Common use of Expansion Capacity Annual Volume Commitment Clause in Contracts

Expansion Capacity Annual Volume Commitment. Shipper covenants and agrees that during the first ten (10) years from the date of completion of any increment of additional capacity requested by Shipper, in addition to and apart from any Annual Volume Commitment (as defined in Section 9.1) made herein, Shipper will deliver to Gatherer for Gathering from the Committed Area a minimum quantity of Gas each Contract Year equal to the amount of additional incremental capacity requested pursuant to an Expansion Capacity Request (an “Expansion Capacity Annual Volume Commitment”) (and, to the extent that Shipper delivers an amount of Gas up to the Expansion Capacity Annual Volume Commitment, then that quantity of Gas shall be designated herein as “Incremental Gas” for purposes of Section 9.8). By way of example. if Shipper requests a 100 MMcf per Day expansion of incremental capacity. then the Expansion Capacity Annual Volume Commitment will be: (i) the thermal equivalent in MMBtu’s of 100 MMcf per Day; times (ii) three hundred sixty-five (365). For purposes of the Expansion Capacity Annual Volume Commitment, the Gross Heating Value of the Gas will be deemed to be nine hundred fifty (950) MMBtu’s per Mcf. Subject to Sections 9.5 and 9.6, in any year that Shipper fails to meet the total of all outstanding Expansion Capacity Annual Volume Commitments for that year (an “Expansion Capacity Volume Shortfall”), Shipper shall at its sole election, (i) remit a payment to Gatherer calculated by multiplying the Expansion Capacity Volume Shortfall for the applicable contract year by the Gathering Fees in effect during the corresponding year (the “Expansion Capacity Volume Shortfall Payment”); or (ii) pay an amount of money, paid in twelve (12) equal monthly installments, equal to the Expansion Capacity Volume Shortfall Payment plus interest at a rate that is the greater of: (X) [***]; or (Y) [***] plus the difference between: (i) the 10 Year U.S. Treasury Note Yield Curve Rates (as published in the “Commodities Report” in the Wall Street Journal for each day (the “10 Year Note Yield”)) for the last Business Day of the applicable Contract Year, and (ii) the 10 Year Note Yield as of the Effective Date. Gatherer shall calculate the Expansion Capacity Volume Shortfall and Expansion Capacity Volume Shortfall Payment, if any, within sixty (60) days after the expiration of the Contract Year in which the shortfall occurred, and the results shall be promptly provided in writing to Shipper. Shipper shall remit the Expansion Capacity Volume Shortfall Payment or first Expansion Capacity Volume Shortfall Payment monthly installment, if any, within thirty (30) days of receipt of the invoice containing the Expansion Capacity Volume Shortfall Payment calculation. Subsequent Expansion Capacity Volume Shortfall and Expansion Capacity Volume Shortfall Payment calculations and payments shall be made in the same manner upon expiration of each successive Contract Year.

Expansion Capacity Annual Volume Commitment. Shipper covenants and agrees that during the first ten (10) years from the date of completion of any increment of additional capacity requested by Shipper, in addition to and apart from any Annual Volume Commitment (as defined in Section 9.1) made herein, Shipper will deliver to Gatherer for Gathering from the Committed Area a minimum quantity of Gas each Contract Year equal to the amount of additional incremental capacity requested pursuant to an Expansion Capacity Request (an “Expansion Capacity Annual Volume Commitment”) (and, to the extent that Shipper delivers an amount of Gas up to the Expansion Capacity Annual Volume Commitment, then that quantity of Gas shall be designated herein as “Incremental Gas” for purposes of Section 9.8). ) By way of example. , if Shipper requests a 100 MMcf per Day expansion of incremental capacity. , then the Expansion Capacity Annual Volume Commitment will be: (i) the thermal equivalent in MMBtu’s MMBtus of 100 MMcf per Day; times (ii) three hundred sixty-five (365). ) For purposes of the Expansion Capacity Annual Volume Commitment, the Gross Heating Value of the Gas will be deemed to be nine hundred fifty (950) MMBtu’s Btus per Mcfcubic foot. Subject to Sections 9.5 and 9.6, in any year that Shipper fails to meet the total of all outstanding Expansion Capacity Annual Volume Commitments for that year (an “Expansion Capacity Volume Shortfall”), Shipper shall at its sole election, (i) remit a payment to Gatherer calculated by multiplying the Expansion Capacity Volume Shortfall for the applicable contract year by the Gathering Fees in effect during the corresponding year (the “Expansion Capacity Volume Shortfall Payment”); or (ii) pay an amount of money, paid in twelve (12) equal monthly installments, equal to the Expansion Capacity Volume Shortfall Payment plus interest at a rate that is the greater of: (X) [***]; or (Y) [***] plus the difference between: between• (i) the 10 Year U.S. U S. Treasury Note Yield Curve Rates (as published in the “Commodities Report” in the Wall Street Journal for each day (the “10 Year Note Yield”)) for the last Business Day of the applicable Contract Year, and (ii) the 10 Year Note Yield as of the Effective Date. Gatherer shall calculate the Expansion Capacity Volume Shortfall and Expansion Capacity Volume Shortfall Payment, if any, within sixty (60) days after the expiration of the Contract Year in which the shortfall occurred, and the results shall be promptly provided in writing to Shipper. Shipper shall remit the Expansion Capacity Volume Shortfall Payment or first Expansion Capacity Volume Shortfall Payment monthly installment, if any, within thirty (30) days of receipt of the invoice containing the Expansion Capacity Volume Shortfall Payment calculation. Subsequent Expansion Capacity Volume Shortfall and Expansion Capacity Volume Shortfall Payment calculations and payments shall be made in the same manner upon expiration of each successive Contract Year.