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in effect under the Contract at
the time of the request for
delivery, from any payment due
Seller under the terms of the
Contract and to credit the same
against the Prepayment.
(c) Seller shall refund to Buyer
the unrecouped balance of the
Prepayment, if any, at the earlier
of such time as (i) the Contract
is cancelled or otherwise
terminated by Seller, (ii) the
Contract's primary term expires
and the Contract is terminated by
Seller or (iii) the wells subject
to the Contract substantially
deplete.
(d) In connection with the recoupment
rights granted Buyer herein,
Seller has this date executed an
Assignment of Limited Term Over-
riding Royalty (Production Pay-
ment) in the form of that attached
hereto as Exhibit C. It is agreed
that the said Assignment of
Production Payment shall have a
term which equals the Recoupment
Period. Upon the end of the term,
Buyer shall furnish to Seller, in
recordable form, a duly executed
release of the said Assignment of
Production Payment.
3.
Buyer and Seller agree that, upon request of
Seller, they shall enter into a Release Agreement
in the form of that attached hereto as Exhibit D.
Arkla Energy Resources agrees that both prior to
and during the Release Period it shall continue
to make its requests ratably for the delivery of
gas for its system purchases in accordance with
the applicable rules, regulations and statutes of
any governmental body having jurisdiction.
4.
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