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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
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