Appearance
Cash in Lieu of Free Gas
Definition
The parties agree that the Lessor may elect to receive, or the Lessee may elect to provide a cash payment instead of free gas.
Example
Lessor shall have the option to accept the cash equivalent for Five Hundred Thousand ( 500,000) cubic feet of natural gas per year in lieu of the free gas provided herein. This payment shall be made annually at the end of each calendar year and shall be calculated based on the average wellhead price for the previous twelve (12) months.