Common use of Continuing Liabilities Upon Adjustments of Participating Interests Clause in Contracts

Continuing Liabilities Upon Adjustments of Participating Interests. Any reduction of a Participant's Participating Interest under this Article 6 shall not relieve such Participant of its share of any liability, whether it accrues before or after such reduction, arising out of Operations conducted prior to such reduction. For purposes of this Article 6, such Participant's share of such liability shall be equal to its Participating Interest at the time such liability was incurred. The increased Participating Interest accruing to a Participant as a result of the reduction of the other Participant's Participating Interest shall be free of royalties, liens, or other encumbrances arising by, through, or under such other Participant, other than those existing at the time the Properties were acquired or those to which both Participants have given their written consent. An adjustment to a Participating Interest need not be evidenced during the term of this Agreement by the execution and recording of appropriate instruments, but each Participant's Participating Interest shall be shown in the books of the Manager. However, either Participant, at any time upon the request of the other Participant, shall execute and acknowledge instruments necessary to evidence such adjustment in form sufficient for recording in the jurisdiction where the Properties are located.

Continuing Liabilities Upon Adjustments of Participating Interests. Any reduction of a ParticipantSouthern's Participating Interest in the Joint Venture under this Article Section 6 shall not relieve such Participant Southern of its share of any liability, whether it accrues before or after such reduction, arising out of Operations conducted prior to such reduction. For purposes of this Article Section 6, such ParticipantSouthern's share of such liability shall be equal to its Participating Interest at the time such liability was incurred. The increased Participating Interest accruing to a Participant Vittone as a result of the reduction of the other ParticipantSouthern's Participating Interest In▇▇▇▇▇▇ shall be free of royalties, liens, liens or other encumbrances arising by, through, or under such other Participantencumbrances, other than those existing at the time the Properties were acquired or Property was acquired, those to which both Participants have given their written consent, or the Net Profits Interest of Vittone. An adjustment to a Participating Interest need not be evidenced ev▇▇▇▇▇▇▇ during the term of this Agreement by the execution and recording of appropriate instruments, but each Participant's Participating Interest shall be shown in the books of the ManagerOperator. However, either Participant, at any time upon the request of the other Participant, shall execute and acknowledge instruments necessary to evidence such adjustment in form sufficient for recording in the jurisdiction where the Properties are Property is located.