ARTICLE 1 PURCHASE AND SALE |
SECTION 1.1 PURCHASE AND SALE |
SECTION 1.2 ASSETS |
SECTION 1.3 EXCLUDED ASSETS |
SECTION 1.4 EFFECTIVE TIME; PRORATION OF COSTS AND REVENUES |
SECTION 1.5 DELIVERY AND MAINTENANCE OF RECORDS |
ARTICLE 2 PURCHASE PRICE |
SECTION 2.1 PURCHASE PRICE |
SECTION 2.2 ADJUSTMENTS TO PURCHASE PRICE |
SECTION 2.3 ALLOCATION OF PURCHASE PRICE FOR TAX PURPOSES |
SECTION 2.4 DEPOSIT |
ARTICLE 3 TITLE MATTERS |
SECTION 3.1 SELLER’S TITLE |
SECTION 3.2 DEFINITION OF DEFENSIBLE TITLE |
SECTION 3.3 DEFINITION OF PERMITTED ENCUMBRANCES |
SECTION 3.4 NOTICE OF TITLE DEFECT ADJUSTMENTS |
SECTION 3.5 CASUALTY OR CONDEMNATION LOSS |
SECTION 3.6 LIMITATIONS ON APPLICABILITY |
SECTION 3.7 GOVERNMENT APPROVALS RESPECTING ASSETS |
ARTICLE 4 ENVIRONMENTAL MATTERS |
SECTION 4.1 ASSESSMENT |
SECTION 4.2 NORM, WASTES AND OTHER SUBSTANCES |
SECTION 4.3 INSPECTION INDEMNITY |
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF SELLER |
SECTION 5.1 GENERALLY |
SECTION 5.2 EXISTENCE AND QUALIFICATION |
SECTION 5.3 POWER |
SECTION 5.4 AUTHORIZATION AND ENFORCEABILITY |
SECTION 5.5 NO CONFLICTS |
SECTION 5.6 LIABILITY FOR BROKERS’ FEES |
SECTION 5.7 LITIGATION |
SECTION 5.8 TAXES AND ASSESSMENTS |
SECTION 5.9 COMPLIANCE WITH LAWS |
SECTION 5.10 CONTRACTS |
SECTION 5.11 PAYMENTS FOR HYDROCARBON PRODUCTION |
SECTION 5.12 GOVERNMENTAL AUTHORIZATIONS |
SECTION 5.13 PREFERENCE RIGHTS AND TRANSFER REQUIREMENTS |
SECTION 5.14 WELLS |
SECTION 5.15 OUTSTANDING CAPITAL COMMITMENTS |
SECTION 5.16 IMBALANCES |
SECTION 5.17 CONDEMNATION |
SECTION 5.18 BANKRUPTCY |
SECTION 5.19 PUHCA/NGA |
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SECTION 5.20 INVESTMENT COMPANY |
ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF PURCHASER |
SECTION 6.1 EXISTENCE AND QUALIFICATION |
SECTION 6.2 POWER |
SECTION 6.3 AUTHORIZATION AND ENFORCEABILITY |
SECTION 6.4 NO CONFLICTS |
SECTION 6.5 LIABILITY FOR BROKERS’ FEES |
SECTION 6.6 LITIGATION |
SECTION 6.7 FINANCING |
SECTION 6.8 LIMITATION |
SECTION 6.9 SEC DISCLOSURE |
SECTION 6.10 BANKRUPTCY |
SECTION 6.11 QUALIFICATION |
ARTICLE 7 COVENANTS OF THE PARTIES |
SECTION 7.1 ACCESS |
SECTION 7.2 GOVERNMENT REVIEWS |
SECTION 7.3 NOTIFICATION OF BREACHES |
SECTION 7.4 LETTERS-IN-LIEU; ASSIGNMENTS; OPERATORSHIP |
SECTION 7.5 PUBLIC ANNOUNCEMENTS |
SECTION 7.6 OPERATION OF BUSINESS |
SECTION 7.7 FINANCIAL INFORMATION |
SECTION 7.8 PREFERENCE RIGHTS AND TRANSFER REQUIREMENTS |
SECTION 7.9 TAX MATTERS |
SECTION 7.10 FURTHER ASSURANCES |
SECTION 7.11 SECTION AND SCHEDULE AMENDMENTS |
SECTION 7.12 SERVICES AGREEMENT |
ARTICLE 8 CONDITIONS TO CLOSING |
SECTION 8.1 CONDITIONS OF SELLER TO CLOSING |
SECTION 8.2 CONDITIONS OF PURCHASER TO CLOSING |
ARTICLE 9 CLOSING |
SECTION 9.1 TIME AND PLACE OF CLOSING |
SECTION 9.2 OBLIGATIONS OF SELLER AT CLOSING |
SECTION 9.3 OBLIGATIONS OF PURCHASER AT CLOSING |
SECTION 9.4 CLOSING PAYMENT & POST-CLOSING PURCHASE PRICE ADJUSTMENTS |
ARTICLE 10 TERMINATION |
SECTION 10.1 TERMINATION |
SECTION 10.2 EFFECT OF TERMINATION |
SECTION 10.3 DISTRIBUTION OF DEPOSIT UPON TERMINATION |
ARTICLE 11 POST-CLOSING OBLIGATIONS; INDEMNIFICATION; LIMITATIONS; DISCLAIMERS AND WAIVERS |
SECTION 11.1 RECEIPTS |
SECTION 11.2 EXPENSES |
SECTION 11.3 ASSUMED SELLER OBLIGATIONS |
SECTION 11.4 INDEMNITIES |
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SECTION 11.5 INDEMNIFICATION ACTIONS |
SECTION 11.6 RELEASE |
SECTION 11.7 LIMITATION ON ACTIONS |
SECTION 11.8 DISCLAIMERS |
SECTION 11.9 WAIVER OF TRADE PRACTICES ACTS |
SECTION 11.10 RECORDING |
ARTICLE 12 MISCELLANEOUS |
SECTION 12.1 COUNTERPARTS |
SECTION 12.2 NOTICE |
SECTION 12.3 SALES OR USE TAX RECORDING FEES AND SIMILAR TAXES AND FEES |
SECTION 12.4 EXPENSES |
SECTION 12.5 CHANGE OF NAME |
SECTION 12.6 REPLACEMENT OF BONDS, LETTERS OF CREDIT AND GUARANTEES |
SECTION 12.7 GOVERNING LAW AND VENUE |
SECTION 12.8 CAPTIONS |
SECTION 12.9 WAIVERS |
SECTION 12.10 ASSIGNMENT |
SECTION 12.11 ENTIRE AGREEMENT |
SECTION 12.12 AMENDMENT |
SECTION 12.13 NO THIRD-PARTY BENEFICIARIES |
SECTION 12.14 REFERENCES |
SECTION 12.15 CONSTRUCTION |
SECTION 12.16 LIMITATION ON DAMAGES |
SECTION 12.17 CONSPICUOUSNESS |
SECTION 12.18 SEVERABILITY |
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Exhibit “A” | Properties | |
Exhibit “A-1” | Wells and Units | |
Exhibit “A-2” | Equipment | |
Exhibit “B” | Conveyance | |
Exhibit “C” | Indemnity Agreement | |
Exhibit “D” | Escrow Agreement | |
Exhibit “E” | Transition Services Agreement | |
SCHEDULES | ||
Schedule 1.2(d) | Contracts | |
Schedule 1.2(e) | Surface Contracts | |
Schedule 1.2(g) | Pipelines | |
Schedule 1.2(j) | Field Offices | |
Schedule 1.4(b) | Effective Time; Proration of Costs and Revenues | |
Schedule 1.4(c) | Drilling and Completion Costs Prior to Effective Time | |
Schedule 2.3 | Allocation of Purchase Price for Tax Purposes | |
Schedule 3.3(e) | Liens and Taxes | |
Schedule 3.3(f) | Other Liens | |
Schedule 5.7(a) | Litigation | |
Schedule 5.7(b) | Notice of Non-Compliance | |
Schedule 5.8 | Taxes and Assessments | |
Schedule 5.9 | Compliance with Laws | |
Schedule 5.10 | Contract Matters | |
Schedule 5.11 | Hydrocarbon Production Payments | |
Schedule 5.12 | Governmental Authorizations |
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Schedule 5.13 | Preference Rights and Transfer Requirements | |
Schedule 5.14 | Operated Wells, Non-Operated Wells and Payout Balances | |
Schedule 5.15 | Outstanding Capital Commitments | |
Schedule 5.16 | Imbalances | |
Schedule 7.6 | Operation of Business | |
Schedule 11.3 | Interests Held in Suspense | |
Schedule 12.6 | Bonds |
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et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251et seq.; the Clean Air Act, 42 U.S.C. § 7401et seq. the Hazardous Materials Transportation Act, 49 U.S.C. § 1471et seq.; the Toxic Substances Control Act, 15 U.S.C. §§ 2601 through 2629; the Oil Pollution Act, 33 U.S.C. § 2701et seq.; the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. § 11001et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 300f through 300j; the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. § 136 et seq.; the Occupational Safety and Health Act, 29 U.S.C. § 651 et seq.; the Atomic Energy Act, 42 U.S.C. § 2011 et seq.; and all applicable related Law, whether local, state, territorial, or national, of any Governmental Body having jurisdiction over the property in question addressing pollution or protection of human health, safety, natural resources or the environment and all regulations implementing the foregoing.
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Section 3.4(d)(iii);
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1. | defects based solely on (i) lack of information in the Seller’s files, or (ii) references to a document(s) if such document(s) is not in Seller’s files; | ||
2. | defects arising out of lack of corporate or other entity authorization, unless Purchaser provides affirmative evidence that the action was not authorized and results in a third-party’s actual and superior claim of title to the relevant Property; | ||
3. | defects based on failure to record Leases issued by any Governmental Body, or any assignments of record title or operating rights in such Leases, in the real property, conveyance or other records of the county in which such Property is located; | ||
4. | defects based on a gap in Seller’s chain of title in the county records as to fee Leases, unless such gap is affirmatively shown to exist in such records by an abstract of title, title opinion or landman’s title chain, which documents shall be included in a Title Defect Notice; and | ||
5. | defects that have been cured by applicable Laws of limitations or prescription. |
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If to Purchaser: | crow creek energy II l.l.c. | |||
2100 S. Utica, Suite 200 | ||||
Tulsa, OK 74114 | ||||
Attn: Maurice Storm | ||||
Telephone: (918) 745-1706 | ||||
Telecopy: (918) 745-1701 | ||||
With a copy to: | Conner & Winters | |||
4000 One Williams Center | ||||
Tulsa, OK 74172-0148 | ||||
Attn: Lawrence A. Hall, Esq. | ||||
Telephone: (918) 586-8585 | ||||
Telecopy: (918) 586-8685 | ||||
If to Seller: | Encore Operating, L.P. | |||
777 Main Street, Suite 1400 | ||||
Fort Worth, Texas 76102 | ||||
Attn: Kevin Treadway | ||||
Vice President Land | ||||
Telephone: (817) 877-9955 | ||||
Telecopy: (817) 877-1655 |
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/s/ Maurice Storm | ||
By: Maurice Storm | ||
Title: President and CEO | ||
SELLER: | ||
ENCORE OPERATING, L.P. | ||
By: EAP Operating Inc., sole general partner | ||
/s/ Kevin Treadway | ||
Title: Vice President Land |
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