Common use of Right to Take Production in Kind Clause in Contracts

Right to Take Production in Kind. Subject to the provisions of Section 8 above, the Developer shall have the exclusive right to sell or dispose of its proportionate share of all oil and gas produced from the xxxxx to be drilled under this Agreement, exclusive of production: (i) that may be used in development and producing operations; (ii) unavoidably lost; and (iii) used to fulfill any free gas obligations under the terms of the applicable Lease or Leases. Operator shall not have any right to sell or otherwise dispose of the oil and gas. The Developer shall have the exclusive right to execute all contracts relating to the sale or disposition of its proportionate share of the production from the xxxxx drilled under this Agreement. Developer shall have no interest in any gas supply agreements of Operator, except the right to receive Developer's share of the proceeds received from the sale of any gas or oil from xxxxx developed under this Agreement. The Developer agrees to designate Operator or Operator's designated bank agent as the Developer's collection agent in any contracts. On request, Operator shall assist Developer in arranging the sale or disposition of Developer's oil and gas under this Agreement and shall promptly provide the Developer with all relevant information which comes to Operator's attention regarding opportunities for sale of production. If Developer fails to take in kind or separately dispose of its proportionate share of the oil and gas produced under this Agreement, then Operator shall have the right, subject to the revocation at will by the Developer, but not the obligation, to purchase the oil and gas or sell it to others at any time and from time to time, for the account of the Developer at the best price obtainable in the area for the production. Notwithstanding, Operator shall have no liability to Developer should Operator fail to market the production. Any purchase or sale by Operator shall be subject always to the right of the Developer to exercise at any time its right to take in-kind, or separately dispose of, its share of oil and gas not previously delivered to a purchaser. Any purchase or sale by Operator of any other party's share of oil and gas shall be only for reasonable periods of time as are consistent with the minimum needs of the oil and gas industry under the particular circumstances, but in no event for a period in excess of one (1) year.

Right to Take Production in Kind. Subject to the provisions of Section 8 above, the Developer shall have the exclusive right to sell or dispose of its proportionate share of all oil and gas produced from the xxxxx to be drilled under this Agreement, exclusive of production: (i) that may be used in development and producing operations; (ii) unavoidably lost; and (iii) used to fulfill any free gas obligations under the terms of the applicable Lease or Leases. Operator shall not have any right to sell or otherwise dispose of the oil and gas. The Developer shall have the exclusive right to execute all contracts relating to the sale or disposition of its proportionate share of the production from the xxxxx drilled under this Agreement. Developer shall have no interest in any gas supply agreements of Operator, except the right to receive Developer's ’s share of the proceeds received from the sale of any gas or oil from xxxxx developed under this Agreement. The Developer agrees to designate Operator or Operator's ’s designated bank agent as the Developer's ’s collection agent in any contracts. On request, Operator shall assist Developer in arranging the sale or disposition of Developer's ’s oil and gas under this Agreement and shall promptly provide the Developer with all relevant information which that comes to Operator's ’s attention regarding opportunities for sale of selling production. If Developer fails to take in kind or separately dispose of its proportionate share of the oil and gas produced under this Agreement, then Operator shall have the right, subject to the revocation at will by the Developer, but not the obligation, to purchase the oil and gas or sell it to others at any time and from time to time, for the account of the Developer at the best price obtainable in the area for the production. Notwithstanding, Operator shall have no liability to Developer should Operator fail to market the production. Any such purchase or sale by Operator shall be subject always to the right of the Developer to exercise at any time its right to take in-kind, or separately dispose of, its share of oil and gas not previously delivered to a purchaser. Any purchase or sale by Operator of any other party's the Developer’s share of oil and gas under this Agreement shall be only for reasonable periods of time as are consistent with the minimum needs of the oil and gas industry under the particular circumstances, but in no event for a period in excess of one (1) year.

Right to Take Production in Kind. Subject to the provisions of Section 8 above, the Developer shall have the exclusive right to sell or dispose of its proportionate share of all oil and gas produced from the xxxxx to be drilled under this Agreement, exclusive of production: (i) that may be used in development and producing operations; (ii) unavoidably lost; and (iii) used to fulfill any free gas obligations under the terms of the applicable Lease or Leases. Operator shall not have any right to sell or otherwise dispose of the oil and gas. The Developer shall have the exclusive right to execute all contracts relating to the sale or disposition of its proportionate share of the production from the xxxxx drilled under this Agreement. Developer shall have no interest in any gas supply agreements of Operator, except the right to receive Developer's ’s share of the proceeds received from the sale of any gas or oil from xxxxx developed under this Agreement. The Developer agrees to designate Operator or Operator's ’s designated bank agent as the Developer's ’s collection agent in any contracts. On request, Operator shall assist Developer in arranging the sale or disposition of Developer's ’s oil and gas under this Agreement and shall promptly provide the Developer with all relevant information which comes to Operator's ’s attention regarding opportunities for sale of production. If Developer fails to take in kind or separately dispose of its proportionate share of the oil and gas produced under this Agreement, then Operator shall have the right, subject to the revocation at will by the Developer, but not the obligation, to purchase the oil and gas or sell it to others at any time and from time to time, for the account of the Developer at the best price obtainable in the area for the production. Notwithstanding, Operator shall have no liability to Developer should Operator fail to market the production. Any purchase or sale by Operator shall be subject always to the right of the Developer to exercise at any time its right to take in-kind, or separately dispose of, its share of oil and gas not previously delivered to a purchaser. Any purchase or sale by Operator of any other party's ’s share of oil and gas shall be only for reasonable periods of time as are consistent with the minimum needs of the oil and gas industry under the particular circumstances, but in no event for a period in excess of one (1) year.

Right to Take Production in Kind. Subject to the provisions of Section 8 above, the Developer shall have the exclusive right to sell or dispose of its proportionate share of all oil and gas produced from the xxxxx wxxxx to be drilled under this Agreement, exclusive of production: (i) that may be used in development and producing operations; (ii) unavoidably lost; and (iii) used to fulfill any free gas obligations under the terms of the applicable Lease or Leases. Operator shall not have any right to sell or otherwise dispose of the oil and gas. The Developer shall have the exclusive right to execute all contracts relating to the sale or disposition of its proportionate share of the production from the xxxxx wxxxx drilled under this Agreement. Developer shall have no interest in any gas supply agreements of Operator, except the right to receive Developer's ’s share of the proceeds received from the sale of any gas or oil from xxxxx wxxxx developed under this Agreement. The Developer agrees to designate Operator or Operator's ’s designated bank agent as the Developer's ’s collection agent in any contracts. On request, Operator shall assist Developer in arranging the sale or disposition of Developer's ’s oil and gas under this Agreement and shall promptly provide the Developer with all relevant information which that comes to Operator's ’s attention regarding opportunities for sale of selling production. If Developer fails to take in kind or separately dispose of its proportionate share of the oil and gas produced under this Agreement, then Operator shall have the right, subject to the revocation at will by the Developer, but not the obligation, to purchase the oil and gas or sell it to others at any time and from time to time, for the account of the Developer at the best price obtainable in the area for the production. Notwithstanding, Operator shall have no liability to Developer should Operator fail to market the production. Any such purchase or sale by Operator shall be subject always to the right of the Developer to exercise at any time its right to take in-kind, or separately dispose of, its share of oil and gas not previously delivered to a purchaser. Any purchase or sale by Operator of any other party's the Developer’s share of oil and gas under this Agreement shall be only for reasonable periods of time as are consistent with the minimum needs of the oil and gas industry under the particular circumstances, but in no event for a period in excess of one (1) year.