Commodity Contracts. Contracts entered into to hedge prices on oil, natural gas and natural gas liquids expected to be produced by the Loan Parties, provided that at all times: (i) no such contract fixes a price for a term of more than 60 months from the date that such Swap Contract is executed; (ii) the notional volumes for which (when aggregated with other Swap Contracts then in effect other than puts and floors and basis differential swaps) do not exceed, as of the date such Swap Contract is executed: (A) 80% of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production for each fiscal quarter during the first three (3) year period during which such Swap Contract is in effect for each of crude oil, natural gas and natural gas liquids, calculated separately, provided that for Swap Contracts entered into during 2016 only, the following percentages of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production shall be applicable for each fiscal quarter during each calendar year: Calendar Year Percentage 2016 90 % 2017 80 % 2018 80 % ; and (B) 85% of the total proved production as included in the most recently delivered Reserve Report for each fiscal quarter during the period starting three (3) years after such Swap Contract goes into effect for each of crude oil, natural gas and natural gas liquids, calculated separately; provided that if: (1) the aggregate notional amount of all Tested Swap Contracts for a fiscal quarter exceeds the greater of (A) 100% of the actual production for that fiscal quarter and (B) 100% of the daily average actual production for the most recent two weeks for which reports are available to Borrower, multiplied by the number of days in such fiscal quarter, for each of crude oil, natural gas and natural gas liquids, calculated separately (such greater amount, the ‘Threshold’), and (2) on the date of such calculation, the amount of the Swap Termination Value owed by the Loan Parties for such Tested Swap Contracts that are in excess of the Threshold for such quarter exceeds 10% of the difference between the Borrowing Base and the Total Outstandings,
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Commodity Contracts. Contracts entered into to hedge prices on oil, natural gas and natural gas liquids expected to be produced by the Loan Parties, provided that at all times:
(i) no such contract fixes a price for a term of more than 60 months from the date that such Swap Contract is executed;
; (ii) the notional volumes for which (when aggregated with other Swap Contracts then in effect other than puts and floors and basis differential swaps) do not exceed, as of the date such Swap Contract is executed:
(A) 80% of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production for each fiscal quarter during the first three (3) year period during which such Swap Contract is in effect for each of crude oil, natural gas and natural gas liquids, calculated separately, provided that for Swap Contracts entered into during 2016 only, the following percentages of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production shall be applicable for each fiscal quarter during each calendar year: Calendar Year Percentage 2016 90 % 2017 80 % 2018 80 % ; and%
(B) 85% of the total proved production as included in the most recently delivered Reserve Report for each fiscal quarter during the period starting three (3) years after such Swap Contract goes into effect for each of crude oil, natural gas and natural gas liquids, calculated separately; provided that if:
(1) the aggregate notional amount of all Tested Swap Contracts for a fiscal quarter exceeds the greater of (A) 100% of the actual production for that fiscal quarter and (B) 100% of the daily average actual production for the most recent two weeks for which reports are available to Borrower, multiplied by the number of days in such fiscal quarter, for each of crude oil, natural gas and natural gas liquids, calculated separately (such greater amount, the ‘Threshold’), and (2) on the date of such calculation, the amount of the Swap Termination Value owed by the Loan Parties for such Tested Swap Contracts that are in excess of the Threshold for such quarter exceeds 10% of the difference between the Borrowing Base and the Total Outstandings,
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Commodity Contracts. Contracts entered into to hedge with the purpose and effect of fixing prices on oil, natural oil and gas and natural gas liquids expected to be produced by the Loan PartiesBorrower, provided that at all times:
(i1) no such contract fixes a price for a term of more than 60 months from the date that such Swap Contract is executed36 months;
(ii2) except as related to put and floor options,
(i) with respect to the notional volumes 24-month period commencing on the first day of the calendar month immediately after the receipt by Agent of a Reserve Report under Section 4.02 hereof or internally-prepared engineering data under Section 4.03 hereof, as applicable, and to the extent such period is covered by such contracts, the aggregate monthly production covered by all such contracts (as determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to Agent) for which (when aggregated with other Swap any single month, plus the aggregate of production covered by all Forward Sales Contracts then in effect other than puts and floors and basis differential swaps) for any single month, do not exceed, as of in the date such Swap Contract is executedaggregate exceed the lesser of:
(A) 8075% of the Loan Parties’ Borrower’s aggregate reasonably anticipated Projected Oil and Gas Production anticipated to be sold in the ordinary course of Borrower’s business for each fiscal quarter during such month, and
(B) 90% of Borrower’s aggregate actual oil and gas production for the first three month immediately preceding date such Reserve Report or such internally-prepared engineering data is delivered to Agent hereunder, as applicable, which shall be deemed to apply to such month; and
(3ii) year with respect to the 12-month period during which following the expiration of the period described in clause (a)(2)(i) above and to the extent such Swap Contract period is in effect for each of crude oil, natural gas and natural gas liquids, calculated separately, provided that for Swap Contracts entered into during 2016 onlycovered by such contracts, the following percentages aggregate monthly production covered by all such contracts (as determined, in the case of contracts that are not settled on a monthly basis, by a monthly proration acceptable to Agent) for any single month, plus the Loan Parties’ aggregate reasonably anticipated of production covered by all Forward Sales Contracts for any single month, do not in the aggregate exceed the lesser of:
(A) 50% of Borrower’s aggregate Projected Oil and Gas Production shall anticipated to be applicable sold in the ordinary course of Borrower’s business for each fiscal quarter during each calendar year: Calendar Year Percentage 2016 90 % 2017 80 % 2018 80 % ; such month, and
(B) 8575% of Borrower’s aggregate actual oil and gas production for the total proved production as included in the most recently delivered month immediately preceding date such Reserve Report for each fiscal quarter during the period starting three or such internally-prepared engineering data is delivered to Agent hereunder, as applicable, which shall be deemed to apply to such month;
(3) years after no such contract (other than a Lender Swap Contract goes into effect for each Contract) requires Borrower to put up money, assets, or other security against the event of crude oil, natural gas and natural gas liquids, calculated separatelyits nonperformance prior to actual default by Borrower in performing its obligations thereunder; provided that if:and
(14) each such contract is with (i) a Lender or an Affiliate of a Lender or (ii) an unsecured counterparty who at the aggregate notional amount of all Tested Swap Contracts for a fiscal quarter exceeds the greater of (A) 100% time of the actual production for that fiscal quarter contract maintains a minimum debt rating of BBB or Baa2 as determined either by Standard & Poor’s Corporation or ▇▇▇▇▇’▇ Investors Service, Inc. and is otherwise acceptable to Agent. At all times, clause (Ba)(2) 100% of the daily average actual production for above shall be deemed to refer to the most recent two weeks for which reports are available to BorrowerReserve Report or internally-prepared engineering data received by Agent under Section 4.02 or 4.03 hereof, multiplied by the number of days in such fiscal quarter, for each of crude oil, natural gas and natural gas liquids, calculated separately (such greater amount, the ‘Threshold’), and (2) on the date of such calculation, the amount of the Swap Termination Value owed by the Loan Parties for such Tested Swap Contracts that are in excess of the Threshold for such quarter exceeds 10% of the difference between the Borrowing Base and the Total Outstandings,as applicable.”
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Commodity Contracts. Contracts entered into to hedge prices on oil, natural gas and natural gas liquids expected to be produced by the Loan Parties, provided that at all times:
(i) no such contract fixes a price for a term of more than 60 months from the date that such Swap Contract is executed;
(ii) the notional volumes for which (when aggregated with other Swap Contracts then in effect other than puts and floors purchased by the Loan Parties and basis differential swapsswaps on volumes already hedged pursuant to other Swap Contracts) do not exceed, as of the date such Swap Contract is executed:
(A) 80% of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production for each fiscal quarter during the first three (3) year period during which such Swap Contract is in effect for each of crude oil, natural gas and natural gas liquids, calculated separately, provided that for Swap Contracts entered into during 2016 only, the following percentages of the Loan Parties’ aggregate reasonably anticipated Projected Oil and Gas Production shall be applicable for each fiscal quarter during each calendar year: Calendar Year Percentage 2016 90 % 2017 80 % 2018 80 % ; and
(B) 85% of the total proved production as included in the most recently delivered Reserve Report for each fiscal quarter during the period starting three (3) years after such Swap Contract goes into effect for each of crude oil, natural gas and natural gas liquids, calculated separately; provided that if:
(1) the aggregate notional amount of all Tested Swap Contracts for a fiscal quarter exceeds the greater of (A) 100% of the actual production for that fiscal quarter and (B) 100% of the daily average actual production for the most recent two weeks for which reports are available to Borrower, multiplied by the number of days in such fiscal quarter, for each of crude oil, natural gas and natural gas liquids, calculated separately (such greater amount, the ‘Threshold’), and (2) on the date of such calculation, the amount of the Swap Termination Value owed by the Loan Parties for such Tested Swap Contracts that are in excess of the Threshold for such quarter exceeds 10% of the difference between the Borrowing Base and the Total Outstandings,
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