Maintenance and Operation of Properties. In the case of EPPG, except to the extent that the failure to comply could not reasonably be expected to have a Material Adverse Effect and consistent with the standards of a reasonably prudent operator under the same circumstances: (a) Maintain, develop, and operate the Oil and Gas Properties that are operated by EPPG in a good and workmanlike manner, and observe and comply with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Properties so long as the oil and gas leases are capable of producing Hydrocarbons in quantities and at prices providing for continued efficient and profitable operation of business; (b) Comply in all material respects with all contracts and agreements applicable to or relating to Oil and Gas Properties of EPPG or the production and sale of Hydrocarbons therefrom; (c) At all times, maintain, preserve, and keep all operating equipment used with respect to the Oil and Gas Properties that are operated by EPPG in proper repair, working order and condition, and make all necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of the operating equipment shall at all times be properly preserved and maintained, provided that no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if EPPG shall in good faith determine that the action is not necessary for such Person’s continued efficient and profitable operation of business. (d) With respect to Oil and Gas Properties which are operated by operators other than EPPG, seek to enforce the operators’ contractual obligations to maintain, develop, and operate such Properties subject to the applicable operating agreements to the extent it is commercially reasonable to do so. (e) If and when any of the wxxxx located on the Oil and Gas Properties of EPPG ceases producing Hydrocarbons in paying quantities and is of no further use and EPPG is required to do so under any agreement or law, EPPG will plug and abandon, or cause to be plugged and abandoned, any and all such wxxxx in accordance in all material respects with applicable local, state and/or federal laws and regulations then in force and regulating the plugging of Hydrocarbon wxxxx.
Appears in 3 contracts
Samples: Credit Agreement (El Paso CGP Co), Credit Agreement (El Paso Corp/De), Credit Agreement (El Paso Production Holding Co)
Maintenance and Operation of Properties. In the case of EPPG, except Except to the extent that the failure to comply could not reasonably be expected to have a Material Adverse Effect and consistent with the standards of a reasonably prudent operator under the same circumstances:
(a) Maintain, develop, and operate the Oil and Gas Properties that are operated by EPPG any Loan Party in a good and workmanlike manner, and observe and comply with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Properties so long as the oil and gas leases are capable of producing Hydrocarbons in quantities and at prices providing for continued efficient and profitable operation of business;
(b) Comply in all material respects with all contracts and agreements applicable to or relating to Oil and Gas Properties of EPPG any Loan Party or the production and sale of Hydrocarbons therefrom;
(c) At all times, maintain, preserve, and keep all operating equipment used with respect to the Oil and Gas Properties that are operated by EPPG any Loan Party in proper repair, working order and condition, and make all necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of the operating equipment shall at all times be properly preserved and maintained, provided that no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if EPPG such Loan Party shall in good faith determine that the action is not necessary for such Person’s continued efficient and profitable operation of business.
(d) With respect to Oil and Gas Properties which are operated by operators other than EPPGa Loan Party, seek to enforce the operators’ contractual obligations to maintain, develop, and operate such Properties subject to the applicable operating agreements to the extent it is commercially reasonable to do so.
(e) If and when any of the wxxxx xxxxx located on the Oil and Gas Properties of EPPG any Loan Party ceases producing Hydrocarbons in paying quantities and is of no further use and EPPG a Loan Party is required to do so under any agreement or law, EPPG said Loan Party will plug and abandon, or cause to be plugged and abandoned, any and all such wxxxx xxxxx in accordance in all material respects with applicable local, state and/or federal laws and regulations then in force and regulating the plugging of Hydrocarbon wxxxxxxxxx.
Appears in 2 contracts
Samples: Credit Agreement (El Paso Production Holding Co), Credit Agreement (El Paso Production Holding Co)
Maintenance and Operation of Properties. In (a) Each Restricted Person will maintain, preserve, protect, and keep all Collateral and all other property (including material easements, rights of way, servitudes, leases, licenses and permits) used or useful in the case conduct of EPPGits business in good condition (ordinary wear and tear excepted) in accordance with prudent industry standards, except and in compliance with all applicable Laws, in conformity with all applicable contracts, servitudes, leases and agreements, and will from time to time make all repairs, renewals and replacements needed to enable the business and operations carried on in connection therewith to be promptly and advantageously conducted at all times, except, in each case, to the extent that the failure to comply do so could not reasonably be expected to have a Material Adverse Effect. Each Restricted Person will operate all Collateral 82 and all of its other property (including easements, rights of way, servitudes, leases, licenses and permits) used or useful in the conduct of its business in a good and workmanlike manner, in accordance with prudent industry standards, and in compliance with all applicable Laws and all requirements of Governmental Authorities and in conformity with all applicable contracts, servitudes, leases and agreements, except, in each case, to the extent the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(b) Each Restricted Person will cause to be maintained in full force and effect all Rights of Way, Deeds and other agreements necessary to the operations of the Midstream Properties and which individually or in the aggregate could, if not maintained, reasonably be expected to have a Material Adverse Effect or to materially and adversely affect the value of the Collateral, taken as a whole, and will properly and timely pay all rents and other payments due under the provisions thereof except where the failure to do so could not reasonably be expected to have a Material Adverse Effect or to materially and consistent with adversely affect the standards value of the Collateral, taken as a reasonably prudent operator under whole. Subject to Permitted Liens, each Restricted Person will maintain the same circumstances:
(a) MaintainGathering Systems within the confines of the applicable Rights of Way and maintain the Plants within the confines of the applicable Deeds, developin each case, without material encroachment upon any adjoining property. Each Restricted Person will maintain such rights of ingress and egress necessary to permit the Restricted Subsidiaries to inspect, operate, repair, and operate maintain the Oil and Gas Midstream Properties that are operated by EPPG in a good and workmanlike manner, and observe and comply with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Properties so long as the oil and gas leases are capable of producing Hydrocarbons in quantities and at prices providing for continued efficient and profitable operation of business;
(b) Comply in all material respects with all contracts and agreements applicable to or relating to Oil and Gas Properties of EPPG or the production and sale of Hydrocarbons therefrom;
(c) At all times, maintain, preserve, and keep all operating equipment used with respect to the Oil and Gas Properties that are operated by EPPG in proper repair, working order and condition, and make all necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of the operating equipment shall at all times be properly preserved and maintained, provided that no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if EPPG shall in good faith determine that the action is not necessary for such Person’s continued efficient and profitable operation of business.
(d) With respect to Oil and Gas Properties which are operated by operators other than EPPG, seek to enforce the operators’ contractual obligations to maintain, develop, and operate such Properties subject to the applicable operating agreements to the extent it is commercially reasonable that failure to do so.
(e) If maintain such rights, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect and when provided that the Restricted Subsidiaries may hire third parties to perform these functions. No Restricted Person will permit any of the wxxxx located on the Oil and Gas Properties of EPPG ceases producing Hydrocarbons in paying quantities and is of no further use and EPPG is required to do so under Gathering Systems, other Midstream Property or any agreement or law, EPPG will plug and abandon, or cause material part thereof to be plugged and leased to a third party, to cease to operate (except as a result of customary events of force majeure) or to be abandoned, any and all such wxxxx in accordance in all material respects with applicable local, state and/or federal laws and regulations then in force and regulating the plugging of Hydrocarbon wxxxxexcept as permitted by Section 7.5.
Appears in 1 contract
Maintenance and Operation of Properties. In the case of EPPG, except to the extent that the failure to comply could not reasonably be expected to have a Material Adverse Effect and consistent with the standards of a reasonably prudent operator under the same circumstances:
(a) MaintainEach Credit Party shall at all times maintain, develop, develop and operate the Oil and Gas Properties that are operated by EPPG in a good manner consistent with that of a reasonably prudent operator and workmanlike mannerkeep and maintain all leases, estates and observe interests constituting Oil and Gas Properties and all material contracts and agreements relating thereto in accordance with the terms thereof and not permit the same to lapse or otherwise become impaired for failure to comply with all of the terms and provisionsobligations thereof, whether express or implied, except for immaterial breaches, lapses or impairments that do not materially impair the ability of all oil the Credit Parties to own and gas operate the Oil and Gas Properties; provided that this provision shall not prevent any Credit Party from abandoning and releasing any such leases relating to such Properties so long upon their termination as the oil and gas result of cessation of production in commercial quantities or the expiration of such leases are capable in the ordinary course of producing Hydrocarbons in quantities and at prices providing for continued efficient and profitable operation of the Credit Parties’ business;.
(b) Comply Each Credit Party shall, in a manner consistent with that of a reasonably prudent operator, promptly pay and discharge, or make reasonable and customary efforts to cause to be paid and discharged in all material respects with respects, all contracts rentals, royalties, expenses and indebtedness accruing under the leases or other agreements applicable affecting or pertaining to or relating to the Oil and Gas Properties of EPPG and will do all other things necessary to keep unimpaired their rights with respect thereto and prevent any forfeiture thereof or the production and sale of Hydrocarbons therefrom;default thereunder.
(c) At Each Credit Party shall, in a manner consistent with that of a reasonably prudent operator, promptly perform or make reasonable and customary efforts to cause to be performed, in accordance with industry standards in all timesmaterial respects, the obligations required by each and all of the assignments, deeds, leases, sub leases, contracts and agreements affecting its interests in the Oil and Gas Properties.
(d) Each Credit Party shall, in a manner consistent with that of a reasonably prudent operator, at all times maintain, preserve, preserve and keep all operating equipment used or useful with respect to the Oil and Gas Properties that are operated by EPPG in proper repair, working order and conditioncondition (ordinary wear and tear excepted), and make all necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of the operating equipment shall at all times be properly preserved and maintained, provided that no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if EPPG shall in good faith determine that the action is not necessary for such Person’s continued efficient and profitable operation of businessas would a reasonably prudent operator.
(de) Each Credit Party shall comply in all material respects with all Laws applicable to or relating to the Oil and Gas Properties or the production and sale of Hydrocarbons therefrom and all applicable proration and conservation Laws of the jurisdictions in which such Properties are located.
(f) With respect to the Oil and Gas Properties which that are operated by operators other than EPPGa Credit Party, seek each Credit Party shall use commercially reasonable efforts to enforce cause such operators to perform the operators’ contractual obligations to maintain, developundertakings required under Section 7.3(a)-(e), and operate so long as the Credit Parties are using such Properties subject to the applicable operating agreements to the extent it is commercially reasonable to do soefforts, no actions or inactions by an operator of Oil and Gas Properties other than the Credit Parties shall constitute a breach of Sections 7.3(a)-(e).
(eg) If Each Credit Party will carry out its sales of production, operate the Oil and when any of the wxxxx located on Gas Properties, and otherwise deal with the Oil and Gas Properties of EPPG ceases producing Hydrocarbons in paying quantities and is of no further the production therefrom, or, if applicable, use and EPPG is required commercially reasonable efforts cause its applicable operator to do so under any agreement or lawso, EPPG will plug as is necessary to cause the representations and abandonwarranties in Section 6.11 to remain true and correct at, or cause to be plugged and abandonedas of, any all times that this Agreement is in effect (and all not just at, and as of, the times such wxxxx in accordance in all material respects with applicable local, state and/or federal laws representations and regulations then in force and regulating the plugging of Hydrocarbon wxxxxwarranties are made).
Appears in 1 contract
Maintenance and Operation of Properties. In (a) Each Restricted Person will maintain, preserve, protect, and keep all Collateral and all other property (including material easements, rights of way, servitudes, leases, licenses and permits) used or useful in the case conduct of EPPGits business in good condition (ordinary wear and tear excepted) in accordance with prudent industry standards, except and in material compliance with all applicable Laws, in conformity with all applicable contracts, servitudes, leases and agreements, and will from time to time make all repairs, renewals and replacements needed to enable the business and operations carried on in connection therewith to be promptly and advantageously conducted at all times. Each Restricted Person will operate all Collateral and all of its other property (including easements, rights of way, servitudes, leases, licenses and permits) used or useful in the conduct of its business in a good and workmanlike manner, in accordance with prudent industry standards, and in material compliance with all applicable Laws and all requirements of Governmental Authorities and in conformity with all applicable contracts, servitudes, leases and agreements.
(b) Each Restricted Person will cause to be maintained in full force and effect all Rights of Way, Deeds and other agreements necessary to the operations of the Midstream Properties and will properly and timely pay all rents and other payments due under the provisions thereof. Subject to Permitted Liens, each Restricted Person will maintain the Gathering Systems within the confines of the applicable Rights of Way and maintain the Plants within the confines of the applicable Deeds, in each case, without material encroachment upon any adjoining property. Each Restricted Person will maintain such rights of ingress and egress necessary to permit the Restricted Subsidiaries to inspect, operate, repair, and maintain the Midstream Properties to the extent that the failure to comply maintain such rights, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect and consistent with provided that the standards Restricted Subsidiaries may hire third parties to perform these functions. No Restricted Person will permit any Gathering Systems, other Midstream Property or any material part thereof to be leased to a third party, to cease to operate (except as a result of a reasonably prudent operator under the same circumstances:
(acustomary events of force majeure) Maintainor to be abandoned, develop, and operate the Oil and Gas Properties that are operated except as permitted by EPPG in a good and workmanlike manner, and observe and comply with all of the terms and provisions, express or implied, of all oil and gas leases relating to such Properties so long as the oil and gas leases are capable of producing Hydrocarbons in quantities and at prices providing for continued efficient and profitable operation of business;
(b) Comply in all material respects with all contracts and agreements applicable to or relating to Oil and Gas Properties of EPPG or the production and sale of Hydrocarbons therefrom;Section 7.5.
(c) At all timesNo Restricted Person will permit any of the Midstream Properties to be subject to any contractual or other arrangement for gathering, maintaintransporting, preservestorage, processing or other services (i) whereby payment is or can be deferred for a substantial period after the month in which performance occurred or is or can be made other than in cash, (ii) that is not on a bona fide arms-length basis and keep all operating equipment used at commercially reasonable prices, on terms that are customary in the industry, or (iii) for which prepayments have been received other than prepayments for services to be performed and settled within sixty (60) days after the date of such prepayment in the ordinary course of business. No Restricted Person will permit to exist any imbalances with respect to the Oil and Gas Midstream Properties except for those imbalances incurred in the ordinary course of business that are operated settled within sixty (60) days after the end of the month in which such imbalance occurs. No Restricted Person will permit to exist curtailment of services in connection with the Midstream Properties other than as required by EPPG applicable Laws or as a result of events of force majeure. The Restricted Persons will use reasonable efforts to cure any events of force majeure. No Restricted Person will permit to exist any contract in proper repairconnection with the Midstream Properties for consideration or other terms in contravention of applicable Laws and will not receive consideration other than in accordance with applicable contracts and applicable Laws. Each Restricted Person will cause all material equipment, working order improvements, fixtures and conditionother tangible personal property forming a part of the Midstream Properties to remain located on the real property constituting part of the Midstream Properties except for (i) portions thereof temporarily located elsewhere in the course of normal operations of the Midstream Properties, (ii) temporary relocation of meters, treatment units, and make other equipment at storage locations and on terms acceptable to Administrative Agent, and (iii) Dispositions permitted by Section 7.5. Each Restricted Person will at all times cause to be maintained all material governmental licenses and permits necessary or appropriate repairs, renewals, replacements, additions and improvements thereto so that the efficiency of the operating equipment shall at all times be properly preserved and maintained, provided that no item of operating equipment need be so repaired, renewed, replaced, added to or improved, if EPPG shall in good faith determine that the action is not necessary for such Person’s continued efficient and profitable operation of business.
(d) With respect to Oil and Gas Properties which are operated by operators other than EPPG, seek to enforce the operators’ contractual obligations to maintain, develop, own and operate such Properties subject to the applicable operating agreements to the extent it is commercially reasonable to do soMidstream Properties.
(e) If and when any of the wxxxx located on the Oil and Gas Properties of EPPG ceases producing Hydrocarbons in paying quantities and is of no further use and EPPG is required to do so under any agreement or law, EPPG will plug and abandon, or cause to be plugged and abandoned, any and all such wxxxx in accordance in all material respects with applicable local, state and/or federal laws and regulations then in force and regulating the plugging of Hydrocarbon wxxxx.
Appears in 1 contract