Common use of Rate Management Transactions Clause in Contracts

Rate Management Transactions. Neither either Borrower nor Guarantor will, and will not permit any Subsidiary to, enter into any Rate Management Transactions, except the foregoing prohibitions shall not apply to (x) transactions required by this Agreement or consented to in writing by the Majority Lenders, in each case which are on terms acceptable to the Majority Lenders, or (y) transactions by Borrowers designed to hedge, provide a floor price for, or swap crude oil or natural gas, provided that (i) the same do not cover more than eighty-five percent (85%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (ii) the same do not cover more than 100% of Borrowers' aggregate estimated proved producing crude oil production or more than 100% of Borrowers' aggregate estimated proved producing natural gas production, each as existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (iii) the same do not contain terms or provisions which would require margin calls, (iv) the counterparty to any such transaction has a minimum rating of "A-1" by Standard & Poors' Corporation or "A-3" by Xxxxx'x Investors Service, Inc., (v) the same are for a term not extending beyond the Maturity Date, and (vi) the same include provisions for payment to Borrowers upon the occurrence of specified price indexes of a price per unit of measurement equal to or greater than that under the Agent's then current pricing policies; or, provided that (A) the same do not cover more than ninety percent (90%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (B) the same do not cover more than seventy-five percent (75%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from all categories of Borrowers' proved crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (C) as of the date of the execution thereof, Borrowers' aggregate actual production from proved producing crude oil and natural gas reserves exceeds Borrowers' aggregate forecasted production from proved producing crude oil and natural gas reserves for such date based on the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (D) the same are for a term of twelve (12) months or less, and (E) the same satisfy the requirements set forth in items (ii), (iii), (iv) and (vi) above.

Rate Management Transactions. Neither either Borrower nor Guarantor will, and will not permit any Subsidiary to, enter into any Rate Management Transactions, except the foregoing prohibitions shall not apply to (x) transactions required by this Agreement or consented to in writing by the Majority Lenders, in each case which are on terms acceptable to the Majority Lenders, or (y) transactions by Borrowers designed to hedge, provide a floor price for, or swap crude oil or natural gas, provided that (i) the same do not cover more than eighty-five percent (85%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (ii) the same do not cover more than 100% of Borrowers' aggregate estimated proved producing crude oil production or more than 100% of Borrowers' aggregate estimated proved producing natural gas production, each as existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (iii) the same do not contain terms or provisions which would require margin calls, (iviii) the counterparty to any such transaction has a minimum rating of "A-1" by Standard & Poors' Corporation or "A-3" by Xxxxx'x Investors Service, Inc., (viv) the same are for a term not extending beyond the Maturity DateOctober 31, 2010, and (viv) the same include provisions for payment to Borrowers upon the occurrence of specified price indexes of a price per unit of measurement equal to or greater than that under the Agent's then current pricing policies; or, provided that (A) the same do not cover more than ninety percent (90%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (B) the same do not cover more than seventy-five percent (75%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from all categories of Borrowers' proved crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (C) as of the date of the execution thereof, Borrowers' aggregate actual production from proved producing crude oil and natural gas reserves exceeds Borrowers' aggregate forecasted production from proved producing crude oil and natural gas reserves for such date based on the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (D) the same are for a term of twelve (12) months or less, and (E) the same satisfy the requirements set forth in items (ii), (iii), (iv) and (viv) above.

Rate Management Transactions. Neither either Borrower nor Guarantor willwill not, and will not permit any Subsidiary to, enter into any Rate Management Transactions, except the foregoing prohibitions shall not apply to (x) transactions required by this Agreement or consented to in writing by the Majority Lenders, in each case which are on terms acceptable to the Majority Lenders, or (y) transactions by Borrowers Borrower or any Subsidiary designed to hedge, provide a floor price for, or swap crude oil or natural gas, provided that (i) the same do not cover more than eighty-five percent (85%) of Borrowers' Borrower’s and Subsidiaries’ aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (ii) the same do not cover more than 100% of Borrowers' Borrower’s and Subsidiaries’ aggregate estimated proved producing crude oil production or more than 100% of Borrowers' Borrower’s and Subsidiaries’ aggregate estimated proved producing natural gas production, each as existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (iii) the same do not contain terms or provisions which would require margin calls, (iv) the counterparty to any such transaction has a minimum rating of "“A-1" ” by Standard & Poors' ’ Corporation or "“A-3" ” by Xxxxx'x Xxxxx’x Investors Service, Inc., (v) the same are for a term not extending beyond the Maturity Date, and (vi) the same include provisions for payment to Borrowers Borrower or a Subsidiary upon the occurrence of specified price indexes of a price per unit of measurement equal to or greater than that under the Agent's ’s then current pricing policies; or, provided that (A) the same do not cover more than ninety percent (90%) of Borrowers' Borrower’s and Subsidiaries’ aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (B) the same do not cover more than seventy-five percent (75%) of Borrowers' Borrower’s and Subsidiaries’ aggregate estimated monthly crude oil and natural gas production from all categories of Borrowers' proved crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (C) as of the date of the execution thereof, Borrowers' Borrower’s and Subsidiaries’ aggregate actual production from proved producing crude oil and natural gas reserves exceeds Borrowers' Borrower’s and Subsidiaries’ aggregate forecasted production from proved producing crude oil and natural gas reserves for such date based on the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (D) the same are for a term of twelve (12) months or less, and (E) the same satisfy the requirements set forth in items (ii), (iii), (iv) and (vi) above.

Rate Management Transactions. Neither either Borrower nor Guarantor will, and will not permit any Subsidiary to, enter into any Rate Management Transactions, except the foregoing prohibitions shall not apply to (x) transactions required by this Agreement or consented to in writing by the Majority Lenders, in each case which are on terms acceptable to the Majority Lenders, or (y) transactions by Borrowers designed to hedge, provide a floor price for, or swap crude oil or natural gas, provided that (i) the same do not cover more than eightyseventy-five percent (8575%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basis, (ii) the same do not cover more than 100% of Borrowers' aggregate estimated proved producing crude oil production or more than 100% of Borrowers' aggregate estimated proved producing natural gas production, each as existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (iiiii) the same do not contain terms or provisions which would require margin calls, (iviii) the counterparty to any such transaction has a minimum rating of "A-1" by Standard & Poors' Corporation or "A-3" by Xxxxx'x Moody's Investors Service, Inc., (viv) the same are for a term x xxxx not extending beyond the Maturity DateDecember 31, 2008, and (viv) the same include provisions for payment to Borrowers upon the occurrence of specified price indexes of a price per unit of measurement equal to or greater than that under the Agent's then current pricing policies; or, provided that (A) the same do not cover more than ninety percent (90%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from Borrowers' proved producing crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basisabove, (B) the same do not cover more than seventy-five percent (75%) of Borrowers' aggregate estimated monthly crude oil and natural gas production from all categories of Borrowers' proved crude oil and natural gas reserves existing as of the date of the execution thereof based upon the then most current reserve evaluation required pursuant to Section 12(a)(iii) above and determined on a BOE Basisabove, (C) as of the date of the execution thereof, Borrowers' aggregate actual production from proved producing crude oil and natural gas reserves exceeds Borrowers' aggregate forecasted production from proved producing crude oil and natural gas reserves for such date based on the then most current reserve evaluation required pursuant to Section 12(a)(iii) above, (D) the same are for a term not extending beyond December 31, 2005 or are for a term of twelve (12) months or less, and (E) the same satisfy the requirements set forth in items (ii), (iii), (iv) and (viv) above.