Common use of Existing Burdens Clause in Contracts

Existing Burdens. Each Party's interest under this agreement in the AMI Interests, and oil and gas leases which may be acquired thereunder, shall be subject to and burdened by its proportionate share of all existing operating agreements, existing and pending pooling and spacing orders and all Lease Burdens other than Subsequently Created Burdens. TAC represents that, except as hereinafter provided, it has not burdened the Existing AMI Interests acquired or to be acquired with any liens or Subsequently Created Burdens. Each Party agrees to perform its Proportionate Share of the obligations under the AMI Interests acquired pursuant to this Agreement and the other obligations described in this Article, but only to the extent that such obligations arise after the acquisition of such AMI Interests by such Party. Notwithstanding the foregoing, the Parties agree that they shall bear, their Proportionate Share of an overriding royalty interest to be owned by Bayou Black Royalty Company, Inc. on all oil and gas leases acquired pursuant to this Agreement (including leases acquired by exercising lease options in which the Parties own an interest, and in extensions and renewals thereof ) equal to two percent (2%) of eight-eighths (8/8ths), provided that such overriding royalty interest shall be reduced in the proportion that the undivided mineral interest covered by any such lease bears to the entire mineral interest in the lands covered by such lease.

Existing Burdens. Each Party's interest under this agreement in the AMI Interests, and oil and gas leases which may be acquired thereunder, shall be subject to and burdened by its proportionate share of all existing operating agreements, existing and pending pooling and spacing orders and all Lease Burdens other than Subsequently Created Burdens. Parallel and TAC represents thatrepresent, except as hereinafter provided, it has that they have not burdened the Existing AMI Interests acquired or to be acquired with any liens or Subsequently Created Burdens. Each Party agrees to perform its Proportionate Share of the obligations under the AMI Interests acquired pursuant to this Agreement and the other obligations described in this Article, but only to the extent that such obligations arise after the acquisition of such AMI Interests by such Party. Notwithstanding the foregoing, the Parties agree that they shall bear, their Proportionate Share of an overriding royalty interest to be owned by Bayou Black Royalty Company, Inc. TAC on all oil and gas leases acquired pursuant to this Agreement (including leases acquired by exercising lease options in which the Parties own an interest, and in extensions and renewals thereof thereof) equal to the difference between Lease Burdens and twenty-five percent (25%) on all such leases where Lease Burdens are less than twenty-five percent (25%); and an overriding royalty interest equal to two percent (2%) of eight-eighths (8/8ths), provided that 8/8th) in such leases where Lease Burdens are twenty-five percent (25%) or greater. All such overriding royalty interest interests shall be reduced in the proportion that the undivided mineral interest covered by any such lease or leases bears to the entire undivided fee mineral interest in the lands covered by such leaseestate.