Delivery of Hydrocarbons. Except as set forth on Schedule 5.19 and for the rights of any lessor to take free gas under the terms of any applicable Lease for its use on the lands covered by such Lease, (i) neither of the Companies is obligated by virtue of any take-or-pay payment, advance payment or other similar payment (other than gas balancing arrangements), to deliver Hydrocarbons, or proceeds from the sale thereof, attributable to the Company Assets at some future time without receiving full payment therefor at or after the time of delivery; and (ii) none of the revenues attributable to either of the Companies’ interests in any producing Well are being held in suspense.
Appears in 2 contracts
Sources: Membership Interest Purchase and Sale Agreement, Membership Interest Purchase and Sale Agreement (Constellation Energy Partners LLC)