Common use of Drilling and Operations Clause in Contracts

Drilling and Operations. Since owned by the Company and to the best of its knowledge prior thereto, the oil and gas ▇▇▇▇▇ comprising the producing Properties mortgaged to Bank Parties (or Agent for the benefit of Bank Parties) pursuant to the Security Documents have been drilled and operated in all material respects in accordance with the material terms of relevant leases and agreements and applicable Federal, state, and local laws and regulations and are bottomed on and producing from the drilling and spacing units or blocks therefor and no failure to comply therewith could have a Material Adverse Effect.

Drilling and Operations. Since owned by the Company and to the best ----------------------- of its knowledge prior thereto, the oil and gas ▇▇▇▇▇ comprising the producing Properties mortgaged to Bank Parties (or Agent for the benefit of Bank Parties) pursuant to the Security Documents have been drilled and operated in all material respects in accordance with the material terms of relevant leases and agreements and applicable Federal, state, and local laws and regulations and are bottomed on and producing from the drilling and spacing units or blocks therefor and no failure to comply therewith could have a Material Adverse Effect.