Common use of COS Calculation Disputes Clause in Contracts

COS Calculation Disputes. Any disputes between the Parties over the final COS Calculation will be resolved in accordance with the procedures in Exhibit E-2 of the Base Contract. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 1 TO EXHIBIT C-2** Sample Calculation - Eagle Ford Deep BBtu/d ($’000) System Fee $** G&A Fee Tiers $/MMBtu Min Vol. Max Vol. Time Zero EBITDA ** Inflation Factor **% Tier 1 $** ** ** Time Zero Capital Expenditure ** Escalation Factor **% Tier 2 $** ** ** Tier 3 $** ** Target IRR **% Terminal Multiple **x Capital G&A Fee **% 6/30/12 7/31/12 8/31/12 9/30/12 10/31/12 11/30/12 12/31/12 1/31/13 2/28/13 3/31/13 4/30/13 5/31/13 6/30/13 Escalation Factor * * * * * * * * * * * * * * * * * * * * * * * * Gathering Volume - BBtu * * * * * * * * * * * * * * * * * * * * * * * * System fee ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Revenue ($’000) * * * * * * * * * * * * * * * * * * * * * * * * Compression Expense * * * * * * * * * * * * * * * * * * * * * * * * Variable O&M * * * * * * * * * * * * * * * * * * * * * * * * Fixed O&M * * * * * * * * * * * * * * * * * * * * * * * * Taxes * * * * * * * * * * * * * * * * * * * * * * * * G&A Expense * * * * * * * * * * * * * * * * * * * * * * * * EBITDA ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Well Connect Capex * * * * * * * * * * * * * * * * * * * * * * * * Infrastructure Capex * * * * * * * * * * * * * * * * * * * * * * * * Facilities Capex * * * * * * * * * * * * * * * * * * * * * * * * Operations Support and Other * * * * * * * * * * * * * * * * * * * * * * * * Capital G&A Fee * * * * * * * * * * * * * * * * * * * * * * * * Total Capex ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Terminal Value Net Cash Flow ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * NPV ** G&A Expense Calculation Volume - Tier 1 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier 2 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier 3 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Fees - Tier 1 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 2 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 3 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * ** 20 pages omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 2 TO EXHIBIT C-2** Initial Scope and Budget - Eagle Ford Deep Oil System ** Four (4) pages omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). EXHIBIT C-3 COST OF SERVICE CALCULATION METHODOLOGY EAGLE FORD SHALLOW OIL

COS Calculation Disputes. Any disputes between the Parties over the final COS Calculation will be resolved in accordance with the procedures in Exhibit E-2 of the Base Contract. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 1 TO EXHIBIT C-2C-4** Sample Calculation - Eagle Ford Deep BBtuTreating MMcf/d ($’000) System Fee $** G&A Fee Tiers $/MMBtu /Mcf Min Vol. Max Vol. Time Zero EBITDA ** Inflation Factor **% Tier 1 $** ** ** Time Zero Capital Expenditure ** Escalation Factor **% Tier 2 $** ** ** Tier 3 $** ** Target IRR **% Terminal Multiple **x Capital G&A Fee **% 6/30/12 7/31/12 8/31/12 9/30/12 10/31/12 11/30/12 12/31/12 1/31/13 2/28/13 3/31/13 4/30/13 5/31/13 6/30/13 Escalation Factor * * * * * * * * * * * * * * * * * * * * * * * * Gathering Treading Volume - BBtu MMcf * * * * * * * * * * * * * * * * * * * * * * * * System fee Fee ($/MMBtu/Mcf) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Revenue ($’000) * * * * * * * * * * * * * * * * * * * * * * * * Compression Expense * * * * * * * * * * * * * * * * * * * * * * * * Variable O&M * * * * * * * * * * * * * * * * * * * * * * * * Fixed O&M * * * * * * * * * * * * * * * * * * * * * * * * Taxes * * * * * * * * * * * * * * * * * * * * * * * * G&A Expense * * * * * * * * * * * * * * * * * * * * * * * * EBITDA ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Well Connect Capex * * * * * * * * * * * * * * * * * * * * * * * * Infrastructure Capex * * * * * * * * * * * * * * * * * * * * * * * * Facilities Capex * * * * * * * * * * * * * * * * * * * * * * * * Operations Support and Other * * * * * * * * * * * * * * * * * * * * * * * * Capital G&A Fee * * * * * * * * * * * * * * * * * * * * * * * * Total Capex ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Terminal Value Net Cash Flow ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * NPV ** G&A Expense Calculation Volume - Tier -Tier 1 (BBtuMMcf/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier -Tier 2 (BBtuMMcf/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier -Tier 3 (BBtuMMcf/d) * * * * * * * * * * * * * * * * * * * * * * * * Fees - Tier 1 ($/MMBtu/Mcf) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 2 ($/MMBtu/Mcf) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 3 ($/MMBtu/Mcf) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * ** 20 pages omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 2 TO EXHIBIT C-2C-4** Initial Scope and Budget - Eagle Ford Deep Oil System Treating ** Four One (41) pages page omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). EXHIBIT C-3 COST D [Separate memorandum and exhibits with only county specific information to be filed in each affected county] MEMORANDUM OF SERVICE CALCULATION METHODOLOGY EAGLE FORD SHALLOW OILGAS GATHERING CONTRACT THIS MEMORANDUM OF GAS GATHERING CONTRACT (this “Memorandum”) is made and entered into as of December , 2012, by and among (i) Mockingbird Midstream Gas Services, L.L.C. (“Gatherer”) (“Gatherer”), and (ii) (i) Chesapeake Energy Marketing, Inc. (“CEMI”); (ii) Chesapeake Operating, Inc.; and (iii) Chesapeake Exploration, L.L.C. (collectively, “Producers”). Gatherer and Producers are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

COS Calculation Disputes. Any disputes between the Parties over the final COS Calculation will be resolved in accordance with the procedures in Exhibit E-2 of the Base Contract. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 1 TO EXHIBIT C-2C-1** Sample Calculation - Eagle Ford Deep Rich BBtu/d ($’000) System Fee $** G&A Fee Tiers $/MMBtu Min Vol. Max Vol. Time Zero EBITDA ** Inflation Factor **% Tier 1 $** ** ** Time Zero Capital Expenditure ** Escalation Factor **% Tier 2 $** ** ** Tier 3 $** ** Target IRR **% Terminal Multiple **x Capital G&A Fee **% 6/30/12 7/31/12 8/31/12 9/30/12 10/31/12 10/30/12 11/30/12 12/31/12 1/31/13 2/28/13 3/31/13 4/30/13 5/31/13 6/30/13 Escalation Factor * * * * * * * * * * * * * * * * * * * * * * * * Gathering Volume - BBtu * * * * * * * * * * * * * * * * * * * * * * * * System fee Fee ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Revenue ($’000) * * * * * * * * * * * * * * * * * * * * * * * * Compression Expense * * * * * * * * * * * * * * * * * * * * * * * * Variable O&M * * * * * * * * * * * * * * * * * * * * * * * * Fixed O&M * * * * * * * * * * * * * * * * * * * * * * * * Taxes * * * * * * * * * * * * * * * * * * * * * * * * G&A Expense * * * * * * * * * * * * * * * * * * * * * * * * EBITDA ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Well Connect Capex * * * * * * * * * * * * * * * * * * * * * * * * Infrastructure Capex * * * * * * * * * * * * * * * * * * * * * * * * Facilities Capex * * * * * * * * * * * * * * * * * * * * * * * * Operations Support and Other * * * * * * * * * * * * * * * * * * * * * * * * Capital G&A Fee * * * * * * * * * * * * * * * * * * * * * * * * Total Capex ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Terminal Value Net Cash Flow ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * NPV ** G&A Expense Calculation Volume - Tier 1 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier 2 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Volume - Tier 3 (BBtu/d) * * * * * * * * * * * * * * * * * * * * * * * * Fees Volume - Tier 1 ($/MMBtu/MMtu/d) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees Volume - Tier 2 ($/MMBtu/MMtu/d) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees Volume - Tier 3 ($/MMBtu/MMtu/d) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * ** 20 pages omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 2 TO EXHIBIT C-2C-1** Initial Scope and Budget - Eagle Ford Deep Oil Rich Gas System ** Four One (41) pages page omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). EXHIBIT C-3 C-2 COST OF SERVICE CALCULATION METHODOLOGY EAGLE FORD SHALLOW DEEP OIL

COS Calculation Disputes. Any disputes between the Parties over the final COS Calculation will be resolved in accordance with the procedures in Exhibit E-2 of the Base Contract. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 1 TO EXHIBIT C-2C-3** Sample Calculation - Eagle Ford Deep Shallow BBtu/d ($’000) System Fee $** G&A Fee Tiers $/MMBtu Min Vol. Max Vol. Time Zero EBITDA ** Inflation Factor **% Tier 1 $** ** ** Time Zero Capital Expenditure ** Escalation Factor **% Tier 2 $** ** ** Tier 3 $** ** Target IRR **% Terminal Multiple **x Capital G&A Fee **% 6/30/12 7/31/12 8/31/12 9/30/12 10/31/12 10/30/12 11/30/12 12/31/12 1/31/13 2/28/13 3/31/13 4/30/13 5/31/13 6/30/13 Escalation Factor * * * * * * * * * * * * * * * * * * * * * * * * Gathering Volume - BBtu * * * * * * * * * * * * * * * * * * * * * * * * System fee ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Revenue ($’000) * * * * * * * * * * * * * * * * * * * * * * * * Compression Expense * * * * * * * * * * * * * * * * * * * * * * * * Variable O&M * * * * * * * * * * * * * * * * * * * * * * * * Fixed O&M * * * * * * * * * * * * * * * * * * * * * * * * Taxes * * * * * * * * * * * * * * * * * * * * * * * * G&A Expense * * * * * * * * * * * * * * * * * * * * * * * * EBITDA ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Well Connect Capex * * * * * * * * * * * * * * * * * * * * * * * * Infrastructure Capex * * * * * * * * * * * * * * * * * * * * * * * * Facilities Capex * * * * * * * * * * * * * * * * * * * * * * * * Operations Support and Other * * * * * * * * * * * * * * * * * * * * * * * * Capital G&A Fee * * * * * * * * * * * * * * * * * * * * * * * * Total Capex ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * Terminal Value Net Cash Flow ($’000) ** * * * * * * * * * * * * * * * * * * * * * * * * NPV ** G&A Expense Calculation Volume - Tier 1 (BBtu/d) ** ** ** ** ** ** ** ** ** ** ** * * * * * * * * * * * * ** Volume - Tier 2 (BBtu/d) ** ** ** ** ** ** ** ** ** ** ** * * * * * * * * * * * * ** Volume - Tier 3 (BBtu/d) ** ** ** ** ** ** ** ** ** ** ** * * * * * * * * * * * * ** Fees - Tier 1 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 2 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * Fees - Tier 3 ($/MMBtu) $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * $ * * ** 20 pages omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). SCHEDULE 2 TO EXHIBIT C-2C-3** Initial Scope and Budget - Eagle Ford Deep Shallow Oil System ** Four One (41) pages page omitted pursuant to confidential treatment request. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). EXHIBIT C-3 C-4 COST OF SERVICE CALCULATION METHODOLOGY EAGLE FORD SHALLOW OILTREATING