Additional Gathering System Sample Clauses

Additional Gathering System. The PUD Assignment and each Program Well Assignment shall include an assignment to WSGP of an undivided fifty percent (50%) interest in and to those rights, if any, of PetroQuest as of the effective time of each such assignment under the oil, gas and mineral leases comprising the applicable assigned leasehold interest to use the surface and subsurface of the lands covered thereby to construct a gathering system, subject to (i) the Existing Gas Gathering Agreements as set forth in Schedule 10.4, and (ii) all the terms and conditions contained in each conveyed lease that may apply to or restrict the construction of such gathering system(s). Subject to such limitations, either Party may propose the construction of a gathering system and related equipment on the jointly owned acreage within the AMI by giving the other Party written notice specifying the proposed location and estimated cost of such gathering system, together with such other information as reasonably necessary for a Party to make its election. The Party receiving the notice shall have thirty (30) days after receipt of the notice within which to notify the Party wishing to construct the gathering system and related equipment whether it elects to participate in the cost thereof. In the event PetroQuest elects to participate, PetroQuest shall install and operate the system. If WSGP and PetroQuest both elect to participate in the construction of the proposed gathering system and related equipment, their respective ownership interests therein shall be fifty percent (50%) each, with each Party being responsible only for its proportionate, non-carried share of the costs and expenses of design, construction, installation and operation of such system. Failure to respond within the above described thirty (30) day period shall be deemed an election not to participate in the construction of the proposed gathering system. The proposing Party may proceed with the construction of the proposed gathering system at its own cost and expense following the above described thirty (30) day period if the non-proposing Party has elected or been deemed to have elected not to participate therein, and, in such event, the proposing Party shall own one hundred percent (100%) of the ownership interest in such gathering system.
Sample 1
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Related to Additional Gathering System

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