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 VI shall not relieve such Participant of its share of any liability (including without limitation its share of any reclamation liability) arising out of Operations conducted prior to such reduction, whether such liability is known or unknown at the time of the reduction and whether such liability is asserted before or after such reduction. For purposes of this Article VI, such Participant's share of such liability shall be equal to its Participating Interest at the time the activity giving rise to the liability occurred. 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 the 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, a 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. Each Participant also irrevocably appoints the Manager as its attorney-in-fact to execute, file and record all documents necessary to evidence any adjustment to the Participants' Participating Interests. SECTION

Continuing Liabilities Upon Adjustments of Participating Interests. Any No reduction of a Participant's Participating Interest under this Article VI shall not relieve such Participant of its share of any reclamation or other liability (including without limitation its share of any reclamation liability) arising out of Operations conducted prior to such reduction, whether it accrues before or after such liability is reduction, whether it was known or unknown at the time of the reduction that time, and whether such liability is asserted it becomes an enforceable right before or after such reduction. For purposes of this Article VI, such Participant's share of such liability shall be equal to its Participating Interest in the relevant Exploration or Production Area at the earliest time the activity such liability, or condition giving rise to the liability occurredsuch liability, was created or 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 of entry into this Agreement or those to which the 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 in each Exploration and Production Area shall be shown in the books of the Manager. However, a either Participant, at any time upon the request of the other Participant, shall execute and acknowledge instruments reasonably necessary to evidence such adjustment adjustment, or to grant or confirm a Net Smelter Returns interest arising under this Article VI, in form sufficient for recording in the jurisdiction where the Properties are located. Each Participant also irrevocably appoints the Manager as its attorney-in-fact to execute, file and record all documents necessary to evidence any adjustment to the Participants' Participating Interests. SECTION.