Common use of Increasing the MDQ Clause in Contracts

Increasing the MDQ. If it appears that the Daily quantity of Shipper’s Gas exceeds or is likely to exceed the MDQ, then Shipper shall provide LMM with such written information as necessary to confirm the amount by which the Daily quantity of Shipper’s Gas exceeds or is likely to exceed the MDQ (“Excess Quantity”) and shall request in writing an increase in the MDQ equal to the Excess Quantity. Failure of Shipper to give such written information and request to LMM shall not impair LMM’s option under this Section 2.1. LMM shall have the option to increase the MDQ by the Excess Quantity which it shall exercise, if at all, by providing written notice thereof to Shipper within ten (10) Business Days after LMM receives Shipper’s written information and request to increase the MDQ or at any time if Shipper does not give LMM such written information and request. If LMM determines that additional facilities will need to be constructed to increase the MDQ, then LMM shall deliver an Expansion Proposal (as defined in Section 2.6(a)) within thirty (30) Days of the date on which LMM was to have delivered written notice of the exercise of its option to increase the MDQ and thereafter, such Expansion Proposal will be subject to the terms of Section 2.6 and the applicable Project shall be deemed complete and the remaining drilling shall be deemed to be a new Project (as defined in Section 2.6(a)). If LMM exercises this option, then this Agreement shall be unilaterally amended by LMM to increase the MDQ by the Excess Quantity effective LMM the date LMM completes all facilities necessary to Gather the Excess Quantity on a Guaranteed Capacity basis. If LMM declines to exercise this option after receiving Shipper’s written information and request to increase the MDQ the Excess Quantity shall be released from dedication to LMM for Gathering under this Agreement.