Common use of Production Royalties Clause in Contracts

Production Royalties. Lessee shall pay lessor a production royalty on the basis of 10% of the gross value of the leased substance, including all bonuses and allowances received by Lessee, at the point of shipment from leased premises or the geothermal field, of the first marketable product or products produced from the leased substances and sold under a bonafide contract of sale, whether or not such product or products are produced through chemical or mechanical treating or processing of the leased substances raw material. Payment or reimbursement by the purchaser for any operator expense, including without limitation payment for reinjection or disposal of water into the well or aquifer or otherwise, are part of gross value for royalty purposes.

Production Royalties. Lessee shall pay lessor a production royalty on the basis of 10% of the gross value of the leased substance, including all bonuses and allowances received by Lessee, at the point of shipment from the leased premises or the geothermal field, of the first marketable product or products produced from the leased substances and sold under a bonafide contract of sale, whether or not such product or products are produced through chemical or mechanical treating or processing of the leased substances raw material. Payment or reimbursement by the purchaser for any operator expense, including without limitation payment for reinjection or disposal of water into the well or aquifer or otherwise, are part of gross value for royalty purposes.