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:
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.
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.
If either party’s interest dilutes below 10%, than that party’s interest will automatically be converted into a royalty, by way of a 10% of Net Proceeds of Production Royalty.
Xstrata Canada Corporation retains a back-in right for a 50.1% interest or a 9% Net Proceeds of Production Royalty upon a production notice being given.Other Exploration PropertiesThe Company has interests in various other early stage exploration properties located primarily in Canada.
The adjustment will be reflected in subsequent payment of Net Proceeds of Production.
The Ruddock Creek property consists of 20 mineral claims.CatfaceThe Company owns 97.4% of the Catface copper/gold property located 13 kilometres from Tofino on the west coast of Vancouver Island (subject to a 9% Net Proceeds of Production Royalty).
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, 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 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 and windfall profit taxes.
Net Proceeds of Production has the meaning ascribed to such term in the Second Lien Term Loan Agreement.
Net Proceeds of Production means the gross proceeds of production attributable to the Properties which are received or which are estimated to be received thereafter for sale of production attributable to the Properties for a particular period of time less all amounts paid by Seller with respect to such period of time in connection with the Properties, including, without limitation, all lease operating expenses, capital expenditures, royalty, overriding royalty, net profits interests, production, severance, excise taxes, any ad valorem taxes and other applicable expenses paid by Seller. All Net Proceeds of Production attributable to the Properties prior to the Effective Date shall be owned by and for the account of Seller. Buyer shall be entitled to all Net Proceeds of Production attributable to the operation of the Properties after the Effective Date. Seller shall be entitled to the proceeds of all merchantable oil and natural gas liquid hydrocarbons stored in tanks and vessels on the Property on the Effective Date. Oil and other liquid hydrocarbons in treating equipment, separation equipment and tanks below pipeline connections as of the Effective Date shall not be considered merchantable and shall become the property of Buyer. Buyer shall assume Seller’s suspense funds attributable to the Properties and these funds shall be accounted for in the Final Statement. The term “Net Proceeds of Production” shall apply only with respect to the period of time prior to the Closing Date.