Gathering System Pressures. LMM shall make commercially reasonable efforts to maintain the Gathering System pressures for Shipper’s Gas received by LMM. LMM acknowledges that third parties may own and control Gas upstream of the compression facilities and that LMM shall, despite such third party Gas, make such effort to maintain the system pressures. In the event that LMM fails to maintain or fails to take action to maintain the Gathering System pressures as set forth in the Expansion Proposal, as such Expansion Proposal may be modified pursuant to Section 2.6(b), for thirty (30) Days in any forty-five (45) Day period, then, at Shipper’s election, (x) Shipper may construct such improvements as Shipper may deem necessary to remedy LMM’s failure to maintain the Gathering System pressures as set forth in the Expansion Proposal as may be modified pursuant to Section 2.6(b), in which case all Gas gathered through such improvement (which improvement shall be the sole property of Shipper) shall be Gathered by LMM at the Reduced Rate, or (y) each Well constrained by LMM’s failure and all Gas produced from such Well will no longer be subject to this Agreement. In the calculation of Gathering System pressures, LMM may exclude any Day when any of the following conditions occur (“Excluded Days”): (i) Force Majeure, (ii) Maintenance, or (iii) when Shipper’s Gas exceeds Shipper’s MDQ or does not meet the Gas Quality requirements in Exhibit “A” part C. For avoidance of doubt, no Excluded Days will be counted for purposes of determining the thirty (30) Day or forty-five (45) Day periods described above.
Appears in 5 contracts
Samples: Gas Gathering Agreement (Atlas Energy, L.P.), Gas Gathering Agreement (Atlas Resources Series 28-2010 L.P.), Gas Gathering Agreement (Atlas Resources Public #19-2011 (C) L.P.)
Gathering System Pressures. (a) LMM shall make commercially reasonable efforts to maintain the Gathering System pressures for Shipper’s Gas received by LMM. LMM acknowledges that third parties may own and control Gas upstream of the compression facilities and that LMM shall, despite such third party Gas, make such effort to maintain the system pressures. In the event that LMM fails to maintain or fails to take action to maintain the Gathering System pressures a Target Suction Pressure as set forth in the Expansion Proposal, as such Expansion Proposal may be modified pursuant to Section 2.6(b), Exhibit “E” for thirty (30) Days in any forty-five (45) Day period, then, at Shipper’s election, (x) Shipper may construct such improvements as Shipper may deem necessary to remedy LMM’s failure to maintain each Delivery Point on the Gathering System pressures as set forth in the Expansion Proposal as may be modified pursuant to Section 2.6(b), in which case all Gas gathered through such improvement (which improvement System. The “Actual Suction Pressure” shall be the sole property average Daily suction pressure measured at a static pressure tap immediately upstream of Shipper) the last compressor before the Delivery Point. The Actual Suction Pressure shall be Gathered calculated by LMM at summing the Reduced Rateactual average Daily suction pressure for each included Day in the Month for which pressures were taken, or (y) each Well constrained and dividing the resulting sum by LMM’s failure the number of Days in that Month for which pressures were taken, and all Gas produced from such Well will no longer be subject rounding the quotient to this Agreementthe nearest whole number. In the calculation of Gathering System pressuresActual Suction Pressure, LMM may exclude any Day when any of the following conditions occur (“Excluded Days”): (i) Force Majeure, (ii) Maintenance, or (iii) when Shipper’s Gas exceeds Shipper’s MDQ or does not meet the Gas Quality requirements in Exhibit “A” part C. For avoidance of doubt, no Excluded Days Any Gas at any Delivery Point for which the Target Suction Pressure is not maintained during any Month will be counted subject to a reduction in the Gathering Fee or the Reduced Fee for purposes the Month during which such pressures are not at the Target Suction Pressure, and after the Target Suction Pressure is restored, the rate shall return to the Gathering Fee set forth in Exhibit “E”. GAS GATHERING AGREEMENT (LEGACY APPALACHIAN SYSTEM) PAGE 6 (b) The Gathering Fee shall be subject to modification based on the Actual Suction Pressure for each Month as follows, and as referenced on Exhibit “E”: Actual Suction Pressure Fee Modification Greater than Target Suction Pressure but less than A psig no modification Greater than A psig but less than B psig minus $*** per Dth* Greater than B psig modification to the Reduced Rate and Remedy described in Section 1.6(c) * Such modification, if any, shall be in the form of determining a credit on the thirty (30) Day or forty-five (45) Day periods described aboveLMM statement to Shipper for the first Month following the subject Month.
Appears in 1 contract
Samples: Gas Gathering Agreement (Atlas Resources Series 28-2010 L.P.)