Common use of Designated Receiving Facilities Clause in Contracts

Designated Receiving Facilities. (a) Service Provider shall treat, recycle, release, sell for re-use, or otherwise dispose of, or shall cause an Affiliate or subcontractor of Service Provider to treat, recycle, release, sell for re-use, or otherwise dispose of, all Produced Water collected by Service Producer at the Produced Water Receipt Points in the Service Area through facilities, including Service Provider’s or its Affiliates’ own facilities, that have been designated by Service Provider and approved by Producer (each such facility, a “Designated Receiving Facility”). If Producer approves a facility as a Designated Receiving Facility, it shall have the right, at any time upon notice to Service Provider, to withdraw such approval, and such facility shall cease to be a Designated Receiving Facility effective upon the 60th Day after such notice; provided, however, that Producer shall reimburse Service Provider for all costs reasonably incurred by Service Provider in order to utilize such facility as a Designated Receiving Facility and shall indemnify Service Provider and its Affiliates for any contractual liability incurred by Service Provider to a third party as a result of its not being able to utilize such facility as a Designated Receiving Facility. (b) Producer shall have the right, at its sole cost and expense, to visit and observe operations at each Designated Receiving Facility operated by Service Provider, in each case during normal business hours, on reasonable notice, and subject to such reasonable safety procedures as shall be reasonably required by Service Provider. Such visits and observations shall be carried out in a manner that does not unreasonably interfere with operations at such Designated Receiving Facility. Service Provider shall use reasonable efforts to afford Producer the opportunity to visit and observe operations at each Designated Receiving Facility operated by a Service Provider subcontractor and shall at the request of Producer perform such visits and observations and use reasonable efforts to include a representative of Producer among its representatives on any such visit.