AUTHORITY OR OTHER PERSON CONCERNING
THE ENVIRONMENTAL CONDITION OF, OR RELATING TO, ANY PROPERTY OF EITHER BORROWER
OR ADJACENT TO ANY PROPERTY OF EITHER BORROWER FOLLOWING ANY ALLEGATION OF A
VIOLATION OF AN ENVIRONMENTAL COMPLAINT;
(F)
ANY RELEASE OF HAZARDOUS SUBSTANCES BY
EITHER BORROWER OR FROM, AFFECTING, OR RELATED TO ANY PROPERTY OF EITHER
BORROWER OR ADJACENT TO ANY PROPERTY OF EITHER BORROWER EXCEPT IN ACCORDANCE
WITH APPLICABLE REQUIREMENTS OF LAW OR THE TERMS OF A VALID PERMIT, LICENSE,
CERTIFICATE, OR APPROVAL OF THE RELEVANT GOVERNMENTAL AUTHORITY, OR THE
VIOLATION OF ANY ENVIRONMENTAL LAW, OR THE REVOCATION, SUSPENSION, OR FORFEITURE
OF OR FAILURE TO RENEW, ANY PERMIT, LICENSE, REGISTRATION, APPROVAL, OR
AUTHORIZATION WHICH COULD REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE
EFFECT;
(G)
THE CHANGE IN IDENTITY OR ADDRESS OF ANY
PERSON REMITTING TO EITHER BORROWER PROCEEDS FROM THE SALE OF HYDROCARBON
PRODUCTION FROM OR ATTRIBUTABLE TO ANY BORROWING BASE OIL AND GAS PROPERTIES;
(H)
ANY CHANGE IN THE SENIOR MANAGEMENT OF
EITHER BORROWER; AND
31
(I)
ANY OTHER EVENT OR CONDITION WHICH COULD
REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT.
5.8
LETTERS IN LIEU OF TRANSFER ORDERS; DIVISION
ORDERS.
PROMPTLY UPON REQUEST BY THE LENDER AT ANY TIME AND FROM TIME TO TIME,
AND WITHOUT LIMITATION ON THE RIGHTS OF THE LENDER PURSUANT TO SECTIONS 2.16 AND
2.17, EXECUTE SUCH LETTERS IN LIEU OF TRANSFER ORDERS, IN ADDITION TO THE
LETTERS SIGNED BY THE BORROWERS AND DELIVERED TO THE LENDER IN SATISFACTION OF
THE CONDITION SET FORTH IN SECTION 3.1(F)(V) AND/OR DIVISION AND/OR TRANSFER
ORDERS AS ARE NECESSARY OR APPROPRIATE TO TRANSFER AND DELIVER TO THE LENDER
PROCEEDS FROM OR ATTRIBUTABLE TO THE BORROWING BASE OIL AND GAS PROPERTIES.
5.9
ADDITIONAL INFORMATION.
FURNISH TO THE
LENDER, PROMPTLY UPON THE REQUEST OF THE LENDER, SUCH ADDITIONAL FINANCIAL OR
OTHER INFORMATION CONCERNING THE ASSETS, LIABILITIES, OPERATIONS, AND
TRANSACTIONS OF THE BORROWERS AS THE LENDER MAY FROM TIME TO TIME REQUEST,
INCLUDING, WITHOUT LIMITATION, UPDATED LISTS OF ADDITIONAL OR NEW PURCHASES OF
PRODUCTION; AND NOTIFY THE LENDER NOT LESS THAN TEN BUSINESS DAYS PRIOR TO THE
OCCURRENCE OF ANY CONDITION OR EVENT THAT MAY CHANGE THE PROPER LOCATION FOR THE
FILING OF ANY FINANCING STATEMENT OR OTHER PUBLIC NOTICE OR RECORDING FOR THE
PURPOSE OF PERFECTING A LIEN IN ANY COLLATERAL, INCLUDING, WITHOUT LIMITATION,
ANY CHANGE IN ITS OR GUARANTOR'S NAME OR THE LOCATION OF ITS PRINCIPAL PLACE OF
BUSINESS OR CHIEF EXECUTIVE OFFICE; AND UPON THE REQUEST OF THE LENDER, EXECUTE,
AND CAUSE GUARANTOR TO EXECUTE, SUCH ADDITIONAL SECURITY INSTRUMENTS AS MAY BE
NECESSARY OR APPROPRIATE IN CONNECTION THEREWITH.
5.10
COMPLIANCE WITH LAWS.
EXCEPT TO THE EXTENT THE
FAILURE TO COMPLY OR CAUSE COMPLIANCE COULD NOT REASONABLY BE EXPECTED TO HAVE A
MATERIAL ADVERSE EFFECT, COMPLY WITH ALL APPLICABLE REQUIREMENTS OF LAW,
INCLUDING, WITHOUT LIMITATION, (A) THE NATURAL GAS POLICY ACT OF 1978, AS
AMENDED, (B) ERISA, (C) ENVIRONMENTAL LAWS, AND (D) ALL PERMITS, LICENSES,
REGISTRATIONS, APPROVALS, AND AUTHORIZATIONS (I) RELATED TO ANY NATURAL OR
ENVIRONMENTAL RESOURCE