Lease Connection Expenses Clause Samples

Lease Connection Expenses. The Partnership Entities shall construct and add such new lease connection pipelines to the Crude Oil Gathering Pipelines as requested by the ▇▇▇▇▇ Entities; provided, however, that the obligation of the Partnership Entities to construct and add such new lease connection pipelines shall be limited to $250,000 per calendar year. In the event the ▇▇▇▇▇ Entities request that the Partnership Entities construct new lease connection pipelines in excess of $250,000 per calendar year, then the Partnership Entities will be reimbursed for costs and expenses incurred by them in excess of $250,000 per calendar year as follows: (i) At the end of each calendar year beginning in 2009 and in each subsequent year, the Partnership Entities will calculate the total lease connection expansion capital spent in the prior calendar year and subtract $250,000 (such difference, the “Incremental Capital”). The Partnership Entities shall use the Incremental Capital to calculate a monthly fee (the “Capital Fee”) to provide the Partnership Entities with a simple 15% return calculated over a seven year period. The Capital Fee shall be charged to the ▇▇▇▇▇ Entities over a seven year period commencing January 1st of the year following the calendar year in which such Incremental Capital was incurred by the Partnership Entities. The Capital Fee is in addition to the previous agreed gathering fee set forth on Exhibit B. (ii) The Partnership Entities shall provide the ▇▇▇▇▇ Entities with written notice of their calculation of the Incremental Capital and the Capital Fee (the “Capital Calculation Notice”), as well as supporting documentation, by no later than 30 days following the end of a calendar year. (iii) If the ▇▇▇▇▇ Entities disagree with the Partnership Entities’ calculation of the Incremental Capital or Capital Fee, then the ▇▇▇▇▇ Entities shall send written notice thereof to the Partnership Entities and a senior officer of ▇▇▇▇▇ (on behalf of the ▇▇▇▇▇ Entities) and a senior officer of the Partnership (on behalf of the Partnership Entities) shall meet or communicate by telephone at a mutually acceptable time and place, and thereafter as often as they reasonably deem necessary and shall negotiate in good faith to attempt to resolve any differences that they may have with respect to the calculation of the Incremental Capital or the Capital Fee. During the 30-day period following the Partnership Entities’ delivery to the ▇▇▇▇▇ Entities of the Capital Calculation Notice, the ▇▇▇▇▇ Entitie...