Method of Selecting Receipt Points and Construction of Initial Build Laterals Sample Clauses

Method of Selecting Receipt Points and Construction of Initial Build Laterals. At any time during the Term, either of the Preferential Capacity Shippers may designate a Receipt Point up to the collective number of Receipt Points identified on Exhibit C in the governmental sections within the Committed Area from which Gatherer will receive Shipper Gas (“Receipt Points”). Upon Gatherer’s receipt of such Preferential Capacity Shipper’s written notice designating such Receipt Points and the designated operator of such Receipt Points (the “Receipt Point Notice”), Gatherer shall commence and diligently acquire the necessary rights-of-way and permits in order to construct the lateral Gathering pipelines to connect the designated Receipt Points (the “Initial Build Laterals” as further defined in the General Terms and Conditions) and will use its best efforts to have the applicable Receipt Point and Initial Build Lateral operational and ready to receive Gas (the “Service Date”) on the date that is ninety (90) days from Gatherer’s receipt of such Preferential Capacity Shipper’s notice If Gatherer is unable to complete the Receipt Point by the Service Date, then the provisions of Section 5.3 (a) and (b) are applicable to the Receipt Point and Initial Build Laterals in accordance with Exhibit D. Gatherer and the Preferential Capacity Shippers have agreed the initial Build Laterals that extend off the Core Lines consist of 6” pipelines. The Initial Build Laterals include a total of 62 miles of six-inch diameter pipeline as detailed in Exhibits B and C. Anytime on or before May 1, 2011, the Preferential Capacity Shippers may elect to utilize up to 62 miles of six-inch diameter pipe in an alternate fashion than as that initially designed, as long as the total mileage of six inch pipe used by the Preferential Capacity Shippers collectively does not exceed 62 miles. The 62 miles of six-inch diameter pipeline maximum is exclusive of: (i) Red River bores; (ii) city limit pipelines assuming designated Receipt Point locations are within a city limit; and (iii) any laterals, Trunk Lines, flow lines and facilities required under Section 6 of this Agreement and (iv) any laterals, Trunk Lines, flow lines and facilities required under Section 7 of this Agreement If more than 62 miles of six-inch diameter pipelines are required by the Preferential Capacity Shippers for Initial Build Laterals, then such laterals will be completed under the provisions provided in Section 7.