Common use of Special Determinations of Borrowing Base Clause in Contracts

Special Determinations of Borrowing Base. In addition to the determinations of the Borrowing Base pursuant to Sections 2.16 (b), Borrower and Administrative Agent (or Administrative Agent at the request of Required Lenders) may each request additional determinations (“Special Determination”) of the Borrowing Base from time to time; provided, that Borrower may request no more than one (1) Special Determination between each scheduled Borrowing Base determination and Administrative Agent (or Administrative Agent at the request of Required Lenders) may request no more than one (1) Special Determination between each scheduled Borrowing Base determination. In the event Administrative Agent (or Administrative Agent at the request of Required Lenders) requests a Special Determination, Administrative Agent shall promptly deliver notice of such request to Borrower and Borrower shall, within twenty (20) calendar days following the date of such request, deliver to Lenders a Reserve Report prepared by petroleum engineers who are employees of Borrower as of the last day of the calendar month preceding the date of such request and such other information which Administrative Agent shall have reasonably requested. In the event Borrower requests a Special Determination, Borrower shall deliver written notice of such request to Administrative Agent which shall include (i) a Reserve Report prepared as of a date not more than thirty (30) days prior to the date of such request (or, in the case of a request made on the 31st day of any calendar month, thirty-one (31) days), (ii) the amount of the Borrowing Base requested by Borrower and to become effective on the Determination Date applicable to such Special Determination and (iii) such other information which Administrative Agent shall have reasonably requested. Upon receipt of such Reserve Report and other information, Administrative Agent and Required Lenders shall determine the Borrowing Base in accordance with the procedure set forth in Section 2.16(b), which Borrowing Base shall become effective on the Determination Date.

Special Determinations of Borrowing Base. In addition to the determinations of the Borrowing Base pursuant to Sections 2.16 (b), Borrower and Administrative Agent (or Administrative Agent at the request of Required Lenders) may each request additional determinations (“Special Determination”) of the Borrowing Base from time to time; provided, that Borrower may request no more than one (1) Special Determination between each scheduled Borrowing Base determination in any calendar year and Administrative Agent (or Administrative Agent at the request of Required Lenders) may request no more than one (1) Special Determination between each scheduled Borrowing Base determinationin any calendar year. In the event Administrative Agent (or Administrative Agent at the request of Required Lenders) requests a Special Determination, Administrative Agent shall promptly deliver notice of such request to Borrower and Borrower shall, within twenty (20) calendar days following the date of such request, deliver to Lenders a Reserve Report prepared by petroleum engineers who are employees of Borrower as of the last day of the calendar month preceding the date of such request and such other information which Administrative Agent shall have reasonably requested. In the event Borrower requests a Special Determination, Borrower shall deliver written notice of such request to Administrative Agent which shall include (i) a Reserve Report prepared as of a date not more than thirty (30) days prior to the date of such request (or, in the case of a request made on the 31st day of any calendar month, thirty-one (31) days), (ii) the amount of the Borrowing Base requested by Borrower and to become effective on the Determination Date applicable to such Special Determination and (iii) such other information which Administrative Agent shall have reasonably requested. Upon receipt of such Reserve Report and other information, Administrative Agent and Required Lenders shall determine the Borrowing Base in accordance with the procedure set forth in Section 2.16(b), which Borrowing Base shall become effective on the Determination Date.

Special Determinations of Borrowing Base. In addition Special determinations of ---------------------------------------- the Borrowing Base may be requested by the Borrower or the Lender at any time during the term hereof; provided, however, (i) there shall be no more than an -------- ------- aggregate of two (2) scheduled redeterminations and special determinations of the Borrowing Base during the period from the Closing Date through December 31, 1995, and (ii) for the period beginning January 1, 1996 through the remaining term of this Agreement, there shall be no more than an aggregate of three (3) scheduled determinations and special determinations in any calendar year. If any special determination is requested by the Borrower, it shall be accompanied by such information regarding the Borrower's businesses (including the Mineral Interests and the Proven Reserves and production relating thereto) as the Lender may reasonably request, including without limitation a Reserve Report to be delivered at least 45 days prior to the determinations requested date of redetermination. On and after January 1, 1996, Borrower shall pay the Lender an engineering fee of $5,000 with respect to the third, if any, determination or redetermination to occur in each calendar year. If any special determination is requested by the Lender, the Borrower shall provide the Lender with a Reserve Report as soon as possible following the request; provided, however, (x) in no event shall -------- ------- Borrower be required to pay Lender the $5,000 engineering fee referred to in this Section 2.2(c) as a result of Lender's request and (y) such special -------------- determination shall not be counted as a special determination for purposes of subpart (i) and (ii) in this Section 2.2(c). The determination whether to -------------- increase or decrease the Borrowing Base shall then be made by the Lender in its sole discretion in accordance with the standards set forth in Section 2.2 ----------- hereof. The Lender shall promptly notify the Borrower of the redetermination of Borrowing Base pursuant to Section 2.2(d) and the amount of the Borrowing Base -------------- as so redetermined. In the event of any special determination of the Borrowing Base pursuant to Sections 2.16 (bthis Section 2.2(c), Borrower and Administrative Agent (or Administrative Agent at the request Lender in the exercise of Required Lenders) its -------------- discretion may each request additional determinations (“Special Determination”) suspend the next regularly scheduled determination of the Borrowing Base from time to time; provided, that Borrower may request no more than one (1) Special Determination between each scheduled Borrowing Base determination and Administrative Agent (or Administrative Agent at the request of Required Lenders) may request no more than one (1) Special Determination between each scheduled Borrowing Base determination. In the event Administrative Agent (or Administrative Agent at the request of Required Lenders) requests a Special Determination, Administrative Agent shall promptly deliver notice of such request to Borrower and Borrower shall, within twenty (20) calendar days following the date of such request, deliver to Lenders a Reserve Report prepared by petroleum engineers who are employees of Borrower as of the last day of the calendar month preceding the date of such request and such other information which Administrative Agent shall have reasonably requested. In the event Borrower requests a Special Determination, Borrower shall deliver written notice of such request to Administrative Agent which shall include (i) a Reserve Report prepared as of a date not more than thirty (30) days prior to the date of such request (or, in the case of a request made on the 31st day of any calendar month, thirty-one (31) days), (ii) the amount of the Borrowing Base requested by Borrower and to become effective on the Determination Date applicable to such Special Determination and (iii) such other information which Administrative Agent shall have reasonably requested. Upon receipt of such Reserve Report and other information, Administrative Agent and Required Lenders shall determine the Borrowing Base in accordance with the procedure set forth in Section 2.16(b), which Borrowing Base shall become effective on the Determination DateBase.