Common use of Shipper’s Reservations Clause in Contracts

Shipper’s Reservations. Shipper reserves the following rights with respect to Dedicated Production for itself and for the operator of the relevant Dedicated Properties: (a) to operate Xxxxx producing Dedicated Production as a reasonably prudent operator in its sole discretion, including the right, but never the obligation, to drill new Xxxxx, to repair and rework old Xxxxx, to renew or extend, in whole or in part, any Oil and Gas Interest covering any of the Dedicated Properties, and to cease production from or abandon any Well or surrender any such Oil and Gas Interest, in whole or in part, when no longer deemed by Shipper to be capable of producing Production in paying quantities under normal methods of operation; (b) to use Dedicated Production for operations (including reservoir pressure maintenance and drilling or fractionation fuel); (c) to deliver or furnish to Shipper’s lessors and holders of other existing similar burdens on production such Production as is required to satisfy the terms of the applicable leases or other applicable instruments; (d) to acquire Xxxxx connected to existing gathering systems and to continue to deliver to such gathering systems Production produced from such Xxxxx, provided that, to the extent that Production from such Xxxxx constitutes Dedicated Production, Shipper delivers a Connection Notice to Gatherer with respect to any such Well not later than 30 Days after its acquisition and thereafter delivers Production to such gathering system only until Gatherer has connected such Well to the Gathering System in accordance with Section 3.3; (e) to pool, communitize, or unitize Shipper’s Oil and Gas Interests with respect to Dedicated Production, provided that the share of Production produced from such pooled, communitized, or unitized Oil and Gas Interests shall be committed and dedicated to this Agreement; and (f) to gather Liquid Hydrocarbons produced from the Marcellus formation in trucks.

Shipper’s Reservations. Shipper reserves the following rights with respect to respecting Dedicated Production Gas for itself and for the operator of the relevant Dedicated Properties: (a) subject to Section 3.4 and Section 3.5, to treat, compress, dehydrate, process, gather through High Pressure gathering systems, and transport Dedicated Gas, and to commit Dedicated Gas to third parties for treatment, compression, dehydration, processing, High Pressure gathering, and transportation, excepting only gathering through a Low Pressure gathering system (provided that the Dedicated Gas produced from the Elk Area shall not be subject to the reservation relating to High Pressure gathering systems, it being understood that such Dedicated Gas shall be gathered through the Elk Lateral) and compression through the System Compressor Stations; (b) to operate Xxxxx producing Dedicated Production Gas as a reasonably prudent operator in its sole discretion, including the right, but never the obligation, to drill new Xxxxx, to repair and rework old Xxxxx, to renew or extend, in whole or in part, any Oil oil and Gas Interest gas lease covering any of the Dedicated Properties, and to cease production from or abandon any Well or surrender any such Oil oil and Gas Interestgas lease, in whole or in part, when no longer deemed by Shipper to be capable of producing Production Gas in paying quantities under normal methods of operation; (bc) to use Dedicated Production Gas for lease operations under or pursuant to the applicable lease(s) (including reservoir pressure maintenance and drilling or fractionation fuelmaintenance); (cd) to deliver or furnish to Shipper’s lessors and holders of other existing similar burdens on production such Production Gas as is required to satisfy the terms of the applicable leases or other applicable instruments; (de) to acquire Xxxxx producing xxxxx connected to existing gathering systems and to continue to deliver to such gathering systems Production Gas produced from such Xxxxxxxxxx, provided that, to the extent that Production Gas from such Xxxxx xxxxx constitutes Dedicated ProductionGas, Shipper delivers a Connection Notice to Gatherer with respect to any such Well well not later than 30 Days days after its acquisition and thereafter delivers Production Gas to such gathering system only until Gatherer has connected such Well well to the Gathering System in accordance with Section 3.3; , and (ef) to pool, communitize, or unitize Shipper’s Oil and Gas Interests interests with respect to Dedicated ProductionGas, provided that the share of Production Gas produced from such pooled, communitized, or unitized Oil and interests attributable to Dedicated Gas Interests shall be committed and dedicated to this Agreement; and (f) to gather Liquid Hydrocarbons produced from the Marcellus formation in trucks.