Common use of Provider’s Discretion to Operate TGP System; Bypass; Ethane Recovery Clause in Contracts

Provider’s Discretion to Operate TGP System; Bypass; Ethane Recovery. Provider shall have sole and exclusive control, management, and operational discretion in operating the TGP System. Notwithstanding the foregoing: (a) Any decision by Provider to curtail or Bypass any System Services hereunder (other than such a decision made pursuant to Section 3.4(b)), or alter the recovery parameters of the processing train, shall be undertaken in the manner set forth in the Operating Terms. TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). (b) Customer shall have the option, at any time during the Term, to request that all or a portion of the Customer Gas Bypass certain System Services in order for Customer to meet its obligations under contractual requirements with a Downstream Facility. To the extent that such request would not, in Provider’s sole discretion, be reasonably likely to (i) cause Provider to not be able to deliver the System Services hereunder in accordance with this Agreement, (ii) cause Provider, or the TGP System, to be unable to comply with any applicable Law, or (iii) cause any adverse effect on Provider, the TGP System or any other asset of Provider, then, in such case, Provider shall consider such request and use its good faith efforts to implement such request. (c) The base operating mode of the Plant will be “Ethane Recovery Mode”, for the separate recovery of ethane from the Gas and Injected NGL stream. If Provider, in its sole discretion, believes that operating in Ethane Recovery Mode would be reasonably likely to (w) cause Provider to not be able to deliver the System Services hereunder in accordance with this Agreement, (x) cause Provider, or the TGP System, to be unable to comply with any applicable Law, (y) cause any adverse effect on Provider, the TGP System or any other asset of Provider, or (z) result in Customer Residue Gas (other than any Customer Residue Gas constituting System Fuel and Losses) failing to meet any quality specifications of any Downstream Facility, then, in any such case, Provider may cause the Plant to operate in “Ethane Rejection Mode”. Should Provider intend to cause the Plan to operate in Ethane Rejection Mode pursuant to the preceding sentence, Provider shall give Customer written Notice of such desire as soon as is reasonably practicable following such determination.

Provider’s Discretion to Operate TGP System; Bypass; Ethane Recovery. Provider shall have sole and exclusive control, management, and operational discretion in operating the TGP System. Notwithstanding the foregoing: (a) Any decision by Provider to curtail or Bypass any System Services hereunder (other than such a decision made pursuant to Section 3.4(b)), or alter the recovery parameters of the processing train, shall be undertaken in the manner set forth in the Operating Terms. TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**). (b) Customer shall have the option, at any time during the Term, to request that all or a portion of the Customer Gas Bypass certain System Services in order for Customer to meet its obligations under contractual requirements with a Downstream Facility. To the extent that such request would not, in Provider’s sole discretion, be reasonably likely to (i) cause Provider to not be able to deliver the System Services hereunder in accordance with this Agreement, (ii) cause Provider, or the TGP System, to be unable to comply with any applicable Law, or (iii) cause any adverse effect on Provider, the TGP System or any other asset of Provider, then, in such case, Provider shall consider such request and use its good faith efforts to implement such request. (c) The base operating mode of the Plant will be “Ethane Recovery Mode”, for the separate recovery of ethane from the Gas and Injected NGL stream. If Provider, in its sole discretion, believes that operating in Ethane Recovery Mode would be reasonably likely to (w) cause Provider to not be able to deliver the System Services hereunder in accordance with this Agreement, (x) cause Provider, or the TGP System, to be unable to comply with any applicable Law, (y) cause any adverse effect on Provider, the TGP System or any other asset of Provider, or (z) result in Customer Residue Gas (other than any Customer Residue Gas constituting System Fuel and Losses) failing to meet any quality specifications of any Downstream Facility, then, in any such case, Provider may cause the Plant to operate in “Ethane Rejection Mode”. Should Provider intend to cause the Plan to operate in Ethane Rejection Mode pursuant to the preceding sentence, Provider shall give Customer written Notice of such desire as soon as is reasonably practicable following such determination. TERMS IN THIS EXHIBIT HAVE BEEN REDACTED BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION, AND THE TERMS HAVE BEEN MARKED AT THE APPROPRIATE PLACE WITH TWO ASTERISKS (**).