O-1988-1622 - Laserfiche WebLink

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e e Lessee shall forthwith furnish Lessor true copies of all contracts and price redetermination letters or agreements entered into by Lessee for the sale or dispos~tion of any gas, oil or other liquid hydrocarbons produced under this lease. Unless and until and at all times, except when Lessor is receiving and separately disposing of Lessor's royalty portion of gas, oil and other liquid hydro- carbons, Lessee will be obligated to receive and dispose of same under the royalty provisions of this lease. (k) Nothing herein shall impair or limit the right of the Lessor and Lessee to agree by recordable instrument for the cal- culations and payment of royalties hereunder in a different or modified basis. Lessee agrees that no -division order- or other such document shall constitute a valid amendment or addition to the provisions of this lease. (1) It is understood and agreed that the market price of the production upon which royalty is paid under this lease is or may from time to time by subject to valid price ceilings and price re- gulations imposed by governmental authority, rules and regulations. To the extent that said price ceilings and price regulations are valid and apply to the price of components of the production from the land described herein at the time of their production and/or sale, the market price is not to exceed the price allowed or permitted under such governmental authority, rules and regulations. If the said price ceilings and price regulations are altered, modified or removed, the market price from and after the said alteration, modification or removal shall be subject to and only - limited by said price ceilings and price regulations in effect at the time of such production and/or sale. Lessee agrees not to dispose of all or any portion of the production hereunder in a manner or market subject to governmental price regulations if an alternative market is reasonably available. (m) Lessee agrees that all royalties accruing under the lease (including those paid in kind) shall be without deduction for the cost of producing, gathering, storing, separating, treating, dehydrating, compressing, processing, trucking, transporting, and otherwise making the oil, gas and other products produced hereunder ready for sale or use. (n) Anything hereinabove to the contrary notwithstanding, it is expressly provided that Lessee and any affiliate of Lessee shall at all times exercise due diligence as the fiduciary agent for Lessor in the marketing of all products produced under the terms of this lease. (0) Royalties payable on production hereunder shall be due within sixty (60) days after the sale of such production provided, however, it is agreed that the royalty payment due on the first sale of a product produced hereunder shall not be due until ninety (90) days after such sale. Any royalties not paid as herein pro- vided, including suspended royalties, shall bear interest at the annual rate of twelve percent (12') until paid, which shall not exceed the highest lawful rate. 5. MINIMUM ROYALTY: If for any lease year after the primary term, the total royalties and shut-in payments paid to Lessor should equal less than the product of ~~ nn times the total number of net mineral acres (as hereinafter defined) covered by this lease at the beginning of such lease year, then Lessee shall pay to Lessor in cash within sixty (60) days after the end of such lease year the difference between such amounts. The product of $25.00 times the total number of net mineral acres covered by this lease at the beginning of any lease year shall be the minimum royalty payable in order to consider that oil, gas or other liquid 5