Common use of Preparation of Reports Clause in Contracts

Preparation of Reports. The Reserve Report will separately report on PDP Reserves, PDNP Reserves and PUD Reserves, and will be prepared in accordance with the following requirements and assumptions: (i) reserves shall be adjusted for cumulative production and revisions to reserve volume estimates since the effective date of the prior Reserve Report; (ii) Hydrocarbon pricing assumptions— (A) for all Natural Gas to be sold by Borrower other than Natural Gas described in Section 4.5(b)(ii)(B), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Natural Gas as reflected in NYMEX as of the settlement of the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (B) for all Natural Gas to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; (C) for Crude Oil to be sold by Borrower other than Crude Oil described in Section 4.5(b)(ii)(D), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Crude Oil as reflected in the NYMEX as of the settlement on the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (D) for Crude Oil to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; and (E) all Hydrocarbon pricing assumptions will be further adjusted by appropriate quality, transportation and location differentials Approved by Administrative Agent in its reasonable discretion. (iii) projected operating expenses and capital expenditures will be adjusted to reflect (A) actual expense levels incurred since the effective date of the prior Reserve Report and (B) reasonable projections as to anticipated increases or decreases in operating expenses and capital expenditure levels; (iv) the Reserve Report will utilize any other assumptions that Administrative Agent may reasonably request from time to time; and (v) each Reserve Report will, if necessary, be accompanied by a proposed revision to the Development Plan that includes all development projects included in the Reserve Report.

Preparation of Reports. The Reserve Report will separately report on PDP Reserves, PDNP Reserves and PUD Reserves, and will be prepared in accordance with the following requirements and assumptions: (i) reserves shall be adjusted for cumulative production and revisions to reserve volume estimates since the effective date of the prior most recent Reserve Report; (ii) Hydrocarbon pricing assumptions— (A) for all Natural Gas to be sold by Borrower other than Natural Gas described in Section 4.5(b)(ii)(B)5.10(b)(ii)(B) below, the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Natural Gas as reflected in NYMEX the New York Mercantile Exchange as of the settlement of the last trading day for the contract month ending immediately prior to coincident with the effective date of the Reserve ReportReport (as adjusted for appropriate quality, transportation and location differentials approved by Lenders), using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower Lenders at the time the Reserve Report is being prepared, for the remaining life of the Properties; (B) for all Natural Gas to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract bona fide contract or with respect to which the price has been hedged pursuant to any NYMEX New York Mercantile Exchange contract or a Hedging Agreementbona fide price swap agreement or arrangement, the purchase price will be the fixed price (as adjusted for appropriate quality, transportation and location differentials approved by Lenders) for the volumes indicated in the contract, agreement or arrangement; (C) for Crude Oil to be sold by Borrower other than Crude Oil described in Section 4.5(b)(ii)(D)5.10(b)(ii)(D) below, the purchase price for each calendar year will shall be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Crude Oil as reflected in the NYMEX New York Mercantile Exchange as of the settlement on the last trading day for the contract month ending immediately prior to coincident with the effective date of the Reserve ReportReport (as adjusted for appropriate quality, transportation and location differentials approved by Lenders), using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower Lenders at the time the Reserve Report is being prepared, for the remaining life of the Properties; (D) for Crude Oil to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract bona fide contract or with respect to for which the price has been hedged pursuant to any NYMEX New York Mercantile Exchange contract or a Hedging Agreementbona fide price swap agreement or arrangement, the purchase price will be the fixed price (as adjusted for appropriate quality, transportation and location differentials approved by Lenders) for the volumes indicated in the contract, agreement or arrangement; and (E) all Hydrocarbon pricing assumptions will be further adjusted by appropriate quality, transportation and location differentials Approved by Administrative Agent in its reasonable discretion. (iii) projected operating expenses and capital expenditures will be adjusted to reflect (A) actual expense levels incurred since the effective date of the prior Reserve Report and (B) reasonable projections as to anticipated increases or decreases in operating expenses and capital expenditure levels; (iv) the Reserve Report will utilize any other assumptions that Administrative Agent may reasonably request from time to time; and (v) each Reserve Report will, if necessary, be accompanied by a proposed revision to the Development Plan that includes all development projects included in the Reserve Report.

Preparation of Reports. The Reserve Report will separately report on PDP Reserves, PDNP Reserves and PUD Reserves, and will be prepared in accordance with the following requirements and assumptions: (i) reserves shall be adjusted for cumulative production and revisions to reserve volume estimates since the effective date of the prior Reserve Report; (ii) Hydrocarbon pricing assumptions— (A) for all Natural Gas to be sold by Borrower other than Natural Gas described in Section 4.5(b)(ii)(B), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent the Lenders for that year for Natural Gas as reflected in NYMEX as of the settlement of the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent the Lenders and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (B) for all Natural Gas to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; (C) for Crude Oil to be sold by Borrower other than Crude Oil described in Section 4.5(b)(ii)(D), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent the Lenders for that year for Crude Oil as reflected in the NYMEX as of the settlement on the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent the Lenders and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (D) for Crude Oil to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; and (E) all Hydrocarbon pricing assumptions will be further adjusted by appropriate quality, transportation and location differentials Approved by Administrative Agent in its reasonable discretionthe Lenders. (iii) projected operating expenses and capital expenditures will be adjusted to reflect (A) actual expense levels incurred since the effective date of the prior Reserve Report and (B) reasonable projections as to anticipated increases or decreases in operating expenses and capital expenditure levels; (iv) the Reserve Report will utilize any other assumptions that Administrative Agent the Lenders may reasonably request from time to time; and (v) each Reserve Report will, if necessary, be accompanied by a proposed revision to the Development Plan that includes all development projects included in the Reserve Report.

Preparation of Reports. The Reserve Report will separately report on PDP Reserves, PDNP Reserves and PUD Reserves, and will be prepared in accordance with the following requirements and assumptions: (i) reserves shall be adjusted for cumulative production and revisions to reserve volume estimates since the effective date of the prior Reserve Report; (ii) Hydrocarbon pricing assumptions— (A) for all Natural Gas to be sold by Borrower other than Natural Gas described in Section 4.5(b)(ii)(B), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Natural Gas as reflected in NYMEX as of the settlement of the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (B) for all Natural Gas to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; (C) for Crude Oil to be sold by Borrower other than Crude Oil described in Section 4.5(b)(ii)(D), the purchase price for each calendar year will be the average of the monthly prices provided to Borrower by Administrative Agent for that year for Crude Oil as reflected in the NYMEX as of the settlement on the last trading day for the contract month ending immediately prior to the effective date of the Reserve Report, using price escalators or de-escalators existing in the market as reasonably determined by Administrative Agent and notified to Borrower at the time the Reserve Report is being prepared, for the remaining life of the Properties; (D) for Crude Oil to be sold by Borrower on a fixed price basis pursuant to any Approved Marketing Contract or with respect to which the price has been hedged pursuant to any NYMEX contract or a Hedging Agreement, the purchase price will be the fixed price for the volumes indicated in the contract, agreement or arrangement; and (E) all Hydrocarbon pricing assumptions will be further adjusted by appropriate quality, transportation and location differentials Approved by Administrative Agent in its reasonable discretionAgent. (iii) projected operating expenses and capital expenditures will be adjusted to reflect (A) actual expense levels incurred since the effective date of the prior Reserve Report and (B) reasonable projections as to anticipated increases or decreases in operating expenses and capital expenditure levels; (iv) the Reserve Report will utilize any other assumptions that Administrative Agent may reasonably request from time to time; and (v) each Reserve Report will, if necessary, be accompanied by a proposed revision to the Development Plan that includes all development projects included in the Reserve Report.