Common use of Distribution of Production Clause in Contracts

Distribution of Production. All marketable oil in storage above the pipeline connection or marketable gas beyond the meters at the Effective Time shall be credited to Seller, less applicable royalties. With respect to Assets operated by Samson Operator or Seller, the applicable operator shall have gauged the oil in storage and read all gas meter charts as of the Effective Time, but shall not include unmarketable sludge or linefill. For Seller non-operated Assets, the quantity of such oil in storage or gas beyond the meters shall be determined on the same basis as that used for Seller-operated Assets based on operator reports or applicable state regulatory agency production reports or records, but shall not include unmarketable sludge or linefill. As part of the Closing Settlement Statement, the price for such oil in storage shall be at the price that Seller has contracted to sell the oil at the Effective Time. If there is no such price, the price shall be the average of the two highest prices that are posted at the Effective Time (plus any premium) by other purchasing companies, as determined by Seller in the field or locality where the Assets are located for oil of like grade and gravity. Subject to the occurrence of the Closing, title to the oil in storage for both Seller-operated and Seller non-operated Assets shall pass to Buyer as of the Effective Time, and an upward adjustment shall be made to the Base Purchase Price due at the Closing, less applicable royalties, lease burdens and other adjustment set forth in Section 3.4(b).

Distribution of Production. All marketable oil in storage above the pipeline connection or marketable gas beyond the meters at the Effective Time Time, to the extent attributable to the Sale Interests, shall be credited to SellerSellers and the Participating Third Party Owners, as the case may be, less applicable royaltiesroyalties and severance taxes to which the interests of such parties are subject. With respect to Assets For Seller-operated by Samson Operator or SellerAssets, the applicable operator shall Sellers have gauged the oil in storage and read all gas meter charts as of the Effective Time, but shall not include unmarketable sludge or linefill. For Seller non-operated Assets, the quantity of such oil in storage or gas beyond the meters shall be determined on the same basis as that used for Seller-operated Assets based on operator reports or applicable state regulatory agency production reports or records, but shall not include unmarketable sludge or linefill. As part of the Closing Settlement Statement, the price for such oil in storage shall be at the price that Seller has Sellers have contracted to sell the oil at the Effective Time. If there is no such price, the price shall be the average of the two highest prices that are posted at the Effective Time (plus any premium) by other purchasing companies, as determined by Seller Sellers in the field or locality where the Assets are located for oil of like grade and gravity. Subject to the occurrence of the Closing, title to the oil in storage for both Seller-operated and Seller non-operated Assets Assets, to the extent attributable to the Sale Interests, shall pass to Buyer as of the Effective Time, and an upward adjustment shall be made to the Base Purchase Price due at the Closing, less applicable royalties, lease burdens royalties and other adjustment set forth in Section 3.4(b)severance taxes.