Purchasers of Hydrocarbons Clause Samples
The 'Purchasers of Hydrocarbons' clause defines the rights and obligations of parties involved in buying hydrocarbons produced under the agreement. Typically, it outlines who is authorized to purchase the hydrocarbons, the procedures for selecting purchasers, and any requirements for approval or notification. For example, it may specify that the operator must obtain consent from non-operating parties before entering into sales contracts or that sales must be conducted at market rates. This clause ensures transparency and fairness in the sale of hydrocarbons, preventing disputes over sales arrangements and protecting the interests of all parties involved.
Purchasers of Hydrocarbons. (a) If Administrative Agent notifies Borrower that any Purchaser of Hydrocarbons is, in Administrative Agent’s reasonable judgment, not creditworthy, Borrower shall, to the extent that Borrower is the Operator, or to the extent Borrower is not the Operator Cause any Operator to, require the Purchaser to secure, to the satisfaction of Administrative Agent, the Purchaser’s obligations in respect of its purchase of Hydrocarbons attributable to the Properties. If the Purchaser refuses to secure its obligations, then Borrower shall, subject to any existing marketing arrangement with that Purchaser that is binding on Borrower and that is not terminable without penalty, (i) immediately cease selling Hydrocarbons to that Purchaser, or (ii) exercise its right to take the Hydrocarbons in kind and sell those Hydrocarbons to Purchasers Approved by Administrative Agent unless Borrower owns less than a 10% Working Interest in the subject Property and the Operator has acknowledged a notice of assignment of proceeds, then Borrower need not take the actions set forth in this Section 5.13(a).
(b) Borrower shall give Administrative Agent at least 30 days prior written notice if Borrower proposes to sell, or, if Borrower is not the Operator, within 5 Business Days of receiving notice that the Operator proposes to sell or has sold, any Hydrocarbons to any additional or replacement Purchaser. The notice must (i) contain the proposed Purchaser’s complete name, address, telephone number, facsimile number and contact person, and (ii) identify the Properties to which the purchases relate.
Purchasers of Hydrocarbons. All of the Persons who purchase Hydrocarbons produced from or allocated to the Properties, and the most recent address of each such Persons as shown in Borrower's records, is set forth on Schedule 4.1(o) attached hereto.
Purchasers of Hydrocarbons. Schedule 4.25 sets forth a complete and correct list of all of the Persons that are purchasers of production of Hydrocarbons from the Borrowing Base Oil and Gas Properties (or otherwise receiving such Borrower’s share of proceeds of such Hydrocarbons), as of the date of this Agreement, together with their addresses and telephone numbers.
Purchasers of Hydrocarbons. Borrowers shall:
(a) in the event that any Purchaser of Hydrocarbons is, in Lender’s reasonable judgment, not creditworthy, upon the request of Lender, and to the extent any Borrower is legally entitled to take such action, (i) cause the Purchaser to provide one or more letters of credit, in form and substance and from a bank satisfactory to Lender in connection with its purchase of Hydrocarbons from the Properties, (ii) sell Hydrocarbons only to Purchasers who are creditworthy in Lender’s reasonable judgment or who prepay, or (iii) exercise its right to take the Hydrocarbons in kind and sell to Purchasers of Hydrocarbons who are creditworthy in Lender’s reasonable judgment.
(b) after the date of this Agreement, give Lender thirty (30) days prior written notice if a Person other than a Person listed an Exhibit J will become a Purchaser of Hydrocarbons. The notice will contain the Person’s name and address (including contact person) and specify the Property or Properties to which the purchases relate.
Purchasers of Hydrocarbons. 48 Section 6.16 Access to Officers, Employees and Agents.................................................... 49 Section 6.17 Hedging Hydrocarbon Production.............................................................. 49 Section 6.18 Use of Proceeds............................................................................. 50 Section 6.19 Bonds....................................................................................... 50 Section 6.20 Minimum Payments............................................................................ 50 Section 6.21 Post-Closing Title Opinions................................................................. 50 Section 6.22
Purchasers of Hydrocarbons. Borrower shall:
(a) in the event that any Purchaser of Hydrocarbons is, in the Administrative Agent’s reasonable judgment, not creditworthy, upon the request of the Administrative Agent, (i) cause the Purchaser to provide one or more letters of credit, in form and substance and from a bank satisfactory to the Administrative Agent in connection with its purchase of Hydrocarbons from the Properties, (ii) sell Hydrocarbons only to Purchasers who are creditworthy in the Administrative Agent’s reasonable judgment or who prepay, or (iii) exercise its right to take the Hydrocarbons in kind and sell to Purchasers of Hydrocarbons who are creditworthy in the Administrative Agent’s reasonable judgment; to the extent Borrower is legally entitled to take such action;
(b) after the date of this Agreement, give the Administrative Agent thirty (30) days prior written notice if a Person listed on Exhibit E will become a Purchaser of Hydrocarbons. The notice will contain the Person’s name and address (including contact person) and specify the Property or Properties to which the purchases relate.
Purchasers of Hydrocarbons. Borrower shall, in the event that any Purchaser of Hydrocarbons is, in Lenders' reasonable judgment, not creditworthy, upon the request of Lenders, (i) cause the Purchaser to provide one or more letters of credit, in form and substance and from a bank satisfactory to Lenders in connection with its purchase of Hydrocarbons from the Properties, (ii) sell Hydrocarbons only to Purchasers who are creditworthy in Lenders' reasonable judgment or who prepay, or (iii) exercise its right to take the Hydrocarbons in kind and sell to Purchasers of Hydrocarbons who are creditworthy in Lenders' reasonable judgment.
Purchasers of Hydrocarbons. Borrowers shall sell Hydrocarbons only to Purchasers who are creditworthy in Lender's reasonable judgment or who prepay.
Purchasers of Hydrocarbons. Borrower shall:
(a) in the event that any Purchaser of Hydrocarbons is, in Lender’s reasonable judgment, not creditworthy, upon the request of Lender, (i) cause the Purchaser to provide one or more letters of credit, in form and substance and from a bank satisfactory to Lender in connection with its purchase of Hydrocarbons from the Properties, (ii) sell Hydrocarbons only to Purchasers who are creditworthy in Lender’s reasonable judgment or who prepay, or (iii) exercise its right to take the Hydrocarbons in kind and sell to Purchasers of Hydrocarbons who are creditworthy in Lender’s reasonable judgment; to the extent Borrower is legally entitled to take such action; and
(b) after the date of this Agreement, give Lender thirty (30) days prior written notice if a Person listed on Exhibit I will become a Purchaser of Hydrocarbons. The notice will contain the Person’s name and address (including contact person) and specify the Property or Properties to which the purchases relate.