Common use of Allocation of Residue Gas Clause in Contracts

Allocation of Residue Gas. (a) Thermal Content of Residue Gas available for redelivery at the Delivery Points shall be allocated to each Plant Receipt Point on a pro rata basis, based on a fraction, the numerator of which is the Thermal Content of the Gas received at such Plant Receipt Point during the relevant Month (less the Thermal Content of the Bypass Gas, Plant Products, Fuel and Lost and Unaccounted For Gas allocated to such Plant Receipt Point in accordance with this Agreement), and the denominator of which is the Thermal Content of all Gas delivered at all Plant Receipt Points during such Month (less the Thermal Content of all Bypass Gas, Plant Products, Fuel and Lost and Unaccounted For Gas in respect of such Month). (b) [Thermal Content of Residue Gas that has been allocated to a Receipt Point in accordance with paragraph (a) above shall be allocated to each Gathering Receipt Point on a pro rata basis, based on a fraction, the numerator of which is the Thermal Content of Gas measured at such Gathering Receipt Point during the relevant Month (less the Thermal Content of fuel and lost and unaccounted for Gas allocated to such Gathering Receipt Point in accordance with the Gathering Agreement in respect of such Month), and the denominator of which is the total Thermal Content of Gas measured at all Gathering Receipt Points during such Month (less the Thermal Content of all fuel and lost and unaccounted for Gas allocated to all Gathering Receipt Points in accordance with the Gathering Agreement).]

Allocation of Residue Gas. (a) Thermal Content Gatherer will determine the quantity of Residue Gas available for redelivery attributable to Shipper’s Gas delivered hereunder at the Delivery Points shall be allocated to each Plant Receipt Point on a pro rata basisfor each Month and any NGLs attributable to Shipper’s Gas delivered hereunder at each Receipt Point for each Month using the following definitions and procedures. From time to time upon mutual agreement among the Parties, based on Gatherer may make changes and adjustments in its allocation methods to improve accuracy or efficiency. (b) The quantity of Residue Gas attributable to Shipper’s Gas delivered hereunder at each Receipt Point in each Month will be determined by multiplying the “Actual Total Residue Gas” for such Month by a fraction, the numerator of which is shall be the Thermal Content “theoretical MMBTUs of the Residue Gas received at remaining from Shipper’s Gas” for such Plant Receipt Point during the relevant Month (less the Thermal Content of the Bypass Gas, Plant Products, Fuel and Lost and Unaccounted For Gas allocated to such Plant Receipt Point in accordance with this Agreement)Month, and the denominator of which is shall be the Thermal Content “total of the theoretical MMBTUs of Residue Gas remaining from all Gas delivered to Gatherer” for such Month. For purposes of this Section 6.1(b), “Actual Total Residue Gas” means, for any Month, the actual quantity of Residue Gas, in MMBTUs, measured at all the tailgate of the Processing Plant during such Month. The “theoretical MMBTUs of Residue Gas remaining from Shipper’s Gas” means, for any Month and any Receipt Points Point, the quantity, in MMBTUs, of methane and heavier hydrocarbons contained in Shipper’s Gas delivered hereunder at such Receipt Point during such Month (less the Thermal Content sum of all Bypass Gas(i) the quantity, Plant Productsin MMBTUs, Fuel of methane and Lost and Unaccounted For heavier hydrocarbons contained in Shipper’s Regional Gas Lift Gas redelivered at the Gas Lift Delivery Point at the same CDP in respect of such Month). , (bii) [Thermal Content the quantity, in MMBTUs, of Residue methane and heavier hydrocarbons contained in Gas that has been redelivered in such Month to Shipper at the Upstream Delivery Points and allocated to a such Receipt Point in accordance with paragraph Section 6.1(c), and (aiii) above shall be allocated the quantity, in MMBTUs, of all NGL components attributable to each Gathering Receipt Point on a pro rata basis, based on a fraction, the numerator of which is the Thermal Content of Shipper’s Gas measured delivered at such Gathering Receipt Point during the relevant Month (less the Thermal Content of fuel and lost and unaccounted for Gas allocated to such Gathering Receipt Point in accordance with such Month (as determined under Section 6.2(a)). The “total of the Gathering Agreement theoretical MMBTUs of Residue Gas remaining from all Gas delivered to Gatherer” means, for any Month, the sum of the quantity, in respect MMBTUs, of such Month), methane and the denominator of which is the total Thermal Content of heavier hydrocarbons contained in all Gas measured at all Gathering Receipt Points delivered to Gatherer during such Month from all sources at all receipt points (including the Receipt Points) connected to the Gathering System, less the Thermal Content sum of (1) the quantity, in MMBTUs, of methane and heavier hydrocarbons contained in all Shipper’s Regional Gas Lift Gas redelivered at a Gas Lift Delivery Point in such Month, (2) the quantity, in MMBTUs, of methane and heavier hydrocarbons contained in Gas redelivered in such Month to any shipper (including the Shipper) at any delivery point upstream of the Processing Plant (including any Upstream Delivery Point) and (3) the aggregate quantity, in MMBTUs, of all fuel and lost and unaccounted for Gas allocated NGL components actually recovered at the Processing Plant attributable to all Gathering such Gas during such Month. For all purposes under this Agreement, the MMBTU equivalent of each Gallon of applicable NGL component shall be determined by multiplying each such Gallon by the respective MMBTU equivalent factors set forth in GPA Publication 2145, as amended from time to time; provided that for Gallons of NGLs which are hexanes and heavier, the applicable GPA Publication stating the percentage and factor for hexanes, heptane and octane shall be used. Gatherer may apply the allocation principles of this Section 6.1 repeatedly to subareas or separately measured systems in order to improve accuracy. For example, Gatherer may, if applicable, allocate plant NGL and Residue Gas volumes to field gathering System Compressor Stations, then use the same principles to allocate those results further to Receipt Points in accordance with behind the Gathering Agreement)Compressor Stations.]