Common use of Sale of Production Clause in Contracts

Sale of Production. (1) All proceeds from the sale of Debtor’s interests in Hydrocarbons from the Collateral are currently being paid in full to Debtor by the purchaser or remitter thereof on a timely basis and at prices and terms comparable to market prices and terms generally available at the time such prices and terms were negotiated for oil and gas production from producing areas situated near the Collateral, and none of such proceeds are currently being held in suspense by such purchaser or any other party. (2) Neither Debtor, nor to the best of Debtor's knowledge its predecessors in title, have entered into or are subject to any agreement or arrangement (including “take or pay” or similar arrangements) nor to the best of Debtor's knowledge is the Collateral subject to any such agreement or arrangement, to deliver Hydrocarbons produced or to be produced from the Collateral at some future time without then or thereafter receiving full payment therefor. (3) To the best of Debtor's knowledge none of the Collateral is or will become subject to any contractual or other arrangement whereby payment for production from such Collateral is to be deferred for a substantial period after the month in which such production is delivered (that is, in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days). (4) Except for existing production sales contracts, processing agreements or transportation agreements, none of the Collateral is or will become subject to any contractual or other arrangement for the sale of crude oil that cannot be canceled on 180 days’ or less notice; and none of the Collateral is or will become subject to a gas sales contract that contains terms that are not customary in the industry. (5) To the best of Debtor's knowledge none of the Collateral is subject at the present time to any regulatory refund obligation and, no facts exist that might cause the same to be imposed. (6) None of the Collateral is subject to a gas balancing arrangement under which an imbalance exists with respect to which imbalance Debtor or the Collateral is in an overproduced status and is required to (i) permit one or more third parties to take a portion of the production attributable to such Collateral without payment (or without full payment) therefor or (ii) make payment in cash, in order to correct such imbalance.

Sale of Production. (1) . All proceeds from the sale of Debtor’s interests in Hydrocarbons from the Collateral are currently being paid in full to Debtor by the purchaser or remitter thereof on a timely basis and at prices and terms comparable to market prices and terms generally available at the time such prices and terms were negotiated for oil and gas production from producing areas situated near the Collateral, and none of such proceeds are currently being held in suspense by such purchaser or any other party. (2) . Neither Debtor, nor to the best of Debtor's knowledge its predecessors in title, have entered into or are subject to any agreement or arrangement (including “take or pay” or similar arrangements) nor to the best of Debtor's knowledge is the Collateral subject to any such agreement or arrangement, to deliver Hydrocarbons produced or to be produced from the Collateral at some future time without then or thereafter receiving full payment therefor. (3) . To the best of Debtor's knowledge none of the Collateral is or will become subject to any contractual or other arrangement whereby payment for production from such Collateral is to be deferred for a substantial period after the month in which such production is delivered (that is, in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days). (4) . Except for existing production sales contracts, processing agreements or transportation agreements, none of the Collateral is or will become subject to any contractual or other arrangement for the sale of crude oil that cannot be canceled on 180 days’ or less notice; and none of the Collateral is or will become subject to a gas sales contract that contains terms that are not customary in the industry. (5) . To the best of Debtor's knowledge none of the Collateral is subject at the present time to any regulatory refund obligation and, no facts exist that might cause the same to be imposed. (6) . None of the Collateral is subject to a gas balancing arrangement under which an imbalance exists with respect to which imbalance Debtor or the Collateral is in an overproduced status and is required to (i) permit one or more third parties to take a portion of the production attributable to such Collateral without payment (or without full payment) therefor or (ii) make payment in cash, in order to correct such imbalance.

Sale of Production. (1) All proceeds from the sale of Debtor’s Debtors' interests in Hydrocarbons from the Collateral are currently being paid in full to Debtor Debtors by the purchaser or remitter thereof on a timely basis and at prices and terms comparable to market prices and in terms generally available at the time such prices and terms were negotiated for oil and gas production from producing areas situated near the Collateral, and none of such proceeds are currently being held in suspense by such purchaser or any other party. (2) Neither DebtorDebtors, nor to the best of Debtor's knowledge its their predecessors in title, have entered into or are subject to any agreement or arrangement (including “without limitation, "take or pay” " or similar arrangements) ), nor to the best of Debtor's knowledge is the Collateral subject to any such agreement or arrangement, to deliver Hydrocarbons produced or to be produced from the Collateral at some future time without then or thereafter receiving full payment therefor. (3) To the best of Debtor's knowledge Except as previously disclosed to Secured Party in writing, none of the Collateral is or or, without the prior written consent of Secured Party, will become subject to any contractual or other arrangement whereby payment for production from such Collateral is to be deferred for a substantial period after the month in which such production is delivered (that is, in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days). (4) Except for existing production sales contracts, processing agreements or transportation agreements, none None of the Collateral is or will become subject to any contractual or other arrangement for the sale of crude oil that cannot be canceled on 180 days’ ' or less notice; and none of the Collateral is or will become subject to a gas sales contract that contains terms that are not customary in the industry. (5) To the best of Debtor's knowledge none None of the Collateral is subject at the present time to any regulatory refund obligation and, to the best of Debtors' knowledge, no facts exist that might cause the same to be imposed. (6) None of the Collateral is subject to a gas balancing arrangement under which an imbalance exists with respect to which imbalance Debtor Debtors or the Collateral is in an overproduced status and is required to (ia) permit one or more third parties to take a portion of the production attributable to such Collateral without payment (or without full payment) therefor therefor, or (iib) make payment in cash, in order to correct such imbalance.

Sale of Production. (1i) All proceeds from the sale of Debtor’s the interests of the Credo Entities in Hydrocarbons oil, gas and other hydrocarbons from the Collateral Credo Reserve Properties are currently being paid in full to Debtor the applicable Credo Entity by the purchaser or remitter thereof on a timely basis and at prices and terms comparable to market prices and terms generally available at the time such prices and terms were negotiated for oil and gas production from producing areas situated near the CollateralCredo Reserve Properties, and none of such proceeds are currently being held in suspense by such purchaser or any other party. ; (2ii) Neither Debtorneither the Credo Entities, nor to the best of Debtor's knowledge its their predecessors in title, have entered into or are subject to any agreement or arrangement (including without limitation, “take or pay” or similar arrangements) nor to are the best of Debtor's knowledge is the Collateral Credo Reserve Properties subject to any such agreement or arrangement, to deliver Hydrocarbons oil, gas or other hydrocarbons produced or to be produced from the Collateral Credo Reserve Properties at some future time without then or thereafter receiving full payment therefor. ; (3iii) To the best of Debtor's knowledge none of the Collateral Credo Reserve Properties is or will become subject to any contractual or other arrangement whereby payment for production from such Collateral Credo Reserve Properties is to be deferred for a substantial period after the month in which such production is delivered (that is, in the case of oil, not in excess of 60 sixty (60) days, and in the case of gas, not in excess of 90 ninety (90) days). ; (4iv) Except for existing production sales contracts, processing agreements or transportation agreements, none of the Collateral Credo Reserve Properties is or will become subject to any contractual or other arrangement for the sale of crude oil that cannot be canceled on 180 one hundred eighty (180) days’ or less notice; and none no material portion of the Collateral Credo Reserve Properties is or will become subject to a gas sales contract that contains terms that are not customary in the industry. ; (5v) To the best of Debtor's knowledge none of the Collateral Credo Reserve Properties is subject at the present time to any regulatory refund obligation and, to the Loan Parties’ knowledge, no facts exist that might cause the same to be imposed. ; and (6vi) None none of the Collateral Credo Reserve Properties is subject to a gas balancing arrangement under which an imbalance exists with respect to which imbalance Debtor the Credo Entities or the Collateral Credo Reserve Properties is in an overproduced status and is required to (ia) permit one or more third parties to take a portion of the production attributable to such Collateral Credo Reserve Properties without payment (or without full payment) therefor or (iib) make payment in cash, in order to correct such imbalance.

Sale of Production. (1i) All proceeds from the sale of Debtor’s the interests of the Credo Entities in Hydrocarbons oil, gas and other hydrocarbons from the Collateral Credo Reserve Properties are currently being paid in full to Debtor the applicable Credo Entity by the purchaser or remitter thereof on a timely basis and at prices and terms comparable to market prices and terms generally available at the time such prices and terms were negotiated for oil and gas production from producing areas situated near the CollateralCredo Reserve Properties, and none of such proceeds are currently being held in suspense by such purchaser or any other party. ; (2ii) Neither Debtorneither the Credo Entities, nor to the best of Debtor's knowledge its their predecessors in title, have entered into or are subject to any agreement or arrangement (including without limitation, “take or pay” or similar arrangements) nor to are the best of Debtor's knowledge is the Collateral Credo Reserve Properties subject to any such agreement or arrangement, to deliver Hydrocarbons oil, gas or other hydrocarbons produced or to be produced from the Collateral Credo Reserve Properties at some future time without then or thereafter receiving full payment therefor. ; (3iii) To the best of Debtor's knowledge none of the Collateral Credo Reserve Properties is or will become subject to any contractual or other arrangement whereby payment for production from such Collateral Credo Reserve Properties is to be deferred for a substantial period after the month in which such production is delivered (that is, in the case of oil, not in excess of 60 days, and in the case of gas, not in excess of 90 days). ; (4iv) Except for existing production sales contracts, processing agreements or transportation agreements, none of the Collateral Credo Reserve Properties is or will become subject to any contractual or other arrangement for the sale of crude oil that cannot be canceled on 180 days’ or less notice; and none no material portion of the Collateral Credo Reserve Properties is or will become subject to a gas sales contract that contains terms that are not customary in the industry. ; (5v) To the best of Debtor's knowledge none of the Collateral Credo Reserve Properties is subject at the present time to any regulatory refund obligation and, to the Loan Parties’ knowledge, no facts exist that might cause the same to be imposed. ; and (6vi) None none of the Collateral Credo Reserve Properties is subject to a gas balancing arrangement under which an imbalance exists with respect to which imbalance Debtor the Credo Entities or the Collateral Credo Reserve Properties is in an overproduced status and is required to (ia) permit one or more third parties to take a portion of the production attributable to such Collateral Credo Reserve Properties without payment (or without full payment) therefor or (iib) make payment in cash, in order to correct such imbalance.