Common use of Forward Sales Clause in Contracts

Forward Sales. Except in accordance with usual and customary practice in the Oil and Gas Business and except for Hydrocarbon imbalances not in excess of the greater of (i) 10 Bcfe or (ii) 3% of projected PDP production from time to time from the Oil and Gas Properties of the Borrower and the Subsidiaries for the succeeding twelve calendar months, enter into or permit to exist any advance payment agreement or other arrangement pursuant to which the Borrower or any of the Subsidiaries, having received full or substantial payment of the purchase price for a specified quantity of Hydrocarbons upon entering such agreement or arrangement, is required to deliver, in one or more installments subsequent to the date of such agreement or arrangement, such quantity of Hydrocarbons pursuant to and during the terms of such agreement or arrangement.

Forward Sales. Except in accordance with usual and customary practice in the Oil and Gas Business and except for Hydrocarbon imbalances not in excess of the greater of (i) 10 3 Bcfe or (ii) 3% of projected PDP production from time to time from the Oil and Gas Properties of the Borrower and the Subsidiaries for the succeeding twelve calendar months, enter into or permit to exist any advance payment agreement or other arrangement pursuant to which the Borrower or any of the Subsidiaries, having received full or substantial payment of the purchase price for a specified quantity of Hydrocarbons upon entering such agreement or arrangement, is required to deliver, in one or more installments subsequent to the date of such agreement or arrangement, such quantity of Hydrocarbons pursuant to and during the terms of such agreement or arrangement.