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.

Appears in 4 contracts

Samples: Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.), Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.), Anchor Shipper Gas Gathering Agreement for Northern Pennsylvania (Epsilon Energy Ltd.)

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