Common use of Commodity Price Exposure Clause in Contracts

Commodity Price Exposure. The Risk Management Committee of the Company has established risk parameters, limits and guidelines in compliance with the risk management policy approved by the Company's Board of Directors which parameters, limits and guidelines have been previously provided to Parent (the "Company Trading Guidelines") to restrict the level of risk that the Company and its Subsidiaries are authorized to take with respect to the net position resulting from all physical commodity transactions, exchange traded futures and options and over-the-counter derivative instruments (the "Net Company Position") and monitors the compliance by the Company and its Subsidiaries with such risk parameters. As of the date hereof, (i) the Net Company Position is within the risk parameters which are set forth in the Company Trading Guidelines and (ii) the exposure of the Company and its Subsidiaries with respect to their net position resulting from all physical commodity transactions, exchange traded futures and options and over-the-counter derivative instruments is not material to the Company and its Subsidiaries taken as a whole. Except as previously disclosed in writing to Parent, as of the date hereof, neither the Company nor any of its Subsidiaries is a party to any agreement for (x) the purchase, sale, transportation, storage of petroleum, petroleum products, natural gas, natural gas liquids, electricity, or other energy products which would result in a loss or have a negative value in excess of $5.0 million when marked to market in accordance with generally recognized mark to market accounting p▇▇▇▇ies that have been discussed and agreed to by the parties or (y) for the processing of natural gas and natural gas liquids which would result in a loss in excess of $2.0 million when valued at market prices as of the date hereof.

Commodity Price Exposure. The Risk Management Committee of the Company has established risk parameters, limits and guidelines in compliance with the risk management policy approved by the Company's Board of Directors which parameters, limits and guidelines have been previously provided to Parent (the "Company Trading Guidelines") to restrict the level of risk that -------------------------- the Company and its Subsidiaries are authorized to take with respect to the net position resulting from all physical commodity transactions, exchange traded futures and options and over-the-counter derivative instruments (the "Net --- Company Position") and monitors the compliance by the Company and its ---------------- Subsidiaries with such risk parameters. As of the date hereof, (i) the Net Company Position is within the risk parameters which are set forth in the Company Trading Guidelines and (ii) the exposure of the Company and its Subsidiaries with respect to their net position resulting from all physical commodity transactions, exchange traded futures and options and over-the-counter derivative instruments is not material to the Company and its Subsidiaries taken as a whole. Except as previously disclosed in writing to Parent, as of the date hereof, neither the Company nor any of its Subsidiaries is a party to any agreement for (x) the purchase, sale, transportation, storage of petroleum, petroleum products, natural gas, natural gas liquids, electricity, or other energy products which would result in a loss or have a negative value in excess of $5.0 million when marked to market in accordance with generally recognized mark ▇▇▇▇ to market accounting p▇▇▇▇ies policies that have been discussed and agreed to by the parties or (y) for the processing of natural gas and natural gas liquids which would result in a loss in excess of $2.0 million when valued at market prices as of the date hereof.