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Full title: Order Approving Procedures for the Interim Compensation and Reimbursement of Expenses of Professionals (Related Doc # 92) Signed on 4/13/2021. (TylerLaws) (Entered: 04/13/2021)

Document posted on Apr 12, 2021 in the bankruptcy, 4 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

No later than the fifteenth (15th) day of each calendar month following the month for which compensation and reimbursement is sought (the “Statement Due Date”), each Professional (other than those subject to separate Court order) retained in these Chapter 11 Cases pursuant to sections 327 and 1103 of the Bankruptcy Code seeking the interim payment of fees and reimbursement of expenses may submit an itemized monthly fee and expense statement (the “Monthly Fee Statement”) in compliance with the provisions of subparagraph (b), below, setting forth the fees and expenses for which payment is sought for the preceding month, with supporting detail.In the event that a Fee Party objects to a Monthly Fee Statement submitted by a Professional, the objecting Fee Party shall, on or before the Objection Deadline, serve its objection (a “Fee Statement Objection”) in writing to the affected Professional and other Fee Parties.Pending resolution of such Fee Statement Objection, the Debtors shall promptly pay to the Professional, as to fees, the amount requested in the particular Monthly Fee Statement less the greater of: (i) the amount in dispute; or (ii) the twenty percent (20%) holdback provided in subparagraph (c)(i) above and, as to expenses, the amount requested less the amount in dispute.Payments authorized pursuant to the Compensation Procedures approved herein may be made by the Debtors only to the extent they have sufficient unencumbered cash budgeted for Professional fees and expenses pursuant to the Interim Cash Collateral Order [ECF # 41], any Final Cash Collateral Order entered by the Court, or any other applicable orders of this Court.A Professional shall not seek payment in a Fee Application for any amounts that such Professional previously sought in a Monthly Fee Statement or prior Fee Application and which amounts such Professional voluntarily waived or reduced to resolve formal or informal objections on a final basis or were disallowed by order of the Court.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION ENTERED 04/13/2021 In re: § § Case No. 21-30710 CASTEX ENERGY 2005 HOLDCO, § LLC, et al., § Chapter 11 § Debtors. § (Jointly Administered) ORDER APPROVING PROCEDURES FOR THE INTERIM COMPENSATION AND REIMBURSEMENT OF EXPENSES OF PROFESSIONALS (Relates to ECF # 92) The Court considered the Motion for Administrative Order Under 11 U.S.C. §§ 105(a) and 331 Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals (the “Motion”)1, filed by Castex Energy 2005 Holdco, LLC, et al., the above-captioned debtors and debtors in possession (the “Debtors”). The Court having reviewed the Motion and any objections thereto; and it appearing that the Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334; that this is a core proceeding pursuant to 28 U.S.C. § 157(b); that notice of the Motion was sufficient; and having determined the proposed Compensation Procedures are consistent with the United States Trustee Guidelines (28 C.F.R. Part 58, Appendix); and it appearing that the relief requested is in the best interests of the Debtors, their estates, creditors, and other parties in interest; and that good cause has been shown therefore, finds that the Motion should be GRANTED. It is therefore hereby ORDERED that: 1. The Debtors are authorized to pay Professionals on an interim basis for fees and expenses incurred during the Chapter 11 Cases according to the following Compensation Procedures: 1 Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Motion.

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a. No later than the fifteenth (15th) day of each calendar month following the month for which compensation and reimbursement is sought (the “Statement Due Date”), each Professional (other than those subject to separate Court order) retained in these Chapter 11 Cases pursuant to sections 327 and 1103 of the Bankruptcy Code seeking the interim payment of fees and reimbursement of expenses may submit an itemized monthly fee and expense statement (the “Monthly Fee Statement”) in compliance with the provisions of subparagraph (b), below, setting forth the fees and expenses for which payment is sought for the preceding month, with supporting detail. The Professionals shall serve a copy of such Monthly Fee Statement on the following parties (collectively, the “Fee Parties”): (i) the Debtors’ Chief Restructuring Officer, Attn: Douglas J. Brickley (dbrickley@theclarogroup.com); (ii) counsel for the Debtors, Attn: Matthew S. Okin (mokin@okinadams.com), David L. Curry, Jr. (dcurry@okinadams.com), and Ryan A. O’Connor (roconnor@okinadams.com); the Office of the United States Trustee for the Southern District of Texas, Attn: Ha Nguyen (ha.nguyen@usdoj.gov); (ii) counsel to Capital One, NA, as Prepetition Agent under the Prepetition Credit Agreement, Attn: Matthew Warren, Esq. (mwarren@kslaw.com); and (iii) counsel to the Committee, Attn: Paul Douglas Stewart (dstewart@stewartrobbins.com) and Tom A. Howley (tom@howley-law.com). The Monthly Fee Statements will not be filed with Court. b. Each Monthly Fee Statement shall include, as an exhibit, time records that itemize services. Monthly Fee Statements must be actually received by the Fee Parties on or before the Statement Due Date. Any Monthly Fee Statement received after the Statement Due Date shall be deemed served on the Statement Due Date the following month. There shall be no penalty for failing to serve a Monthly Fee Statement. c. The Fee Parties shall have ten (10) days from actual receipt to review each Monthly Fee Statement. Any objections shall be served on the affected Professional and all other Fee Parties no later than ten (10) days after receipt of a Monthly Fee Statement (the “Objection Deadline”). After such review, and except as provided in subparagraph (d) below, the Debtors shall pay in the ordinary course of business (typically, within ten (10) days from the Objection Deadline): i. eighty percent (80%) of the fees requested by a Professional; and ii. one hundred percent (100%) of the expenses requested by a Professional. d. In the event that a Fee Party objects to a Monthly Fee Statement submitted by a Professional, the objecting Fee Party shall, on or before the Objection Deadline, serve its objection (a “Fee Statement Objection”) in writing to the affected Professional and other Fee Parties. For the avoidance of doubt, the Fee Statement Objection shall not be filed on the docket in the Chapter 11

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Cases. The Fee Statement Objection must identify with specificity the objectionable fees or expenses, including the amount of such fee or expenses, and the basis for such Fee Statement Objection. Pending resolution of such Fee Statement Objection, the Debtors shall promptly pay to the Professional, as to fees, the amount requested in the particular Monthly Fee Statement less the greater of: (i) the amount in dispute; or (ii) the twenty percent (20%) holdback provided in subparagraph (c)(i) above and, as to expenses, the amount requested less the amount in dispute. The Professional and the objecting Fee Party shall endeavor to amicably resolve any objection within five (5) days after the Objection Deadline. If a resolution cannot be reached in that period, the Professional may request that the Court resolve the dispute at the next scheduled fee application hearing. The pendency of a Fee Statement Objection to payment of compensation or reimbursement of expenses shall not disqualify a Professional from the future payment of compensation or reimbursement of expenses pursuant to these Compensation Procedures. The failure of any Fee Party (or other interested party with standing to object) to object to the payment of any Monthly Fee Statement within the Objection Deadline period shall not be deemed to constitute a waiver of that party’s right to object to any interim or final fee application filed by any Professional. All fees and expenses paid to Professionals in accordance with the Compensation Procedures are subject to disgorgement until final allowance by this Court. e. The initial Monthly Fee Statement shall be submitted and served in accordance with this paragraph on or before April 15, 2021, and shall cover the period from the Petition Date through March 31, 2021.2 Thereafter, each Monthly Fee Statement shall be submitted and served in accordance with the Compensation Procedures set forth above. 2. Payments authorized pursuant to the Compensation Procedures approved herein may be made by the Debtors only to the extent they have sufficient unencumbered cash budgeted for Professional fees and expenses pursuant to the Interim Cash Collateral Order [ECF # 41], any Final Cash Collateral Order entered by the Court, or any other applicable orders of this Court. 3. The submission of the detailed time entries to the Fee Parties and the contents thereof shall remain confidential and shall not constitute a waiver of the attorney-client privilege or privilege as to the attorney work product. All rights to review the fees and expenses of the 2 In the event that the Court has not ruled on this Motion by the date that the initial Monthly Fee Statement is due, Professionals seeking payment on an interim basis for fees and expenses incurred during this initial period shall provisionally follow the procedures outlined herein. The Debtors, however, will not make any payment to Professionals until the Court enters an order approving the Compensation Procedures.

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Professionals set forth in interim or final fee applications (a “Fee Application”) to be filed in approximately four (4) month intervals are reserved, and it is not necessary for the Fee Parties (or other interested party with standing to object) to file objections to the Monthly Fee Statements to reserve those rights. 4. A Professional shall not seek payment in a Fee Application for any amounts that such Professional previously sought in a Monthly Fee Statement or prior Fee Application and which amounts such Professional voluntarily waived or reduced to resolve formal or informal objections on a final basis or were disallowed by order of the Court. 5. Each member of the Committee is permitted to submit statements of expenses and supporting vouchers to counsel for the Committee who will collect and submit such requests for reimbursement in accordance with the foregoing procedure for monthly and interim compensation and reimbursement of Professionals. Such Committee member expenses may be submitted, for convenience, in the applicable Monthly Fee Statements for counsel for the Committee, and shall be reimbursed directly to the applicable Committee member that incurred any expense. 6. The Debtors are authorized to take all actions necessary to effectuate the relief granted in this Order in accordance with the Motion. 7. This Court retains exclusive jurisdiction with respect to all matters arising from or related to the implementation, interpretation, and enforcement of this Order. Signed: ____________________, 2021. Signed: AOpcrtiol b1e3r, 1270,2 21018 ________ ___________________________________ ____________________________________ THE HONORABLE MARVIN ISGUR Marvin Isgur UNITED STATES BANKRUPTCY JUDGE United States Bankruptcy Judge

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