Overriding Royalties Clause Samples

Overriding Royalties. Chevron's reserved overriding royalty as described in Section 5.2 above shall be free and clear of all costs of exploring, operating, and developing on, and producing from, the acreage farmed-out, and maintaining said Lease(s) in force and effect, as well as all cost for plugging, abandoning, clean-up and restoration, but shall bear its proportionate share of all severance, production and other taxes which are now or which may hereafter become applicable thereto. Said overriding royalty shall be computed and paid to or taken in kind by Chevron, whichever Chevron prefers, from time to time, at the same time and in the same manner as royalties are computed and paid to or taken in kind by the lessor under the Leases(s), except that said overriding royalty shall be paid to or taken in kind by Chevron regardless of any applicable lessor royalty relief.

Overriding Royalties. Chevron's reserved overriding royalty as described in Section 5.3 above shall be free and clear of all cost, of exploring, operating, and developing on, and producing from, the acreage farmed-out, and maintaining said lease in force and effect, as well as all cost for plugging, abandoning, clean-up and restoration, but shall bear its proportionate share of all severance, production and other taxes which are now or which may hereafter become applicable thereto. Said overriding royalty shall be computed and paid at the same time and in the same manner as royalties are computed and paid to the lessor under the leases farmed-out. If Chevron elects to participate for a working interest at "payout" in a farmed-out well, Chevron will proportionately share in any royalty relief granted based on its working interest starting at that time of Chevron's election, but in no event should Chevron be entitled to any royalty relief granted prior to payout. However, should a farmed-out well be unsuccessful and the MMS grants royalty relief on the Lease drilled, the owners of the shallow production on such Lease in which royalty relief is granted shall be entitled to the royalty relief so granted if any.

Overriding Royalties. Any overriding royalties reserved by Texaco pursuant to any Farmout Agreement or Sublease shall be delivered or paid to Texaco as herein- below provided: (a) The overriding royalties which are reserved herein on oil and/or other liquid hydrocarbons that are produced from a Prospect, shall be an amount equal to the percent of total production produced and saved at the wellhead, the separator or drips; the same shall be delivered to the credit of Texaco in the pipeline to which the well(s) may be connected, free of all costs except that the overriding royalty shall bear its proportionate share of Third Party transportation costs actually incurred, if any; provided, however, if McMoRan, or an affiliate of McMoRan, purchases or sells such oil and/or other liquid hydrocarbons at the well(s) or at a delivery point on or off the leased premises, McMoRan shall pay the price being paid for such oil and/or other liquid hydrocarbons under an arm's-length transaction at the point of sale for such oil and/or other liquid hydrocarbons, or the resale price received by McMoRan, or any affiliate of McMoRan, whichever is greater, for its own oil and/or other liquid hydrocarbons produced from said well(s) received at the well(s) or at a delivery point on or off the leased premises after the deduction of Third Party transportation cost actually incurred, if any. In no event shall the price paid be less than the price received by McMoRan, or an affiliate of McMoRan, after the deduction of Third Party transportation cost actually incurred, if any, whichever is greater. Anything to the contrary notwithstanding, the price used for determining Texaco's overriding royalties shall not be less than the price used for royalty valuation in favor of the Minerals Management Service, as Lessor of its respective leases described herein, or the State of Louisiana, as Lessor of its respective leases. (b) The overriding royalties which are reserved herein on gas, casinghead gas and/or other gaseous substances shall be an amount equal to the percent of total production specified above which may be produced and saved from the Prospect at the well(s) or on the lease, the same to be delivered to the credit of Texaco in the pipeline to which the well(s) my be connected, free of all costs except that the overriding royalty shall bear its proportionate share of Third Party transportation costs actually incurred, if any; provided, however, if McMoRan purchases, utilizes or sells same at the well(s) o...

Overriding Royalties. To the extent that the Sole Shareholder or any of its Affiliates hold any overriding royalty interests burdening the Leases on Exhibit A-1 with amounts listed under the column “Net Acres B,” the Sole Shareholder shall assign, or cause its Affiliates to assign (as applicable), all right, title and interest in and to the applicable overriding royalty interests to the Surviving Company. 5. The parties acknowledge that, except as specifically amended hereby, all terms and conditions of the Merger Agreement remain unchanged and that the Merger Agreement, as amended hereby, is in full force and effect and confirmed in all respects. 6. The following provisions of the Merger Agreement are hereby incorporated into and specifically made applicable to this Amendment (provided, that, in construing such incorporated provisions, any reference to “this Agreement” shall be deemed to refer to this Amendment): Section 13.1 Amendment and Modification Section 13.2 Severability Section 13.6 Counterparts Section 13.11 Governing Law

Overriding Royalties. Except for the Overriding Royalty Obligations listed on Exhibit H, Sellers do not own or intend to reserve any other overriding royalties related to the Mineral Interests.

Overriding Royalties. Assignor reserves an overriding royalty interest equal to the difference between 26% and existing leasehold burdens (inclusive of the landowner's royalty) determined on a lease-by-lease basis, it being the intent of this Assignment that Assignor convey to Assignee a net revenue interest of 74.0% in the Leases and Lands. The production produced attributable to the overriding royalty interest retained by UHC may be taken in "kind" at the option of UHC. Any reserved overriding royalty interest is subject to proportionate reduction as set out in paragraph 12, below. Further, any reserved overriding royalty interest shall be free of development, production and operating expenses, but shall bear its proportionate share of post-production costs incurred by Assignee (including without limitation all costs associated with compressing, processing, separating, treating, dehydrating, gathering, pipelines, transporting and marketing) as well as its proportionate share of all ad valorem, production, severance, excise and all other taxes assessed against the production subject to such overriding royalty interest.

Overriding Royalties. 24 5.7 Joint Operations for Earned Depths .....................................24 Chevron / Ridgewood EPA 9-1-05.doc Final Agreement

Overriding Royalties. Subject to the approval of the Secretary, an overriding royalty interest may be created by an assignment pursuant to section 8(e) of the Act. The Secretary may deny approval of an assignment which creates an overriding royalty on a lease whenever that denial is determined to be in the interest of conservation, necessary to prevent premature abandonment of a producing mine, or to make possible the mining of economically marginal or low-grade ore deposits. In any case, the total of applicable overriding royalties may not exceed 2.5 percent or one-half the base royalty due the Federal Government, whichever is less.

Overriding Royalties. 24 5.7 Joint Operations for Earned Depths ...........................24 6. PRESSURE COMMUNICATION AND COMMON RESERVOIRS ...................25 Chevron / Ridgewood EPA 9-1-05.doc Final Agreement TABLE OF CONTENTS ARTICLE PAGE