Common use of Leases; Development and Maintenance Clause in Contracts

Leases; Development and Maintenance. Except where the failure to do so would not adversely impact a material portion of the Oil and Gas Properties to which Proven Reserves are attributable of the Borrower and its Subsidiaries (with 5% of the value of the Proven Reserves of the Borrower and its Subsidiaries being deemed material), the Borrower shall, and shall cause its Subsidiaries to, (a) pay and discharge promptly, or cause to be paid and discharged promptly, all rentals, delay rentals, royalties, overriding royalties, payments out of production and other indebtedness or obligations accruing under, and comply with each and all of, the oil and gas leases and all other agreements and contracts constituting the Oil and Gas Properties to which Proven Reserves are attributable of the Borrower and its Subsidiaries or any agreements and contracts where the failure to comply hereunder could result in a loss, termination or similar impact upon any Oil and Gas Properties to which Proven Reserves are attributable of the Borrower and its Subsidiaries (except, in each case, where the amount thereof is being contested in good faith by appropriate proceedings or is held in suspension in accordance with such leases or other agreements), (b) do all other things necessary to keep unimpaired its rights thereunder and prevent any forfeiture thereof or default thereunder, and operate or cause to be operated such Oil and Gas Properties to which Proven Reserves are attributable as a prudent operator would in accordance with industry standard practices, and (c) maintain (or cause to be maintained) the Leases, xxxxx, units and acreage to which the Oil and Gas Properties to which Proven Reserves are attributable of the Borrower and its Subsidiaries pertain in a prudent manner consistent with industry standard practices.

Leases; Development and Maintenance. Except where the failure to do so would not adversely impact a material portion of the Oil and Gas Properties of the Credit Parties to which Proven Reserves are attributable of the Borrower and its Subsidiaries (with 5% of the value PV10 of the Proven Reserves of the Borrower and its Subsidiaries Credit Parties being deemed material), the Borrower shall, and shall cause its Subsidiaries the other Credit Parties to, (a) pay and discharge promptly, or cause to be paid and discharged promptly, all rentals, delay rentals, royalties, overriding royalties, payments out of production and other indebtedness or obligations accruing under, and comply with each and all of, the oil and gas leases and all other agreements and contracts constituting the Oil and Gas Properties of the Credit Parties to which Proven Reserves are attributable of the Borrower and its Subsidiaries or any agreements and contracts where the failure to comply hereunder could result in a loss, termination or similar impact upon any Oil and Gas Properties of the Credit Parties to which Proven Reserves are attributable of the Borrower and its Subsidiaries (except, in each case, where the amount thereof is being contested in good faith by appropriate proceedings proceedings, is subject to an interpleader action in a court of competent jurisdiction, or is held in suspension in accordance with such leases or other agreements), (b) do all other things necessary to keep unimpaired its rights thereunder and prevent any forfeiture thereof or default thereunder, and operate or cause to be operated such Oil and Gas Properties to which Proven Reserves are attributable as a prudent operator would in accordance with industry standard practices, and (c) maintain (or cause to be maintained) the Leases, xxxxx, units and acreage to which the Oil and Gas Properties of the Credit Parties to which Proven Reserves are attributable of the Borrower and its Subsidiaries pertain in a prudent manner consistent with industry standard practices.