Specified Amounts. The Initial Specified Amounts shall apply during the period commencing on the Commercial Operation Date through and including the last day of the second (2nd) full calendar year following the Commercial Operation Date. The Initial Specified Amounts for each Month shall be consistent with a generation profile associated with a 50% probability of exceedance forecast using industry standard methodology. On or before September 1st of the second (2nd) full calendar year following the Commercial Operation Date, Seller shall provide PGE with an updated version of Exhibit C establishing the Specified Amounts for the third (3rd) full calendar year following the Commercial Operation Date through the end of the Delivery Period (i.e., the Specified Amounts will be the same for each of the third (3rd) through the last day of the Delivery Period), and such designated Specified Amounts for each Month shall be consistent with a generation profile associated with a fifty percent (50%) probability of exceedance forecast using industry standard methodology. In the event Seller elects to commence Commercial Operation with a Facility size of less than Generating Facility Nameplate Capacity pursuant to Section 3.1.21, the Specified Amounts in Exhibit C shall be updated to reflect the values corresponding with the Generating Facility Nameplate Capacity measured as of the Capacity Shortfall Date, provided to PGE in writing, within ten (10) Business Days after the Capacity Shortfall Date.
Specified Amounts. There may be situations in which the person with the working interest transfers that interest while retaining an overriding royalty interest with certain # conditions. For example, the agreement may provide that the person holding the overriding royalty interest will not receive an amount in excess of a specified percentage of net profits [e.g., the overriding royalty interest is entitled to the proceeds from XA of the production except that such amount shall not exceed 90 percent of net profits). The proposed regulations treat this type of limited overriding royalty interest as a net profits interest in those cases in which the proceeds from the specified share of production exceed the specified percentage of net profits. There may be situations in which the person with the working interest transfers that interest while retaining an interest that entitles such person to the greater of a specified percentage of net profits or a specified amount [e.g., 90 percent of net profits or $200, whichever is greater). The proposed regulations do not treat this type of interest as a net profits interest in those cases in which the specified amount exceeds the specified percentage of net profits. If the share of net profits exceeds the specified amount, the excess of the amount received over the specified amount, rather than the entire amount received, is treated as attributable to a net profits interest. The amount received equal to the specified amount is treated as attributable to a royalty interest or production payment, depending on the particular situation.
