Stephen R. and Mary K. Herbel - Page 13

                                       - 13 -                                         
                            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.                                                                  






Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011