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2�iQ07999
<br />(b) Leases and Contracts: Performance of Obli.�ations. Except as otherwise permitted
<br />in the Cr�dit Agreement, all matexial Contracts, Servitudes, Sur�ace Leases, Leases, and other
<br />agreernents aand leases forming a part of the Praperty are in full farce and effect, except ta the
<br />extent any of the same may terminate due to expiration of the stated ternms thereof or where the
<br />termination thereof could not reasonably be expected to result in a Material Adverse Effect, and
<br />Mortgagor agrees to so maintain them in full force and effect. Except as otherwise permitted in
<br />the Credit Agreement, all rents, royalties and other payments due and payable by Mortgagar
<br />und�r the pravisions of such Cantracts, Servitudes, Surface Leases, Leases and other agreements
<br />and leases, or under the Liens pertnitted under Section 7.3 of the Credit Agr�ement, or otherwise
<br />attendant to the ownership or operation of the Property by Mortgagor, have been, and will
<br />continue to be, praperly and timely paid. Mortgagor is not in default with respect to Mortgagor's
<br />obligations (and Mortgagor is not aware af any default by any third parry with respect to such
<br />third party's obligations} under such Contracts, Servitudes, Surface Leases, Leases or other
<br />agreemexits or leases, or under the Liens permitted under Section 7.3 of the Credit Agreement, or
<br />otherwise attendant ta the ownership or operation of any part of the Property, where such default
<br />could reasonably be expected to result in a Material Adverse Effect; Mortgagor will fulfill all
<br />such abligations coming due in the :future, except wk�ere such failure to do so could not
<br />reasonably be expected to result in a Material Adverse Effect. There are no situations where
<br />Mortgagor is aware that a contingent liability may exist which may require Mortgagor to account
<br />for such liability on a basis less favorable to Mortgagor than the basis on which Mortga�or is
<br />currently accaunting.
<br />(c) Contractual Arran�ements. Except to the extent that any failuxe cauld not
<br />reasonably be expected to result xn a Material Adverse Effect, Mortgagor will not: (i) permit any
<br />of the �'acilities or Pipeline Systems to be subject to any contractual or other arrangement for
<br />gathering, transporting, stoxage, txeating, pxocessing or other services (A) whereby payment is or
<br />can be deferred for a substantial period after the month in which performance occurred ar is ar
<br />can be made other than in cash, (B) which is not on a bona fide arms-length basis and at
<br />comrnercially reasonable prices, on terms which are customary in the industry, or (C) for which
<br />prepayments in material amounts have been received, (ii) fail to comply with contractual and
<br />other arrangements for gathering, transporting, storage, treating, processing and other services,
<br />(iii) permit to exist any imbalances in respect to the Facilities or Pipeline Systems except for
<br />those imbalances incurred in the ordinary course of business that are settled in the ordinary
<br />course of business, (iv) permit to exist curtailment of (A) services in connection �vith the
<br />�'acilities or Pipeline Systems or (B) transportation of its Products other than as required by any
<br />applicable Requirement of Law or as a result of events of force majeure, (v) permit any Facilities
<br />or Fipeline Systems or any material part thereof to cease to operate (except as a result of
<br />customary interruptions in the ordinary course of business or as a result of force majeure events)
<br />or to be abandoned, (vi) receive prepayments for services other than prepayments for liabilities
<br />far services that will accrue and be settled in the manth following the month in which such
<br />services were rendered, (vii) perrnit to exist any contract for gathering, transporting, storage,
<br />t�eating, processing or other services for consideration or other terms in contravention of any
<br />applicable Requirement of Law, or (viii) receive consid�ration other than in accordance with
<br />applicable contracts and any applicable Requirement of Law. Mortgagor will use reasonable
<br />effarts ta cure any events af force majeure. Mortgagor is presently receiving payments and fees
<br />for all contractual or other arrangements described above in accordance with the terms of such
<br />contract or agxeement in all material respects.
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