- 17 -
as a limited term overriding royalty interest,
fifty percent (50%) of all of Assignor's
[Malibu's] interest in all gas produced, saved,
and sold to Assignee [Arkla], if as and when
produced, saved, and sold to Assignee but not
otherwise, on and after May 1, 1988 from those
certain wells specified on Exhibit A attached
hereto ("Subject Wells") and by this reference
made a part hereof, under the gas purchase
agreement between Assignor and Assignee applic-
able to the Subject Wells. Assignor further does
hereby grant bargain, sell, transfer, set over,
convey and deliver unto Assignee an interest in
the oil and gas leases and other mineral rights
of Assignor within the drilling and spacing unit
for each Subject Well sufficient to convey to
Assignee the overriding royalty interest above
described, the legal description of which unit is
more fully described on Exhibit A.
The assignment was to last until:
such time as the total production attributable
to the interest assigned hereunder equals in
value that certain total sum stipulated in the
"Settlement Agreement" between Assignor and
Assignee dated April 25 , 1988, at which time
the interest assigned hereunder shall terminate
and revert to Assignor. * * *
Finally, paragraph 3 of the Settlement Agreement,
quoted above, provides that upon Malibu's request, the
parties will enter into a Release Agreement in the form
attached to the Settlement Agreement as an exhibit. Under
the Release Agreement, Malibu and Arkla would agree as
follows:
1. Buyer [Arkla] and Seller [Malibu] hereby
agree to release from commitment to the
Contracts for a primary term commencing
May 1, 1988, and extending through June 30,
1990 and continuing on a month to month
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011