Common use of Production Licence Granted Clause in Contracts

Production Licence Granted. (a) Paltar acknowledges and agrees that, following the Earning Date, if a Production Licence is applied for and issued in respect of any area under the Permit Area in accordance with the terms of this Agreement, (i) Paltar’s undivided interest in such Production Licence will be equal to 75%, subject to the Option granted hereunder pursuant to clause 5.3, and Nation’s undivided interest in such Production Licence will be equal to 25%. (b) Upon the issue of a Production Licence, Paltar will be deemed to have resigned as Operator with respect to the Permit Area covered by the Production Licence. (c) Upon the issue of a Production Licence to Nation pursuant to this clause 6.2, each clause of this Agreement, other than clauses 5.3 through 5.7. will cease to apply to the Permit Area covered by that Production Licence.

Production Licence Granted. (a) Paltar Officer acknowledges and agrees that, following the Earning Date, if a Production Licence is applied for and issued in respect of any area under the Permit Area in accordance with the terms of this Agreement, (i) PaltarOfficer’s undivided interest in such Production Licence will be equal to 75%, subject to the Option granted hereunder pursuant to clause 5.3, and Nation’s undivided interest in such Production Licence will be equal to 25%. (b) Upon the issue of a Production Licence, Paltar Officer will be deemed to have resigned as Operator with respect to the Permit Area covered by the Production Licence. (c) Upon the issue of a Production Licence to Nation pursuant to this clause 6.2, each clause of this Agreement, other than clauses 5.3 through 5.7. will cease to apply to the Permit Area covered by that Production Licence.