Swap Agreements

Swap Agreements. The Borrower will not, and will not permit any Restricted Company to, enter into any commodity Swap Agreements with any Person which would cause the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) to exceed, as of the date such Swap Agreement is executed, (a) 100% of the Current Production for each month during the period during which such Swap... Agreement is in effect for each of crude oil and natural gas, calculated separately, for the 24 month period following the date such Swap Agreement is entered into and (b) 50% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of crude oil and natural gas, calculated separately, for the 6 month period following the 24 month period referenced in Section 9.20(a). In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Borrower or any Restricted Company to post collateral or margin to secure their obligations under such Swap Agreement or to cover market exposures. View More

Swap Agreements. In respect of commodities with an Approved Counterparty that are limited to notional quantities at any time no more than (i) during the first two years following such time the greater of (x) ninety percent (90%) of the value of proved developed producing reserves included in the then most recently delivered Reserve Report (plus, if the Borrowers (or one of their Subsidiaries) acquire the Rock Oil Properties, for purposes of determinations of compliance with this Section 9.17(b) based on the... Reserve Report preceding the acquisition of the Rock Oil Properties, ninety percent (90%) of the value of proved developed producing reserves included in the reserve report for the Rock Oil Properties, as calculated by the Borrowers' chief petroleum engineer) and (y) fifty percent (50%) of Borrowers' total Proved Reserves (plus, if the Borrowers (or one of their Subsidiaries) acquire the Rock Oil Properties, for purposes of determinations based on the Reserve Report preceding the acquisition of the Rock Oil Properties, fifty percent (50%) of the value of total Proved Reserves included in the reserve report for the Rock Oil Properties, as calculated by the Borrowers' chief petroleum engineer) (such amounts computed on a semi-annual basis and calculated on a product-by-product basis) View More