Common use of Operation of the Properties Clause in Contracts

Operation of the Properties. (a) Except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, the Properties (together with any other properties unitized with any of the Properties) have, since the acquisition of the Properties, been maintained, operated and developed (i) in conformity with all Laws, (ii) in conformity with the terms and conditions of all Basic Documents, and (iii) in a manner consistent with the conduct of a Prudent Operator, but with respect to any Properties for which Borrower is not the Operator, then the foregoing representation shall be based upon Borrower’s knowledge; (b) To Borrower’s knowledge and except where its occurrence could not reasonably be expected to have a Material Adverse Effect: (i) no Property is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not that overproduction was permissible at the time), (ii) none of the vertical Wxxxx comprising the Properties (or properties unitized with any of the Properties) deviates from the vertical more than the maximum permitted by Laws, (iii) each of the Wxxxx comprising the Properties (or properties unitized with any of the Properties) are bottomed under and are producing from, and the well bores are situated wholly within, the Properties or unitized properties, as applicable. (c) Neither Borrower nor, to Borrower’s knowledge, Operator or any other Person is in breach of or in default under the terms of any Basic Document to which any of them are bound or to which any of the Properties are subject, except to the extent such breach or default could not reasonably be expected to have a Material Adverse Effect.

Operation of the Properties. (a) Except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, the Properties (together with any other properties unitized with any of the Properties) have, since the acquisition of the Properties, been maintained, operated and developed (i) in conformity with all Laws, (ii) in conformity with the terms and conditions of all Basic Documents, and (iii) in a manner consistent with the conduct of a Prudent Operator, but with respect to any Properties for which Borrower is not the Operator, then the foregoing representation shall be based upon Borrower’s knowledgeKnowledge; (b) To Borrower’s knowledge Knowledge and except where its occurrence could not reasonably be expected to have a Material Adverse Effect: Effect (i) no Property is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not that overproduction was permissible at the time), (ii) none of the vertical Wxxxx Xxxxx comprising the Properties (or properties unitized with any of the Properties) deviates from the vertical more than the maximum permitted by Laws, (iii) each of the Wxxxx Xxxxx comprising the Properties (or properties unitized with any of the Properties) are bottomed under and are producing from, and the well bores are situated wholly within, the Properties or unitized properties, as applicable. (c) Neither Borrower nor, to Borrower’s knowledgeKnowledge, Operator or any other Person is in breach of or in default under the terms of any Basic Document to which any of them are bound or to which any of the Properties are subject, except to the extent such breach or default could not reasonably be expected to have a Material Adverse Effect.

Operation of the Properties. (a) Except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, the Properties (together with any other properties unitized with any of the Properties) have, since the acquisition of the Properties, been maintained, operated and developed (i) in conformity with all Laws, (ii) in conformity with the terms and conditions of all Basic Documents, and (iii) in a manner consistent with the conduct of a Prudent Operator, but with respect to any Properties for which Borrower is not the Operator, then the foregoing representation shall be based upon Borrower’s knowledge; (b) To Borrower’s knowledge and except where its occurrence could not reasonably be expected to have a Material Adverse Effect: Effect (i) no Property is subject to having allowable production reduced below the full and regular allowable (including the maximum permissible tolerance) because of any overproduction (whether or not that overproduction was permissible at the time), (ii) none of the vertical Wxxxx comprising the Properties (or properties unitized with any of the Properties) deviates from the vertical more than the maximum permitted by Laws, (iii) each of the Wxxxx comprising the Properties (or properties unitized with any of the Properties) are bottomed under and are producing from, and the well bores are situated wholly within, the Properties or unitized properties, as applicable. (c) Neither Borrower nor, to Borrower’s knowledge, Operator or any other Person is in breach of or in default under the terms of any Basic Document to which any of them are bound or to which any of the Properties are subject, except to the extent such breach or default could not reasonably be expected to have a Material Adverse Effect.