Common use of Production Burdens, Taxes, Expenses and Revenues Clause in Contracts

Production Burdens, Taxes, Expenses and Revenues. All payments due under or with respect to the Properties have been properly and timely paid when due, or funds have been set aside for such purpose. All ad valorem, property, production, severance and other taxes based on or measured by such Seller’s ownership of those Properties or the production of hydrocarbons, including coalbed methane gas or natural gas, as applicable, therefrom have been properly and timely paid when due. All expenses payable under the terms of the Contracts attributable to such Seller have been properly and timely paid when due, except for such expenses as are being currently paid prior to delinquency in the ordinary course of business. All of the proceeds from the sale of any hydrocarbons, including coalbed methane gas or natural gas, as applicable, are being properly and timely paid when due to such Seller, as appropriate, by the purchasers of production without suspension or indemnity other than standard division order indemnities. To the best of such Seller’s knowledge, there were no gas imbalances relating to the Properties to be transferred and assigned as of the Effective Date.