Common use of ROYALTY IN KIND Clause in Contracts

ROYALTY IN KIND. Lessor may elect to take all or any part of its royalty in kind at any time by giving Xxxxxx sixty (60) days written notice of such election. Lessor has the right to specify the point of delivery for Produced Substances, which, at Xxxxxx’s sole discretion, may be at the wellhead, at the separator, into a pipeline connected at the well, or at the location Lessee sells its production, or Lessor and Lessee may specify another mutually agreeable location. Lessee will bear to the point of delivery all Costs and Expenses related to the Produced Substances delivered to Lessor. Lessor’s election to take its royalty in kind will not modify or limit Xxxxxx’s duty to pay monetary royalties as provided herein or to market any Produced Substances not taken in kind. If Lessor elects to take its royalty in kind, Xxxxxx and Xxxxxx agree to negotiate in good faith for additional agreements necessary and useful including, but not limited to, a gas balancing agreement.

ROYALTY IN KIND. Lessor may elect to take all or any part of its royalty in kind at any time by giving Xxxxxx Lessee sixty (60) days written notice of such election. Lessor has the right to specify the point of delivery for Produced Substances, which, at XxxxxxLessor’s sole discretion, may be at the wellhead, at the separator, into a pipeline connected at the well, or at the location Lessee sells its production, or Lessor and Lessee may specify another mutually agreeable location. Lessee will bear to the point of delivery all Costs and Expenses related to the Produced Substances delivered to Lessor. Lessor’s election to take its royalty in kind will not modify or limit XxxxxxLessee’s duty to pay monetary royalties as provided herein or to market any Produced Substances not taken in kind. If Lessor elects to take its royalty in kind, Xxxxxx Lessor and Xxxxxx Lessee agree to negotiate in good faith for additional agreements necessary and useful including, but not limited to, a gas balancing agreement.