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Subordination Agreement Oil And Gas Lease
"I need a Subordination Agreement Oil And Gas Lease for our Texas oil field operation where ABC Bank will subordinate their existing lien to XYZ Capital's new $10M financing arrangement, to be effective from March 1, 2025."
1. Parties: Identification of all parties involved in the agreement, including the senior creditor, subordinate creditor, and borrower/lessee
2. Background/Recitals: Context of the agreement, including reference to existing oil and gas lease and security interests
3. Definitions: Key terms used throughout the agreement, including 'Senior Debt', 'Subordinate Debt', 'Collateral', 'Lease Rights'
4. Subordination Terms: Core provisions detailing the subordination arrangement and priority of interests
5. Property Description: Detailed legal description of the leased property and associated rights
6. Representations and Warranties: Statements of fact and guarantees by all parties
7. Term and Termination: Duration of the agreement and conditions for termination
1. Environmental Compliance: Specific environmental obligations and compliance requirements when environmental concerns are significant or specifically required by state/federal law
2. Insurance Requirements: Specific insurance obligations of parties when additional insurance requirements are needed beyond the base lease
3. Assignment Rights: Terms governing the transfer of rights under the agreement when parties want to specifically address assignment capabilities
4. Dispute Resolution: Specific procedures for resolving disputes when parties want to specify arbitration or other alternative dispute resolution methods
1. Schedule A - Property Description: Detailed legal description of the property including surveys and maps
2. Schedule B - Existing Liens: List of all existing liens and encumbrances on the property
3. Schedule C - Senior Debt Documents: List and copies of all senior debt documents
4. Schedule D - Subordinate Debt Documents: List and copies of all subordinate debt documents
5. Appendix 1 - Original Lease Agreement: Copy of the original oil and gas lease being subordinated
6. Appendix 2 - Required Notices: Forms of required notices under the agreement
Authors
Senior Creditor
Subordinate Creditor
Borrower
Oil and Gas Lease
Senior Debt
Subordinate Debt
Collateral
Lease Rights
Permitted Liens
Security Interest
Default
Event of Default
Enforcement Action
Priority
Subordination
Payment Blockage
Standstill Period
Effective Date
Termination Date
Property
Mineral Rights
Hydrocarbon Interests
Production
Proceeds
Working Interest
Net Revenue Interest
Permitted Payments
Recovery
Distribution
Governing Law
Business Day
Lien
Loan Documents
Material Adverse Effect
Notice
Person
Representatives
Transfer
UCC
Priority of Interests
Representations and Warranties
Term and Termination
Payment Terms
Default and Remedies
Enforcement Rights
Notice Requirements
Assignment and Transfer
Environmental Compliance
Insurance
Indemnification
Governing Law
Dispute Resolution
Force Majeure
Confidentiality
Recording and Perfection
Amendment and Modification
Severability
Entire Agreement
Further Assurances
Waiver
Counterparts
Survival
Notices
No Third-Party Beneficiaries
Time of Essence
Bankruptcy Provisions
Security Interest
Property Description
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