Common use of Non-Conforming Gas Clause in Contracts

Non-Conforming Gas. If all or a portion of the Gas delivered by Shipper fails to meet any of the Gas Quality Specifications (“Non-conforming Gas”), then Gatherer may, at its option: (a) continue to temporarily receive such Non-conforming Gas or (b) discontinue receipt of such Non-conforming Gas. If Gatherer knowingly, based on Gatherer’s tests or notification from Shipper, elects to continue to receive Non-conforming Gas, the election will not be deemed as a waiver of its right to discontinue receipt of such Non-conforming Gas at any time in the figure, however, Gatherer shall indemnify and hold harmless Shipper for any costs, expenses, losses, damages and liabilities arising out of such accepted Non-conforming Gas. If Gatherer’s tests do not reveal the presence of Non-conforming Gas and Gatherer is otherwise unaware that Gatherer is receiving Non-conforming Gas, then Shipper will be liable to Gatherer for any costs, expenses, losses, damages and liabilities arising from Shipper’s Non-conforming Gas.