Production Penalties Clause Samples
The Production Penalties clause establishes consequences for failing to meet specified production targets or deadlines in a contract. Typically, this clause outlines the metrics for measuring production, the thresholds that trigger penalties, and the form these penalties take, such as financial deductions or other remedies. Its core practical function is to incentivize timely and adequate performance, ensuring that parties remain accountable for agreed-upon production levels and mitigating the risk of delays or shortfalls.
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Production Penalties except as described in Schedule "A", the ▇▇▇▇▇ are not subject to any production penalty or similar production restriction of any nature and Vendor has not received notice of any change or proposed change in the government-established production allowables for any of the ▇▇▇▇▇ that are not generally applicable;
Production Penalties. To the knowledge of the Vendor, no Well▇ ▇▇▇ subject to a production penalty of any kind, there are no facts or circumstances which materially adversely affect the production of Petroleum Substances in respect of the Petroleum and Natural Gas Rights or the receipt, or entitlement, of the Company to revenue attributable to the production thereof. 88 15
Production Penalties except as disclosed on schedule “A-1” or schedule “A-2” hereto, none of the ▇▇▇▇▇ are subject to any material production penalty or restriction arising from the overproduction of Petroleum Substances from the Lands (other than those imposed in the ordinary course of the oil and gas industry by a governmental authority); and
Production Penalties. Neither the Company nor any of its Subsidiaries has received notice of any production penalty or similar production restriction of any nature imposed or to be imposed by any Governmental Authority and, to the Company’s knowledge, none of the ▇▇▇▇▇ in which the Company or any of its Subsidiaries holds an interest is subject to any such penalty or restriction.
Production Penalties. As of the date hereof, ▇▇▇▇▇▇▇▇▇ has not received written notice of any production penalty or similar production restriction of any nature imposed by any Governmental Authority, including gas-oil ratio, off-target and overproduction penalties imposed by any Governmental Authority that may be applicable, and, to Westbrick’s knowledge, none of the ▇▇▇▇▇ in which it holds an interest is subject to any such penalty or restriction.
Production Penalties. The ▇▇▇▇▇ are not subject to any production penalty whereby the production proceeds allocable to the Vendor's interest, or SellCo's interest as at the Closing Time, are payable to a third party until an amount calculated in respect of certain costs and expenses paid by such third party are recovered by such third party.
Production Penalties. 40 4.16 Conversion. . . . . . . . . . . . . . . . . . . . . . . . 40 4.17 Operations. . . . . . . . . . . . . . . . . . . . . . . . 40
Production Penalties to the Vendor’s knowledge, except as described in Schedule “A” no Well is subject to any production penalty or similar production restriction and Vendor has not received notice of any change or proposed change in the government-established production allowables for any of the ▇▇▇▇▇ that are not generally applicable;
Production Penalties to the Vendor’s Knowledge, except as set forth in Schedule “A”, the W▇▇▇▇ are not subject to any production penalty whereby the production proceeds allocable to the Vendor’s interest are payable to a third party until an amount calculated in respect of certain costs and expenses paid by such third party are recovered by such third party;
Production Penalties. Except as considered in the Engineer's Report, none of the ▇▇▇▇▇ on the Engineered Properties are subject to a production penalty of any nature, and it has received no notice of, and is not otherwise aware of, any impending change in statutorily imposed or sanctioned production allowables currently applicable to any of the ▇▇▇▇▇, and (except as advised by the Borrower with respect to the Engineer's Report prior to the Banks' determination of the Borrowing Base with reference thereto and other than pursuant to the Prepaid Gas Contract) neither it nor any of its Subsidiaries nor any party acting on their or its behalf is obligated to deliver petroleum or natural gas allocable to the Engineered Properties to any party having a value in excess of U.S. $500,000 in aggregate without in due course thereafter receiving and being entitled to retain full payment at current market prices therefore.