Common use of Increase in MDQ Clause in Contracts

Increase in MDQ. If Producers have a volume of Producers’ Gas and MV Mitigation Gas available to deliver in excess of the Xxxxxxx Maximum Daily Quantity for a Xxxxxxx Gathering System, Producers may request that Gatherer increase the Xxxxxxx Maximum Daily Quantity for that Xxxxxxx Gathering System. Such request shall be made by Notice to Gatherer stating the amount (in Mcf’s) by which Producers desire to increase the Xxxxxxx Maximum Daily Quantity and the term of such increase. Gatherer shall accept such increase in the Xxxxxxx Maximum Daily Quantity prior to December 31, 2015 to the extent excess capacity is then available on the Xxxxxxx Gathering System, taking into account commitments and offers previously made by Gatherer to third parties (including letters of intent) for capacity on that Xxxxxxx Gathering System and considering the effects such increase may have on Gatherer’s ability to maintain required pressures on that Xxxxxxx Gathering System, but for no longer than the remaining term of the Minimum Volume Period. If Gatherer makes such excess capacity available to Producers (i) the Xxxxxxx Maximum Daily Quantity shall be increased by the amount of such excess capacity made available to Producers for the term of such increase (with the Xxxxxxx Fees to apply to Producers’ Gas and MV Mitigation Gas that utilizes such increased capacity) and (ii) Producers shall commit to deliver, or pay the applicable Xxxxxxx Fees with respect to, **% of such increase in the Xxxxxxx Maximum Daily Quantity commencing on the date such increased Xxxxxxx Maximum Daily Quantity becomes effective and continuing for the term of such increase (even if such volumes are not delivered). Such commitment by Producers under clause (ii) shall not affect or reduce Producers’ obligations to pay the Xxxxxxx Fees for all Producers’ Gas and MV Mitigation Gas delivered hereunder.

Appears in 4 contracts

Samples: Gas Gathering Agreement (Chesapeake Midstream Partners, L.P.), Barnett Gas Gathering Agreement (Chesapeake Midstream Partners, L.P.), Gas Gathering Agreement (Chesapeake Midstream Partners, L.P.)

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