Common use of In-Kind Balancing Clause in Contracts

In-Kind Balancing. 3.1. Effective the first day of any calendar month following at least thirty (30) days' prior written notice to the Operator, any Underproduced Party may begin taking, in addition to its Full Share of Current Production and any Makeup Gas taken pursuant to Section 2.3. of this Agreement, a share of current production determined by multiplying thirty-seven and one-half percent (37.5%) of the Full STWDJOA - Exhibit "E" Shares of Current Production of all Overproduced Parties by a fraction, the numerator of which is the Percentage Interest of such Underproduced Party and the denominator of which is the total of the Percentage Interests of all Underproduced Parties desiring to take Makeup Gas. In no event will an Overproduced Party be required to provide more than thirty-seven and one-half percent (37.5%) of its Full Share of Current Production for Makeup Gas. The Operator will promptly notify all Overproduced Parties of the election of an Underproduced Party to begin taking Makeup Gas. 3.2. Notwithstanding the provisions of Section 3.1., the average monthly amount of Makeup Gas taken by an Underproduced Party during the Winter Period pursuant to Section 3.1. shall not exceed the average monthly amount of Makeup Gas taken by such Underproduced Party during the six (6) months immediately preceding the Winter Period.

In-Kind Balancing. 3.1. Effective the first day of any calendar month following at least thirty (30) days' prior written notice to the Operator, any Underproduced Party may begin taking, in addition to its Full Share of Current Production and any Makeup Gas taken pursuant to Section 2.3. of this Agreement, a share of current production determined by multiplying thirty-seven and one-half percent (37.5%) of the Full STWDJOA - Exhibit "E" Shares of Current Production of all Overproduced Parties by a fraction, the JOA - Exhibit "E" -4- 3787:CRR numerator of which is the Percentage Interest of such Underproduced Party and the denominator of which is the total of the Percentage Interests of all Underproduced Parties desiring to take Makeup Gas. In no event will an Overproduced Party be required to provide more than thirty-seven and one-half percent (37.5%) of its Full Share of Current Production for Makeup Gas. The Operator will promptly notify all Overproduced Parties of the election of an Underproduced Party to begin taking Makeup Gas. 3.2. Notwithstanding the provisions of Section 3.1., the average monthly amount of Makeup Gas taken by an Underproduced Party during the Winter Period pursuant to Section 3.1. shall not exceed the average monthly amount of Makeup Gas taken by such Underproduced Party during the six (6) months immediately preceding the Winter Period.