Common use of Fuel and Lost Gas Caps Clause in Contracts

Fuel and Lost Gas Caps. Commencing after December 31, 2011, and subject to the additional terms defined and set forth in Exhibit 9.4, if Gatherer’s calculations pursuant to Section 2.2 of Exhibit 9.4 indicate that an FLG Exceedance has occurred in any Super-System or System, the FLG Report sent by Gatherer shall include an explanation, system balance report, and cost estimate for a remedy that is reasonably expected to prevent Fuel and Lost Gas from exceeding the Total FLG Cap in the future (“FLG Proposal”). Upon receipt of the FLG Proposal, the Total FLG Cap for such System or Super-System will be waived for twelve (12) months beginning with the first month after the FLG Quarter in which the FLG Exceedance occurred unless the Anchor Shippers, by Shipper Supermajority Approval, elect to allow Gatherer to proceed with the remedy and either (i) have Gatherer pay the costs and include the costs in the COS Calculations or (ii) with the agreement of all Anchor Shippers, the Anchor Shippers will pay the costs as incurred and such costs will be excluded from the COS Calculations. If an FLG Exceedance has occurred and Gatherer fails to provide the FLG Proposal to Shipper within forty-five (45) days after receipt of Shipper’s Notice, then Gatherer will pay Shipper the FLG Reimbursement for that FLG Quarter within ninety (90) days after receipt of Shipper’s Notice. The FLG Reimbursement will not be included in the COS Calculations. However, if Gatherer has provided the required information as set forth herein, Gatherer shall not be obligated to pay the FLG Reimbursement. If the FLG Proposal is approved, Gatherer will again be subject to the caps set forth in this Section beginning with the first full FLG Quarter after completion of the work under the FLG Proposal.