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Exhibit 10.26

EIGHTH AMENDMENT TO LOAN AGREEMENT

        THIS EIGHTH AMENDMENT TO LOAN AGREEMENT (herein called this "Amendment")
is made as of the 25th day of February, 2002, by and among Western Gas
Resources, Inc. ("Borrower"), and Bank of America, N.A. ("Agent"), and the
Lenders under the Loan Agreement referred to below.

W I T N E S S E T H:

        WHEREAS, Borrower, Agent, and Lenders have entered into that certain
Loan Agreement dated as of April 29, 1999 (as amended, restated, or supplemented
to the date hereof, the "Original Agreement"), for the purposes and
consideration therein expressed, pursuant to which Lenders made and became
obligated to make loans to Borrower as therein provided; and

        WHEREAS, Borrower, Agent, and Lenders desire to amend the Original
Agreement for the purposes described herein;

        NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements contained herein and in the Original Agreement, in
consideration of the loans which may hereafter be made by Lenders to Borrower,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.
Definitions and References

        § 1.1. Defined Terms. Unless the context otherwise requires or unless
otherwise expressly defined herein, the terms defined in the Original Agreement
shall have the same meanings whenever used in this Amendment. As used herein,
the following terms shall have the following meanings:

        "Amendment" means this Eighth Amendment to Loan Agreement.

        "Loan Agreement" means the Original Agreement as amended by this
Amendment.

ARTICLE II.
Amendment

        § 2.1. Debt. Section 6.2(a)(iii) of the Original Agreement is hereby
amended to read in its entirety as follows:

        "(iii) obligations under leases, whether capital leases or operating
leases, entered into in the ordinary course of business in arm's-length
transactions at competitive market rates under competitive terms and conditions
considering all aspects thereof, provided that the obligations payable over the
remaining lives of any such leases do not in the aggregate exceed $75,000,000,
and in addition, obligations under oil and gas leases, real estate leases for
office space used by Borrower, and leases for vehicles, office equipment and
data processing equipment;"

ARTICLE III.
Conditions of Effectiveness

        § 3.1. Effective Date. This Amendment shall become effective as of the
date first above written when, and only when, Agent shall have received all of
the following:

        (a)  This Amendment, duly authorized, executed and delivered by
Borrower, Agent, and each Lender, and in form and substance satisfactory to
Agent.

        (b)  A certificate of a duly authorized officer of Borrower dated the
date of this Amendment certifying: (i) that all of the representations and
warranties set forth in Article IV hereof are true and correct at and as of the
time of such effectiveness; and (ii) as to such other corporate matters as Agent
shall deem necessary.

        (c)  Payment of fees and disbursements of Thompson & Knight L.L.P.
relating to this Amendment and the Loan Agreement as provided in the Loan
Agreement.

        (d)  Agent shall have additionally received such other documents as
Agent may reasonably request.

ARTICLE IV.
Representations and Warranties

        § 4.1. Representations and Warranties of Borrower. In order to induce
each Lender to enter into this Amendment, Borrower represents and warrants on
the date hereof and as of the Effective Date to each Lender that:

        (a)  The representations and warranties contained in Article V of the
Original Agreement are true and correct at and as of the time of the
effectiveness hereof (except as such representations and warranties have been
modified by the transactions contemplated herein).

        (b)  Borrower is duly authorized to execute and deliver this Amendment
and Borrower is and will continue to be duly authorized to borrow monies and to
perform its obligations under the Loan Agreement. Borrower has duly taken all
corporate action necessary to authorize the execution and delivery of this
Amendment.

        (c)  The execution and delivery by Borrower of this Amendment, the
performance of its obligations hereunder and the consummation of the
transactions contemplated hereby do not and will not conflict with any provision
of law, statute, rule or regulation or of the certificate of incorporation and
bylaws of Borrower or of any material agreement, judgment, license, order or
permit applicable to or binding upon Borrower or result in the creation of any
lien, charge or encumbrance upon any assets or properties of Borrower. Except
for those which have been obtained, no consent, approval, authorization or order
of any court or governmental authority or third party is required in connection
with the execution and delivery by Borrower of this Amendment.

        (d)  When duly executed and delivered, this Amendment, the Loan
Agreement, and each other Loan Document, as affected hereby, will be a legal and
binding obligation of each Related Person that is a party hereto and thereto
enforceable against such Related Person in accordance with its terms, except as
limited by bankruptcy, insolvency or similar laws of general application
relating to the enforcement of creditors' rights and by equitable principles of
general application.

        (e)  The audited Consolidated financial statements of Borrower dated as
of December 31, 2001, and the unaudited Consolidated financial statements of
Borrower dated as of September 30, 2001, fairly present the Consolidated
financial position at such date of Borrower and the Consolidated statement of
operations and the changes in Consolidated financial position for the periods
ending on such date for Borrower. Copies of such financial statements have
heretofore been delivered to Agent. Since December 31, 2000, no material adverse
change has occurred in the financial condition or business or in the
Consolidated financial condition or business of Borrower.

ARTICLE V.
Miscellaneous

        § 5.1. Ratification of Agreements. The Original Agreement as hereby
amended is hereby ratified and confirmed in all respects. Any reference to the
Loan Agreement in any Loan Document shall be deemed to be a reference to the
Original Agreement as hereby amended. The Loan Documents, as they may be amended
or affected by this Amendment, are hereby ratified and confirmed in all
respects. The execution, delivery and effectiveness of this Amendment shall not,
except as expressly provided herein, operate as a waiver of any right, power or
remedy of Lenders under the Loan Agreement, the Notes, or any other Loan
Document nor constitute a waiver of any provision of the Loan Agreement, the
Notes, or any other Loan Document.

        § 5.2. Survival of Agreements. All representations, warranties,
covenants and agreements of Borrower herein shall survive the execution and
delivery of this Amendment and the performance hereof, including without
limitation the making or granting of the Loans, and shall further survive until
all of the Obligations are paid in full. All statements and agreements contained
in any certificate or instrument delivered by Borrower hereunder or under the
Loan Agreement to any Lender shall be deemed to constitute representations and
warranties by, and/or agreements and covenants of, Borrower under this Amendment
and under the Loan Agreement.

        § 5.3. Loan Documents. This Amendment is a Loan Document, and all
provisions in the Loan Agreement pertaining to Loan Documents apply hereto.

        § 5.4. Governing Law. This Amendment shall be governed by and construed
in accordance the laws of the State of Texas and any applicable laws of the
United States of America in all respects, including construction, validity and
performance.

        § 5.5. Counterparts. This Amendment may be separately executed in
counterparts and by the different parties hereto in separate counterparts, each
of which when so executed shall be deemed to constitute one and the same
Amendment.

        THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

        IN WITNESS WHEREOF, this Amendment is executed as of the date first
above written.

 
 
WESTERN GAS RESOURCES, INC.
 
 
By:
 

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Name:
Title:
 
 
BANK OF AMERICA, N.A., as Agent and Lender
 
 
By:
 

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Name:
Title:
 
 
ABN AMRO BANK N.V., a Lender
 
 
By:
 

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Name:
Title:
 
 
By:
 

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Name:
Title:
 
 
BANK ONE, NA, (MAIN OFFICE—CHICAGO), a Lender
 
 
By:
 

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Name:
Title:
 
 
CREDIT LYONNAIS NEW YORK BRANCH, a Lender
 
 
By:
 

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Name:
Title:
 
 
FLEET NATIONAL BANK, a Lender
 
 
By:
 

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Name:
Title:

 
 
SOCIÉTÉ GÉNÉRALE SOUTHWEST AGENCY, a Lender
 
 
By:
 

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Name:
Title:
 
 
UNION BANK OF CALIFORNIA, N.A., a Lender
 
 
By:
 

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Name:
Title:
 
 
By:
 

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Name:
Title:
 
 
U.S. BANK NATIONAL ASSOCIATION, a Lender
 
 
By:
 

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Name:
Title:

CONSENT AND AGREEMENT

        Each of the undersigned hereby (i) consents to the provisions of this
Amendment and the transactions contemplated herein, and (ii) ratifies and
confirms its respective Guaranty dated as of April 29, 1999 made by it in favor
of Agent for the benefit of each Lender, and agrees that its obligations and
covenants thereunder are unimpaired hereby and shall remain in full force and
effect.

Date: February 25, 2002

 

 

MIGC, INC.
WESTERN GAS RESOURCES TEXAS, INC.
MOUNTAIN GAS RESOURCES, INC.
LANCE OIL & GAS COMPANY, INC.
WESTERN GAS WYOMING, L.L.C.
 
 
By:
 

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Name:
Title:

CONSENT AND AGREEMENT

        The undersigned hereby (i) consents to the provisions of this Amendment
and the transactions contemplated herein, and (ii) ratifies and confirms its
Guaranty dated as of October 14, 1999 made by it in favor of Agent for the
benefit of each Lender, and agrees that its obligations and covenants thereunder
are unimpaired hereby and shall remain in full force and effect.

Date: February 25, 2002

 
 
MGTC, INC.
 
 
By:
 

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Name:
Title:

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Exhibit 10.26