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Exhibit 10.27    
  

LETTER AMENDMENT NO. 6

TO

SECOND AMENDED AND RESTATED MASTER SHELF AGREEMENT  

March 1,
2002 

The
Prudential Insurance Company of America

Pruco Life Insurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4200E

Dallas, Texas 75201 

Ladies
and Gentlemen: 

        We
refer to the Second Amended and Restated Master Shelf Agreement dated as of December 19, 1991 (effective January 31, 1996), as amended by Letter Amendment No. 1
dated November 21, 1997, Letter Amendment No. 2 dated March 31, 1999, Limited Waiver, Consent, Release and Amendment No. 3 dated June 1, 1999, Limited Waiver,
Consent, Release and Amendment No. 4 dated August 25, 2000 and Letter Amendment No. 5 dated March 30, 2001 (as amended, the
"Agreement") among the undersigned, Western Gas Resources, Inc. (the "Company") and you. Unless
otherwise defined herein, the terms defined in the Agreement shall be used herein as therein defined. 

        It
is hereby agreed by you and us as follows: 

        The
Agreement is, effective the date first above written, hereby amended as follows: 

        (a)  Paragraph 6A(3). Total Debt Maintenance. Paragraph 6A(3) of the Agreement is amended in its entirety to
read as follows: 

        "6A(3). Total Debt Maintenance. The sum of Adjusted Consolidated Debt plus Excess Lease Payments at any time to exceed (i) from
October 1, 1998 through December 31, 2001, 60% of the sum of Consolidated Net Tangible Assets plus Excess Lease Payments and (ii) from and after January 1, 2002, 55% of the
sum of Consolidated Net Tangible Assets plus Excess Lease Payments. In any event, for purposes of determining compliance with this paragraph 6A(3), Adjusted Consolidated Debt shall include
without duplication and without limitation all indebtedness included in determining compliance with the similar covenant in the NCNB Agreement." 

        (b)  Paragraph 6A(4). Senior Debt Maintenance. Paragraph 6A(4) of the Agreement is amended in its entirety to
read as follows: 

        "6A(4). Senior Debt Maintenance. The sum of Adjusted Consolidated Senior Debt plus Excess Lease Payments at any time to exceed
(i) from January 1, 1999 until the completion of the 1999 Action Plan, 60% of the sum of Consolidated Net Tangible Assets plus Excess Lease Payments, (ii) from and after
completion of the 1999 Action Plan through March 31, 2002, 40% of the sum of Consolidated Net Tangible Assets plus Excess Lease Payments and (iii) from and after April 1, 2002,
35% of the sum of Consolidated Net Tangible Assets plus Excess Lease Payments. In any event, for purposes of determining compliance with this paragraph 6A(4), Adjusted Consolidated Senior Debt
shall include without duplication and without limitation all indebtedness included in determining compliance with the similar covenant in the NCNB Agreement." 

        (c)  Paragraph 6A(7). Senior Debt to EBITDA. Paragraph 6A(7) of the Agreement is amended in its entirety to read
as follows: 

        "6A(7). Senior Debt to EBITDA. As of any date of determination (i) from the date on which the 1999 Action Plan is completed through
December 31, 1999, the ratio of the sum of Senior Debt plus Excess Lease Payments to EBITDA for the period of four fiscal quarters most recently ended to be greater than 4.50 to 1.00 and
(ii) from and after January 1, 2000, the ratio of the sum

  
of Senior Debt plus Excess Lease Payments to EBITDA for the period of four fiscal quarters most recently ended to be greater than 4.00 to 1.00." 

        (d)  Paragraph 6C(6). Lease Rentals. Paragraph 6C(6) of the Agreement is amended in its entirety to read
as follows: 

        "6C(6). Lease Rentals. Except for oil, gas and mineral leases, real estate leases for office space used by the Company, and except for
leases for transportation equipment, including over-the-road trucks and tankers, data processing and other office equipment used in the ordinary course of business, enter into
or permit to remain in effect, any agreements to rent or lease (as lessee) any real or personal property if after giving effect thereto the aggregate amount of all sums payable by the Company and all
Subsidiaries over the remaining lives of all such Leases in the aggregate would exceed $75,000,000." 

        (e)  Paragraph 10B. Other Terms. Paragraph 10B of the Agreement is amended by adding thereto in alphabetical
order the following definitions: 

        "Excess Lease Payments' shall mean all amounts payable under leases, throughout the life of such leases, whether or not such payments are
capitalized in accordance with GAAP, to the extent such payments exceed $35,000,000 in the aggregate, excluding obligations arising under oil and gas leases, real estate leases for office space used
by the Company or any Subsidiary, and leases for vehicles, office equipment and data processing equipment." 

        (f)    Schedule 6C(3). Joint Ventures. Schedule 6C(3) of the Agreement is hereby amended in its entirety to
read as set forth on Schedule 6C(3) attached hereto: 

        On
and after the effective date of this Letter Amendment, each reference in the Agreement to "this Agreement", "hereunder", "hereof", or words of like import referring to the Agreement,
and each reference in the Notes to "the Agreement", "thereunder", "thereof", or words of like import referring to the Agreement, shall mean the Agreement as amended by this Letter Amendment. The
Agreement, as amended by this Letter Amendment, is and shall continue to be in full force and effect and is hereby in all respects ratified and confirmed. The execution, delivery and effectiveness of
this Letter Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy under the Agreement nor constitute a waiver of any provision of the Agreement. 

        This
Letter Amendment may be executed in any number of counterparts and by any combination of the parties hereto in separate counterparts, each of which counterparts shall be an original
and all of which taken together shall constitute one and the same Letter Amendment. 

        If
you agree to the terms and provisions hereof, please evidence your agreement by executing and returning at least a counterpart of this Letter Amendment to the Company at its address
at 12200 N. Pecos Street, Denver, CO 80234, Attention of Chief Financial Officer. This Letter Amendment shall become effective as of the date first above written when and if counterparts of this
Letter Amendment shall have been executed by us and you and the consent attached hereto shall have been executed by the Guarantors. 

	

 	
 	

Very truly yours,
	

 	
 	

WESTERN GAS RESOURCES, INC.
	

 	
 	

By:	
 	

 Title:

 

Agreed
as of the date first above written: 

	

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA	
 	

 
	

By:	
 	

 Vice President	
 	

 
	

PRUCO LIFE INSURANCE COMPANY	
 	

 
	

By:	
 	

 Vice President	
 	

 

 

CONSENT  

        Each of the undersigned is a Guarantor ("Guarantor" and, collectively
"Guarantors") under separate guaranties (each being a "Guaranty") in favor of The Prudential Insurance
Company of America and Pruco Life Insurance Company (together, "Prudential") with respect to the obligations of Western Gas Resources, Inc. (the
"Company") under that certain Second Amended and Restated Master Shelf Agreement dated as of December 19, 1991 (effective January 31,
1996) as amended by Letter Amendment No. 1 dated November 21, 1997, Letter Amendment No. 2 dated March 31, 1999, Limited Waiver, Consent, Release and Amendment No. 3
dated June 1, 1999, Limited Waiver, Consent, Release and Amendment No. 4 dated August 25, 2000 and Letter Amendment No. 5 dated March 30, 2001 (as amended, the
"Agreement"). Prudential and the Company are entering into that certain Letter Amendment No. 6 to Second Amended and Restated Master Shelf
Agreement, dated as of March 1, 2002 (the "Amendment"). Each of the undersigned hereby consents to the Amendment and each hereby confirms and
agrees that its Guaranty is, and shall continue to be, in full force and effect and is hereby confirmed and ratified in all respects except that, upon the effectiveness of, and on and after the date
of this consent, all words of like import referring to the Agreement shall mean the Agreement as amended by the Amendment, as the same may be further amended or modified from time to time. 

        Dated
as of March 1, 2002 

LANCE OIL & GAS COMPANY, INC.

MGTC, INC.

MIGC, INC.

MOUNTAIN GAS RESOURCES, INC.

WESTERN GAS RESOURCES—TEXAS, INC.

WESTERN GAS WYOMING, L.L.C.  

	
By:	
 	

 William J. Krysiak, as Chief Financial Officer of each of the above-named companies.	
 	

 

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Exhibit 10.27QuickLinks
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Exhibit 10.28    
  

        [EXECUTION] 

NINTH AMENDMENT TO LOAN AGREEMENT  

        THIS NINTH AMENDMENT TO LOAN AGREEMENT (herein called this "Amendment") is made as of the 25th day of April, 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 Ninth Amendment to Loan Agreement. 

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

ARTICLE II.

Amendment  

        § 2.1. The definition of "Tranche A Maturity Date" in Section 1.1 of the Loan Agreement is hereby amended in its entirety to read as follows: 

        "Tranche A Maturity Date' means April 24, 2003." 

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, (i) Agent shall have received for the pro rata distribution to each Lender in accordance with each Lender's Percentage Share of the Tranche A Commitment, an amendment fee in the
amount of $100,000.00 in immediately available funds, and (ii) Agent shall have also 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:	
 	

 Name:

Title:
	

 	
 	

BANK OF AMERICA, N.A., as Agent and Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

ABN AMRO BANK N.V., a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

BANK ONE, NA (MAIN OFFICE—CHICAGO), a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

CREDIT LYONNAIS NEW YORK BRANCH, a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

FLEET NATIONAL BANK, a Lender
	

 	
 	

By:	
 	

 Name:

Title:

 

	

 	
 	

SOCIÉTÉ GÉNÉRALE SOUTHWEST AGENCY, a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

UNION BANK OF CALIFORNIA, N.A., a Lender
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

By:	
 	

 Name:

Title:
	

 	
 	

U.S. BANK NATIONAL ASSOCIATION, a Lender
	

 	
 	

By:	
 	

 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:
April 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:	
 	

 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:
April 25, 2002 

	

 	
 	

MGTC, INC.
	

 	
 	

By:	
 	

 Name:

Title:

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Exhibit 10.28

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