Common use of Overriding Royalty Interest Clause in Contracts

Overriding Royalty Interest. Infinity shall be entitled to retain (or --------------------------- receive, if the Leases are assigned to PGP by the current owner) an overriding royalty interest ("Overriding Royalty Interest") not to exceed 5% of 8/8 in and to production from the Leases assigned to PGP at Closing. The size of the Overriding Royalty Interest in each case shall be determined by subtracting .81 from the Lease Revenue Interest (before reduction by the Overriding Royalty Interest) owned by Infinity (or the LRI (before reduction by the Overriding Royalty Interest) which Infinity otherwise has the right to cause to be assigned to PGP) in such Lease, proportionately reduced to the extent such Lease does not cover 100% of the fee mineral estate in and to the lands covered by such Lease. In the event Infinity is unable to deliver to PGP at Closing a LRI (after reduction by the Overriding Royalty Interest) of at least .81 in any Lease, Infinity shall not be entitled to reserve or acquire as a part of this transaction any Overriding Royalty Interest in and to production from such Lease. Any overriding royalty interest that Coltex Petroleum, Inc. may own in any of the lands covered by the Leases, under any other oil and gas lease covering the same mineral interest as are covered by one or more of the Leases (the "Cortex Overrides"), which may be acquired by Infinity within 12 months after Closing, shall be included within the definition of "Overriding Royalty Interest."