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Common use of Dedication and Commitment Clause in Contracts

Dedication and Commitment. 2.1 Subject to Sections 2.2, 2.7, 2.8, 2.9 and 2.10, Shipper hereby dedicates and commits to Gatherer, in consideration for the gathering, trucking and delivery services to be provided by Gatherer hereunder, all of the Interests. 2.2 Shipper’s dedication and commitment of the Interests shall be subject to the Reservations as well as the following limitations: (a) Any Interest, other than Connection Units, which is, at any time after the Effective Date, both (a) operated by an operator other than Shipper, its Affiliate or a Successor and (b) owned less than 51% by Shipper or an Affiliate of Shipper where such ownership is measured by working interests (a “Non-Operated Interest”) shall not be subject to the dedication and commitment provided for in Section 2.1. (b) If Shipper acquires, after the Effective Date, any Interest which is subject to a prior dedication (a “Prior Dedicated Interest”), then such Prior Dedicated Interest shall not be subject to the dedication and commitment provided for in Section 2.1; provided, however, that, if any Prior Dedicated Interest is released from such prior dedication during the Term, then such Prior Dedicated Interest shall, effective upon such release, become subject to the dedication and commitment provided for in Section 2.1. 2.3 Commencing on the System Completion Date, Shipper shall deliver all of Shipper’s Oil produced from xxxxx located in the Core Units to Gatherer at the Receipt Points. 2.4 Commencing on the System Completion Date, Gatherer shall provide gathering services for and accept and receive the volume of Shipper’s Oil (measured in Barrels) tendered by Shipper each Day at the Receipt Points located in the Core Units and deliver an Equivalent Volume to the Delivery Points. In the event that any Receipts Points in the Core Units are not connected to the Gathering System, Gatherer shall provide trucking services sufficient to transport all of Shipper’s Oil tendered by Shipper each Day at such Receipt Points and deliver an Equivalent Volume to the Delivery Points. If Gatherer elects to take truck delivery by a third party common carrier, Gatherer shall immediately notify Shipper of the carrier’s name and address. Gatherer shall furnish to Shipper delivery tickets for all volumes of Shipper’s Oil trucked from the Receipt Points. 2.5 Commencing on the Initial Production Date, Shipper shall deliver all of Shipper’s Oil to Gatherer at the Receipt Point described in the applicable Construction Notice. 2.6 Commencing on the Initial Production Date, Gatherer shall provide gathering services for and accept and receive the volume of Shipper’s Oil (measured in Barrels) tendered by Shipper each Day at the Receipt Point described in the applicable Construction Notice and deliver an Equivalent Volume to the Delivery Points. 2.7 Subject to Sections 2.8, 2.9 and 2.10, such dedication and commitment by Shipper under this Article II shall be deemed an interest that runs with the land in the Dedication Area, and the Parties agree that the dedications and commitments with regard to any Interest existing as of the Effective Date shall be deemed fully vested, and further agree that future interests in the Interests shall vest upon Shipper’s acquiring ownership, control or right to market such Interest(s). Shipper agrees to execute and deliver a memorandum in the form attached hereto as Exhibit E for Xxxxxxxx County, Exhibit F for Lavaca County and Exhibit I for Fayette County to Gatherer for recording in the real property records of each county in which any portion of the Dedication Area is located in order to evidence the dedication provision of this Article II. 2.8 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement (the “Proposed Exchange Acreage”) and receive in exchange for such acreage new acreage, not otherwise dedicated, within the Dedication Area (the “Proposed Acquired Acreage”) (such transaction, an “Acreage Swap”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the proposed Acreage Swap, including, as applicable: (i) a description of the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Exchange Acreage and (ii) a description of the Proposed Acquired Acreage, including the number net acres. (a) If the number of net acres constituting the Proposed Acquired Acreage is greater than or not less than ninety percent (90%) of the number of net acres constituting the Proposed Exchange Acreage, Gatherer shall grant such dedication release pursuant to this Section 2.8 and shall promptly deliver a recordable copy of such dedication release to Shipper. (b) If the number of net acres constituting the Proposed Acquired Acreage is less than ninety percent (90%) of number of net acres constituting the Proposed Exchange Acreage, Gatherer may, but shall not be required to (subject to Section 2.9), grant such dedication release pursuant to this Section 2.8. 2.9 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement other than pursuant to Section 2.8 (the “Proposed Released Acreage”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Released Acreage. (a) If the number of net acres constituting the Proposed Released Acreage is not more than five percent (5%) of the number of net acres included the Dedication Area at the time of such sale or transfer, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper; provided, however, that Gatherer shall not be required to grant any such dedication release to the extent that the net acres included in the Dedication Area following such sell or transfer pursuant to this Section 2.9 is less than the net acres included in the Dedication Area on the Effective Date. (b) If the number of net acres constituting the Proposed Releases Acreage is more than five percent (5%) of number of net acres constituting the Proposed Released Acreage included the Dedication Area at the time of such sale or transfer, Gatherer may, but shall not be required to, grant such dedication release pursuant to this Section 2.9. 2.10 If, at any time, insufficient contiguous acreage remains in the Dedication Area for Shipper to create a drilling unit, or if Shipper is otherwise unable to create a pooled unit in which it is the operator of such pooled unit, Shipper shall notify Gatherer in writing, on a unit-by-unit basis, of its desire for Gatherer to execute a dedication release of a portion of the acreage in the Dedication Area necessary to create a pooled unit with one or more third parties. Shipper’s written notice will describe in reasonable detail the proposed pooled unit, including, as applicable: (i) an explanation of why Shipper’s acreage in the Dedication Area is insufficient to create a drilling unit, (ii) a description of the portion of the Dedication Area required to be released to form such pooled unit, (iii) the identification of the third party working interest owners of such pooled unit and (iv) the size of such pooled unit. Such proposed pooled units shall not exceed seven hundred four (704) acres. Upon receipt of the information set forth in this Section 2.9, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper.

Appears in 2 contracts

Samples: Construction and Field Gathering Agreement (Penn Virginia Corp), Construction and Field Gathering Agreement (Penn Virginia Corp)

Dedication and Commitment. 2.1 Subject to Sections 2.2, 2.7, 2.8, 2.9 and 2.10, Shipper hereby dedicates and commits to Gatherer, in consideration for the gathering, trucking gathering and delivery services to be provided by Gatherer hereunder, all of the Interests. 2.2 Shipper’s dedication and commitment of the Interests shall be subject to the Reservations as well as the following limitations: (a) Any Interest, other than Connection Units, which is, at any time after the Effective Date, both (a) operated by an operator other than Shipper, its Affiliate or a Successor and (b) owned less than 51% by Shipper or an Affiliate of Shipper where such ownership is measured by working interests (a “Non-Operated Interest”) shall not be subject to the dedication and commitment provided for in Section 2.1. (b) If Shipper acquires, after the Effective Date, any Interest which is subject to a prior dedication (a “Prior Dedicated Interest”), then such Prior Dedicated Interest shall not be subject to the dedication and commitment provided for in Section 2.1; provided, however, that, if any Prior Dedicated Interest is released from such prior dedication during the Term, then such Prior Dedicated Interest shall, effective upon such release, become subject to the dedication and commitment provided for in Section 2.1. 2.3 Commencing on the System Completion Date, Shipper shall deliver all of Shipper’s Oil produced from xxxxx located wellx xxxated in the Core Units to Gatherer at the Receipt Points. 2.4 Commencing on the System Completion Date, Gatherer shall provide gathering services for and accept and receive the volume of Shipper’s Oil (measured in Barrels) tendered by Shipper each Day at the Receipt Points located in the Core Units and deliver an Equivalent Volume to the Delivery Points. In the event that any Receipts Points in the Core Units are not connected to the Gathering System, Gatherer shall provide trucking services sufficient to transport all of Shipper’s Oil tendered by Shipper each Day at such Receipt Points and deliver an Equivalent Volume to the Delivery Points. If Gatherer elects to take truck delivery by a third party common carrier, Gatherer shall immediately notify Shipper of the carrier’s name and address. Gatherer shall furnish to Shipper delivery tickets for all volumes of Shipper’s Oil trucked from the Receipt Points. 2.5 Commencing on the Initial Production Date, Shipper shall deliver all of Shipper’s Oil to Gatherer at the Receipt Point described in the applicable Construction Notice. 2.6 Commencing on the Initial Production Date, Gatherer shall provide gathering services for and accept and receive the volume of Shipper’s Oil (measured in Barrels) tendered by Shipper each Day at the Receipt Point described in the applicable Construction Notice and deliver an Equivalent Volume to the Delivery Points. 2.7 Subject to Sections 2.8, 2.9 and 2.10, such dedication and commitment by Shipper under this Article II shall be deemed an interest that runs with the land in the Dedication Area, and the Parties agree that the dedications and commitments with regard to any Interest existing as of the Effective Date shall be deemed fully vested, and further agree that future interests in the Interests shall vest upon Shipper’s acquiring ownership, control or right to market such Interest(s). Shipper agrees to execute and deliver a memorandum in the form attached hereto as Exhibit E for Xxxxxxxx CountyGonzxxxx Xxxnty, Exhibit F for Lavaca County and Exhibit I for Fayette County to Gatherer for recording in the real property records of each county in which any portion of the Dedication Area is located in order to evidence the dedication provision of this Article II. 2.8 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement (the “Proposed Exchange Acreage”) and receive in exchange for such acreage new acreage, not otherwise dedicated, within the Dedication Area (the “Proposed Acquired Acreage”) (such transaction, an “Acreage Swap”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the proposed Acreage Swap, including, as applicable: (i) a description of the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Exchange Acreage and (ii) a description of the Proposed Acquired Acreage, including the number net acres. (a) If the number of net acres constituting the Proposed Acquired Acreage is greater than or not less than ninety percent (90%) of the number of net acres constituting the Proposed Exchange Acreage, Gatherer shall grant such dedication release pursuant to this Section 2.8 and shall promptly deliver a recordable copy of such dedication release to Shipper. (b) If the number of net acres constituting the Proposed Acquired Acreage is less than ninety percent (90%) of number of net acres constituting the Proposed Exchange Acreage, Gatherer may, but shall not be required to (subject to Section 2.9), grant such dedication release pursuant to this Section 2.8. 2.9 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement other than pursuant to Section 2.8 (the “Proposed Released Acreage”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Released Acreage. (a) If the number of net acres constituting the Proposed Released Acreage is not more than five percent (5%) of the number of net acres included the Dedication Area at the time of such sale or transfer, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper; provided, however, that Gatherer shall not be required to grant any such dedication release to the extent that the net acres included in the Dedication Area following such sell or transfer pursuant to this Section 2.9 is less than the net acres included in the Dedication Area on the Effective Date. (b) If the number of net acres constituting the Proposed Releases Acreage is more than five percent (5%) of number of net acres constituting the Proposed Released Acreage included the Dedication Area at the time of such sale or transfer, Gatherer may, but shall not be required to, grant such dedication release pursuant to this Section 2.9. 2.10 If, at any time, insufficient contiguous acreage remains in the Dedication Area for Shipper to create a drilling unit, or if Shipper is otherwise unable to create a pooled unit in which it is the operator of such pooled unit, Shipper shall notify Gatherer in writing, on a unit-by-unit basis, of its desire for Gatherer to execute a dedication release of a portion of the acreage in the Dedication Area necessary to create a pooled unit with one or more third parties. Shipper’s written notice will describe in reasonable detail the proposed pooled unit, including, as applicable: (i) an explanation of why Shipper’s acreage in the Dedication Area is insufficient to create a drilling unit, (ii) a description of the portion of the Dedication Area required to be released to form such pooled unit, (iii) the identification of the third party working interest owners of such pooled unit and (iv) the size of such pooled unit. Such proposed pooled units shall not exceed seven hundred four (704) acres. Upon receipt of the information set forth in this Section 2.9, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper.

Appears in 1 contract

Samples: Construction and Field Gathering Agreement (Penn Virginia Corp)

Dedication and Commitment. 2.1 Subject to Sections Section 2.2, 2.7, 2.8, 2.9 and 2.10, Shipper hereby dedicates and commits to Gatherer, in consideration for the gathering, trucking gathering and delivery services to be provided by Gatherer hereunder, hereunder all of the Interests. 2.2 Shipper’s dedication and commitment of the Interests shall be subject to the Reservations as well as the following limitations: (a) Any Interest, other than Connection Units, Interest which is, at any time after during the Effective DateTerm, both (a) operated by an operator other than Shipper, its Affiliate or a Successor and (b) owned less than 51% by Shipper or an Affiliate of Shipper where such ownership is measured by working interests (a “Non-Operated Interest”) shall not be subject to the dedication and commitment provided for in Section 2.1. (b) If Shipper acquires, after the Effective Date, any Interest which is subject to a prior dedication (a “Prior Dedicated Interest”), then such Prior Dedicated Interest shall not be subject to the dedication and commitment provided for in Section 2.1; provided, however, that, if any Prior Dedicated Interest is released from such prior dedication during the Term, then such Prior Dedicated Interest shall, effective upon such release, become subject to the dedication and commitment provided for in Section 2.1. (c) Any Interest which is located in the New Lines Dedication Area shall not be subject to the dedication and commitment provided for in Section 2.1 until the Operating Date. 2.3 Commencing on the System Completion Effective Date, Shipper shall deliver all of Shipper’s Oil Gas produced from xxxxx located in the Core Units Initial Dedication Area to Gatherer at the Receipt Points. 2.4 Commencing on the System Completion Effective Date, Gatherer shall provide gathering and compression services for and accept and receive the volume of Shipper’s Oil Gas (measured in BarrelsMcfs) tendered by Shipper each Day at the Receipt Points located in and use commercially reasonable efforts to (a) deliver a Thermally Equivalent Sales Volume to the Core Units Delivery Points and (b) redeliver to Shipper at the Gas Lift Points a sufficient amount of Gas for Shipper to conduct its Gas Lift Operations. Subject to Section 4.4, Shipper acknowledges that Shipper’s Gas may be commingled with other Gas streams and that, due to normal operational factors, Gatherer may not physically deliver an Equivalent Volume Shipper’s Gas to the Delivery Points. In the event that any Receipts Points in the Core Units are not connected to the Gathering System, Gatherer shall provide trucking services sufficient to transport all of Shipper’s Oil tendered by Shipper each Day at such Receipt Points and deliver an Equivalent Volume to the Delivery Points. If Gatherer elects to take truck delivery by a third party common carrier, Gatherer shall immediately notify Shipper of the carrier’s name and address. Gatherer shall furnish to Shipper delivery tickets for all volumes of Shipper’s Oil trucked from the Receipt Points[***]. 2.5 Commencing on the Initial Production Date, Shipper shall deliver all of Shipper’s Oil Gas to Gatherer at the Receipt Points connected to the Connection Point described in the applicable Construction Notice. 2.6 Commencing on the Initial Production Date, Gatherer shall provide gathering and compression services for and accept and receive the volume of Shipper’s Oil Gas (measured in BarrelsMcfs) tendered by Shipper each Day at the Receipt Points connected to the Connection Point described in the applicable Construction Notice and to use commercially reasonable efforts to (a) deliver an a Thermally Equivalent Sales Volume to the Delivery Points. 2.7 Subject to Sections 2.8, 2.9 Points and 2.10, such dedication and commitment by Shipper under this Article II shall be deemed an interest that runs with the land in the Dedication Area, and the Parties agree that the dedications and commitments with regard to any Interest existing as of the Effective Date shall be deemed fully vested, and further agree that future interests in the Interests shall vest upon Shipper’s acquiring ownership, control or right to market such Interest(s). Shipper agrees to execute and deliver a memorandum in the form attached hereto as Exhibit E for Xxxxxxxx County, Exhibit F for Lavaca County and Exhibit I for Fayette County to Gatherer for recording in the real property records of each county in which any portion of the Dedication Area is located in order to evidence the dedication provision of this Article II. 2.8 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement (the “Proposed Exchange Acreage”) and receive in exchange for such acreage new acreage, not otherwise dedicated, within the Dedication Area (the “Proposed Acquired Acreage”) (such transaction, an “Acreage Swap”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the proposed Acreage Swap, including, as applicable: (i) a description of the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Exchange Acreage and (ii) a description of the Proposed Acquired Acreage, including the number net acres. (a) If the number of net acres constituting the Proposed Acquired Acreage is greater than or not less than ninety percent (90%) of the number of net acres constituting the Proposed Exchange Acreage, Gatherer shall grant such dedication release pursuant to this Section 2.8 and shall promptly deliver a recordable copy of such dedication release to Shipper. (b) If the number of net acres constituting the Proposed Acquired Acreage is less than ninety percent (90%) of number of net acres constituting the Proposed Exchange Acreage, Gatherer may, but shall not be required redeliver to (subject to Section 2.9), grant such dedication release pursuant to this Section 2.8. 2.9 If Shipper desires to sell or transfer to a third party acreage, excluding acreage within Connection Units, within the Dedication Area already dedicated under this Agreement other than pursuant to Section 2.8 (the “Proposed Released Acreage”), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s written notice will describe in reasonable detail the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Released Acreage. (a) If the number of net acres constituting the Proposed Released Acreage is not more than five percent (5%) of the number of net acres included the Dedication Area at the time Gas Lift Points a sufficient amount of such sale or transfer, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper; provided, however, that Gatherer shall not be required to grant any such dedication release to the extent that the net acres included in the Dedication Area following such sell or transfer pursuant to this Section 2.9 is less than the net acres included in the Dedication Area on the Effective Date. (b) If the number of net acres constituting the Proposed Releases Acreage is more than five percent (5%) of number of net acres constituting the Proposed Released Acreage included the Dedication Area at the time of such sale or transfer, Gatherer may, but shall not be required to, grant such dedication release pursuant to this Section 2.9. 2.10 If, at any time, insufficient contiguous acreage remains in the Dedication Area Gas for Shipper to create a drilling unit, or if Shipper is otherwise unable to create a pooled unit in which it is the operator of such pooled unit, Shipper shall notify Gatherer in writing, on a unit-by-unit basis, of conduct its desire for Gatherer to execute a dedication release of a portion of the acreage in the Dedication Area necessary to create a pooled unit with one or more third parties. Shipper’s written notice will describe in reasonable detail the proposed pooled unit, including, as applicable: (i) an explanation of why Shipper’s acreage in the Dedication Area is insufficient to create a drilling unit, (ii) a description of the portion of the Dedication Area required to be released to form such pooled unit, (iii) the identification of the third party working interest owners of such pooled unit and (iv) the size of such pooled unit. Such proposed pooled units shall not exceed seven hundred four (704) acres. Upon receipt of the information set forth in this Section 2.9, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to ShipperGas Lift Operations.

Appears in 1 contract

Samples: Construction and Field Gathering Agreement (American Midstream Partners, LP)

Dedication and Commitment. 2.1 Subject to Sections 2.2, 2.7, 2.8, 2.9 and 2.10, Shipper hereby dedicates and commits to Gatherer, in consideration for the gathering, trucking and delivery services to be provided by Gatherer hereunder, all of the Interests. 2.2 Shipper’s 's dedication and commitment of the Interests shall be subject to the Reservations as well as the following limitations: (a) Any Interest, other than Connection Units, which is, at any time after the Effective Date, both (a) operated by an operator other than Shipper, its Affiliate or a Successor and (b) owned less than 51% by Shipper or an Affiliate of Shipper where such ownership is measured by working interests (a "Non-Operated Interest") shall not be subject to the dedication and commitment provided for in Section 2.1. (b) If Shipper acquires, after the Effective Date, any Interest which is subject to a prior dedication (a "Prior Dedicated Interest"), then such Prior Dedicated Interest shall not be subject to the dedication and commitment provided for in Section 2.1; provided, however, that, if any Prior Dedicated Interest is released from such prior dedication during the Term, then such Prior Dedicated Interest shall, effective upon such release, become subject to the dedication and commitment provided for in Section 2.1. (c) Any Interest that is expressly excluded and/or released from the Dedication Area pursuant to the terms of this Agreement (including, but not limited to, Sections 3.3 and 3.6 hereof) shall, effective upon such exclusion and/or release, not be subject to the dedication and commitment provided for in Section 2.1. 2.3 Commencing on the System Completion Date, Shipper shall deliver all of Shipper’s 's Oil produced from xxxxx located in the Core Units to Gatherer at the Receipt Points. 2.4 Commencing on the System Completion Date, Gatherer shall provide gathering services for and accept and receive through the Gathering System the volume of Shipper’s 's Oil (measured in Barrels) tendered US-DOCS\70393108.5 by Shipper each Day at the Receipt Points located in the Core Units (subject to Gatherer’s curtailment rights pursuant to Section 5.1) and deliver an Equivalent Volume to the Delivery Points. In the event Subject to Section 3.6, at any time that any Receipts Points in the Core Units associated with a Required Connection are not connected to the Gathering SystemSystem or if Gatherer exercises its curtailment rights pursuant to Section 5.1, Gatherer shall provide trucking services sufficient to transport all of Shipper’s 's Oil tendered by Shipper each Day at such the applicable Receipt Points and deliver an Equivalent Volume to the Delivery Points. In addition, Gatherer shall (i) continue providing, or causing to be provided, trucking services for any Receipt Point(s) outside the Core Units for which Gatherer was providing such services immediately prior to the Effective Date (without limiting any obligation of Gatherer to connect such Receipt Point(s) to the Gathering System) and (ii) shall provide trucking services under this Section for (a) any New Receipt Point(s) outside the Core Units for which Gatherer elects to provide trucking services rather than connect to the Gathering System (to the extent such Receipt Point(s) have not otherwise been released pursuant to the express terms of this Agreement), or (b) any Receipt Point(s) with respect to which Gatherer exercises its curtailment rights pursuant to Section 5.1. If Gatherer elects to take truck delivery by a third party common carrier, Gatherer shall immediately notify Shipper of the carrier’s 's name and address. Gatherer shall furnish to Shipper delivery tickets for all volumes of Shipper’s 's Oil trucked from the Receipt Points. Notwithstanding the foregoing provisions, for the first thirty-six (36) Months of the Term, Shipper may, upon providing Gatherer at least thirty (30) Days’ advance written notice, truck (or arrange third party trucking services for) any volumes of Shipper’s Oil, not otherwise being gathered by Gatherer through the Gathering System, to the CDP at Shipper’s sole cost and expense; provided, however, for the avoidance of doubt, that Shipper shall pay Gatherer the Truck Loading Fee on all such volumes of Shipper’s Oil. 2.5 Commencing on the applicable Initial Production Date, Shipper shall deliver all of Shipper’s 's Oil to Gatherer at the Receipt Point described in the applicable Construction Notice. 2.6 Commencing on the applicable Initial Production Date, subject to Gatherer’s curtailment rights pursuant to Section 5.1, Gatherer shall provide gathering services for and accept and receive the volume of Shipper’s 's Oil (measured in Barrels) tendered by Shipper each Day at the Receipt Point described in the applicable Construction Notice and deliver an Equivalent Volume to the Delivery Points. 2.7 Subject to Sections 2.8, 2.9 and 2.10, such dedication and commitment by Shipper under this Article II shall be deemed an interest that runs with the land in the Dedication Area, and the Parties agree that the dedications and commitments with regard to any Interest existing as of the Effective Date shall be deemed fully vested, and further agree that future interests in the Interests shall vest upon Shipper’s 's acquiring ownership, control or right to market such Interest(s), subject to Section 2.2(b). Shipper agrees to execute and deliver a memorandum in the form attached hereto as Exhibit E for Xxxxxxxx County, Exhibit F for Lavaca County and Exhibit I for Fayette County to Gatherer for recording in the real property records of each county in which any portion of the Dedication Area is located in order to evidence the dedication provision of this Article II. 2.8 If Notwithstanding anything to the contrary herein, if Shipper desires to sell or transfer to a an un-Affiliated third party acreage, any acreage (excluding acreage within Connection Units, ) within the Dedication Area already then dedicated under this Agreement (the "Proposed Exchange Acreage") and receive in exchange for such acreage new acreage, not otherwise dedicated, within the Dedication Area (the "Proposed Acquired Acreage") (such transaction, an "Acreage Swap"), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s 's written notice will describe in reasonable detail the proposed Acreage Swap, including, as applicable: (i) a description of the portion of the Dedication Area to be released, including the number of net acres of Shipper constituting the Proposed Exchange Acreage and (ii) a description of the Proposed Acquired Acreage, including the number net acres.acres of Shipper US-DOCS\70393108.5 (a) If the number of net acres constituting the Proposed Acquired Acreage is equal to or greater than or not less than ninety percent (90%) of the number of net acres constituting the Proposed Exchange Acreage, Gatherer shall grant such dedication release pursuant to this Section 2.8 and shall promptly deliver a recordable copy of such dedication release to Shipper. (b) If the number of net acres constituting the Proposed Acquired Acreage is less than ninety percent (90%) of number of net acres constituting the Proposed Exchange Acreage, Gatherer may, but shall not be required to (subject to Section 2.9), grant such dedication release pursuant to this Section 2.8. 2.9 If Shipper desires to sell or transfer to a an un-Affiliated third party acreage, excluding acreage within Connection Units, within the Dedication Area already then dedicated under this Agreement other than pursuant to Section 2.8 (the "Proposed Released Acreage"), Shipper shall notify Gatherer in writing of its desire for Gatherer to execute a dedication release of the Proposed Released Acreage in the Dedication Area. Shipper’s 's written notice will describe in reasonable detail the portion of the Dedication Area to be released, including the number of net acres constituting the Proposed Released Acreage. (a) If the number of net acres constituting the Proposed Released Acreage is not more than five percent (5%) of the number of net acres included in the Dedication Area at the time of such sale or transfer, Gatherer shall grant such dedication release pursuant to this Section 2.9 and shall promptly deliver a recordable copy of such dedication release to Shipper; provided, however, that Gatherer shall not be required to grant any such dedication release to the extent that the net acres included in the Dedication Area following such sell sale or transfer pursuant to this Section 2.9 is less than the net acres included in the Dedication Area on the Effective Date. (b) If the number of net acres constituting the Proposed Releases Released Acreage is more than five percent (5%) of the number of net acres constituting the Proposed Released Acreage included in the Dedication Area at the time of such sale or transfer, Gatherer may, but shall not be required to, grant such dedication release pursuant to this Section 2.9. 2.10 If, at any time, insufficient contiguous acreage remains in the Dedication Area for Shipper to create a drilling unit, or if Shipper is otherwise unable to create a pooled unit in which it is the operator of such pooled unit, Shipper shall notify Gatherer in writing, on a unit-by-unit basis, of its desire for Gatherer to execute a dedication release of a portion of the acreage in the Dedication Area necessary to create a pooled unit with one or more third parties. Shipper’s 's written notice will describe in reasonable detail the proposed pooled unit, including, as applicable: (i) an explanation of why Shipper’s 's acreage in the Dedication Area is insufficient to create a drilling unit, (ii) a description of the portion of the Dedication Area required to be released to form such pooled unit, (iii) the identification of the un-Affiliated third party working interest owners of such pooled unit and (iv) the size of such pooled unit. Such proposed pooled units shall not exceed seven hundred four (704) acres. Upon receipt of the information set forth in this Section 2.92.10, Gatherer shall grant such dedication release pursuant to this Section 2.9 2.10 and shall promptly deliver a recordable copy of such dedication release to Shipper.

Appears in 1 contract

Samples: Construction and Field Gathering Agreement (Penn Virginia Corp)