Application of Gas From Related System Sample Clauses

Application of Gas From Related System. (a) The Parties are also parties to that separate Gathering and Treating Agreement dated September 1, 2009 (the “Prior Agreement”) in which Shipper has separate volume commitments to deliver Gas through Gatherer’s “Magnolia System.” (b) If Shipper has available Preferential Capacity on either the Olympia Gathering System or the Magnolia Gathering System Shipper may at its option deliver Gas from one system to the other system up to the available amount of Preferential Capacity on the other system. The gathering fee for such volumes delivered to the other system pursuant to this Section 9.9 (b) will be the then current fee of the system to which the Gas is dedicated. The fuel charge of the Gas delivered shall be the then current fuel charge of the system ultimately receiving the Gas. The Gas delivered will apply (on a 1:1 MMBtu basis) to Shipper’s Annual Volume Commitment and Total Volume Commitment under the agreement to which the Gas is dedicated. (c) Gatherer’s accommodation herein of Shipper’s delivery of Gas between the systems is expressly contingent that said deliveries do not impede Gatherer’s ability to meet its Pressure Requirements under the Prior Agreement or this Agreement. Should Gatherer’s ability to meet its Pressure Requirements be affected by said deliveries, then Gatherer and Shipper will negotiate in good faith to either add facilities as required to bring the Gas within the applicable Pressure Requirements as Additional Services under the applicable agreement or for Shipper to waive the Pressure Requirements. (d) Solely if Shipper has met its Volume Commitment under this Agreement and not the Prior Agreement, or vice versa, but in no event if the Volume Commitment is not met in either agreement, then: (i) If Shipper has Excess Delivered Volumes under this Agreement in any Contract Year, but has a Volume Shortfall under the Prior Agreement (as the term is used in the Prior Agreement), Shipper may elect to apply the Excess Delivered Volume to the Volume Shortfall under the Prior Agreement. The credit to the Volume Shortfall will be calculated by multiplying the Excess Delivered Volume (in MMBtu’s) by a fraction, the numerator of which is the then-current Gathering Rate under this Agreement and the denominator of which is the then-current Gathering Rate under the Prior Agreement. (ii) If in any Contract Year Shipper has a Volume Shortfall under this Agreement, but has Excess Delivered Volumes (as such term is used in the Prior Agreement) u...
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Related to Application of Gas From Related System

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