(6) Mortgages that secure only Debt of a Restricted Subsidiary owed to us or to
another Restricted Subsidiary;
(7) Mortgages in favor of the United States or any state or governmental instrumentality thereof
securing payments pursuant to any contract or statute or to secure any indebtedness incurred for the purpose of financing all or any part of the purchase price or cost of constructing or improving the property subject to the Mortgages; and
(8) any extension, renewal or replacement, in whole or in part, of any of the Mortgages referred to in the foregoing clauses
(1) through (7), inclusive, or of any Debt secured by those Mortgages.
Notwithstanding the foregoing, we or a Restricted Subsidiary may issue,
assume or guarantee Debt secured by a Mortgage on any Mineral Interest or on a Restricted Subsidiarys stock or Debt if such Debt, when added to the sum of all other Debt that would otherwise be restricted by the foregoing (but not including
Debt permitted under items (1) through (8) above), does not at any time exceed ten percent of the sum of our Consolidated Net Tangible Assets.
The following transactions shall not be deemed to create Debt secured by a Mortgage:
(1) the sale or other transfer of oil, gas, or other minerals in place for a period of time until, or in an amount such that, the
transferee will realize therefrom a specified amount of money, however determined, or a specified amount of oil, gas, or other minerals, or the sale or other transfer of any other interest in property of the character commonly referred to as an oil,
gas, or other mineral payment or a production payment, and including, in any case, overriding royalty interests, net profit interests, reversionary interests and carried interests and other similar burdens on production; and
(2) the sale or other transfer by us or any of our Restricted Subsidiaries of properties to a partnership, joint venture or other
entity whereby we or the Restricted Subsidiary would retain partial ownership of the properties.
Certain Definitions
The indenture contains definitions of certain terms used in the indenture, including the following:
Consolidated Net Tangible Assets means the total amount of all assets included in the consolidated balance sheet of us and our Restricted
Subsidiaries, prepared in accordance with generally accepted accounting principles (and as of a date not more than 90 days prior to the date as of which Consolidated Net Tangible Assets are to be determined), less the sum of:
(1) all current liabilities;
(2) all depreciation, depletion, valuation and other reserves;
(3) all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangibles;
(4) investments in and advances to subsidiaries that are not Restricted Subsidiaries; and
(5) minority interests in the equity of Restricted Subsidiaries.
Debt means notes, bonds, debentures or other similar evidences of indebtedness for money borrowed.
Hydrocarbons means oil, gas and other liquid or gaseous hydrocarbons.
Mineral Interests means our leasehold and other interests or those of a Restricted Subsidiary in or under oil, gas or other Hydrocarbon fee
interests, overriding royalty and royalty interests and any other interest in
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