Common use of Blending Rights Clause in Contracts

Blending Rights. (a) Notwithstanding anything herein to the contrary, Shipper shall be permitted to blend Gas, subject to Section 3.6(d) below, by (i) changing the Receipt Point for any Gas to be Tendered by Shipper to Gatherer hereunder to another Receipt Point, (ii) taking Gas from the Gathering System at an Intermediate Delivery Point selected by Shipper and re-Tendering such Gas at another Receipt Point selected by Shipper or (iii) Tendering volumes of Third Party Gas (including coal bed methane Gas or other Gas) at (or near) any Tap. All Gas Tendered by Shipper to the Gathering System for blending shall be entitled to Priority One Service. In the event that Shipper takes volumes of Gas at an Intermediate Delivery Point and re-Tenders such volumes to the Gathering System at a different Receipt Point in the exercise of its blending rights hereunder, only one fee for such volumes will be due and owing (calculated based upon the volumes of such Gas Tendered by Shipper at the original Receipt Point(s)). (b) In the event that Shipper Tenders volumes of coal bed methane or other Gas at (or near) any Tap under Section 3.6(a) (“Blending Gas”) and Gatherer is not required to perform any additional services with respect to such Gas, no fee will be due and owing by Shipper pursuant to Section 5.1 or otherwise for such Blending Gas. For the avoidance of doubt, the Fee will apply to any Blending Gas for which Gatherer performs Gathering Services. (c) Any pipeline or gathering system that may be necessary in order for Shipper to Tender to the Gathering System Shipper owned or Controlled Gas solely for blending purposes will be constructed by Shipper or by a Third Party on behalf of Shipper at Shipper’s cost and expense and shall not constitute a portion of the Gathering System; provided that the Parties may separately agree, by an amendment to this Agreement, that Gatherer will build facilities to connect the Gathering System to xxxxx to provide Shipper’s owned or Controlled Gas for blending purposes for a fee mutually agreeable by the Parties.

Blending Rights. (a) Notwithstanding anything herein to the contrary, Shipper shall be permitted to blend Gas, subject to Section 3.6(d) below, by (i) changing the Receipt Point for any Gas to be Tendered by Shipper to Gatherer hereunder to another Receipt PointPoint on the same Individual System, (ii) taking Gas from the Gathering an Individual System at an Intermediate Delivery Point selected by Shipper on the same Individual System and re-Tendering such Gas at another Receipt Point selected by Shipper on the same Individual System or (iii) Tendering volumes of Third Party Gas (including other Gas, including, by way of example and not of limitation, coal bed methane Gas or other Gas) Third Party Gas at (or near) any Tap. All Gas Tendered by Shipper to the Gathering an Individual System for blending shall be entitled to Priority One Service. In the event that Shipper takes volumes of Gas at an Intermediate Delivery Point and re-Tenders such volumes to the Gathering System at a different Receipt Point on the same Individual System in the exercise of its blending rights hereunder, only one fee for such volumes will be due and owing (calculated based upon the volumes of such Gas Tendered by Shipper at the original Receipt Point(s)). In no event shall Gatherer be obligated to install any new Intermediate Delivery Points on an Individual System, or otherwise receive Gas under this Section 3.6(a), if Gatherer determines, in its sole good faith discretion, to do so could adversely affect Gatherer’s operations and/or its ability to comply with its contractual obligations on such Individual System. (b) In the event that Shipper Tenders volumes of coal bed methane or other Gas at (or near) any Tap under Section 3.6(a) for the purpose of blending (“Blending Gas”) that was produced from or attributable to Shipper or any Affiliate of Shipper’s working interest in any well and Gatherer is not required to perform any additional services with respect to such Gas, no fee will be due and owing by Shipper pursuant to Section 5.1 or otherwise for such Blending Gas. For the avoidance of doubt, (i) the Fee will apply to any Blending Gas for which Gatherer performs Gathering Services, and (ii) Shipper shall be obligated to pay the Fee with respect to any Blending Gas that was not produced from Shipper or any of its Affiliates working interest in any well or from any well in which neither Shipper nor any of its Affiliates possesses a working interest. Notwithstanding anything to the contrary in the foregoing, Shipper shall not Tender volumes of Blending Gas, and Gatherer shall have no obligation to accept any Blending Gas, if Gather’s acceptance of such Blending Gas would result in Gatherer being in breach of its obligations with respect to applicable Gas specifications as set forth in any other gathering agreements with other shippers or could result in Gatherer being subject to additional costs, penalties, fee reductions (including penalties and fee reductions hereunder) or any other liability resulting therefrom. (c) Any pipeline or gathering system that may be necessary in order for Shipper to Tender Blending Gas to the Gathering an Individual System Shipper owned or Controlled Gas solely for blending purposes will be constructed by Shipper or by a Third Party on behalf of Shipper at Shipper’s cost and expense and shall not constitute a portion of the Gathering Individual System; provided that the Parties may separately agree, by an amendment to this Agreement, that Gatherer will build facilities to connect the Gathering an Individual System to xxxxx to provide Shipper’s owned or Controlled Gas for blending purposes for a fee mutually agreeable by the Parties. (d) For the avoidance of doubt, in the event that any blended Gas stream among Shipper and other shippers on any portion of an Individual System that services Dry Gas does not meet the then current pipeline specifications of the Downstream Pipeline due to the quality of Shipper’s Gas, Gatherer and Shipper shall use commercially reasonable efforts to find a solution using existing infrastructure to blend any Gas, including residue gas from another system; provided that Gatherer will not be required to construct any new infrastructure, reduce existing throughput capacity or incur any additional costs (unless Shipper reimburses Gatherer for such costs) to satisfy this requirement. Shipper acknowledges that any such new infrastructure or capacity reduction would comprise a new service not originally contemplated under this Agreement, and would require a mutually agreed-upon solution between the Parties. (e) For the avoidance of doubt, Gatherer shall not be required to comply with any of the obligations contained in this Section 3.6 with respect to Blending Gas to the extent that compliance with such obligations would result in Gatherer being in breach of its obligations with respect to applicable Gas specifications as set forth in the Noble Gas Gathering Agreement (but without regard to any amendments made to the Noble Gas Gathering Agreement after the Execution Date).

Blending Rights. (a) Notwithstanding anything herein to the contrary, Shipper shall be permitted to blend Gas, subject to Section 3.6(d) below, by (i) changing the Receipt Point for any Gas to be Tendered by Shipper to Gatherer hereunder to another Receipt Point, (ii) taking Gas from the Gathering System at an Intermediate Delivery Point selected by Shipper and re-Tendering such Gas at another Receipt Point selected by Shipper or (iii) Tendering volumes of Third Party Gas (including coal bed methane Gas or other Gas) at (or near) any Tap. All Gas Tendered by Shipper to the Gathering System for blending shall be entitled to Priority One Service. In the event that Shipper takes volumes of Gas at an Intermediate Delivery Point and re-Tenders such volumes to the Gathering System at a different Receipt Point in the exercise of its blending rights hereunder, only one fee for such volumes will be due and owing (calculated based upon the volumes of such Gas Tendered by Shipper at the original Receipt Point(s)). (b) In the event that Shipper Tenders volumes of coal bed methane or other Gas at (or near) any Tap under Section 3.6(a) (“Blending Gas”) and Gatherer is not required to perform any additional services with respect to such Gas, no fee will be due and owing by Shipper pursuant to Section 5.1 or otherwise for such Blending Gas. For the avoidance of doubt, the Fee will apply to any Blending Gas for which Gatherer performs Gathering Services. (c) Any pipeline or gathering system that may be necessary in order for Shipper to Tender to the Gathering System Shipper owned or Controlled Gas solely for blending purposes will be constructed by Shipper or by a Third Party on behalf of Shipper at Shipper’s cost and expense and shall not constitute a portion of the Gathering System; provided that the Parties may separately agree, by an amendment to this Agreement, that Gatherer will build facilities to connect the Gathering System to xxxxx to provide Shipper’s owned or Controlled Gas for blending purposes for a fee mutually agreeable by the Parties. (d) For the avoidance of doubt, in the event that any blended Gas stream among Shipper and other shippers on any portion of the Gathering System that services Dry Gas does not meet the then current pipeline specifications of the Downstream Pipeline due to the quality of Shipper’s Gas, Gatherer and Shipper shall use commercially reasonable efforts to find a solution using existing infrastructure to blend any Gas, including residue gas from another system; provided that Gatherer will not be required to construct any new infrastructure or reduce existing throughput capacity to satisfy this requirement. Shipper acknowledges that any such new infrastructure or capacity reduction would comprise a new service not originally contemplated under this Agreement, and would require a mutually agreed-upon solution between the Parties.