Common use of Right to Take Production in Kind Clause in Contracts

Right to Take Production in Kind. Each party shall take in kind or separately dispose of its proportionate share of all oil and gas produced from the Unit Area, exclusive of production, which may be used in developing, and production operations unavoidably lost. Each party shall pay or deliver, or cause to be paid or delivered, all royalties, overriding royalties, or other payments due on its share of such production, and shall hold the other parties free from any liability therefrom. Any extra expenditure incurred in the taking in kind or separate disposition by any party of its proportionate share of the production shall be borne by such party. Each party shall execute all division orders and contracts of sale pertaining to its interest in production from the Unit Area, and agrees that Operator shall receive all production proceeds and disburse proceeds to participants monthly. Operator is authorized to deduct expenses and charges as authorized in this Agreement from such proceeds and send the remaining amount to participants. In the event any party shall fail to make the arrangements necessary to take in kind or separately dispose of its proportionate share of the oil and gas produced from the Unit Area, Operator shall have the right, but not the obligation, to purchase such oil and gas or sell it to others for the time being, at not less than the market price prevailing in the area, which shall in no event be less than the price which Operator receives for its portion of the oil and gas produced in the Unit Area. Any such purchase or sale by Operator shall be subject always to the right of the owner of the production to exercise at any time its right to take in kind, or separately dispose of, its share of all oil and gas not previously delivered to a purchaser. Notwithstanding the foregoing, Operator shall not make a sale into interstate commerce of any other party's share of gas production without first giving such other party thirty (30) days' notice of such intended sale.

Right to Take Production in Kind. Each party shall have the right take in kind kind, but not the obligation to take in kind, or separately dispose of its proportionate share of all oil and gas Products produced from the Unit AreaWell or ▇▇▇▇▇ as the case maybe, exclusive of production, Products which may be used in developing, development and production producing operations and in preparing and treating oil for marketing purposes and Products unavoidably lost. Each party If in exercising such right to take production in kind, each Party shall pay or deliver, or cause to be paid or delivered, all royalties, overriding royalties, or other payments due on its share of such production, and shall hold the other parties free from any liability therefromtherefore. Any extra expenditure incurred in the taking in kind or the separate disposition by any party of its proportionate share of the production shall be borne by such party. Each party shall execute all division orders and contracts of sale pertaining to its interest in production from the Unit Area, and agrees that Operator shall receive all production proceeds and disburse proceeds to participants monthly. Operator is authorized to deduct expenses and charges as authorized in this Agreement from such proceeds and send the remaining amount to participants. In the event any party shall fail to make the arrangements necessary to take in kind or separately dispose of its proportionate share of the oil and gas Products produced from the Unit Areaa Well or ▇▇▇▇▇, Operator shall have the right, subject to revocation at will by the party owning it, but not the obligation, to purchase such oil and gas or sell it to others for the time being, at not less than the market price prevailing in the area, which shall in no event be less than the price which Operator receives for its portion of the oil and gas produced in from the Unit AreaWell. Any such purchase or sale by Operator shall be subject always to the right of the owner owners of the production to exercise at any time its right to take in kind, kind or separately dispose of, delivered to a purchaser its share of all oil and gas not previously delivered to a purchaserthe production. Notwithstanding the foregoing, Operator shall not make a sale into interstate commerce of any other party's partvs share of gas oil production without first giving such other party thirty (30) days' days notice of such intended sale.