Computation of Borrowing Base. (a) The Borrowing Base in effect from time to time shall represent the maximum principal amount (subject to the aggregate amount of the Revolving Credit Commitments) of Loans and Letter of Credit Outstandings that the Lenders will allow to remain outstanding during the Commitment Period. The Borrowing Base shall be determined in accordance with this subsection 4.9. The Borrowing Base will be based upon the value of certain Proved Reserves attributable to the Oil and Gas Properties of the Borrower and its Subsidiaries and other assets of the Borrower and its Subsidiaries acceptable to the Engineering Committee in its sole discretion, and will be determined by the Engineering Committee in accordance with paragraph (d) of this subsection 4.9, subject to approval by the Supermajority Lenders. Until the Commitments are no longer in effect, all Letters of Credit have terminated and all of the Obligations are paid in full, this Agreement shall be subject to the then effective Borrowing Base. During the period from and after the Closing Date until the first Redetermination Date, the amount of the Borrowing Base shall be $180,000,000; (b) Prior to April 1 of each year (and, if at any time during the period from January 1 to August 31 of any year, the average Borrowing Base Usage for such period exceeds 75%, on October 1st of such year), the Borrower shall furnish to the Administrative Agent and to each Lender Reserve Reports, which Reserve Reports shall be dated as of the immediately preceding December 31 (in the case of Reserve Reports due on April 1) and June 30 (in the case of Reserve Reports due on October 1), and shall set forth, among other things, (i) the Oil and Gas Properties, then owned by the Borrower and its Subsidiaries, (ii) the Proved Reserves attributable to such Oil and Gas Properties and (iii) a projection of the rate of production and net income of the Proved Reserves as of the date of such Reserve Report, all in accordance with the guidelines published by the Securities and Exchange Commission. Concurrently with the delivery of the Reserve Reports, the Borrower shall furnish to the Administrative Agent and to each Lender a certificate of a Responsible Officer showing any additions to or deletions from the Oil and Gas Properties listed in the Reserve Report, which additions or deletions were made by the Borrower and its Subsidiaries since the date of the previous Reserve Report, and certifying which of the Oil and Gas Properties listed in the Reserve Report are subject to a Mortgage. (c) The Borrowing Base shall be re-determined (i) after receipt by the Engineering Committee of each scheduled Reserve Report, (ii) upon the delivery of a Lender Redetermination Notice to the Borrower and (iii) upon the delivery of a Borrower Redetermination Notice to each member of the Engineering Committee, all as provided in this subsection 4.
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Computation of Borrowing Base. (a) The Borrowing Base in effect from time to time shall represent the maximum principal amount (subject to the aggregate amount of the Revolving Credit Commitments) of Loans and Letter of Credit Outstandings that the Lenders will allow to remain outstanding during the Commitment Period. The Borrowing Base shall be determined in accordance with this subsection 4.9. The Borrowing Base will be based upon the value of certain Proved Reserves attributable to the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries and other assets of the Borrower and its Restricted Subsidiaries acceptable to the Engineering Committee Agents in its their sole discretion, and will be determined by the Engineering Committee Agents in accordance with paragraph (d) of this subsection 4.9, subject to approval by the Supermajority Lenders. Until the Commitments are no longer in effect, all Letters of Credit have terminated and all of the Obligations Loans and all other obligations under this Agreement are paid in full, this Agreement shall be subject to the then effective Borrowing Base. During the period from and after the Closing Restatement Effective Date until the first Redetermination Re-determination Date, the amount of the Borrowing Base shall be $180,000,000200,000,000;
(b) Prior to April March 1 and September 1 of each year (andcommencing September 1, if at any time during the period from January 1 to August 31 of any year, the average Borrowing Base Usage for such period exceeds 75%, on October 1st of such year2000), the Borrower shall furnish to the Administrative Agent Agents and to each Lender Reserve Reports, which Reserve Reports shall be dated as of the immediately preceding December 31 (in the case of Reserve Reports due on April March 1) and June 30 (in the case of Reserve Reports due on October September 1), and shall set forth, among other things, (i) the Oil and Gas Properties, then owned by the Borrower and its Restricted Subsidiaries, (ii) the Proved Reserves attributable to such Oil and Gas Properties and (iii) a projection of the rate of production and net income of the Proved Reserves as of the date of such Reserve Report, all in accordance with the guidelines published by the Securities and Exchange CommissionCommission and such assumptions as the Agents shall provide. Concurrently with the delivery of the Reserve Reports, the Borrower shall furnish to the Administrative Agent Agents and to each Lender a certificate of a Responsible Officer showing any additions to or deletions from the Oil and Gas Properties listed in the Reserve Report, which additions or deletions were made by the Borrower and its Restricted Subsidiaries since the date of the previous Reserve Report, and certifying which of the Oil and Gas Properties listed in the Reserve Report are subject to a Mortgage.
(c) The Borrowing Base shall be re-determined (i) after receipt by the Engineering Committee Agents of each scheduled Reserve Report, (ii) upon the delivery of a Lender Redetermination Notice to the Borrower and (iii) upon the delivery of a Borrower Redetermination Notice to each member of the Engineering CommitteeAgents, all as provided in this subsection 44.9. Within 15 days after the delivery of a Borrower Redetermination Notice or a Lender Redetermination Notice, the Borrower shall furnish to the Agents and to each Lender a Reserve Report as of the most recent practicable date. If the Borrower fails to deliver a Reserve Report within the time period provided for in the preceding sentence, then the Agents shall have the right to rely on the last Reserve Report previously delivered by the Borrower with any such adjustments and taking into account any additional information as the Agents may deem appropriate, in their sole discretion. On or before the date which is 30 days after receipt (i) of a scheduled semi-annual Reserve Report or (ii) of a Reserve Report in connection with a Lender Redetermination Notice or a Borrower Redetermination Notice, the Agents shall re-determine the Borrowing Base in their sole discretion, and the Agents shall notify the Borrower and the Lenders of their re-determination of the Borrowing Base. Within 10 days after receipt from the Agents of the amount of their re-determination of the Borrowing Base, each Lender shall notify the Agents stating whether or not such Lender agrees with that re-determination. Failure of any Lender to give such notice within such period of time shall be deemed to constitute an acceptance of such re-determination. If the Supermajority Lenders agree with that re-determination, then the Agents promptly shall notify the Borrower of the Borrowing Base as so re-determined, whereupon that re-determined value shall automatically become effective (and shall remain effective until the Borrowing Base is again re-determined as provided in this subsection 4.9(c)). If the Supermajority Lenders have not approved or are not deemed to have approved the Borrowing Base within the 10 day period following their receipt of the proposed amount from the Agents, the Borrowing Base shall be set at the amount of the then current Borrowing Base and the Borrowing Base shall remain at such level until the Supermajority Lenders, utilizing the procedure outlined herein, agree on a new Borrowing Base. Each re-determination provided for by this subsection 4.9(c) shall be made in accordance with the provisions of subsection 4.9(d). It is the intention of the Borrower and the Lenders that the Borrowing Base be redetermined within 45 days after the furnishing of each Reserve Report, subject to the provisions of this paragraph (c).
(i) All determinations and re-determinations by the Agents provided for in this subsection 4.9 (and any determinations and decisions by either or both of the Agents and the Supermajority Lenders in connection therewith, including effecting any re-determination of the value of any component contained in a Reserve Report) shall be made by the Agents and the Lenders in their sole discretion and shall be made on a reasonable basis and in good faith based upon the application by the Agents and the Lenders of their respective normal oil and gas lending criteria as they exist at the time of determination.
(ii) All re-determinations in the Borrowing Base referred to in this subsection 4.9 shall become effective immediately upon the delivery of notice by the Agents to the Borrower of the re-determination.
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Computation of Borrowing Base. (a) The Borrowing Base in effect from time to time shall represent the maximum principal amount (subject to the aggregate amount of the Revolving Credit Commitments) of Loans and Letter of Credit Outstandings that the Lenders will allow to remain outstanding during the Commitment Period. The Borrowing Base shall be determined in accordance with this subsection 4.9. The Borrowing Base will be based upon the value of certain Proved Reserves attributable to the Oil and Gas Properties of the Borrower and its Restricted Subsidiaries and other assets of the Borrower and its Restricted Subsidiaries acceptable to the Engineering Committee Administrative Agent in its sole discretion, and will be determined by the Engineering Committee Administrative Agent in accordance with paragraph (d) of this subsection 4.9, subject to approval by the Supermajority Lenders. Until the Commitments are no longer in effect, all Letters of Credit have terminated and all of the Obligations Loans and all other obligations under this Agreement are paid in full, this Agreement shall be subject to the then effective Borrowing Base. During the period from and after the Closing Date until the first Redetermination Re-determination Date, the amount of the Borrowing Base shall be $180,000,00050,000,000;
(b) Prior to April March 1 and September 1 of each year (andcommencing March 1, if at any time during the period from January 1 to August 31 of any year, the average Borrowing Base Usage for such period exceeds 75%, on October 1st of such year1998), the Borrower shall furnish to the Administrative Agent and to each Lender Reserve Reports, which Reserve Reports shall be dated as of the immediately preceding December 31 (in the case of Reserve Reports due on April March 1) and June 30 (in the case of Reserve Reports due on October September 1), and shall set forth, among other things, (i) the Oil and Gas Properties, then owned by the Borrower and its Restricted Subsidiaries, (ii) the Proved Reserves attributable to such Oil and Gas Properties and (iii) a projection of the rate of production and net income of the Proved Reserves as of the date of such Reserve Report, all in accordance with the guidelines published by the Securities and Exchange CommissionCommission and such assumptions as the Administrative Agent shall provide. Concurrently with the delivery of the Reserve Reports, the Borrower shall furnish to the Administrative Agent and to each Lender a certificate of a Responsible Officer showing any additions to or deletions from the Oil and Gas Properties listed in the Reserve Report, which additions or deletions were made by the Borrower and its Restricted Subsidiaries since the date of the previous Reserve Report, and certifying which of the Oil and Gas Properties listed in the Reserve Report are subject to a Mortgage.
(c) The Borrowing Base shall be re-determined (i) after receipt by the Engineering Committee Administrative Agent of each scheduled Reserve Report, (ii) upon the delivery of a Lender Redetermination Notice to the Borrower and (iii) upon the delivery of a Borrower Redetermination Notice to each member of the Engineering CommitteeAdministrative Agent, all as provided in this subsection 44.9. Within 15 days after the delivery of a Borrower Redetermination Notice or a Lender Redetermination Notice, the Borrower shall furnish to the Administrative Agent and to each Lender a Reserve Report as of the most recent practicable date. If the Borrower fails to deliver a Reserve Report within the time period provided for in the preceding sentence, then the Administrative Agent shall have the right to rely on the last Reserve Report previously delivered by the Borrower with any such adjustments and taking into account any additional information as the Administrative Agent may deem appropriate, in its sole discretion. On or before the date which is 30 days after receipt (i) of a scheduled semi-annual Reserve Report or (ii) of a Reserve Report in connection with a Lender Redetermination Notice or a Borrower Redetermination Notice, the Administrative Agent shall re-determine the Borrowing Base in its sole discretion, and the Administrative Agent shall notify the Borrower and the Lenders of its re-determination of the Borrowing Base. Within 10 days after receipt from the Administrative Agent of the amount of the its re-determination of the Borrowing Base, each Lender shall notify the Administrative Agent stating whether or not such Lender agrees with that re-determination. Failure of any Lender to give such notice within such period of time shall be deemed to constitute an acceptance of such re-determination. If the Supermajority Lenders agree with that re-determination, then the Administrative Agent promptly shall notify the Borrower of the Borrowing Base as so re-determined, whereupon that re-determined value shall automatically become effective (and shall remain effective until the Borrowing Base is again re-determined as provided in this subsection 4.9(c)). If the Supermajority Lenders have not approved or are not deemed to have approved the Borrowing Base within the 10 day period following their receipt of the proposed amount from the Administrative Agent, the Borrowing Base shall be set at the amount of the then current Borrowing Base and the Borrowing Base shall remain at such level until the Supermajority Lenders, utilizing the procedure outlined herein, agree on a new Borrowing Base. Each re-determination provided for by this subsection 4.9(c) shall be made in accordance with the provisions of subsection 4.9(d). It is the intention of the Borrower and the Lenders that the Borrowing Base be redetermined within 45 days after the furnishing of each Reserve Report, subject to the provisions of this paragraph (c).
(i) All determinations and re-determinations by the Administrative Agent provided for in this subsection 4.9 (and any determinations and decisions by either or both of the Administrative Agent and the Supermajority Lenders in connection therewith, including effecting any re-determination of the value of any component contained in a Reserve Report) shall be made by the Administrative Agent and the Lenders in their sole discretion and shall be made on a reasonable basis
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