Common use of Operator’s Lien Clause in Contracts

Operator’s Lien. 11.1 In addition to any lien, charge or security interest (collectively in this Agreement called a "lien") to which the Operator may be entitled by law, including any provided for elsewhere in this Agreement, each Participant does hereby mortgage, charge, assign and grant a security interest to and in favour of the Operator in: (1) the undivided share of Mineral Products owned or to be owned by such Participant; (2) the Participating Interest of such Participant; and (3) all personal property in any form derived directly or indirectly from any dealing with or comprised in or related to the collateral described in subparagraphs (a) and (b), or the proceeds therefrom, including insurance proceeds and any other payment representing indemnity or compensation for loss of or damage thereto or the proceeds therefrom, as security for: (4) an amount equal to any amount paid or advanced by the Operator pursuant to paragraph 4.3, together with interest thereon at the rate and calculated in the manner specified in paragraph 4.3; (5) their respective shares of the costs of a termination and liquidation under paragraph 3.6 or 10.2; and (6) a withdrawing Participant's obligations under subparagraphs 10.1(a) and (b). 11.2 Such lien in respect of a Participant who is in default of one or more of its obligations as specified in paragraph 11.1 (in this Article 11 a "Defaulting Participant") may be enforced by the Operator against the Defaulting Participant by any one or more of the following, provided that it has first given the Defaulting Participant notice of the default and, at the expiration of 30 days from the date of giving such notice, the default described therein has not been cured: (1) the sale or lease (either to one or more of the other Participants, or to a third party, but subject to Article 8, save and except for paragraph 8.2) of all or part of the Participating Interest of the Defaulting Participant for cash or on credit or partly for cash and partly on credit; (2) the sale of the Defaulting Participant's share of Mineral Products for cash or on credit or partly for cash and partly on credit, such credit to be on the terms no less favourable than those on which the Operator, acting in good faith, sells its own Mineral Products, and it is expressly acknowledged that the Operator is justified in offering discounts and other pricing and payment concessions to secure a buyer's longer term commitment to buy, or to secure other benefits from buyers; (3) the collection and/or retention of receipts due to the Defaulting Participant from the sale of Mineral Products or any other Assets and the application of the receipts so collected to the obligations, amounts and costs referred to in subparagraphs 11.1(d) to (f), inclusive, or (4) without restricting the provisions of subparagraphs (a), (b) and (c), the exercise by the Operator of any other rights and remedies available at law or in equity, which may be exercised in the alternative, concurrently or cumulatively. In the case of the sale of the Defaulting Participant's Participating Interest or the sale of Mineral Products pursuant to subparagraphs (a) and (b) respectively, the Defaulting Participant will execute and deliver to the purchaser on demand any instrument reasonably necessary to confirm to the purchaser the title to the property so sold and the Operator is hereby irrevocably authorized by each Participant to execute on its behalf and in its name any such confirmatory instrument. 11.3 The security interest hereby granted by each Participant to the Operator will in no way hinder or prevent a Participant, at any time or from time to time until the security interest hereby constituted will have become enforceable pursuant to the provisions of paragraph 11.1, from: (1) selling, assigning, transferring, conveying or otherwise disposing of all or any part of its Mineral Products, free from such security interest, in the ordinary course of, and for the purpose of carrying on, its business; (2) selling, assigning, conveying, transferring or otherwise disposing of all or an undivided part of its Participating Interest in accordance with the provisions of Article 8; (3) subject always to compliance with the provisions of Article 9, entering into a security agreement in accordance with that Article; provided that any such action is not in breach of any provision of this Agreement and further provided that, unless other security is given which is acceptable to the Operator, acting reasonably, any forward commitment is subject always to the Operator's lien, whether or not the Participant has received any advance payment. 11.4 If a Participant other than the Operator makes a payment on behalf of a Defaulting Participant pursuant to paragraph 4.3 such first named Participant will have a lien to secure repayment of the same on the Defaulting Participant's Participating Interest, the right of the Defaulting Participant to receive either Mineral Products in kind or proceeds from the sale thereof or from the sale of any other Assets, the interest of the Defaulting Participant in any contracts for the sale of Mineral Products or other Assets, and on Mineral Products to be received in kind by the Defaulting Participant, and all amounts paid or advanced by such first named Participant pursuant to paragraph 4.3, shall bear interest thereon at the rate specified in paragraph 4.3, calculated from the dates the same are paid or advanced. The lien under this paragraph 11.4 will rank pari passu with the Operator's lien under paragraph 11.1 insofar as it secures amounts referred to in subparagraph 11.1(d) and subordinate to the lien of the Operator insofar as it secures amounts referred to in subparagraphs 11.1(e) or (f) and the provisions of paragraphs 11.2 and 11.3 will apply with respect thereto mutatis mutandis.

Operator’s Lien. 11.1 In addition to any lienOperator's Lien 15.1 Each Participant hereby mortgages, charge or charges, assigns and grants a security interest (collectively in this Agreement called a "lienLien") to which the Operator may be entitled by law, including any provided for elsewhere in this Agreement, each Participant does hereby mortgage, charge, assign and grant a security interest to and in favour of the Operator in: (1a) the undivided share of Mineral Products owned or to be owned by such Participant; (2b) the Participating Interest of such Participant; and (3c) all personal property in any form derived directly or indirectly from any dealing with or comprised in or related to the collateral described in subparagraphs (a) and (b), or the proceeds therefrom, including insurance proceeds and any other payment representing indemnity or compensation for loss of or damage thereto or the proceeds therefrom, (collectively, the "Collateral") as security for: (4d) an amount equal their respective obligations from time to any amount paid or advanced by the Operator pursuant time to paragraph 4.3, together with interest thereon at the rate and calculated make contributions to Operating Costs as contemplated in the manner specified in paragraph 4.3;Article 9; and (5e) their respective shares of the costs of a termination and liquidation under paragraph 3.6 or 10.2; and6.6. Enforcement of Lien By the Operator (6) a withdrawing Participant's obligations under subparagraphs 10.1(a) and (b). 11.2 15.2 Such lien Lien in respect of a Participant who is in default of one or more of its obligations as specified in paragraph 11.1 15.1 (in this Article 11 15 a "Defaulting Participant") may be enforced by the Operator against the Defaulting Participant by any one or more of the following, provided that it has first given the Defaulting Participant notice of the default and, at the expiration of 30 days from the date of giving such notice, the default described therein has not been cured: (1a) the sale or lease (either to one or more of the other Participants, or to a third party, but subject to Article 8, save and except for paragraph 8.213) of all or part of the Participating Interest of the Defaulting Participant for cash or on credit or partly for cash and partly on credit; (2b) the sale of the Defaulting Participant's share of Mineral Products for cash or on credit or partly for cash and partly on credit, such credit to be on the terms no less favourable than those on which the Operator, acting in good faith, sells its own Mineral Products, and it is expressly acknowledged that the Operator is justified in offering discounts and other pricing and payment concessions to secure a buyer's longer term commitment to buy, or to secure other benefits from buyers; (3c) the collection and/or retention of receipts due to the Defaulting Participant from the sale of Mineral Products or any other Assets and the application of the receipts so collected to the obligations, amounts and costs referred to in subparagraphs 11.1(d15.1(d) to and (fe), inclusive, ; or (4d) without restricting the provisions of subparagraphs (a), (b) and (c), the exercise by the Operator of any other rights and remedies available at law or in equity, which may be exercised in the alternative, concurrently or cumulatively. In the case of the sale of the Defaulting Participant's Participating Interest or the sale of Mineral Products pursuant to subparagraphs subparagraph (a) and (b) respectively, the Defaulting Participant will shall execute and deliver to the purchaser on demand any instrument reasonably necessary to confirm to the purchaser the title to the property so sold and the Operator is hereby irrevocably authorized by each Participant to execute on its behalf and in its name any such confirmatory instrument. 11.3 The security interest hereby granted by each Participant to the Operator will in no way hinder or prevent a Participant, at any time or from time to time until the security interest hereby constituted will have become enforceable pursuant to the provisions of paragraph 11.1, from: (1) selling, assigning, transferring, conveying or otherwise disposing of all or any part of its Mineral Products, free from such security interest, in the ordinary course of, and for the purpose of carrying on, its business; (2) selling, assigning, conveying, transferring or otherwise disposing of all or an undivided part of its Participating Interest in accordance with the provisions of Article 8; (3) subject always to compliance with the provisions of Article 9, entering into a security agreement in accordance with that Article; provided that any such action is not in breach of any provision of this Agreement and further provided that, unless other security is given which is acceptable to the Operator, acting reasonably, any forward commitment is subject always to the Operator's lien, whether or not the Participant has received any advance payment. 11.4 If a Participant other than the Operator makes a payment on behalf of a Defaulting Participant pursuant to paragraph 4.3 such first named Participant will have a lien to secure repayment of the same on the Defaulting Participant's Participating Interest, the right of the Defaulting Participant to receive either Mineral Products in kind or proceeds from the sale thereof or from the sale of any other Assets, the interest of the Defaulting Participant in any contracts for the sale of Mineral Products or other Assets, and on Mineral Products to be received in kind by the Defaulting Participant, and all amounts paid or advanced by such first named Participant pursuant to paragraph 4.3, shall bear interest thereon at the rate specified in paragraph 4.3, calculated from the dates the same are paid or advanced. The lien under this paragraph 11.4 will rank pari passu with the Operator's lien under paragraph 11.1 insofar as it secures amounts referred to in subparagraph 11.1(d) and subordinate to the lien of the Operator insofar as it secures amounts referred to in subparagraphs 11.1(e) or (f) and the provisions of paragraphs 11.2 and 11.3 will apply with respect thereto mutatis mutandis.