Construction of Gas Gathering Lines Sample Clauses

Construction of Gas Gathering Lines. The Managing Partner may cause the Production Partnership to construct gas gathering lines if, in the opinion of the Managing Partner, it would be economically feasible and otherwise consistent with prudent operating practice to do so. The costs of any such gathering lines will be deemed to be Operating Costs and shall be charged to the accounts of the Partners as such. The Managing Partner may, in its discretion, construct, or cause an Affiliate of the Managing Partner or other person to construct, gathering lines from Production Partnership Wells to gas transmission systems. Xxenever the Managing Partner constructs, or causes an Affiliate of the Managing Partner to construct, a gathering line from a Production Partnership Well to a gas transmission system, the Production Partnership shall pay the Managing Partner or such Affiliate an amount that is not greater than the compensation that an unrelated party could have reasonably charged in an arm's-length transaction for similar services in the area as a transmission fee for the transmission of all gas through the gathering system so constructed, and no other transmission fee shall be paid to the Managing Partner or to any Affiliate.
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Construction of Gas Gathering Lines. The General Partner may cause the Partnership to construct gas gathering lines if, in the opinion of the General Partner, it would be economically feasible and otherwise consistent with prudent operating practice to do so. The costs of any such gathering lines will be deemed to be Operating Costs and shall be charged to the accounts of the General Partner and Unit Holders as such. The General Partner may, in its discretion, construct, or cause an Affiliate of the General Partner or other person to construct, gathering lines from Partnership Wells to gas tranxxxxxion systems. Whenever the General Partner constructs, or causes an Affiliate of the General Partner to construct, a gathering line from a Partnership Well to a gas transmission system, the Partnership shall pay the General Partner or such Affiliate an amount that is not greater than the compensation that an unrelated party could have reasonably charged in an arm's-length transaction for similar services in the area as a transmission fee for the transmission of all gas through the gathering system so constructed, and no other transmission fee shall be paid to the General Partner or to any Affiliate.
Sample 1

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