Common use of Gas Contracts Clause in Contracts

Gas Contracts. Except as described on Schedule "7" hereto, the Borrowers (a) are not obligated in any material respect by virtue of any prepayment made under any contract containing a "take-or-pay,", "recoupment," or "prepayment" provision or under any similar agreement to deliver hydrocarbons produced from or allocated to any of the Oil and Gas Properties at some future date without receiving full payment therefor at the time of delivery, and (b) has not produced gas, in any material amount, subject to, and is not, nor are any of the Oil and Gas Properties, subject to balancing rights of third parties or subject to balancing duties under governmental requirements, except as to such matters for which the Borrowers have established monetary reserves adequate in an amount to satisfy such obligations and has segregated such reserves from other accounts or the Borrowers' balancing obligations in the aggregate would not reasonably be expected to have a Material Adverse Effect.

Gas Contracts. Except as described on Schedule "“7" ” hereto, the Borrowers Borrower (a) are is not obligated in any material respect by virtue of any prepayment made under any contract containing a "“take-or-pay,"”, "“recoupment," ” or "“prepayment" ” provision or under any similar agreement to deliver hydrocarbons produced from or allocated to any of the Oil and Gas Properties at some future date without receiving full payment therefor at the time of delivery, and (b) has not produced gas, in any material amount, subject to, and is not, nor are any of the Oil and Gas Properties, subject to balancing rights of third parties or subject to balancing duties under governmental requirements, except as to such matters for which the Borrowers have Borrower has established monetary reserves adequate in an amount to satisfy such obligations and has segregated such reserves from other accounts or the Borrowers' Borrower’s balancing obligations in the aggregate would not reasonably be expected to have a Material Adverse Effect.

Gas Contracts. Except as described on Schedule "7" hereto7 attached hereto and made a part hereof, the Borrowers (ai) are not obligated in any material respect by virtue of any prepayment made under any contract containing a "take-or-pay,", " "recoupment," or "prepayment" provision or under any similar agreement to deliver hydrocarbons produced from or allocated to any of the Oil and Gas Properties at some future date without receiving full payment therefor at the time of delivery, and (bii) has have not produced gas, in any material amount, subject to, and is are not, nor are any of the Oil and Gas Properties, subject to balancing rights of third parties or subject to balancing duties under governmental requirements, except as to such matters for which the Borrowers have established monetary reserves adequate in an amount to satisfy such obligations and has have segregated such reserves from other accounts or the Borrowers' balancing obligations in the aggregate would not reasonably be expected to have a Material Adverse Effect.

Gas Contracts. Except as described on Schedule "7" hereto, the Borrowers (a) are not obligated in any material respect by virtue of any prepayment made under any contract containing a "take-or-pay,", "recoupment," or "prepayment" provision or under any similar agreement to deliver hydrocarbons produced from or allocated to any of the Oil and Gas Properties at some future date without receiving full payment therefor at the time of delivery, and (b) has have not produced gas, in any material amount, subject to, and is are not, nor are any of the Oil and Gas Properties, subject to balancing rights of third parties or subject to balancing duties under governmental requirements, except as to such matters for which the Borrowers have established monetary reserves adequate in an amount to satisfy such obligations and has have segregated such reserves from other accounts or the Borrowers' balancing obligations in the aggregate would not reasonably be expected to have a Material Adverse Effect.