Common use of Title Defect Values Clause in Contracts

Title Defect Values. In determining the value of a Title Defect, it is the intent of the Parties to include, to the extent possible, only that portion of the lands, leases and well▇, ▇▇ether an undivided interest, separate interest or otherwise, affected by the defect. The Title Defect value shall be determined by the parties in good faith taking into account all relevant factors, including, but not limited to, the following: (i) the Allocated Value of the leases, lands and well affected by the Title Defect; (ii) the potential or actual reduction in the net revenue interest shown on Exhibit B or the amount by which the expense interest is greater than the expense interest set forth on Exhibit B. (iii) the productive or prospective status of the Title Defect Property (i.e., proved developed producing, etc.) and the present value of the future income expected to be produced therefrom; (iv) if the Title Defect represents only a possibility of title failure, the probability that such failure will occur; (v) the legal effect of the Title Defect; (vi) if the Title Defect is a lien or encumbrance on the leases, lands or well▇, ▇▇e cost of removing such lien or encumbrance. Notwithstanding anything to the contrary that may be contained in this Article 8, Buyer understands and agrees that the Allocated Values set forth on Exhibit B are only for (i) currently producing zones and that any loss of depth rights or acreage will not have a Title Defect Value unless such loss causes a change in expense or net revenue interest in the currently producing zone and (ii) the proven undeveloped locations and the behind pipe zones specifically set forth on Exhibit B.

Title Defect Values. In determining the value of a Title Defect, it is the intent of the Parties to include, to the extent possible, only that portion of the lands, leases and well▇▇▇▇▇, ▇▇ether whether an undivided interest, separate interest or otherwise, materially and adversely affected by the defect. The Title Defect value shall in no event exceed the Allocated Value of the affected Asset. Subject to such limitation; the "Title Defect Value" shall be determined by the parties in good faith taking into account all relevant factors, including, but not limited to, the following: (i) the Allocated Value of the leases, lands and well affected by the Title Defect; (ii) the potential or actual reduction in the net revenue interest shown on Exhibit B warranted NRI of the Title Defect Property, or the amount by which the expense interest cost sharing percentage for such property is greater than the expense interest set forth on Exhibit B.warranted WI; (iii) the productive or prospective status of the Title Defect Property (i.e., proved developed producing, etc.) and the present value of the future income expected to be produced therefrom; (iv) if the Title Defect represents only a possibility of title failure, the probability that such failure will occur; (v) the legal effect of the Title Defect;; and (vi) if the Title Defect is a lien or encumbrance on the leases, lands or well▇▇▇▇▇, ▇▇e the cost of removing such lien or encumbrance. Notwithstanding anything to the contrary that may be contained in this Article 8VIII, (i) Buyer understands and agrees that the Allocated Values set forth on in Exhibit B are only for (i) currently producing zones and that any loss of depth rights or acreage will not have a Title Defect Value unless such loss causes a change decrease in expense or net revenue interest in the currently producing zone zone; and (ii) notwithstanding anything contained herein to the proven undeveloped locations contrary, there shall be no adjustments to the Non-Producing Leasehold (as described in Exhibit B hereto) pursuant to Articles 7 and the behind pipe zones specifically set forth on Exhibit B.9 hereof.

Title Defect Values. In determining the value of a Title DefectDefect (the “Title Defect Value”), it is the intent of the Parties to include, to the extent possible, only that portion of the lands, leases and well▇, ▇▇ether ▇▇▇ or other Assets, whether an undivided interest, separate interest or otherwise, materially and adversely affected by the defect. The Title Defect value shall in no event exceed the Allocated Value of the affected Asset. Subject to such limitation; the Title Defect Value shall be determined by the parties in good faith taking into account all relevant factors, including, but not limited to, the following: (i) the Allocated Value of the leases, lands and well ▇▇▇▇▇ or other Assets affected by the Title Defect; (ii) the potential or actual reduction in the warranted net revenue interest shown on Exhibit B of the Title Defect Property, or the amount by which the expense interest cost sharing percentage for such property is greater than the expense interest set forth on Exhibit B.warranted working interest; (iii) the productive or prospective status of the Title Defect Property (i.e., proved developed producing, etc.) and the present value of the future income expected to be produced therefrom; (iv) if the Title Defect represents only a possibility of title failure, the probability that such failure will occur; (v) the legal effect of the Title Defect;; and (vi) if the Title Defect is a lien or encumbrance on the leases, lands or well▇▇▇▇▇, ▇▇e the cost of removing such lien or encumbrance. Notwithstanding anything to the contrary that may be contained in this Article 8, Buyer understands and agrees that the Allocated Values set forth on in Exhibit B for a well or unit are only for (i) currently producing zones and that any loss of depth rights or acreage associated with such a well or unit will not have a Title Defect Value unless such loss causes a change decrease in expense or net revenue interest in the currently producing zone and (ii) the proven undeveloped locations and the behind pipe zones specifically set forth on Exhibit B.zone.