Common use of Compression Fee Clause in Contracts

Compression Fee. For all of Shipper’s Gas received by Gatherer at the Receipt Points that receives compression prior to delivery to a Delivery Point, Shipper will pay Gatherer the applicable compression fee set forth in Exhibit 1.43 (the “Compression Fee”). Compression Fees will be based on a cost per stage (in half-stage increments) per MMBtu. If compression services are not provided on a System, no Compression Fee will be incurred. The Compression Fee per Stage will escalate effective January 1 of each year in proportion to the average percentage change (the “Inflation Factor”) for the twelve (12) Month period ending June 30 of the preceding calendar year, using the column titled “Annual Average”, or its equivalent, in the Consumer Price Index - All Urban Consumers as published by the United States Department of Labor Bureau of Labor Statistics (“CPI Index”). In no event will the adjustment result in a decrease of the Compression Fee. In the event the CPI Index ceases to be published without a designated replacement index, the Anchor Shippers (by Shipper Supermajority Approval) and Gatherer will mutually agree to an alternative price index reasonably similar to the CPI Index. 4.5.1 For Systems with expected pressures at Delivery Points greater than or equal to 900 Psig and less than or equal to 1300 Psig, the stages assumed for each System will be based on the following Design Suction Pressures (“Deemed Compression Stages”): 4.5.2 For Systems with a Design Suction Pressure or an expected Delivery Point pressure that falls outside of Section 4.5.1, the Deemed Compression Stages assumed for each System will be discussed and mutually agreed to by Shipper and Gatherer, but shall generally be based on the expected Compression Ratio for the service provided as follows: CR >= 40.0 4.0 27.0 <= CR < 40.0 3.5 15.0 <= CR < 27.0 3.0 9.0 <= CR < 15.0 2.5 5.0 <= CR < 9.0 2.0 3.3 <= CR < 5.0 1.5