Common use of Leases and Contracts; Performance of Obligations Clause in Contracts

Leases and Contracts; Performance of Obligations. To the best of each Borrower’s knowledge, the leases, contracts, servitudes and other agreements forming a part of the Borrowing Base Properties are in full force and effect. No Borrower has received a written notice of default under any such contracts or agreements that remains uncured that could reasonably be expected to result in a Material Adverse Effect. Except for any rents, royalties and other payments that in the aggregate do not exceed $1,000,000 or are being contested in compliance with Section 6.04, all rents, royalties and other payments due and payable under such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any Oil and Gas Interests, have been properly and timely paid. No Credit Party has received written notice of a default that remains uncured with respect to its obligations (and no Credit Party has received written notice of any default by any third party with respect to such third party’s obligations) under any such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any part of the Borrowing Base Properties, where such default could reasonably be expected to materially and adversely affect the ownership or operation of such Borrowing Base Properties. No Credit Party is currently accounting for any royalties, or overriding royalties or other payments out of production, on a basis (other than delivery in kind) less favorable to such Credit Party than proceeds received by such Credit Party (calculated at the well) from sale of production, and no Credit Party has any liability (or alleged liability) to account for the same on any such less favorable basis that could reasonably be expected to result in a Material Adverse Effect.

Leases and Contracts; Performance of Obligations. To the best of each Borrower’s knowledge, the leases, contracts, servitudes and other agreements forming a part of the Borrowing Base Properties are in full force and effect. No Borrower has not received a written notice of default under any such contracts or leases, contracts, and other agreements that remains uncured that could reasonably be expected to result in a Material Adverse Effect. Except for any rents, royalties and other payments that in the aggregate do not exceed $1,000,000 or are being contested in compliance with Section 6.04, all rents, royalties and other payments due and payable under such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any Oil and Gas InterestsMidstream Assets, have been properly and timely paid. No Credit Party has received written notice of a default that remains uncured with respect to its obligations (and no Credit Party has received written notice of any default by any third party with respect to such third party’s obligations) under any such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any part of the Borrowing Base PropertiesMidstream Assets, where such default could reasonably be expected to materially and adversely affect the ownership or operation of such Borrowing Base PropertiesMidstream Assets. No Credit Party is currently accounting for any royalties, or overriding royalties or other payments out of production, on a basis (other than delivery in kind) less favorable to such Credit Party than proceeds received by such Credit Party (calculated at the well) from sale of production, and no Credit Party has any liability (or alleged liability) to account for the same on any such less favorable basis that could reasonably be expected to result in a Material Adverse Effect.

Leases and Contracts; Performance of Obligations. To the best of each Borrower’s knowledgeEach lease, the leasesdeed, contracts, servitudes and or other agreements agreement forming a any part of the Borrowing Base Oil and Gas Properties of the Credit Parties to which Proved Reserves are attributed in each Engineering Report is in full force and effect. No Borrower has received a written notice of default under any such contracts or agreements that remains uncured that could reasonably be expected to result in a Material Adverse Effect. Except for any rents, royalties and other payments that in the aggregate do not exceed $1,000,000 or are being contested in compliance with Section 6.04, all All rents, royalties and other payments due and payable under such leases, contractsdeeds, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any Oil and Gas Interests, agreements have been properly and timely paidpaid with respect to all Oil and Gas Properties operated by a Credit Party (and to the knowledge of the Credit Parties with respect to all Oil and Gas Properties not operated by a Credit Party) except to the extent such nonpayment could not reasonably be expected to cause the loss or forfeiture of any such Proved Reserves or result in a Material Adverse Change. No Credit Party has received written notice of a is in default that remains uncured with respect to its obligations (and no Credit Party has received written notice is aware of any default by any third party with respect to such third party’s obligations) under any such leases, contractsdeeds, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any part of the Borrowing Base Properties, where Oil and Gas Properties except to the extent such default could not reasonably be expected to materially and affect adversely affect the ownership or operation of the Oil and Gas Properties to which any such Borrowing Base PropertiesProved Reserves are attributed or result in a Material Adverse Change. No Except as reflected in the most recently delivered Engineering Report, no Credit Party is currently accounting for any royalties, or overriding royalties or other payments out of production, production on a basis (other than delivery in kind) that is less favorable to such Credit Party than proceeds received by such Credit Party (calculated at the well) from the sale of such production, and no Credit Party has any liability (or alleged liability) to account for the same on any such less favorable basis that could reasonably be expected to result in a Material Adverse Effect.basis. [Credit Agreement]

Leases and Contracts; Performance of Obligations. To the best of each Borrower’s knowledge, the leases, contracts, servitudes and other agreements forming a part of the Borrowing Base Properties are in full force and effect. No Borrower has received a written notice of default under any such contracts or agreements that remains uncured that could reasonably be expected to result in a Material Adverse Effect. Except for any rents, royalties and other payments that in the aggregate do not exceed $1,000,000 or are being contested in compliance with Section 6.04, all rents, royalties and other payments due and payable under such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any Oil and Gas Interests, have been properly and timely paid. No Credit Party has received written notice of a default that remains uncured with respect to its obligations (and no Credit Party has received written notice of any default by any third party with respect to such third party’s obligations) under any such leases, contracts, servitudes and other agreements, or under any Permitted Liens, or otherwise attendant to the ownership or operation of any part of the Borrowing Base Properties, where such default could reasonably be expected to materially and adversely affect the ownership or operation of such Borrowing Base Properties. No Credit Party is currently accounting for any royalties, or overriding royalties or other payments out of production, on a basis (other than delivery in kind) less favorable to such Credit Party than proceeds received by such Credit Party (calculated at the well) from sale of production, and no Credit Party has any liability (or alleged liability) to account for the same on any such less favorable basis that could reasonably be expected to result in a Material Adverse Effect.