Net Proceeds of Production shall have the meaning attributed to it in Appendix II.
Net Proceeds of Production means the amounts attributable to the Company's and its Subsidiaries' interest in the proceeds received from the sale of Oil and Gas produced from Mortgaged Properties after deduction of (a) royalties existing as of the effective date on which the Company or its Subsidiaries first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; (b) third party pipeline and transportation charges; (c) production, ad valorem and severance taxes chargeable against such production; (d) marketing costs; (e) overriding royalties existing as of the effective date on which the Company or its Subsidiaries first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; (f) other interests in and measured by production burdening the Mortgaged Properties existing as of the effective date on which the Company or its Subsidiaries first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; and (g) the current portion of direct operating or production costs which is allocable to such interest in such Mortgaged Properties.
Net Proceeds of Production means the Gross Receipts minus deductions therefrom, to the extent of but not exceeding the amount of those Gross Receipts, of the then net unrecovered amounts of the following classes of Costs made in the following itemized order:
(a) Marketing Costs;
(b) Distribution Costs;
(c) Operating Costs;
(d) Taxes and Royalties;
(e) Interest Costs;
(f) Construction Costs;
(g) Exploration Costs; and
Examples of Net Proceeds of Production in a sentence
If either party’s interest dilutes below 10%, then that party’s interest will convert to a 10% of Net Proceeds of Production Royalty.
In no event shall the cumulative Net Proceeds of Production payable to the withdrawing party, whether one or more, exceed an aggregate of five percent (5%).
Not more than ninety (90) days after Closing, Seller shall prepare a statement (herein called the “Final Statement”), which shall detail the Net Proceeds of Production received by Seller after Closing, and shall show the calculation of the final settlement price (herein called the “Final Settlement Price”) based upon such Final Statement.
The cost for estimating the Net Proceeds of Production, will be similar to what the mining industry defines as the mine production cash cost.
No interest, exploration or construction cost will be included in estimation the Net Proceeds of Production to calculate de Operator’s Production Bonus.
More Definitions of Net Proceeds of Production
Net Proceeds of Production means the amounts attributable to the Company’s and its Restricted Subsidiaries’ interest in the proceeds received from the sale of Oil and Gas produced from Mortgaged Properties after deduction of (a) royalties; (b) third party pipeline and transportation charges; (c) production, ad valorem, severance and other similar taxes chargeable against such production; (d) marketing costs; (e) overriding royalties; (f) other interests in and measured by production burdening the Mortgaged Properties; and (g) the current portion of direct operating or production costs which is allocable to such interest in such Mortgaged Properties.
Net Proceeds of Production means the amounts attributable to the Company’s and the Guarantors’ interest in the proceeds received from the sale of Oil and Gas produced from Mortgaged Properties after deduction of (a) royalties existing as of the effective date on which the Company or the applicable Guarantor first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; (b) third party (including any Exempt Subsidiary) pipeline and transportation charges; (c) production, ad valorem and severance taxes chargeable against such production; (d) marketing costs; (e) overriding royalties existing as of the effective date on which the Company or the applicable Guarantor first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; (f) other interests in and measured by production burdening the Mortgaged Properties existing as of the effective date on which the Company or the applicable Guarantor first mortgaged its interests in such Mortgaged Properties in favor of the Lenders or their predecessors; and (g) the current portion of direct operating or production costs which is allocable to such interest in such Mortgaged Properties.
Net Proceeds of Production means the Gross Receipts minus deductions therefrom, to the extent of but not exceeding the amount of those Gross Receipts, of the then net unrecovered amounts of the following classes of Costs made in the following itemized order:
(a) Marketing Costs;
(b) Distribution Costs;
(c) Operating Costs;
(d) Taxes and Royalties;
(e) Interest Costs;
(f) Construction Costs;
(g) Exploration Costs; and
(h) Prior Exploration Costs; it being understood that the deductions in respect of the Costs referred to in paragraphs 3.1(a), (b), (d) and (e) of this Appendix 3 shall be based on those Costs as recorded by that Participant and the deductions in respect of the Costs referred to in paragraphs 3.1(c), (f), (g) and (h) of this Appendix 3 shall be based on that Participant's Proportionate Share of those Costs as recorded by the Operator.
Net Proceeds of Production means the difference between (a) the sum of (w) all revenue received by or credited to the account of the Borrowers from the sale of Hydrocarbons and other minerals in, under or produced after October 1, 1998, from their Oil and Gas Properties, (x) all net proceeds from Hedging Agreements entered into pursuant to Section 8.1.8, and (y) all amounts received by the Borrowers or any of them, in their respective capacities as operators of certain Oil and Gas Properties, from other working interest owners pursuant to "Article III - Overhead" of the XXXXX form of Accounting Procedure (and similar agreements or provisions) attached to operating agreements pertaining to such Properties and (b) the sum of (i) royalties, overriding royalties, net profits interests and other existing burdens payable out of production, (ii) actual leasehold operating expenses, (iii) severance, ad valorem, excise and windfall profit taxes or other government taxes or similar levies or impositions hereinafter enacted or imposed, (iv) actual workover expenses (but not Capital Expenditures) for the Mortgaged Properties which are necessary to maintain production from existing completion intervals or zones in existing xxxxx, and from xxxxx and intervals or zones which become producing xxxxx, intervals or zones, as the case may be, as a result of Approved Development Activities and (v) all net payments made in respect of the Hedging Agreements entered into pursuant to Section 8.1.8, in each case to the extent such deductions are properly allocable to the Borrowers' Oil and Gas Properties.
Net Proceeds of Production means, with respect to any Person, all revenue received by or credited to the account of such Person from the sale of Hydrocarbons and other minerals in, under or produced from their respective oil, gas and mineral properties after deducting royalties, overriding royalties, volumetric production payments with respect to pre-sales of Hydrocarbon production, production payments pledged to secure non-recourse financing payable solely out of such production payments, net profits interests and other burdens payable out of production, normal and reasonable operating expenses and severance, ad valorem, excise, freehold mineral and windfall profit taxes.
Net Proceeds of Production means, with respect to any Person, all revenue received by or credited to the account of such Person from the sale of Hydrocarbons and other minerals in, under or produced from their respective oil, gas and mineral properties after deducting royalties, overriding royalties, volumetric production payments with respect to pre-sales of Hydrocarbon production, production payments pledged to secure non-recourse financing payable solely out of such production payments, net profits interests and other burdens payable out of production, normal and reasonable operating expenses and severance, ad valorem, excise and windfall profit taxes.
Net Proceeds of Production means the Gross Receipts minus deductions therefrom, to the extent of but not exceeding the amount of those Gross Receipts, of the then net unrecovered amounts of the following classes of Costs made in the following itemized order:
(a) Marketing Costs;
(b) Distribution Costs;
(c) Operating Costs;
(d) Property Taxes and Royalties; it being understood that the deductions in respect of the Costs shall be based on those Costs as recorded by Sunburst de Mexico.