Common use of Commodity Hedging Transactions Clause in Contracts

Commodity Hedging Transactions. (a) Subject to Section 7.15(b) below, if Utilization is less than or equal to 50% (the “Utilization Threshold”), Borrower shall enter into, and thereafter as of the last day of each fiscal quarter of the Borrower (each such date, the “Hedge Testing Date”), maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent for a term of 12 months from such date, covering at least 50% of the monthly Projected Production of oil and natural gas (calculated separately) from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; (b) Once Utilization exceeds the Utilization Threshold, then within five (5) Business Days following the date when Utilization exceeded such threshold (such period, the “Hedge Period”), Borrower shall enter into (and provide notice to Administrative Agent of compliance hereof), and thereafter as of each Hedge Testing Date, maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent, for either (or a combination of): (i) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of oil or natural gas; or (ii) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of oil or natural gas, each from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; provided, however, if Utilization decreases below the Utilization Threshold by the end of the Hedge Period, Borrower may continue to hedge pursuant to the requirements set forth in Section 7.15(a) above. For the avoidance of doubt, if Utilization falls below the Utilization Threshold on any Hedge Testing Date, Borrower shall only be required to hedge pursuant to the requirements set forth in Section 7.15(a) above until such time when Utilization exceeds the Utilization Threshold again. (c) Borrower and its Subsidiaries shall maintain a commodity price risk management policy, which policy shall be reasonably acceptable to Administrative Agent.

Commodity Hedging Transactions. (a) Subject to Section 7.15(b) below, if Utilization is less than or equal to 50% (the “Utilization Threshold”), Borrower shall enter into, and thereafter as of the last day of each fiscal quarter of the Borrower (each such date, the “Hedge Testing Date”), maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent for a term of 12 months from such date, covering at least 50% of the monthly Projected Production of oil and natural gas (calculated separately) from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; (b) Once Utilization exceeds the Utilization Threshold, then within five (5) Business Days following the date when Utilization exceeded such threshold (such period, the “Hedge Period”), Borrower shall enter into (and provide notice to Administrative Agent of compliance hereof), and thereafter as of each Hedge Testing Date, maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent, for either (or a combination of):for: (i) with respect to oil, either (A) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of oil or natural gas; oil, or (iiB) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of oil oil; and (ii) with respect to natural gas, either (A) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of natural gas, or (B) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of natural gas, each from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; provided, however, if Utilization decreases below the Utilization Threshold by the end of the Hedge Period, Borrower may continue to hedge pursuant to the requirements set forth in Section 7.15(a) above. For the avoidance of doubt, if Utilization falls below the Utilization Threshold on any Hedge Testing Date, Borrower shall only be required to hedge pursuant to the requirements set forth in Section 7.15(a) above until such time when Utilization exceeds the Utilization Threshold again. (c) Borrower and its Subsidiaries shall maintain a commodity price risk management policy, which policy shall be reasonably acceptable to Administrative Agent. (d) Borrower and its Subsidiaries shall maintain a commodity price risk management policy, which policy shall be reasonably acceptable to Administrative Agent.

Commodity Hedging Transactions. (a) Subject to Section 7.15(b) below, if Utilization is less than or equal to 50% (the “Utilization Threshold”), Borrower shall enter into, and thereafter as of the last day of each fiscal quarter of the Borrower (each such date, the “Hedge Testing Date”), maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent for a term of 12 months from such date, covering at least 50% of the monthly Projected Production of oil and natural gas (calculated separately) from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; (b) Once Utilization exceeds the Utilization Threshold, then within five (5) Business Days following the date when Utilization exceeded such threshold (such period, the “Hedge Period”), Borrower shall enter into (and provide notice to Administrative Agent of compliance hereof), and thereafter as of each Hedge Testing Date, maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent, for either (or a combination of):for: (i) with respect to oil, either (A) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of oil or natural gas; oil, or (iiB) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of oil oil; and (ii) with respect to natural gas, either (A) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of natural gas, or (B) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of natural gas, each from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; provided, however, if Utilization decreases below the Utilization Threshold by the end of the Hedge Period, Borrower may continue to hedge pursuant to the requirements set forth in Section 7.15(a) above. For the avoidance of doubt, if Utilization falls below the Utilization Threshold on any Hedge Testing Date, Borrower shall only be required to hedge pursuant to the requirements set forth in Section 7.15(a) above until such time when Utilization exceeds the Utilization Threshold again. (c) Borrower and its Subsidiaries shall maintain a commodity price risk management policy, which policy shall be reasonably acceptable to Administrative Agent.

Commodity Hedging Transactions. (a) Subject to Section 7.15(b) below, if Utilization is less than or equal to 50% (the “Utilization Threshold”), Borrower shall enter into, and thereafter as of the last day of each fiscal quarter of the Borrower (each such date, the “Hedge Testing Date”), maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent for a term of 12 months from such date, covering at least 50% of the monthly Projected Production of oil and natural gas (calculated separately) from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; (b) Once Utilization exceeds the Utilization Threshold, then within five (5) Business Days following the date when Utilization exceeded such threshold (such period, the “Hedge Period”), Borrower shall enter into (and provide notice to Administrative Agent of compliance hereof), and thereafter as of each Hedge Testing Date, maintain, Commodity Hedging Transactions, fixing a price acceptable to Administrative Agent, for either (or a combination of): (i) a term of 12 months from such date, covering at least 70% of the monthly Projected Production of oil or natural gas; or or (ii) a term of 18 months from such date, covering at least 50% of the monthly Projected Production of oil or natural gas, each from the proved, developed producing Oil and Gas Properties of Borrower and its Subsidiaries based on the most recently delivered Reserve Report, and which are otherwise in compliance with Section 8.17 and on terms acceptable to Administrative Agent in its sole discretion; provided, however, if Utilization decreases below the Utilization Threshold by the end of the Hedge Period, Borrower may continue to hedge pursuant to the requirements set forth in Section 7.15(a) above. For the avoidance of doubt, if Utilization falls below the Utilization Threshold on any Hedge Testing Date, Borrower shall only be required to hedge pursuant to the requirements set forth in Section 7.15(a) above until such time when Utilization exceeds the Utilization Threshold again. (c) Borrower and its Subsidiaries shall maintain a commodity price risk management policy, which policy shall be reasonably acceptable to Administrative Agent.