Seller's Reservations/Gas Warranties. Seller reserves the following rights and reasonable quantities of Gas to satisfy same ("Seller's Reservations"): (i) to operate the Committed Reserves as a reasonably prudent operator; provided, in the event Seller should commence Gas flow from a new well, or the repair, reworking, or plugging of any well, notice of same shall be given to Buyer no later than five Business Days prior thereto, (ii) to separate or process the Gas using only mechanical, ambient temperature equipment located at surface production facilities on the Subject Leases, (iii) to use Gas produced from the Subject Leases for operating the Subject Leases, and (iv) to pool, communitize or unitize the Subject Leases, in which event this Agreement shall cover Seller's Interest therein. Seller covenants and warrants to Buyer that Gas delivered shall meet the Specifications. Seller shall indemnify, defend and hold harmless Buyer from any and all Claims, including all Claims for punitive, exemplary, treble, incidental, consequential and indirect damages, lost profits or other business interruption damages, arising from or out of a breach of the foregoing covenant and warranty, without regard to the causes related thereto, including the negligence of Buyer or any other party, whether such negligence be sole, joint or concurrent, or active or passive.
Appears in 4 contracts
Samples: Gas Purchase Agreement, Gas Purchase Agreement, Gas Purchase Agreement
