Common use of Options to Compress Clause in Contracts

Options to Compress. If Seller’s Xxxxx become incapable of delivering gas into Buyer’s Facilities, neither party will be obligated to compress, but either party will have the option to do so. If neither party elects to compress within a reasonable time after the need for compression appears, Buyer upon written request of Seller will either arrange promptly to provide compression or as Seller’s sole remedy, release the affected gas sources as to the then-producing formations from commitment under this Contract. If Buyer provides additional compression, the price to be paid by Buyer for Seller’s gas shall be reduced by a reasonable compression fee that allows recovery of the related fuel and provides Buyer a reasonable return on investment. C. RESERVATIONS C.1

Appears in 2 contracts

Samples: Gas Purchase Contract (Pedevco Corp), Gas Purchase Contract (Pedevco Corp)

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Options to Compress. If Seller’s Xxxxx 's xxxxx become incapable of delivering gas into Buyer’s 's Facilities, neither party will be obligated to compress, but either party will have the option to do so. If neither party elects to compress within a reasonable time after the need for compression appears, Buyer upon written request of Seller will either arrange promptly to provide compression or as Seller’s 's sole remedy, release the affected gas sources as to the then-producing formations from commitment under this Contract. If Buyer provides additional compression, the price to be paid by Buyer for Seller’s 's gas shall be reduced by a reasonable compression fee that allows recovery of the related fuel and provides Buyer pravidec Bayer a reasonable return on investment. C. RESERVATIONS C.1C.

Appears in 1 contract

Samples: Gas Purchase Contract (Starboard Resources, Inc.)

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Options to Compress. If Seller’s Xxxxx xxxxx become incapable of delivering gas into Buyer’s Facilities, neither party will be obligated to compress, but either party will have the option to do so. If neither party elects to compress within a reasonable time after the need for compression appears, Buyer upon written request of Seller will either arrange promptly to provide compression or as Seller’s sole remedy, release the affected gas sources as to the then-producing formations from commitment under this Contract. If Buyer provides additional compression, the price to be paid by Buyer for Seller’s gas shall be reduced by a reasonable compression fee that allows recovery of the related fuel and provides Buyer a reasonable return on investment. C. RESERVATIONS C.1.

Appears in 1 contract

Samples: Gas Purchase Contract (Cano Petroleum, Inc)

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