Common use of Borrowing Base and Monthly Reduction Amount Clause in Contracts

Borrowing Base and Monthly Reduction Amount. The Borrowing Base and the Monthly Reduction Amount shall be determined in accordance with Section 2.08(b) by Administrative Agent with the concurrence of the Lenders and are subject to redetermination in accordance with Sections 2.08(d), (e) and (f). Upon any redetermination of the Borrowing Base or the Monthly Reduction Amount, such redetermination shall remain in effect until the next successive Redetermination Date; provided, however, the then effective Borrowing Base shall reduce on the last day of each month by the then effective Monthly Reduction Amount. So long as any of the Commitments are in effect or any LC Exposure or Loans are outstanding hereunder, this facility shall be governed by the then effective Borrowing Base and Monthly Reduction Amount. During the period from and after the Closing Date until the next redetermination pursuant to Sections 2.08(d), (e) or (f) or adjusted pursuant to Section 8.08(c), the amount of the Borrowing Base shall be $35,300,000, as reduced on a cumulative basis on the last day of each month following such effective date by the applicable Monthly Reduction Amount. The Monthly Reduction Amount shall be $0.00, (or the outstanding principal balance of the Loans, if such balance is less than such Monthly Reduction Amount) each month until the next redetermination thereof pursuant to Sections 2.08(d), (e) or (f). No delay for any reason whatsoever in a redetermination of the Monthly Reduction Amount shall affect Borrower's obligations under Section 2.07(b)(iii).

Borrowing Base and Monthly Reduction Amount. The Borrowing Base as of the Closing Date is acknowledged by the Borrower and the Lender to be $4,900,000. Commencing on March 1, 2009 and continuing thereafter on the first day of each calendar month through the Commitment Termination Date, the amount of the Borrowing Base then in effect shall be reduced by the Monthly Reduction Amount, which Monthly Reduction Amount as of the Closing Date is acknowledged to be $175,000. • The Borrowing Base and the Monthly Reduction Amount shall be determined redetermined by the Lender on April 1, 2009 and thereafter semi-annually (on each October 1 and April 1 prior to the Commitment Termination Date) on the basis of information supplied by the Borrower in accordance with Section 2.08(b) by Administrative Agent compliance with the concurrence provisions of this Agreement, including Reserve Reports, and all other information available to the Lender. In addition, the Lender shall, in the normal course of business following a request of the Lenders Borrower, redetermine the Borrowing Base and are the Monthly Reduction Amount; provided, however, the Lender shall not be obligated to respond to more than one such request during the period between the scheduled semi-annual redeterminations provided for above. Notwithstanding the foregoing, the Borrowing Base in effect at any time shall be subject to redetermination in accordance with Sections 2.08(d), (e) reduction at such other time or times as may be permitted by the terms of this Agreement and (f)the Lender may redetermine the Borrowing Base and the Monthly Reduction Amount at any time. • Upon any redetermination each determination of the Borrowing Base or and the Monthly Reduction Amount, the Lender shall notify the Borrower orally (confirming such redetermination notice promptly in writing) of such determination, and, subject to the operation of the Monthly Reduction Amount, the Borrowing Base and the Monthly Reduction Amount so communicated to the Borrower shall become effective upon such oral notification and shall remain in effect until the next successive Redetermination Date; provided, however, subsequent determination of the then effective Borrowing Base shall reduce on and the last day of each month by the then effective Monthly Reduction Amount. So long as any • The Borrowing Base shall represent the determination by the Lender, in accordance with the applicable definitions and provisions herein contained and the customary lending practices of the Commitments are in effect Lender for loans of this nature (but taking into account floor and cap prices or any LC Exposure or Loans are outstanding hereunder, this facility shall be governed by the then effective Borrowing Base and Monthly Reduction Amount. During the period from and after the Closing Date until the next redetermination pursuant to Sections 2.08(dother price protection under Commodity Hedge Agreements), (e) or (f) or adjusted pursuant of the value, for loan purposes, of the Mortgaged Properties and any other Oil and Gas Properties of the Borrower and its Domestic Subsidiaries acceptable to Section 8.08(c)the Lender, subject, in the case of any increase in the Borrowing Base, to the credit approval processes of the Lender. Furthermore, the amount Borrower acknowledges that the determination of the Borrowing Base shall be $35,300,000contains an equity cushion (market value in excess of loan value), as reduced on a cumulative basis on the last day of each month following such effective date which is acknowledged by the applicable Monthly Reduction Amount. The Monthly Reduction Amount shall Borrower to be $0.00, (or essential for the outstanding principal balance adequate protection of the Loans, if such balance is less than such Monthly Reduction Amount) each month until the next redetermination thereof pursuant to Sections 2.08(d), (e) or (f). No delay for any reason whatsoever in a redetermination of the Monthly Reduction Amount shall affect Borrower's obligations under Section 2.07(b)(iii)Lender.

Borrowing Base and Monthly Reduction Amount. The Borrowing Base and the Monthly Reduction Amount shall be determined in accordance with Section 2.08(b) by Administrative Agent with and the concurrence Required Lenders (in the case of any reaffirmation or decrease in the Borrowing Base or reaffirmation or increase in the Monthly Reduction Amount) or Agent and all of the Lenders (in the case of any increase in the Borrowing Base or decrease in the Monthly Reduction Amount) and are subject to redetermination in accordance with Sections 2.08(d), (e), (f), (g) and (fh). Upon any redetermination of the Borrowing Base or the Monthly Reduction Amount, such redetermination shall remain in effect until the next successive Redetermination Date; provided, however, the then effective Borrowing Base shall reduce on the last day of each month by the then effective Monthly Reduction Amount. So long as any of the Commitments are in effect or any LC Exposure or Loans are outstanding hereunder, this facility shall be governed by the then effective Borrowing Base and Monthly Reduction Amount. During the period from and after the Closing Date until the next redetermination pursuant to Sections 2.08(d), (e), (f), (g) or (fh) or adjusted adjustment pursuant to Section 8.08(c), the amount of the Borrowing Base shall be $35,300,000150,000,000, as reduced on a cumulative basis on the last day of each month following such effective date by the applicable Monthly Reduction Amount. The Monthly Reduction Amount shall be $0.00, 0 (or the outstanding principal balance of the Loans, if such balance is less than such Monthly Reduction Amountzero dollars) each month until the next redetermination thereof pursuant to Sections 2.08(d), (e) or (fe). No delay for any reason whatsoever in a redetermination of the Monthly Reduction Amount shall affect Borrower's ’s obligations under Section 2.07(b)(iii).

Borrowing Base and Monthly Reduction Amount. The Borrowing Base and the Monthly Reduction Amount shall be determined in accordance with Section 2.08(b) by Administrative Agent with and the concurrence Required Lenders (in the case of any reaffirmation or decrease in the Borrowing Base or reaffirmation or increase in the Monthly Reduction Amount) or Agent and all of the Lenders (in the case of any increase in the Borrowing Base or decrease in the Monthly Reduction Amount) and are subject to redetermination in accordance with Sections 2.08(d), (e) and (f). Upon any redetermination of the Borrowing Base or the Monthly Reduction Amount, such redetermination shall remain in effect until the next successive Redetermination Date; provided, however, the then effective Borrowing Base shall reduce on the last day of each month by the then effective Monthly Reduction Amount. So long as any of the Commitments are in effect or any LC Exposure or Loans are outstanding hereunder, this facility shall be governed by the then effective Borrowing Base and Monthly Reduction Amount. During the period from and after the Closing Date until the next redetermination pursuant to Sections 2.08(d), (e) or ), (f) or adjusted (g) or adjustment pursuant to Section 8.08(c), the amount of the Borrowing Base shall be $35,300,000150,000,000, as reduced on a cumulative basis on the last day of each month following such effective date by the applicable Monthly Reduction Amount. The Monthly Reduction Amount shall be $0.00, 0 (or the outstanding principal balance of the Loans, if such balance is less than such Monthly Reduction Amountzero dollars) each month until the next redetermination thereof pursuant to Sections 2.08(d), (e) or (fe). No delay for any reason whatsoever in a redetermination of the Monthly Reduction Amount shall affect Borrower's ’s obligations under Section 2.07(b)(iii).