|
<br />e
<br />
<br />e
<br />
<br />(c) If gas, casinghead gas or other gaseous substances pro-
<br />duced from said land is sold at the well or at a delivery point on
<br />27j:7% or off the leased land, the roya~ty on same shall be ~ of the
<br />market value of the gas at the tlme it is produced, provided that
<br />27. r in no event shall the price paid be less than xlQE1& of the amount
<br />realized therefrom by Lessee or any affiliate of Lessee.
<br />
<br />(d) If Lessee, or an affiliate of Lessee shall themselves,
<br />or by arrangement with others, run oil, condensate, other liquid
<br />hydrocarbons, gas, casinghead gas, or other gaseous substances
<br />produced from said land through a processing, absorption or
<br />extraction plant, or use such production from said land in the
<br />manufacture, extraction or separation of gasoline, condensate,
<br />distillate, butanes, propanes, chemicals, chemical compounds or
<br />other liquid or gaseous hydrocarbons, or products manufactured,
<br />processed, separated, or extracted therefrom, the royalty therefore
<br />27.!i:; shall be, at the option of Lessor, eitherx1~.of the market value
<br />of such oil, condensate, other liquid hydrocarbons, gas, casinghead
<br />gas, or other gaseous substances at the well or delivery point on
<br />2~77~ the leased premises, or ~ of the market value of the gross pro-
<br />. duction of products and components derived therefrom by such pro-
<br />cessing and manufacturing at such plant, and Lessor shall be paid
<br />27;t7 on residue gas ~ of the market value at the tailgate of the
<br />plant, but in no event less than the proportionate amount realized
<br />by Lessee or an affiliate of Lessee for such residue gas. The
<br />market value paid hereunder for gasoline, condensate, distillate,
<br />butanes, propanes, chemicals, chemical compounds or other liquid or
<br />gaseous hydrocarbons, or products manufactured, processed, so sep-
<br />arated or extracted, shall be not less than the average selling
<br />price of the respective grades thereof f.o.b. at the plant for the
<br />month in which same is delivered and shall not be less than the
<br />average price quoted (if prices are quoted) in two of the leading
<br />periodicals of the industry for similar grades of the products
<br />enumerated above.
<br />
<br />27, ls)
<br />27JJf
<br />
<br />(e) The royalty on any gas, casinghead gas or other gaseous
<br />substances, produced from the land herein described and used, sold
<br />or delivered in any way other than specificallY provided above
<br />shall be ~ of the market value at the well at the time it is
<br />produced, except that if the same is run through an oil and gas
<br />s~parator as hereinabove provided, the royalty shall be~' of the
<br />market value at the downstream outlet of such separator, but not
<br />less than the amount realized by the Lessee, or an affiliate of
<br />Lessee.
<br />
<br />frI
<br />
<br />(f) Should Lessee or an affiliate of Lessee use, sell,
<br />deliver, or contract with others for the use, sale, delivery or
<br />processing of gas, oil or other hydrocarbons produced from said
<br />land for any purposes or under any condition not specifically
<br />covered by this Paragraph 4, then Lessor shall have the option at
<br />any time, and from time to time, to elect as to the royalty thereon
<br />to either (1) receive the royalty herein provided for gas, oil or
<br />other liquid hydrocarbons produced and saved or sold, or (2) to be
<br />paid ~ of the amount realized by Lessee or Lessee's affiliate
<br />from the use, sale, delivery or processing of such gas, oil or
<br />other liquid hydrocarbons produced from said land or received by
<br />Lessee or an affiliate of Lessee in exchange for or in lie~ of the
<br />gas, oil or other liquid hydrocarbons produced from the said land,
<br />or any components thereof.
<br />
<br />(g) . On sulphur, salt or water associated with the oil, gas
<br />or other liquid hydrocarbons, used, separated, extracted, or pro-
<br />duced and manufactured from the land described herein, a royalty
<br />2~. % hall be paid Lessor of~of the entire eight-eighths (8/8) of
<br />the proceeds received by Lessee or Lessee's affiliate for such
<br />products and elements extracted, used or produced and marketed from
<br />the land described herein.
<br />
<br />3
<br />
|