Common use of Residue Gas Allocable to Seller Clause in Contracts

Residue Gas Allocable to Seller. The MMBtu’s of “residue gas allocable to Seller” will be determined by multiplying the MMBtu’s of “residue gas available for sale” from Buyer’s Facilities by a fraction. The numerator will be the “theoretical MMBtu’s of residue gas remaining from Seller’s gas” delivered by Seller, and the denominator will be the total of the theoretical MMBtu’s of residue gas remaining from all gas delivered to Buyer from the common sources connected to Buyer’s Facilities. “Residue gas available for sale” means all residue gas available from Buyer’s Facilities, net of residue gas required for the operation of Buyer’s Facilities. The “theoretical MMBtu’s of residue gas remaining from Seller’s gas” means the sum of the MMBtu’s of methane and heavier hydrocarbons contained in Seller’s gas as determined by chromatographic analysis or other accepted method in the industry, less the MMBtu’s of NGL’s saved and sold attributable to Seller’s gas. For any gas delivered initially into a high-pressure gathering system, unless subarea allocations to low pressure sources or other methods are used, Seller’s theoretical MMBtu’s of residue gas remaining shall be adjusted upward by four percent (4%) to recognize the fuel economies realized by Buyer’s avoidance of compression for these high pressure deliveries.

Residue Gas Allocable to Seller. (i) The MMBtu’s MMBtus of “residue gas Residue Gas allocable to Seller” will be determined by multiplying the MMBtu’s MMBtus of “residue gas available for saleResidue Gas available” from Buyer’s Facilities by a fraction. The numerator will be the “theoretical MMBtu’s MMBtus of residue gas Residue Gas remaining from Seller’s gas” delivered by Seller, and the denominator will be the total of the theoretical MMBtu’s MMBtus of residue gas Residue Gas remaining from all gas delivered to Buyer from the common sources connected to Buyer’s Facilities. “Residue gas available for saleGas available” means all residue gas remaining Residue Gas available from Buyer’s Facilities, net of residue gas required used for the operation of Buyer’s Facilities (including gathering and plant fuel use and lost/unaccounted for volumes), and net of the gas MMBtu equivalent fuel used in any electricity driven compression included in Buyer’s Facilities. The “theoretical MMBtu’s Theoretical MMBtus of residue gas Residue Gas remaining from Seller’s gas” means the sum of the MMBtu’s MMBtus of methane and heavier hydrocarbons contained in Seller’s gas as gas, determined by chromatographic analysis or other accepted method in the industry, less the MMBtu’s MMBtus of NGL’s saved and sold recovered NGLs attributable to Seller’s gas. For any gas delivered initially into a high-pressure gathering system, unless subarea allocations to low pressure sources or other methods are used, Seller’s theoretical MMBtu’s of residue gas remaining shall be adjusted upward by four percent (4%) to recognize the fuel economies realized by Buyer’s avoidance of compression for these high pressure deliveries.