Overriding Royalty Interest) owned by Infinity (or the LRI (before reduction by the Overriding Royalty Interest) which Infinity otherwise has the right to cause to be assigned to PGP) in such Lease, proportionately reduced to the extent such Lease does not cover 100% of the fee mineral estate in and to the lands covered by such Lease. In the event Infinity is unable to deliver to PGP at Closing a LRI (after reduction by the Overriding Royalty Interest) of at least .81 in any Lease, Infinity shall not be entitled to reserve or acquire as a part of this transaction any Overriding Royalty Interest in and to production from such Lease. Any overriding royalty interest that Coltex Petroleum, Inc. may own in any of the lands covered by the Leases, under any other oil and gas lease covering the same mineral interest as are covered by one or more of the Leases (the "Cortex Overrides"), which may be acquired by Infinity within 12 months after Closing, shall be included within the definition of "Overriding Royalty Interest."
Overriding Royalty Interest. In any assignment of Acquired Interests or of any other Mineral Interests conveyed by Xxxxxxx to Providence pursuant to this Agreement, Xxxxxxx shall reserve an overriding royalty interest equal to the positive arithmetical difference, if any, between 24% of 8/8ths and all royalties, overriding royalties and other lease burdens affecting said Leases as of the date of execution of this Agreement (in the case of Mineral Interests discussed under Clause 2.1(a) above) or as of the date of execution of the underlying lease or other conveyance document pursuant to which the Mineral Interest is acquired (in the case of any other Mineral Interests), as to all oil, gas, casinghead gas and other liquid and gaseous hydrocarbons produced and saved from or attributable to the Leases, proportionately reduced to the leasehold interest on such Lease assigned to Providence hereunder.
Overriding Royalty Interest. The Executive shall be assigned an Overriding Royalty Interest (“ORRI”) or a carried working interest if any ORRI is not able to be assigned to be held in perpetuity from either the Company or its subsidiaries equal to 5.0% in any and all successfully drilled and completed oil and/or gas wxxxx after March 1, 2024, including but not limited to new drills, fracking / re-fracking, re-entry, workover, or re-completion procedures, in addition to any and all externally purchased oil and gas mineral leases, well bores, and existing production either via direct purchases by the Company or its subsidiaries or through mergers and acquisitions by the Company or its subsidiaries during the Term. For avoidance of doubt, any existing producing wxxxx as of March 1, 2024 shall be excluded from the ORRI unless the Company engages in further fracking / re-fracking, re-entry, workover, or re-completion procedures. The Executive may elect to have the OXXXx assigned either in the Executive’s name or an entity selected by the Executive. The Executive may specify, either in the division order or through the midstream carrier, to have the monthly proceeds from the assigned OXXXx to be sent directly to the bank account of the Executive or his selected entity. Other commodities in addition to oil and gas shall be included in the above provisions in the event the Company enters into that line of business. Additionally, if the Company enters into crude oil or other commodity trading business, the Executive shall be eligible for a 5% interest on any net operating income realized by the Company from any such commodity trading businesses, which interest shall apply separately as to each such commodity trading business in the case of multiple commodity trading businesses.
Overriding Royalty Interest. Generally, a fractional Nonoperating Interest in the gross production, or the Gross Proceeds therefrom, of oil and gas and other minerals under a lease, in addition to the usual royalty paid to the lessor, free of any expenses of exploration, development, operation and maintenance. An Overriding Royalty Interest is an interest carved out of the Working Interest, as distinguished from the lessor's reserved Royalty Interest. The main characteristics of an Overriding Royalty Interest are that it is limited to the terms of the lease under which it is created and its duration runs concurrently with the term of such lease. Under a Net Profits Agreement, the Partnership will receive from its companion Operating Partnership Overriding Royalty Interests having the particular characteristics described therein.
Overriding Royalty Interest. Upon the commencement of operations for the drilling of the initial well drilled pursuant to this Agreement on each Prospect in which Contango has elected or is obligated to participate, JXX shall be entitled to an assignment or reservation of an overriding royalty interest equal to 2.5% of Contango’s net revenue interest in each Prospect, which overriding royalty interest shall be inclusive of and shall bear the sum of any and all other overriding royalty interests burdening Contango’s net revenue interest in such Prospect that were conveyed or required to be conveyed to other persons or entities who were employed by JXX or engaged as consultants to JXX to assist in JXX’x generation, screening, sourcing and/or acquisition of such Prospect (the “JXX XXXX”). An example calculation of the JXX XXXX is set forth on Schedule 2.2 attached hereto.
Overriding Royalty Interest. 1. FARMOR shall reserve unto itself, its successors and assigns an overriding royalty interest on all of the hydrocarbons produced and sold that is attributable to the assigned Leases equal to an undivided six percent of eight eighths (6% of 8/8ths); provided, that such overriding royalty interest shall be proportionately reduced to the extent the leasehold interest under the Lease covers less than a one hundred percent (100%) mineral leasehold interest in the lands covered thereby, and provided, further, that (unless otherwise agreed in writing by FARMEE) such overriding royalty interest shall be reduced so that FARMEE’s net revenue interest in the Lease shall never be less than eighty percent of eight eighths (80% of 8/8ths), taking into account the existing burdens along with such overriding royalty interest. Such overriding royalty interest shall be free and clear of all costs and expenses of drilling and completion, but shall be burdened by FARMOR’s pro-rata share of (a) reasonable volume deductions for line loss and fuel usage, (b) post-production charges incurred by FARMEE for processing, gathering, transportation, marketing, dehydration, compression, and any other charges (which may include charges payable to Affiliates of FARMEE) required to deliver the hydrocarbons for sale, and (c) ad valorem, severance and other similar taxes. FARMEE shall use its reasonable best efforts to pay to FARMOR from funds received from the sale or other disposition of hydrocarbons produced from the Xxxxx such overriding royalty interest within forty five (45) days after receipt of such funds, but in any case shall pay FARMOR within sixty (60) days after receipt of such funds.
2. Unless FARMOR shall elect to take the overriding royalty interest in kind or otherwise arranges for the sale of the related hydrocarbons, FARMEE shall have exclusive charge and control of the marketing of all hydrocarbons, shall market FARMOR’s interest proportionately and shall collect and receive the proceeds of the sale of all such production. FARMEE shall advise FARMOR of the terms and conditions of the marketing contracts to sell hydrocarbons from the overriding royalty interest. Notwithstanding the foregoing sentence, FARMOR shall have the right to take the overriding royalty interest in kind and, subject to any existing production sales contracts and upon at least thirty (30) days’ written notice from FARMOR, FARMEE shall deliver the hydrocarbons to FARMOR at the tanks or pipeline inlet...
Overriding Royalty Interest. Executive shall be assigned an Overriding Royalty Interest (“ORRI”) or a carried working interest if any ORRI is not able to be assigned to be held in perpetuity from either the Company or its subsidiaries equal to 5.0% in any and all successfully drilled and completed oil and/or gas wxxxx after July 26, 2022, including but not limited to new drills, fracking / re-fracking, re-entry, workover, or re-completion procedures, in addition to any and all externally purchased oil and gas mineral leases, well bores, and existing production either via direct purchases by the Company or its subsidiaries or through mergers and acquisitions by the Company or its subsidiaries during the Term. For avoidance of doubt, any existing producing wxxxx as of July 26, 2022 shall be excluded from the ORRI unless the Company engages in in further fracking / re-fracking, re-entry, workover, or re-completion procedures. The Executive may elect to have the OXXXx assigned either in the Executive’s name or an entity selected by the Executive. Executive may specify, either in the division order or through the midstream carrier, to have the monthly proceeds from the assigned OXXXx to be sent directly to the bank account of the Executive or his selected entity.
Overriding Royalty Interest. As additional consideration for the Notes, Issuer and Aurora shall, pursuant to an ORRI Conveyance executed, delivered and recorded concurrently with the later of the Closing or Issuer’s or Aurora’s acquisition of title, assign to ORRI Assignee an overriding royalty interest (the “Overriding Royalty Interest”) in the Lands covered or included in the Initial Engineering Report or any subsequent Engineering Report and all other properties in the Project Area drilled or otherwise developed by Issuer or Aurora on or before the later of the Maturity Date or the repayment in full of the Notes and the Note Obligations (excluding those Note Obligations arising under the Overriding Royalty Interest). The Overriding Royalty Interest will have a royalty share of four percent (4%) proportionally reduced to Issuer’s or Aurora’s (i) working interest if the burdened interest of Issuer or Aurora shall be a working interest or (ii) overriding royalty or fee interest if the burdened interest of Issuer or Aurora is an overriding royalty or fee interest (as such burdened interest may be adjusted upwards but not downwards by reason of any “back-in,” reversionary, “after-payout” or similar interest or event). The Overriding Royalty Interest shall be senior and superior to the Liens of the Collateral Documents and any other Liens other than Permitted Liens (except as otherwise expressly provided herein).
