Common use of Production Before the Effective Time Clause in Contracts

Production Before the Effective Time. Seller shall be entitled to the proceeds from the sale of all oil, gas, casinghead gas, condensate, distillate and other liquid and gaseous hydrocarbons of every kind or description (“Hydrocarbons”) produced from or attributable to the Property before the Effective Time. If, on the Effective Time, Hydrocarbons produced from or attributable to the Property before the Effective Time are stored in any Lease or Unit stock tanks (the “Stock Tank Oil”), or in gathering lines or production facilities upstream of the sale or custody transfer meters (or other applicable point at which the transfer of title actually occurs) of the purchaser or processor of Hydrocarbon production from or attributable to the Property (the “Pipeline Inventory”), Buyer shall purchase from Seller the Stock Tank Oil and the Pipeline Inventory at the actual weighted average price received for Hydrocarbons sold from such stock tanks and pipeline sales points during the full calendar month preceding the Effective Time. If no Hydrocarbons were sold in the preceding month, the actual weighted average price received in the most recent preceding month in which sales occurred shall be used. Buyer will pay Seller for the Stock Tank Oil and Pipeline Inventory as an adjustment to the Purchase Price, as provided in Section 2.2 and Section 2.3. The Stock Tank Oil and the Pipeline Inventory will be determined as of the Effective Time. Absent manifest error, Seller and Buyer will accept the Lease or Unit operator’s tank gauge readings, meter tickets or other inventory records of the Stock Tank Oil and Pipeline Inventory.

Production Before the Effective Time. Seller shall will own or be entitled to the proceeds from the sale of all merchantable oil, gas, casinghead gas, condensate, distillate and other liquid and gaseous hydrocarbons of every kind or description (collectively, “Hydrocarbons”) produced from or attributable to the Property before the Effective TimeTime (including, without limitation, any proceeds from the sale of Hydrocarbons produced or attributable to the Property before the Effective Time that are suspended awaiting minimum disbursement requirements, suspended under division orders or suspended for title or other defects). If, on the Effective Time, Hydrocarbons produced from or attributable to the Property before the Effective Time are stored in any Lease or Unit stock tanks (the “Stock Tank Oil”), or in gathering lines or production facilities upstream of the sale or custody transfer meters (or other applicable point at which the transfer of title actually occurs) of the purchaser purchase or processor of Hydrocarbon production from or attributable to the Property (the “Pipeline Inventory”), Buyer shall purchase from Seller the merchantable Stock Tank Oil above pipeline connections in the stock tanks and the Pipeline Inventory at the actual weighted average sales price received for Hydrocarbons sold from such stock tanks and pipeline sales points during the full calendar month immediately preceding the Effective Time. If no Hydrocarbons were sold in the immediately preceding month, the actual weighted average price received in the most recent preceding month in which sales occurred shall be used. Buyer will pay Seller for the Stock Tank Oil and Pipeline Inventory Inventory, net of all Property Expenses (as defined in Section 2.3.2) attributable thereto, as an adjustment to the unadjusted Purchase Price, as provided in Section 2.2 and Section 2.3. The Stock Tank Oil and the Pipeline Inventory will be determined as of the Effective Time. Absent manifest error, Seller and Buyer will accept the Lease or Unit operator’s tank gauge readings, meter tickets or other inventory records of the Stock Tank Oil and Pipeline InventoryPrice at Closing.

Production Before the Effective Time. Seller shall own and be entitled to the proceeds from the sale of all oil, gas, casinghead gas, condensate, distillate and other liquid and gaseous hydrocarbons of every kind or description (“Hydrocarbons”) produced from or attributable to the Property Conveyed Interests before the Effective Time. If, on the Effective Time, Hydrocarbons produced from or attributable to the Property Conveyed Interests before the Effective Time are stored (a) in any Lease or Unit stock tanks (the “Stock Tank Oil”), or (b) in gathering lines or production facilities upstream of the sale or custody transfer meters (or other applicable point at which the transfer of title actually occurs) of the purchaser or processor of Hydrocarbon production from or attributable to the Property Conveyed Interests (the “Pipeline Inventory”), Buyer shall purchase from Seller the Stock Tank Oil and the Pipeline Inventory at the actual weighted average price received for Hydrocarbons sold from such stock tanks and pipeline sales points during the full calendar month preceding the Effective Time. If no Hydrocarbons were sold in the preceding month, the actual weighted average price received in the most recent preceding month in which sales occurred shall be used. Buyer will pay Seller for the Stock Tank Oil and Pipeline Inventory as an adjustment to the Purchase PricePrice at Closing, as provided in Section 2.2 and Section 2.3. The Stock Tank Oil and the Pipeline Inventory will be determined gauged and measured as of the Effective Time. Absent manifest error, Seller and Buyer will accept the Lease or Unit operator’s tank gauge readings, meter tickets or other inventory records of the Stock Tank Oil and Pipeline Inventory.