Third Party Operations Gas Clause Samples

Third Party Operations Gas. Third Party Operations Gas" means Seller's or Seller Affiliates' gas production that from time to time ▇▇▇▇▇▇ ▇▇▇ determine can be more efficiently sold to an operator or a marketing affiliate of an operator in the field or offshore block from which such gas is produced or in other fields or blocks in the vicinity thereof because of arrangements between such operator and Seller or Seller Affiliate, which would result in reduced cost of operations or more efficient development of Seller's properties in the field or offshore block. Gas commitments which Seller considers Third Party Operations Gas as of the Effective Date are listed on Exhibit B. Seller shall give Purchaser at least five (5) Business Days advance notice before Seller or Seller Affiliate acts on any such determination under this Section 2.2.6 by entering into any facilities sharing agreement, processing, gathering or compression agreement or the like with such operator. The notice shall (i) describe all of the terms of Seller's or Seller Affiliate's proposed agreements with such operator or operator's affiliate and (ii) quantify any royalty, gathering, treating, processing, or other operating cost savings and the value to Seller or Seller Affiliate of any efficiencies that can be achieved through the sale of gas to the operator or operator's affiliate. The gas covered by Seller's notice will remain Committed Gas if, but only if, within five (5) Business Days after receipt of Seller's notice, Purchaser agrees in writing that, for the longest term provided in any of the agreements with the operator and/or operator's affiliate, Purchaser will reimburse Seller's or Seller Affiliate's additional costs and/or adjust the price for the gas so that the net revenues received by Seller or Seller's Affiliate through sale of the gas to Purchaser are equal to the sum of the net revenues Seller or Seller's Affiliate would have received through the proposed sale to operator or operator's affiliate plus the value to Seller or Seller Affiliate of the additional efficiencies shown on Seller's notice.