Common use of Compression Clause in Contracts

Compression. The Gathering System Plan will describe the centralized compression and dehydration facilities that will be required to compress and dehydrate Dedicated Gas upstream of the Delivery Points or any System High Pressure Line in order for the Gathering System to be operated at a pressure not to exceed 500 psig and water vapor content in accordance with Section 10.1 or, subject to the provisions of this Section 3.5, such lower pressure as may be specified by Producer from time to time and to permit Dedicated Gas to enter such Downstream Pipelines or High Pressure gathering pipelines (“System Compressor Stations”). Gatherer shall install and shall operate and maintain each System Compressor Station. For the avoidance of doubt, Gatherer shall have the right at any time to add additional compressor stations to the Gathering System, and to add compression capacity at any System Compressor Station in addition to the capacity that is reflected in the Gathering System Plan, as it deems necessary or appropriate to provide the Services and such services as it is providing in respect of Third Party Gas. Producer must pay the Compression Fee with respect to all its Gas that is compressed and dehydrated using the System Compressor Stations or any such additional compressor stations or using such additional capacity. Notwithstanding the foregoing, Producer shall not be obligated to pay the Compression Fee for more than one stage of compression unless Producer (i) requests that the operating pressure of the Gathering System or a relevant System Segment be reduced to below 500 psig and (ii) subsequently approves in writing any additional stages of compression that Gatherer determines would be required to achieve the lower pressure requested by Producer. Until such additional stages of compression have been approved by Producer in writing and have been installed and made operational, Gatherer shall not be required to operate the Gathering System at pressure below 500 psig. Prior to installation of any System Compressor Station, Producer shall be solely responsible for dehydration facilities in accordance with Section 10.1.

Appears in 3 contracts

Samples: Gas Gathering and Compression Agreement, Gas Gathering and Compression Agreement (Rice Energy Inc.), Gas Gathering and Compression Agreement (Rice Midstream Partners LP)

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Compression. The Gathering System Plan (a) Producer shall have the right, upon written notice to Gatherer, to request Gatherer to install compression facilities to provide reduced operating pressure at a CRP, but in no event below 100 psig (unless otherwise agreed among the Parties). Producer’s written notice must include the pressure requirements and a projected volume profile estimated for Producer’s Gas at the CRP. Upon receipt of such written notice from Producer, Gatherer will describe design and proceed without unreasonable delay to install compression facilities; provided, however, that if Gatherer believes, in good faith, that the centralized compression projections and dehydration facilities that will be required pressure requirements are not reasonably accurate, the parties shall meet and attempt to compress resolve any differences of opinion before Gatherer is obligated to install the same. In the event the Parties are unable to resolve any differences of opinion within sixty (60) days after Gatherer’s receipt of Producer’s notice, Gatherer shall proceed with the design and dehydrate Dedicated Gas upstream installation of the Delivery Points or any System High Pressure Line in order for the Gathering System to be operated at a compression facilities consistent with Gatherer’s good-faith projections and pressure not to exceed 500 psig and water vapor content in accordance with Section 10.1 or, subject to the provisions of this Section 3.5, such lower pressure as may be specified by Producer from time to time and to permit Dedicated Gas to enter such Downstream Pipelines or High Pressure gathering pipelines (“System Compressor Stations”)estimates. Gatherer shall install and shall operate and maintain each System Compressor Station. For the avoidance of doubt, Gatherer shall have the right at any time to add additional compressor stations to required compression installed and operable for service within 18 months (547 days) of a request in writing by Producer (the Gathering System, and to add compression capacity at any System Compressor Station in addition to “Compression In-Service Date”). In the capacity that is reflected in the Gathering System Plan, as it deems necessary or appropriate to provide the Services and such services as it is providing in respect of Third Party Gas. Producer must pay event Gatherer does not meet the Compression Fee with respect In-Service Date to all its Gas that is compressed and dehydrated using the System Compressor Stations or any such additional compressor stations or using such additional capacity. Notwithstanding the foregoinginstall required compression, Producer shall not be obligated to pay the Compression Fee for more than one stage of compression unless Producer (i) requests that the operating pressure of the Gathering System or a relevant System Segment be reduced to below 500 psig and (ii) subsequently approves in writing any additional stages of compression that Gatherer determines would be required to achieve the lower pressure requested by Producer. Until such additional stages of compression have been approved by Producer in writing and have been installed and made operational, Gatherer shall not be required to operate the Gathering System at pressure below 500 psig. Prior to installation of any System Compressor Station, then Producer shall be solely entitled to the applicable reduction specified in Exhibit G hereto of the applicable gathering and compression fees set out in Article VI, from and after Producer’s written notification delivered to Gatherer of such failure for the same number of days that the deadline is exceeded by Gatherer following written notification of such failure, provided that the foregoing reduction will not apply to the extent that any delay is caused by Excusable Delay. Gatherer’s design shall include consideration for optimizing fuel usage, future anticipated pressure requirements of Producer and anticipated third party volumes. Gatherer and Producer will assist each other as reasonably practical to define operating parameters, including the initial total horsepower requirements of the compression facilities, to maximize Producer’s operating options and to minimize Gatherer’s requirements to add or replace compressor units as Gas volumes change and pressure requirements are refined as Producer gains production experience. If Producer does not request in writing that Gatherer provide compression, Producer will be responsible for dehydration facilities providing compression (at its sole cost) that is required to deliver Gas in accordance with Section 10.1this Agreement.

Appears in 2 contracts

Samples: Gas Gathering Agreement, Gas Gathering Agreement (Vantage Energy Inc.)

Compression. The Gathering System Plan will describe the centralized compression and dehydration facilities that will be required to compress and dehydrate Dedicated Gas upstream of the Delivery Points or any System High Pressure Line in order for (“System Compressor Stations”). Gatherer shall use commercially reasonable efforts to operate the Gathering System to be operated at a pressure not to exceed 500 psig desired by the Producer but in accordance with the pressure differentials set forth in this Section 3.5 and water vapor content in accordance with Section 10.1 or, subject to the provisions of this Section 3.5, such lower pressure as may be specified by Producer from time to time and to permit Dedicated Gas to enter such Downstream Pipelines or High Pressure gathering pipelines (“as defined in the Gathering System Compressor Stations”)Plan. Gatherer shall install and shall operate install, operate, and maintain each System Compressor Station. For the avoidance of doubt, Gatherer is not obligated, but shall have the right at any time time, to add additional compressor stations to the Gathering System, and to add compression capacity at any System Compressor Station in addition to the capacity that is reflected in the Gathering System Plan, as it deems necessary or appropriate to provide the Services and such services as it is providing in respect of Third Party Gas. Producer must pay the Compression Fee with respect to all its Gas that is compressed and dehydrated using the System Compressor Stations or any such Stations, additional compressor stations stations, or using such additional capacity. Notwithstanding Each stage of compression will be designed by Gatherer to provide at least [***] psig and a maximum of [***] psig of pressure differential from the foregoing, suction to the discharge side of each compression stage. The Gatherer shall use commercially reasonable efforts to maintain a pressure differential of [***] psig across each stage of compression. Producer shall not be obligated to pay the Compression Fee for more than one stage of compression unless Producer (i) Producer requests that the operating pressure of the Gathering System or a relevant System Segment be reduced to below 500 psig and the maximum differential mechanically possible through a single compression stage as determined by Gatherer and/or (ii) subsequently approves Gatherer provides notice to Producer, in writing any writing, that one or more additional stages of compression that Gatherer determines would will be required added to achieve the lower pressure requested by Producer. Until such additional stages of compression have been approved by Producer in writing and have been installed and made operational, Gatherer shall not be required to operate the Gathering System at to accommodate a third party request with respect to Third Party Gas to reduce the operating pressure to below 500 psiga pressure mechanically possible through a single compression stage as determined by Gatherer. Gatherer will not operate Compressor Stations, or stages of a Compressor Station, if the differential pressure across the applicable stage of a Compressor Station servicing the applicable receipt point is less than [***] psig differential. Prior to installation of any System Compressor Station, Producer shall be solely responsible for dehydration facilities in accordance with Section 10.1.

Appears in 1 contract

Samples: Gathering and Compression Agreement (EQT GP Holdings, LP)

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Compression. The Gathering System Plan will describe the centralized compression and dehydration facilities that will be required to compress and dehydrate Dedicated Gas upstream of the Delivery Points or any System High Pressure Line in order for the Gathering System to be operated at a pressure not to exceed 500 psig and water vapor content in accordance with Section 10.1 or, subject to the provisions of this Section 3.5, such lower pressure as may be specified by Producer from time to time and to permit Dedicated Gas to enter such Downstream Pipelines or High Pressure gathering pipelines (“System Compressor Stations”). Gatherer shall install and shall operate and maintain each System Compressor Station. For the avoidance of doubt, Gatherer shall have the right at any time to add additional compressor stations to the Gathering System, and to add compression capacity at any System Compressor Station in addition to the capacity that is reflected in the Gathering System Plan, as it deems necessary or appropriate to provide the Services and such services as it is providing in respect of Third Party Gas. Producer must pay the Compression Fee with respect to all its Gas that is compressed and dehydrated using the System Compressor Stations or any such additional compressor stations or using such additional capacity. Notwithstanding the foregoing, Producer shall not be obligated to pay the Compression Fee for more than one stage of compression unless Producer (i) requests that the operating pressure of the Gathering System or a relevant System Segment be reduced to below 500 psig and (ii) subsequently approves in writing any additional stages of compression that Gatherer determines would be required to achieve the lower pressure requested by Producer. Until such additional stages of compression have been approved by Producer in writing and have been installed and made operational, Gatherer shall not be required to operate the Gathering System at pressure below 500 psig. Prior to installation of any System Compressor Station, Producer shall be solely responsible for dehydration facilities in accordance with Section 10.1.

Appears in 1 contract

Samples: Gathering and Compression Agreement (Rice Midstream Partners LP)

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