Sleeve Transactions. (i) Party B shall have the right to obtain price quotes from third parties for physically settled Gas purchase transactions where Party B would be the buyer of Gas, Gas Swaps where Party B would be the fixed price payer and basis swaps. Party B may request that Party A enter into any such purchase transaction or Gas Swap with any such third party on the price and, with respect to physical purchase transactions, delivery terms negotiated by Party B; provided, however, that Party A shall be under no obligation to enter into any such transaction with a third party unless Party A is satisfied with such transaction and such third party, in each case as determined by Party A in its sole discretion; and, provided, further, that (A) Party A shall not be obligated in any case to enter into any such third party transactions if the aggregate actual and notional quantities of Gas to be delivered under all such outstanding third party transactions exceed (x) 15bcf in the initial Contract Year, and (y) for each subsequent Contract Year, 25% of the aggregate quantity of Gas delivered to Party B in the prior Contract Year pursuant to the terms of this Agreement, as determined by Party A, and (B) no such third party transaction may have a delivery period, calculation period or settlement date that occurs after the date that is 12 months prior to the maturity date of the Notes. Notwithstanding the foregoing, Party B will not request that Party A enter into any transaction with a third party in respect of any financially settled Option Transaction.
