RESERVE DEDICATION. 2.1 Subject to the provisions of Sections 2.3, 2.4 and 2.5 of this Agreement, Shipper hereby agrees to deliver into and transport through Transporter's Facility all natural gas produced by or for the account of Shipper from the Committed Field(s) for the economic life of the Committed Field(s). 2.2 In the event Shipper should transfer or assign any or all of its rights, title and/or interest in the Committed Field(s), Shipper agrees that any such transfer or assignment will be made subject to the terms of this Agreement, it being the intent of the parties hereto that the Committed Field(s) remain dedicated for purposes of transportation to Transporter's Facility for the economic life of the Committed Field(s). All of the provisions of this Agreement shall be applicable to assignees of Section 2.2 - (cont'd) Shipper's interests in the Committed Field(s) and such assignees shall receive a proportionate assignment of the rights and obligations hereunder with respect to the Committed Field(s) so assigned, to the extent that such assignee satisfies the requirements of Section 6.3 of Transporter's Rate Schedules FT-1, FT-2 or IT-1, as applicable. Upon such assignment, Shipper shall be relieved of its obligations under this Agreement to the extent, and only to the extent, so assigned to a third party. 2.3 From the obligations in Section 2.1, Shipper expressly reserves unto itself, its successors and assigns, the following rights and quantities of production sufficient to satisfy such rights: (a) The right to operate the Committed Field(s) free from any control by Transporter including, without limitation, the right (but never the obligation) to drill new xxxxx, to repair and rework old xxxxx, to plug and abandon any well and to renew, surrender, release or terminate any lease (in whole or in part) covering the affected lands; (b) The right to deliver production to lessors of leases on such lands in quantities sufficient to fulfill lease obligations from time to time, including the right to take royalty in kind; (c) The rights to use production for development and operations of such lands, including (but not limited to) the use of gas for fuel, drilling (including gas drilling), deepening, reworking, compressing, gas lifting, processing, treating, cycling, repressuring or other supplemental recovery operations; and (d) To process gas for the extraction of any components other than methane contained therein, except for such methane reasonably removed in such processing. 2.4 Temporary Release (a) Shipper shall be released from its obligations under Section 2.1 with respect to any quantities of Shipper's production from the Committed Field(s) in excess of the capacity available on Transporter's Facility (i) under Shipper's existing Transportation Service Agreement(s),
Appears in 1 contract
Samples: Reserve Commitment Agreement
RESERVE DEDICATION. 2.1 Subject to the provisions of Sections 2.3, 2.4 and 2.5 of this Agreement, Shipper hereby agrees to deliver into and transport through Transporter's Facility all natural gas produced by or for the account of Shipper from the Committed Field(sBlock(s) for the economic life of the Committed Field(sBlock(s).
2.2 In the event Shipper should transfer or assign any or all of its rights, title and/or interest in the Committed Field(sBlock(s), Shipper agrees that any such transfer or assignment will be made subject to the terms of this Agreement, it being the intent of the parties hereto that the Committed Field(sBlock(s) remain dedicated for purposes of transportation to Transporter's Facility for the economic life of the Committed Field(sBlock(s). All of the provisions of this Agreement shall be applicable to assignees of Section 2.2 - (cont'd) Shipper's interests in the Committed Field(sBlock(s) and such assignees shall receive a proportionate assignment of the rights and obligations hereunder with respect to the Committed Field(sBlock(s) so assigned, to the extent that such assignee satisfies the requirements of Section 6.3 of Transporter's Rate Schedules FT-1, FT-2 or IT-1, as applicable. Upon such assignment, Shipper shall be relieved of its obligations under this Agreement to the extent, and only to the extent, so assigned to a third party.
2.3 From the obligations in Section 2.1, Shipper expressly reserves unto itself, its successors and assigns, the following rights and quantities of production sufficient to satisfy such rights:
(a) The right to operate the Committed Field(sBlock(s) free from any control by Transporter including, without limitation, the right (but never the obligation) to drill new xxxxx, to repair and rework old xxxxx, to plug and abandon any well and to renew, surrender, release or terminate any lease (in whole or in part) covering the affected lands;
(b) The right to deliver production to lessors of leases on such lands in quantities sufficient to fulfill lease obligations from time to time, including the right to take royalty in kind;; and
(c) The rights to use production for development and operations of such lands, including (but not limited to) the use of gas for fuel, drilling (including gas drilling), deepening, reworking, compressing, gas lifting, processing, treating, cycling, repressuring or other supplemental recovery operations; and
(d) To process gas for the extraction of any components other than methane contained therein, except for such methane reasonably removed in such processing.
2.4 Temporary Release
(a) Shipper shall be released from its obligations under Section Section
2.1 with respect to any quantities of Shipper's production from the Committed Field(sBlock(s) in excess of the capacity available on Transporter's Facility (i) under Shipper's existing Transportation Service Agreement(s),, (ii) under Rate Schedule IT-1 and (iii) for commitment to firm service (referred to herein as "Excess Deliverability"). In the event of Excess Deliverability, Shipper shall be released from its obligations under Section 2.1 with respect to the Impacted Quantities (as defined in subsection 2.4(c)) pursuant to the provisions of subsection 2.4(d).
(b) Shipper shall be released from its obligations under Section
2.1 with respect to any quantities of Shipper's production from the Committed Block(s) up to the MDQ under Shipper's existing FT-1 or FT-2 Transportation Service Agreement(s) that Transporter is unable to accept for transportation (referred to herein as "Transporter Inability"). In the event of Transporter Inability, Shipper shall be released from its obligations under Section 2.1 with respect to the Impacted Quantities (as defined in subsection 2.4(c)) pursuant to the provisions of subsection 2.4(d).
(c) For purposes of Sections 2.4 and 2.5, Impacted Quantities shall mean those quantities of Shipper's production from the Committed Block(s) in excess of the combined quantities that Transporter could transport for Shipper, on a firm or interruptible basis. The Impacted Quantities shall be deemed to be the last quantities produced, so that any release under Section 2.4 or 2.5 is applicable only to the daily production quantity in excess of the quantity that Transporter is able to accept into Transporter's Facility on a given day.
(d) Shipper and Transporter shall discuss the cause and anticipated duration of any Transporter Inability or Excess Deliverability. Shipper will limit any commitment it makes to third parties to deliver the Impacted Quantities released under this Section 2.4 for a period to coincide with the anticipated duration of the Transporter Inability or Excess Deliverability; provided that in no event will the Impacted Quantities be returned for transportation under an FT-1, FT-2 or IT-1 Transportation Service Agreement later than the first day of the calendar month following thirty (30) days after receipt by Shipper of Transporter's notice that it is able to accept the Impacted Quantities tendered by Shipper.
(e) Shipper shall be released from its obligations under Section
2.1 with respect to any quantities of Shipper’s production from the Committed Block(s) up to the MDQ under Shipper’s existing FT-2 Transportation Service Agreement(s) as long as Shipper's Affiliate has Transporter transport the production under an FT-2 Service Agreement for the Affiliate; provided, however, that: (1) the Affiliate remains the exclusive Shipper having Transporter transport gas produced by Shipper from the Committed Block(s); and (2) the Affiliate has Transporter transport only gas produced by Shipper from the Committed Block(s).
Appears in 1 contract
Samples: Reserve Commitment Agreement
RESERVE DEDICATION. 2.1 Subject to the provisions of Sections 2.3, 2.4 and 2.5 of this Agreement2.5, Shipper Xxxxxxx hereby agrees to deliver into and transport through Transporter's Facility pipeline facilities under a Transportation Agreement under Rate Schedule FT-2, "FT-2 Agreement," or under Rate Schedule FT-1, "FT-1 Agreement" between Shipper and Transporter all natural gas produced by or for the account of Shipper Shipper, or any affiliate of Shipper, from the Committed Field(sLease(s) for the economic producible life of the Committed Field(sLease(s).
2.2 (a) In the event Shipper should transfer or assign any or all of its rights, title and/or interest in the Committed Field(sLease(s), Shipper Xxxxxxx agrees that (i) it shall notify Transporter in writing of its intent of such assignment as soon as practicable and (ii) any such transfer or assignment will be made subject to the terms of this Agreement, it being the intent of the parties hereto subject to the provisions of Article V and this Article II, that the Committed Field(sLease(s) remain dedicated for purposes of transportation under Rate Schedule FT-2, and/or Rate Schedule FT-1, to Transporter's Facility pipeline facilities for the economic producible life of the Committed Field(sLease(s). All of the provisions of this Agreement shall be applicable to assignees of Section 2.2 - (cont'd) ShipperXxxxxxx's interests in the Committed Field(s) Lease(s), and such assignees shall receive a proportionate assignment of the rights and obligations hereunder with respect to the Committed Field(sLease(s) so assigned, to the extent that such assignee satisfies the requirements of Section 6.3 of Transporter's Rate Schedules FT-1, FT-2 or IT-1, as applicable. Upon such assignment, Shipper Xxxxxxx shall be relieved of its obligations under this Agreement to the extent, and only to the extent, so such obligations are assigned to a third party.
2.3 From the obligations in Section 2.1, Shipper expressly reserves unto itself, its successors and assigns, the following rights and quantities of production sufficient to satisfy such rights:
(a) The right to operate the Committed Field(s) free from any control by Transporter including, without limitation, the right (but never the obligation) to drill new xxxxx, to repair and rework old xxxxx, to plug and abandon any well and to renew, surrender, release or terminate any lease (in whole or in part) covering the affected lands;
(b) The right to deliver production to lessors of leases on such lands in quantities sufficient to fulfill lease obligations from time to time, including the right to take royalty in kind;
(c) The rights to use production for development and operations of such lands, including (but not limited to) the use of gas for fuel, drilling (including gas drilling), deepening, reworking, compressing, gas lifting, processing, treating, cycling, repressuring or other supplemental recovery operations; and
(d) To process gas for the extraction of any components other than methane contained therein, except for such methane reasonably removed in such processing.
2.4 Temporary Release
(a) Shipper shall be released from its obligations under Section 2.1 entitled to unitize any Committed Lease(s) with respect to any quantities of Shipper's production from the Committed Field(s) in excess of the capacity available on Transporter's Facility (i) under Shipper's existing Transportation Service Agreement(s),one or more
Appears in 1 contract
Samples: Reserve Commitment Agreement
