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 ▇▇▇▇▇, whether an undivided interest, separate interest or otherwise, materially and adversely affected by the Title 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: (a) the Allocated Value of the leases, lands and well affected by the Title Defect; (b) the reduction in the warranted net revenue interest of the Asset affected by the Title Defect, or the amount by which the cost sharing percentage for such property is greater than the warranted working interest; (c) the productive status of the Asset affected by the Title Defect (i.e., proved developed producing, etc.) and the present value of the future income reasonably expected to be produced therefrom; (d) the legal effect of the Title Defect; and (e) if the Title Defect is a lien or encumbrance on the leases, lands or ▇▇▇▇▇, the cost of removing such lien or encumbrance.

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 ▇▇▇▇▇wells, whether an undivided interest, separate interest or otherwiseotherwi▇▇, materially ▇aterially and adversely affected by the Title Defectdefect. The Title Defect Value value shall in no event exceed the Allocated Value of the affected Asset. Subject to such limitation, ; the "Title Defect Value Value" shall be determined by the Parties parties in good faith taking into account all relevant factors, including, but not limited to, the following: (ai) the Allocated Value of the leases, lands and well affected by the Title Defect; (bii) the reduction in the warranted net revenue interest NRI of the Asset affected by the Title DefectDefect Property, or the amount by which the cost sharing percentage for such property is greater than the warranted working interestWI; (ciii) the productive status of the Asset affected by the Title Defect Property (i.e., proved developed producing, etc.) and the present value of the future income reasonably expected to be produced therefrom; (div) 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 (evi) if the Title Defect is a lien or encumbrance on the leases, lands or ▇▇▇▇▇wells, the cost of removing such lien or encumbrance.