Right to Take in Kind. From and after the Commencement of Commercial Production, the Royalty Holder may elect to receive the Royalty on gold and silver in kind by physical delivery of gold and/or silver bullion for any payment hereunder, by notifying Owner of its election on or before December 1 in the preceding calendar year. An election by the Royalty Holder to receive the Royalty in kind shall be irrevocable for the calendar year for which it is made. Failure of the Royalty Holder to notify Owner by December 1 of its election to take the Royalty in kind shall be deemed a waiver by the Royalty Holder of all rights to take the Royalty in kind during the following calendar year. Owner shall provide at least 15 days' prior notice to the Royalty Holder of the name and location of the refinery and the date or dates on which the bullion will be delivered and Royalty Holder shall open an account with such refinery. If the Royalty Holder elects to take in kind, the Owner shall deliver written instructions to the refinery, with a copy to Royalty Holder, directing the refinery to deliver the number of ounces of gold or silver bullion for which the Royalty is due in respect of the relevant period by crediting such amount to the Royalty Holder's account. . If the Royalty Holder desires Owner to deliver the bullion to it at a place other than the place of refining, the Royalty Holder shall reimburse Owner for the costs incurred by Owner in making such delivery, which costs include transportation and insurance. If and to the extent the Royalty is paid in kind and does not reflect the Allowable Deductions that are incurred and deductible in calculating the Royalty under this Instrument, then the Royalty Holder shall remit to the Owner the full amount of such Allowable Deductions. Such costs and/or Allowable Deductions shall be payable by the Royalty Holder to Owner within 15 days of receipt by the Royalty Holder of Owner's invoice. If the Royalty Holder fails or refuses to pay such costs and/or Allowable Deductions, Owner shall have a security interest in and may deduct such defaulted costs and charges from any future Royalty payments due to the Royalty Holder. Title to the bullion delivered to the Royalty Holder under this Instrument shall pass to the Royalty Holder at the time such bullion is credited to the Royalty Holder at the refinery or other location directed by the Royalty Holder.
Right to Take in Kind. If and to the extent a portion of Owner’s Oil Production is not committed to the fulfillment of, or has been used to fulfill, the Commitments under or pursuant to the Commitment Agreements (such portion of Owner’s Oil Production hereinafter being referred to as “Owner’s Excess Oil Production”), Owner shall have the right, upon the delivery thereof to the applicable Delivery Point, to market Owner’s Excess Oil Production at and from the Delivery Points; provided, however, such right may only be exercised by Owner if and to the extent the same is not prohibited by applicable law or the terms and conditions of the Commitment Agreements and if and to the extent Owner’s exercise of such right will not cause the Xxxxxxx Parties to fail to meet any Commitments under any of the Commitment Agreements. Notice of Owner’s intent to exercise such right to take in kind shall be in the form of a written notice from Owner to the Xxxxxxx Parties given at least twelve (12) months before the date that Owner desires to take a specific amount of Owner’s Excess Oil Production in kind. In the event of any such exercise of entitlement, Owner will retain title to Owner’s Excess Oil Production at the Delivery Points, transport and market such Owner’s Excess Oil Production, and be responsible for the payment of royalty and severance taxes, and any other taxes based on production, on such Owner’s Excess Oil Production, and all costs and expenses associated with the transportation and marketing from such Delivery Points of such Owner’s Excess Oil Production.
Right to Take in Kind. (a) Subject to the Title and Operating Documents, the Royalty Owner shall be entitled to take in kind all, but not less than all, of the Royalty Share of Production for any Month or Quarter, only if, prior to such Month or Quarter as the case may be:
(i) the Grantor is insolvent;
(ii) the Royalty Owner has provided notice to the Grantor, the Lenders and the RO Lenders of its intention to take the Royalty Share of Production for such Month or Quarter in kind not less than ninety (90) days prior to the commencement of such Month or Quarter;
(iii) the Royalty Owner has arranged for the sale and transportation from the well-site of the Royalty Share of Production to be taken in kind by the Royalty Owner;
(iv) the Royalty Owner has provided evidence satisfactory to the Grantor that the arrangements in respect of the sale and transportation from the well-site of the Royalty Share of Production to be taken in kind by the Royalty Owner exist and can reasonably be expected to be performed;
(v) the Royalty Owner covenants to be bound by and perform all contracts applicable to the marketing and sale of the Royalty Share of Production to be taken in kind by the Royalty Owner;
(vi) the Royalty Owner covenants to reimburse the Grantor for ninety nine percent (99%) of the aggregate of Production Costs and losses from Commodity Price and Currency Swaps, for the period in which the Royalty Owner takes the Royalty Share of Production in kind; and
(vii) the Royalty Owner has provided concurrently with the subsection 2.5(a)(ii) notice an irrevocable, assignable documentary letter of credit which shall be:
(A) issued by one (1) of the five (5) largest Canadian chartered banks;
(B) for a term of at least one (1) year; Table of Contents
(C) in an amount equal to the aggregate of the Production Costs for the four (4) complete Quarters immediately prior to the Month or Quarter in which the Royalty Owner provides the subsection 2.5(a)(ii) notice, as determined from the statements delivered by the Grantor to the Royalty Owner pursuant to Section 3.2;
(D) payable by one or more sight drafts, with the only draw condition to be the certification by the Grantor that the Royalty Owner has defaulted upon its obligations under subsection 2.5(a)(vi); and
(E) on terms satisfactory to the Grantor, acting reasonably.
(b) Any exercise by the Royalty Owner of its entitlement to take in kind all of the Royalty Share of Production for any Month or Quarter shall continue for all subsequent Months o...
Right to Take in Kind. Grantee shall have the right to elect from time to time upon not less than one (1) months' prior written notice to Grantor to take its Royalty share of production in kind. Any such election may be changed from time to time, but Grantee shall not be entitled to make elections under this paragraph at intervals of less than six months. Grantee shall bear any expense attributable to the installation of separate facilities or otherwise necessitated by its election under this paragraph. If Grantee exercises its right to take Royalty production in kind, Grantor shall deliver such production to Grantee at the first onshore meter, and Grantee shall be solely responsible for arranging post-meter treating, transporting and marketing. If Grantee fails to make such arrangements or if Grantor has reasonable concerns in respect of the safety of the arrangements made by Grantee or regarding interference with Grantor's operations, then Grantor may suspend Grantee's right to take in kind until appropriate arrangements have been made and all safety and operational concerns have been resolved
Right to Take in Kind. The Payee may give notice to the Payor at any time indicating its desire to receive the Royalty in the form of one of the Mineral Products produced from the Property, provided:
(i) the Payor does not have to comply with this provision for a period of 12 months;
(ii) the Payor may stockpile Royalty taken in kind on the Property and, upon such stockpiling, title and risk shall transfer to the Payee; and
(iii) the Payee shall bear all costs of insurance, storage, transportation, treatment and any other costs incurred subsequent to it taking title thereto.
Right to Take in Kind. Each PARTY shall have the right to take in kind or separately dispose of its share of the oil and gas produced and saved from the LEASE.
Right to Take in Kind. (a) The Royalty Owner shall own and may take in kind or separately dispose of the Royalty share of Petroleum Substances. Subject to the expiry of the term of any existing contracts for the sale of Petroleum Substances, the Royalty Owner may, by giving 30 days written notice to Payor, elect to take its Royalty share of Petroleum Substances, in kind and on a similar notice, the Royalty Owner may revoke its election but this election shall not be exercised by the Royalty Owner at intervals less than six (6) months from the previous election.
(b) If the Royalty Owner exercises its rights to take the Royalty in kind, the Royalty Owner shall have the right to use all of Payor’s facilities or enter into its own agreements with third parties, with respect to the storage, gathering, transporting, treating or processing by compression, absorption or other plant extraction or stabilization PROVIDED HOWEVER, if the Royalty Owner elects to use Payor’s facilities, the Royalty Owner shall be charged and agrees to pay Payor its proportionate share of a cost of service for such storage, gathering, transporting, treating or processing the Royalty share, in the same manner and on the same basis as from time to time the Crown in right of the Province of Alberta accepts with respect to its royalty share of production from the relevant well or xxxxx. In any event, the Royalty Owner shall not be charged with the cost of removal of basic sediment and water.
Right to Take in Kind. Except as otherwise provided in this Article IX and/or in Article VIII each Party shall have the right to take in kind and separately dispose of the share of total production of Hydrocarbons of Hydrocarbons available from the Contract Area pursuant to the Petroleum Contract and this Agreement in consideration of such Party’s participation in the costs and expenses of Joint Operations (or Sole Risk Operations) on the same terms as if it were a mining usufructee. If any Crude Oil off take agreement referred to in Article 9.2 and/or separate arrangements for Natural Gas are entered into as referred to in Article 9.3, each Party’s entitlement to take and dispose of its share of production shall be in such quantities of Hydrocarbons and in accordance with such procedures as may be set forth in such agreements or arrangements. The Parties recognize that if Crude Oil is discovered the Parties shall have the right to enter into separate agreements for the disposal of the Crude Oil, which are consistent with the Development Plan and subject to the terms of the Petroleum Contract. Terms of an agreement regarding balancing the deliveries of Crude Oil are contained in Appendix E.
Right to Take in Kind. (a) Subject to the terms of the Title and Operating Documents and compliance with section 2.5(e), if the Grantor is insolvent, the Royalty Owner shall have the right to take all (but not less than all) of the Royalty Share of Production for a Month in kind and separately dispose of them provided that:
(i) it has given not less than ninety (90) days' notice of its intention to do so to the Grantor;
(ii) concurrently with such notice, it has supplied the Grantor with an irrevocable, assignable documentary letter of credit payable by one or more sight drafts (with the only draw condition to be certification by the beneficiary that the Royalty Owner is in default of a reimbursement obligation hereunder) and issued by one of the five largest Canadian chartered banks to secure the Royalty Owner's obligations to reimburse the Grantor for the Deductible Production Costs paid by the Grantor while the Royalty Owner takes the Royalty Share of the Petroleum Substances in kind; and
(iii) it has provided evidence satisfactory to the Grantor that the Royalty Owner has made arrangements to take the Royalty Share of Production and dispose of that Royalty Share of Production in compliance with the Title and Operating Documents.
Right to Take in Kind. The Grantee shall have the right to elect from time to time upon not less than 1 week’s prior written notice to the Grantor to take the Royalty share of production in kind in respect of any one or more of the Petroleum Substances. Any such election may be changed from time to time by the Grantee.
