Production Payments Clause Samples
The Production Payments clause defines the terms under which payments are made based on the quantity of goods or services produced. Typically, this clause specifies the calculation method, timing, and conditions for such payments, often tying compensation to measurable production milestones or output levels. By clearly outlining how and when production-related payments are triggered, the clause ensures both parties understand their financial obligations and helps prevent disputes over payment amounts or timing.
Production Payments. As at the Effective Date, neither the Borrower nor any Material Subsidiary is a party to or otherwise bound by any Production Payment Transaction.
Production Payments royalties, dedication of reserves under supply agreements or similar rights or interests granted, taken subject to, or otherwise imposed on properties consistent with normal practices in the mining industry;
Production Payments. Except for the imbalance volumes listed in Schedule 9.9 and the contracts and arrangements listed in Exhibit D-6, Delta is not obligated, by virtue of a production payment, prepayment arrangement under any contract for the sale of Hydrocarbons and containing a “take or pay,” advance payment or similar provision, gas balancing agreement or any other arrangement, to deliver any material amounts of Hydrocarbons without then or thereafter receiving full payment therefor, or to make payment for any material amounts of Hydrocarbons already produced and sold, in each case with respect to the Delta Assets.
Production Payments. Except for the imbalance volumes and the contracts and arrangements listed in Schedule 6.10, Seller is not obligated, by virtue of a production payment, prepayment arrangement under any contract for the sale of Hydrocarbons and containing a “take or pay”, advance payment or similar provision, gas balancing agreement or any other arrangement to deliver any material amounts of Hydrocarbons without then or thereafter receiving full payment therefor, or to make payment for any material amounts of Hydrocarbons already produced and sold.
Production Payments. Except for the imbalance volumes and the contracts and arrangements listed in Schedule 7.9, Laramie is not obligated, by virtue of a production payment, prepayment arrangement under any contract for the sale of Hydrocarbons and containing a “take or pay,” advance payment or similar provision, gas balancing agreement or any other arrangement, to deliver any material amounts of Hydrocarbons without then or thereafter receiving full payment therefor, or to make payment for any material amounts of Hydrocarbons already produced and sold, in each case with respect to the Laramie Assets.
Production Payments. The Owner and Gentor further agree that all annual payments and any Net Smelter Return payments will be credited to the Purchase Price. The Net Smelter Return payable pursuant hereto shall remain in effect as long as there is production from the Premises.
Production Payments a. If Lessee has not commenced production of water from the Premises by the first anniversary of the Effective Date, Lessee shall make a minimum Production Payment to Lessor of Five Thousand Dollars and NO/100 ($5,000.00). Lessee shall continue to make this minimum Production Payment in a similar way and for like amount tendered annually, if Lessee has not commenced production of water from the Premises on the second, third and fourth anniversaries of the Effective Date. Once Lessee commences production of water from the Premises, minimum Production Payments pursuant to this subsection shall no longer be required and instead, Lessee shall be obligated to make Production Payments pursuant to subsection (b) below.
b. On the anniversary of the Effective Date that immediately follows ▇▇▇▇▇▇’s commencement of production of water from the Premises, Lessee shall make a Production Payment to Lessor equal to the greater of (i) One Thousand Six Hundred Sixty-Six and 67/100 Dollars ($1,666.67) multiplied times the number of months of production of water during the immediately preceding 12-month period ending sixty (60) days before the Production Payment is due, or (ii) ninety-five cents ($0.95) per one thousand (1,000) gallons of the gross volume of water produced from the Premises covered by this Lease during the immediately preceding 12-month period ending sixty (60) days before the Production Payment is due. On each anniversary of the Effective Date thereafter annually during the remaining term of the Lease, Lessee shall make a Production Payment to Lessor equal to the greater of (i) Twenty Thousand Dollars and NO/I00 ($20,000.00) or (ii) ninety-five cents ($0.95) per one thousand (1,000) gallons of the gross volume of water produced from the Premises covered by this Lease during the immediately preceding 12-month period ending sixty (60) days before the Production Payment is due. The Production Payment rate under this subsection shall be increased by ten percent (10%) at five (5) year intervals, with the first Production Payment rate increase occurring on the five (5) year anniversary of the first Production Payment, with further increases occurring at each 5-year interval thereafter.
c. Lessee shall submit with each Production Payment a report specifying all water produced from the Premises during the previous year. Said annual report shall consist of a statement showing the gross amount of water produced from the Premises during the previous year, all meter rea...
Production Payments. The Parties agree that, if the Option is exercised, NyacAU shall be entitled to limited payments out of the production of placer gold at the Chandalar placer mine. If the Option is exercised, N▇▇▇▇▇ shall be paid up to the greater of eight million five hundred thousand dollars ($8,500,000) or 4,860 ounces of fine gold (the Maximum Amount) in accordance with the terms of this Agreement. (For the sake of clarity, the Parties agree that the Maximum Amount equals one-half of the amount of the debt represented by LOC1.) NyacAU shall always be paid all of its production payments in placer gold, which will be paid directly from the smelter upon each delivery, in accordance with Paragraph 5.
Production Payments. 27 9.3 Royalty, Working Interest and Tax Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 9.4
Production Payments. The Owner and Gentor further agree that, when the project reaches production stage, all annual payments and/or Net Smelter Return Royalty payments will be credited to the purchase price. The Owner's Two Percent 2% Net Smelter Return Royalty shall stay in effect as long as there is production from the Premises.