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the time such natural gas is requested for
delivery under the Contract. As used herein,
"Gross Working Interest" shall mean the share of
gas Seller has the right to sell, specifically
being prior to reduction for royalties, over-
riding royalties and other non-operating
interests. Such recoupment shall be accomplished
as follows:
(a) Fifty percent (50%) of the volumes
of natural gas delivered from any
Subject Well and sold to Buyer or
to Buyer and Buyer's partial
assignee under the Contract each
month during the period May 1,
1988 through the remaining term
of the Contract, or until such
time as the Prepayment is fully
recouped or refunded, whichever
first occurs (the "Recoupment
Period"), shall be considered
recoupment gas and received
without further payment and,
accordingly, all such natural gas
purchased pursuant to the Contract
from the Subject Wells will be
retained by Buyer or by Buyer and
Buyer's partial assignee and
applied against the Prepayment
until Buyer has thereby recouped
the entire Prepayment.
(b) Buyer or Buyer and Buyer's partial
assignee shall have the right to
require deliveries and purchases
from each Subject Well at a daily
rate of up to the Daily Deliver-
ability of that well in effect
from time to time. In the event
Seller fails or is unable for any
reason to tender and deliver gas
from any Subject Well at the rate
requested, then Buyer, in addition
to all other rights and remedies
available to Buyer, shall be
entitled to deduct an amount equal
to fifty percent (50%) of the
difference between the volume
requested and the volume actually
delivered, multiplied by the price
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