Call on Production. The option and exclusive right, at any time, at all times and from time to time, to purchase all oil and gas, casinghead gas, other hydrocarbons and minerals which may be produced and saved from the leased acreage. Payment for any oil, distillate, condensate and other liquid hydrocarbons purchased hereunder shall be made at the prevailing price offered by responsible purchasers for production of similar kind and quality in the area where produced at the time such production is taken for purchase. Payment for gas and casinghead gas purchased hereunder shall be made at the highest wellhead price under contracts for the sale of production of similar kind and quality prevailing in the area at the time such option and right are initially exercised. The Lessors shall exercise this option by giving Lessee sixty (60) days written notice of its exercise of said option, which exercise is to remain in operation and effect until canceled by written notice from Lessors to Lessee.
Appears in 3 contracts
Sources: Oil and Gas Exploration and Development Lease, Oil and Gas Exploration and Development Lease, Oil and Gas Exploration and Development Lease