Common use of Oil and Gas Contracts Clause in Contracts

Oil and Gas Contracts. Except as set forth on Schedule 4.08 attached hereto, the Borrower is not obligated, by virtue of any prepayment under any contract providing for the sale by the Borrower of Hydrocarbons which contains a "take-or-pay" clause or under any similar prepayment agreement or arrangement, including, without limitation, "gas balancing agreements", to deliver a material amount of Hydrocarbons produced from the Borrowing Base Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor (i.e., in the case of oil, not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days). Except as set forth on Schedule 4.08 attached hereto, the Borrowing Base Oil and Gas Properties are not subject to any contractual, or other arrangement for the sale of crude oil which cannot be canceled on ninety (90) days' (or less) notice, unless the price provided for therein is equal to or greater than the prevailing market price in the vicinity. The Borrowing Base Oil and Gas Properties are not subject to any gas sales contract that contains any material terms which are not customary in the industry within the region in which the Borrowing Base Oil and Gas Properties affected thereby are located. The Borrowing Base Oil and Gas Properties are not subject to any regulatory refund obligation and no facts exist which might cause the same to be imposed.

Oil and Gas Contracts. Except as set forth on Schedule 4.08 attached hereto, The respective Borrower owning the Borrower Borrowing Base Oil and Gas Properties is not obligated, by virtue of any prepayment under any contract providing for the sale by the such Borrower of Hydrocarbons hydrocarbons which contains a "“take-or-pay" ” clause or under any similar prepayment agreement or arrangement, including, without limitation, "“gas balancing agreements"”, to deliver a material amount of Hydrocarbons hydrocarbons produced from the Borrowing Base Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor (i.e., in the case of oil, not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days). Except as set forth on Schedule 4.08 attached hereto, the The Borrowing Base Oil and Gas Properties are not subject to any contractual, or other arrangement for the sale of crude oil which cannot be canceled on ninety (90) days' ’ (or less) notice, unless the price provided for therein is equal to or greater than the prevailing market price in the vicinity. The Borrowing Base Oil and Gas Properties are not subject to any gas sales contract that contains any material terms which are not customary in the industry within the region in which the Borrowing Base Oil and Gas Properties affected thereby are located. The Borrowing Base Oil and Gas Properties are not subject to any regulatory refund obligation and no facts exist which might cause the same to be imposed.

Oil and Gas Contracts. Except Except: (a) as set forth out on Schedule 4.08 5.19 attached hereto, and (b) as may subsequently occur and be disclosed by Borrowers in the Borrower is next Compliance Certificate delivered by Borrowers after such occurrence, Borrowers are not obligated, by virtue of any prepayment under any contract providing for the sale by the Borrower Borrowers of Hydrocarbons which contains a "“take-or-pay" ” clause or under any similar prepayment agreement or arrangement, including, without limitation, "“gas balancing agreements"”, to deliver a material amount of Hydrocarbons produced from the Borrowing Base Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor (i.e., in the case of oil, not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days). Except Except: (a) as set forth out on Schedule 4.08 5.19 attached hereto, and (b) as may subsequently occur and be disclosed by Borrowers in the next Compliance Certificate delivered by Borrowers after such occurrence, the Borrowing Base Oil and Gas Properties are not subject to any contractual, or other arrangement for the sale of crude oil which cannot be canceled on ninety (90) days' ’ (or less) notice, unless the price provided for therein is equal to or greater than the prevailing market price in the vicinity. The Borrowing Base Oil and Gas Properties are not subject to any gas sales contract that contains any material terms which are not customary in To the industry within best of Borrowers’ knowledge, the region in which the Borrowing Base Oil and Gas Properties affected thereby are located. The Borrowing Base Oil and Gas Properties are not subject to any regulatory refund obligation and no facts exist which might cause the same to be imposed.

Oil and Gas Contracts. Except as set forth on Schedule 4.08 attached hereto, the neither Borrower nor any Guarantor is not obligated, by virtue of any prepayment under any contract providing for the sale by the Borrower or Guarantor of Hydrocarbons which contains a "take-or-pay" clause or under any similar prepayment agreement or arrangement, including, without limitation, "gas balancing agreements", to deliver a material amount of Hydrocarbons produced from the Borrowing Base Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor (i.e., in the case of oil, not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days). Except as set forth on Schedule 4.08 attached hereto, the Borrowing Base Oil and Gas Properties are not subject to any contractual, or other arrangement for the sale of crude oil which cannot be canceled on ninety (90) days' (or less) notice, unless the price provided for therein is equal to or greater than the prevailing market price in the vicinity. The Borrowing Base Oil and Gas Properties are not subject to any gas sales contract that contains any material terms which are not customary in the industry within the region in which the Borrowing Base Oil and Gas Properties affected thereby are located. The Borrowing Base Oil and Gas Properties are not subject to any regulatory refund obligation and no facts exist which might cause the same to be imposed.

Oil and Gas Contracts. Except Except: (a) as set forth out on Schedule 4.08 5.19 attached hereto, and (b) as may subsequently occur and be disclosed by Borrowers in the Borrower is next Compliance Certificate delivered by Borrowers after such occurrence, Borrowers are not obligated, by virtue of any prepayment under any contract providing for the sale by the Borrower Borrowers of Hydrocarbons which contains a "“take-or-pay" ” clause or under any similar prepayment agreement or arrangement, including, without limitation, "“gas balancing agreements"”, to deliver a material amount of Hydrocarbons produced from the Borrowing Base Borrower Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor (i.e., in the case of oil, not in excess of sixty (60) days, and in the case of gas, not in excess of ninety (90) days). Except Except: (a) as set forth out on Schedule 4.08 5.19 attached hereto, and (b) as may subsequently occur and be disclosed by Borrowers in the Borrowing Base next Compliance Certificate delivered by Borrowers after such occurrence, the Borrower Oil and Gas Properties are not subject to any contractual, or other arrangement for the sale of crude oil which cannot be canceled on ninety (90) days' ’ (or less) notice, unless the price provided for therein is equal to or greater than the prevailing market price in the vicinity. The Borrowing Base Oil and Gas Properties are not subject to any gas sales contract that contains any material terms which are not customary in the industry within the region in which the Borrowing Base Oil and Gas Properties affected thereby are located. The Borrowing Base Borrower Oil and Gas Properties are not subject to any regulatory refund obligation and no facts exist which might cause the same to be imposed.