Common use of NGL Clause in Contracts

NGL. Contracts entered into with the purpose and effect of fixing prices on natural gas liquids expected to be produced, sold or transported by Restricted Persons from its oil and gas properties, provided that at all times: (i) no such contract fixes a price for a term of more than 60 months except contracts that are directly hedged to offset a longer term fixed rate contract; (ii) the aggregate monthly production covered by all such contracts (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to Administrative Agent) for any single month does not in the aggregate exceed 90% of Restricted Persons' aggregate Projected NGL Production anticipated to be sold in the ordinary course of Restricted Persons' businesses for such month, (iii) except for letters of credit and the WF Collateral under the WF Security Documents with respect to WF Lender Hedging Obligations, no such contract requires any Restricted Person to put up money, assets or other security against the event of its nonperformance prior to actual default by such Restricted Person in performing its obligations thereunder, and (iv) each such contract is with a counterparty or has a guarantor of the obligation of the counterparty who (unless such counterparty is a WF Lender or one of its Affiliates) at the time the contract is made has long-term obligations rated A1 by Xxxxx'x or A+ by S & P, or better, respectively, by either Rating Agency.

NGL. Contracts entered into with the purpose and effect of fixing prices on natural gas liquids expected to be produced, sold or transported by Restricted Persons from its oil and gas properties, provided that at all times: (i) no such contract fixes a price for a term of more than 60 months except contracts that are directly hedged to offset a longer term fixed rate contract; (ii) the aggregate monthly production covered by all such contracts (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to the Administrative Agent and the First Lien Agent) for any single month does not in the aggregate exceed 90% of Restricted Persons' ’ aggregate Projected NGL Production anticipated to be sold in the ordinary course of Restricted Persons' ’ businesses for such month, (iii) except for letters of credit and the WF Collateral under the WF First Lien Security Documents with respect to WF First Lien Lender Hedging Obligations, no such contract requires any Restricted Person to put up money, assets or other security against the event of its nonperformance prior to actual default by such Restricted Person in performing its obligations thereunder, and (iv) each such contract is with a counterparty or has a guarantor of the obligation of the counterparty who (unless such counterparty is a WF Lender or one of its Affiliates) at the time the contract is made has long-term obligations rated A1 by Xxxxx'x Xxxxx’x or A+ by S & P, or better, respectively, by either Rating Agency.

NGL. Contracts entered into with the purpose and effect of fixing prices on natural gas liquids expected to be produced, sold or transported by Restricted Persons from its oil and gas properties, provided that at all times: (i) no such contract fixes a price for a term of more than 60 months except contracts that are directly hedged to offset a longer term fixed rate contract; (ii) the aggregate monthly production covered by all such contracts (determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to Administrative Agent) for any single month does not in the aggregate exceed 90% of Restricted Persons' ’ aggregate Projected NGL Production anticipated to be sold in the ordinary course of Restricted Persons' ’ businesses for such month, (iii) except for letters of credit and the WF Collateral under the WF Security Documents with respect to WF Lender Hedging Obligations, no such contract requires any Restricted Person to put up money, assets or other security against the event of its nonperformance prior to actual default by such Restricted Person in performing its obligations thereunder, and (iv) each such contract is with a counterparty or has a guarantor of the obligation of the counterparty who (unless such counterparty is a WF Lender or one of its Affiliates) at the time the contract is made has long-term obligations rated A1 by Xxxxx'x Mxxxx’x or A+ by S & P, or better, respectively, by either Rating Agency.