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 Xxxxx to gas transmission 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.
Appears in 3 contracts
Samples: Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G), Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G), Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G)
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 Xxxxx Wells to gas transmission xxxxsmission 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.
Appears in 2 contracts
Samples: Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G), Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G)
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 Xxxxx Wells to gas transmission 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.
Appears in 1 contract
Samples: Limited Partnership Agreement (Geodyne Energy Income LTD Partnership Iii-G)