GRANTOR SHALL HAVE THE UNRESTRICTED RIGHT TO
RENEW, EXTEND, MODIFY, AMEND, OR SUPPLEMENT THE LEASES WITH RESPECT TO ANY OF
THE LANDS COVERED THEREBY IN ANY PARTICULAR WITHOUT THE CONSENT OF GRANTEE;
PROVIDED, THAT THE NET PROFITS INTEREST SHALL APPLY TO ALL RENEWALS, EXTENSIONS,
MODIFICATIONS, AMENDMENT, SUPPLEMENTS AND OTHER SIMILAR ARRANGEMENTS (AND/OR
INTERESTS THEREIN) OF THE LEASES, WHETHER OR NOT SUCH RENEWALS, EXTENSIONS
MODIFICATIONS, AMENDMENT, SUPPLEMENTS OR ARRANGEMENTS HAVE HERETOFORE BEEN
OBTAINED, OR ARE HEREAFTER OBTAINED, BY GRANTOR AND NO RENEWAL, EXTENSION,
MODIFICATION, AMENDMENT, OR SUPPLEMENTATION SHALL ADVERSELY AFFECT ANY OF
GRANTEE'S RIGHTS HEREUNDER, INCLUDING, WITHOUT LIMITATION, THE AMOUNT,
COMPUTATION, OR METHOD OF PAYMENT OF THE NET PROFITS INTEREST; PROVIDED FURTHER
THAT ANY FEES PAYABLE WITH RESPECT TO SUCH RENEWAL, EXTENSION, MODIFICATION,
AMENDMENT
19
OR SUPPLEMENTATION MAY BE DEBITED TO THE NET PROFITS ACCOUNT PURSUANT TO SECTION
3.1(B).
GRANTOR SHALL FURNISH GRANTEE WITH WRITTEN NOTICE OF ANY RENEWAL,
EXTENSION, MODIFICATION, AMENDMENT, OR SUPPLEMENTATION, WHICH MATERIALLY AFFECTS
THE NET PROFITS INTEREST WITHIN 30 DAYS AFTER GRANTOR HAS ENTERED INTO THE SAME,
WHICH NOTICE SHALL SPECIFY THE DATE THEREOF AND THE LOCATION AND THE ACREAGE
COVERED THEREBY.
4.6
ABANDONMENT.
GRANTOR SHALL HAVE THE RIGHT WITHOUT THE JOINDER OF
GRANTEE TO RELEASE, SURRENDER AND/OR ABANDON ITS INTEREST IN THE SUBJECT
INTERESTS, OR ANY PART THEREOF, OR INTEREST THEREIN EVEN THOUGH THE EFFECT OF
SUCH RELEASE, SURRENDER OR ABANDONMENT WILL BE TO RELEASE, SURRENDER OR ABANDON
THE NET PROFITS INTEREST THE SAME AS THOUGH GRANTEE HAD JOINED THEREIN INSOFAR
AS THE NET PROFITS INTEREST COVERS THE SUBJECT INTERESTS, OR ANY PART THEREOF OR
INTEREST THEREIN, SO RELEASED, SURRENDERED OR ABANDONED BY GRANTOR; PROVIDED,
HOWEVER, THAT GRANTOR SHALL NOT RELEASE, SURRENDER OR ABANDON ANY SUBJECT
INTEREST UNLESS AND UNTIL GRANTOR HAS DETERMINED (ACTING LIKE A REASONABLY
PRUDENT OPERATOR IN THE MID-CONTINENT REGION WITH RESPECT TO ITS OWN PROPERTIES,
WITHOUT REGARD TO THE EXISTENCE OF THE NET PROFITS INTEREST) THAT SUCH SUBJECT
INTEREST WILL NO LONGER PRODUCE SUBJECT MINERALS IN PAYING QUANTITIES; AND
PROVIDED FURTHER THAT GRANTOR WILL, AT LEAST THIRTY (30) DAYS PRIOR TO THE
RELEASE, SURRENDER OR ABANDONMENT OF ANY SUBJECT INTEREST, OR ANY PART THEREOF
OR INTEREST THEREIN, NOTIFY GRANTEE IN WRITING, GIVING A DESCRIPTION OF EACH
SUBJECT INTEREST, OR PART THEREOF OR INTEREST THEREIN, PROPOSED TO BE RELEASED,
SURRENDERED OR ABANDONED, AND THE DATE UPON WHICH SUCH RELEASE, SURRENDER OR
ABANDONMENT IS PROJECTED TO OCCUR.
GRANTOR SHALL HAVE AN UNEQUIVOCAL RIGHT TO
ABANDON THE SUBJECT INTERESTS, OR ANY PART THEREOF IF SUCH ABANDONMENT IS
NECESSARY FOR HEALTH, SAFETY OR ENVIRONMENTAL REASONS, OR THE SUBJECT MINERALS
THAT WOULD HAVE BEEN PRODUCED FROM THE ABANDONED SUBJECT INTERESTS WOULD
OTHERWISE BE PRODUCED FROM SUBJECT WELLS LOCATED ON THE REMAINING SUBJECT
INTERESTS.
4.7
CONTRACTS WITH AFFILIATES.
GRANTOR OR ITS AFFILIATES MAY PERFORM
SERVICES AND FURNISH SUPPLIES AND/OR EQUIPMENT WITH RESPECT TO THE SUBJECT
INTERESTS THAT ARE REQUIRED TO OPERATE THE SUBJECT INTERESTS IN ACCORDANCE WITH
THE OPERATIONS STANDARD SET FORTH IN SECTION 4.1 HEREOF AND DEBIT THE NET
PROFITS ACCOUNT FOR THE COSTS OF SUCH