Operational Reservations Clause Samples

Operational Reservations. Seller reserves unto itself, its successors, assigns and Affiliates the following rights and quantities of Gas sufficient to satisfy such rights: (a) To operate Seller's leaseholds, lands and/or interests therein, free from any control by Buyer, in such manner as Seller deems advisable for the development and operation of Seller's leases (or on any unit, including, without limitation, field-wide units), including the right (but never the obligation) to drill new wells, enhance production, to repair and rework Seller's Wells, ▇▇ ▇enew and extend (in whole or in part) any lease, t▇ ▇▇andon any well or surrender any lease (in whole or in part) for any reason, to abandon, modify, extend or dispose of any production facilities owned or installed (in whole or in part) by Seller, to treat Gas, to use Gas as compressor fuel, to use Gas to generate power in connection with leasehold operations, to lift oil by repressuring, recycling or pressure maintenance operations, and to otherwise operate such leases and fields free from any control by Buyer. (b) To deliver Gas in quantities sufficient to fulfill Seller's royalty or lease obligations from time to time, Seller's agreements for easements, unit agreements, unit operating agreements, operating agreements or any similar agreements affecting Seller's Wells. (c) To remove from its Gas all liquids, liquefiab▇▇ ▇▇drocarbons, oil and/or condensate by (i) lease separation and/or processing in a plant prior to delivery at the Delivery Point(s), (ii) lease separation and/or processing in a plant after the Delivery Point, but prior to delivery of the residue Gas to Buyer, if the leases from which Committed Gas is being produced, as of the Effective Date, are committed, dedicated or otherwise burdened by obligations to deliver such Gas for processing (a list of contracts evidencing such obligations being attached hereto as Schedule 3.6), and (iii) lease separation and/or processing of Gas downstream of the Delivery Point from sources of supply that have been acquired by Seller after the Effective Date, provided that (A) any available residue Gas is delivered to Buyer at the tailgate of the relevant plant and (B) (x) at the time of the closing of the acquisition, the acquired source of supply or any part thereof to the extent that such source of supply or part thereof was committed, dedicated or otherwise burdened by obligations to deliver such Gas for processing, or (y) negotiations for a contract evidencing obligations of th...