Election not to Connect a Planned Well or Planned Separator Facility Sample Clauses

Election not to Connect a Planned Well or Planned Separator Facility. If Midstream Co determines, in its discretion, that the connection of an Individual System to any Planned Well or Planned Separator Facility operated by Original Producer, as described in Section 3.1 hereof, would be uneconomical, then upon Midstream Co’s delivery of a System Plan (marked as “Final”) indicating that a requested expansion would be uneconomical pursuant to Section 13.2(f): (i) No more than 30 Days after delivery of the System Plan pursuant to Section 13.2(b) above, Midstream Co shall provide Original Producer Midstream Co’s proposed terms and conditions under which it would connect the Individual System to the Planned Well or Planned Separator Facility and transport Product under the terms of this Agreement, including estimated construction costs. Original Producer shall have 30 Days to accept or reject Midstream Co’s terms and conditions. If Original Producer accepts Midstream Co’s proposed terms and conditions, then Midstream Co shall, within 30 Days thereof, provide Original Producer with an updated System Plan detailing the connection of the Individual System to such Planned Well or Planned Separator Facility and such connection shall be governed by Section 3.1. If Original Producer does not respond to Midstream Co’s terms and conditions within such 30-Day period, it shall be deemed to have rejected Midstream Co’s proposed terms and conditions. (ii) If Original Producer rejects Midstream Co’s terms and conditions under clause (A) above, then Original Producer may, at its sole cost and expense, simultaneously elect in writing to cause Midstream Co to design, construct and install the facilities necessary to connect the Planned Well or Planned Separator Facility to the Individual System, such facilities will become part of the Individual System and the property of Midstream Co. The Parties shall meet and cooperate in good faith to ensure any facilities constructed under this clause (ii) have the capacity to handle the estimated Dedicated Production in the Development Report and comply with customary engineering, construction and operating specifications in the industry. Within 30 Days of Original Producer’s election hereunder, Midstream Co shall provide Original Producer with an updated System Plan detailing the connection of the Individual System to such Planned Well or Planned Separator Facility, any costs and expenses shall be included on the monthly invoice and paid in accordance with Section 10.1 and Section 10.2 and such connection s...
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Related to Election not to Connect a Planned Well or Planned Separator Facility

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