PETRO-TECHNICAL SERVICES AGREEMENT, DATED AS OF FEBRUARY 17, 2011 BETWEEN ATLAS ENERGY, INC. AND ATLAS PIPELINE HOLDINGS, L.P. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED, AS MARKED BY THREE ASTERISKS (***), BECAUSE CONFIDENTIAL TREATMENT FOR...
Exhibit 10.5
PETRO-TECHNICAL SERVICES AGREEMENT, DATED AS OF FEBRUARY 17, 2011 BETWEEN ATLAS ENERGY, INC. AND
ATLAS PIPELINE HOLDINGS, L.P. SPECIFIC TERMS IN THIS EXHIBIT HAVE BEEN REDACTED, AS MARKED BY THREE
ASTERISKS (***), BECAUSE CONFIDENTIAL TREATMENT FOR THOSE TERMS HAS BEEN REQUESTED. THE REDACTED
MATERIAL HAS BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
[Redacted Copy]
Specific
terms in this exhibit have been redacted, as marked by three asterisks (***), because
confidential
treatment for those terms has been requested. The redacted material has been separately filed with the
Securities and Exchange Commission.
treatment for those terms has been requested. The redacted material has been separately filed with the
Securities and Exchange Commission.
Exhibit 10.5
Execution Version
BY AND AMONG
ATLAS ENERGY, INC.
AND
ATLAS PIPELINE HOLDINGS, L.P.
DATED AS OF FEBRUARY 17, 2011
ARTICLE I DEFINITIONS |
1 | |||
Section 1.1 Definitions |
1 | |||
ARTICLE II PROVISION AND PURCHASE OF PETRO-TECHNICAL SERVICES |
3 | |||
Section 2.1 Petro-Technical Services |
3 | |||
Section 2.2 Monthly Invoices |
3 | |||
Section 2.3 Payment Disputes |
3 | |||
Section 2.4 Changes; Termination Of Services |
4 | |||
Section 2.5 Project Managers |
4 | |||
Section 2.6 Compliance with Laws and Governmental Requirements |
4 | |||
Section 2.7 Third Party Limitations |
4 | |||
ARTICLE III OPERATOR’S INSURANCE |
5 | |||
Section 3.1 Atlas’ Insurance |
5 | |||
Section 3.2 Subcontractors’ Insurance |
5 | |||
ARTICLE IV LIMITATION ON LIABILITY |
6 | |||
Section 4.1 Limitation of Liability |
6 | |||
Section 4.2 Obligation To Reperform; Liabilities |
6 | |||
Section 4.3 Indemnity |
6 | |||
Section 4.4 Exclusion of Other Remedies |
7 | |||
ARTICLE V FORCE MAJEURE |
7 | |||
Section 5.1 Force Majeure |
7 | |||
ARTICLE VI MISCELLANEOUS |
7 | |||
Section 6.1 Termination |
7 | |||
Section 6.2 Effect Of Termination On Fees And Other Provisions |
8 | |||
Section 6.3 Treatment of Confidential and Proprietary Information; Intellectual
Property Rights |
8 | |||
Section 6.4 Taxes |
9 | |||
Section 6.5 Books and Records |
9 | |||
Section 6.6 Audit Assistance |
10 | |||
Section 6.7 Notices |
10 | |||
Section 6.8 No Partnership |
11 | |||
Section 6.9 No Agency |
11 | |||
Section 6.10 Subcontractors |
11 | |||
Section 6.11 Severability |
11 |
Section 6.12 Further Assurances |
11 | |||
Section 6.13 Assignment; Successors and Assigns |
11 | |||
Section 6.14 Entire Agreement |
12 | |||
Section 6.15 Amendments |
12 | |||
Section 6.16 Third Party Beneficiaries |
12 | |||
Section 6.17 Governing Law; Jurisdiction |
12 | |||
Section 6.18 Dispute Resolution |
13 | |||
Section 6.19 Conflict of Interest |
13 | |||
Section 6.20 Headings |
13 | |||
Section 6.21 Rules of Construction |
14 | |||
Section 6.22 Counterparts |
14 | |||
SCHEDULE 1.1 PETRO-TECHNICAL XXXXX |
i | |||
SCHEDULE 2.1 PETRO-TECHNICAL SERVICES |
ii | |||
SCHEDULE 2.5 INITIAL PROJECT MANAGERS |
iii |
This PETRO-TECHNICAL SERVICES AGREEMENT, dated as of February 17, 2011 (this
“Agreement”), is by and between ATLAS ENERGY, INC., a Delaware corporation
(“Atlas”), and ATLAS PIPELINE HOLDINGS, L.P., a Delaware limited partnership
(“AHD”).
RECITALS
WHEREAS, Atlas, AHD, Atlas Energy Resources, LLC and Atlas Pipeline Holdings GP, LLC (“AHD
GP”) have entered into a Transaction Agreement, dated as of November 8, 2010 and amended as of
February 17, 2011 (as amended, modified or supplemented from time to time in accordance with its
terms, the “Transaction Agreement”);
WHEREAS, in connection with the Transaction Agreement, the Parties (as defined below) agreed
that, from and after the Closing (as defined in the Transaction Agreement), Atlas shall provide or
cause to be provided to AHD certain petro-technical services in connection with xxxxx to be drilled
and completed by AHD, in accordance with the terms and subject to the conditions set forth in this
Agreement; and
WHEREAS, the Transaction Agreement requires execution and delivery of this Agreement by Atlas
and AHD on or prior to the Closing Date (as defined in the Transaction Agreement).
NOW, THEREFORE, in consideration of the foregoing and the mutual agreements contained in this
Agreement, the Parties hereby agree as follows:
ARTICLE I
DEFINITIONS
DEFINITIONS
Section 1.1 Definitions.
(a) Unless otherwise defined in this Agreement, all capitalized terms used in this Agreement
shall have the same meaning as in the Transaction Agreement.
(b) The following capitalized terms shall have the following respective meanings when used
herein with initial capital letters:
“Agreement” has the meaning set forth in the preamble hereto.
“AHD” has the meaning set forth in the preamble hereto.
“AHD GP” meaning set forth in the recitals hereto.
“Atlas” has the meaning set forth in the preamble hereto.
“Auditing Entity” has the meaning set forth in Section 6.6.
“Cancelled Services” has the meaning set forth in Section 2.4(b).
“Confidential Information” has the meaning set forth in Section 6.3(a).
“CPR” has the meaning set forth in Section 6.18(b).
“Dispute” has the meaning set forth in Section 6.18(a).
“Due Date” has the meaning set forth in Section 2.2.
“Force Majeure” means, with respect to a Party, an event beyond the control of such
Party (or any Person acting on its behalf), which by its nature could not have been reasonably
foreseen by such Party (or such Person) or, if it could have been reasonably foreseen, was
unavoidable, and includes to the extent consistent with the foregoing: (a) lightning, storms,
earthquakes, landslides, floods, washouts and other acts of God; (b) fires, explosions, ruptures,
breakage of or accidents in or to pipeline, plant, machinery, equipment or storage facility; (c)
strikes, lockouts or other labor disturbances; (d) civil disturbances, sabotage, war (declared or
undeclared), blockades, insurrections, vandalism, riot, acts of terrorism or epidemics; (e) arrests
and restraints by governments or governmental agencies; (f) failure of energy sources or
distribution facilities; or (g) the order of any court.
“Gross Receipts Taxes” means gross receipts taxes limited to those imposed upon the
privilege of conducting business activity and excludes sales, use, value added, goods and services
and other excise fees that may be passed through to the recipient under state tax law, including
withholdings, assessments or charges imposed by any tax authority and any penalties, interest and
fines or additions attributable to or imposed on or with respect to any such assessments. The
Michigan Business Tax shall be considered a Gross Receipts Tax.
“Parties” means Atlas and AHD, and “Party” means any one of them.
“Personal Data” has the meaning set forth in Section 6.3(b).
“Petro-Technical Services” means the services set forth on Schedule 2.1.
“Petro-Technical Services Fee” has the meaning set forth in Section 2.1(d).
“Petro-Technical Xxxxx” means the xxxxx listed on Schedule 1.1 hereto and such
other additional xxxxx as the Parties may mutually agree, whereupon Schedule 1.1 shall be
amended to reflect such additional xxxxx.
“Proprietary Information” has the meaning set forth in Section 6.3(c).
“Representatives” means a Person’s Affiliates and the directors, officers, employees,
agents and advisors (including, without limitation, attorneys, accountants, consultants, bankers,
financial advisors and any representatives of those advisors) of such Person or any of its
Affiliates.
“Term” has the meaning set forth in Section 6.1.
“Transaction Agreement” meaning set forth in the recitals hereto.
2
ARTICLE II
PROVISION AND PURCHASE OF PETRO-TECHNICAL SERVICES
PROVISION AND PURCHASE OF PETRO-TECHNICAL SERVICES
Section 2.1 Petro-Technical Services.
(a) During the Term, except as terminated earlier pursuant to Section 6.1, (i) Atlas
agrees to provide the Petro-Technical Services for the Petro-Technical Xxxxx, and (ii) AHD
agrees to pay the applicable Petro-Technical Services Fee for each such Petro-Technical
Service provided.
(b) The Petro-Technical Services may be directly provided by Atlas or may be provided through
any of its Affiliates or subcontractors, and the Petro-Technical Services shall be provided
to such AHD Group member as may be designated from time-to-time by AHD.
(c) Subject to Section 2.6, all Petro-Technical Services provided by Atlas and its
Affiliates and subcontractors hereunder shall be performed using commercially reasonable
efforts, skill and judgment. Without limiting the foregoing, all Petro-Technical Services
shall be provided in a timely and professional workmanlike manner, consistent with applicable
Law and standards or principles governing the Petro-Technical Services.
(d) Atlas shall be entitled to a fee for the Petro-Technical Services it performs under this
Agreement (the “Petro-Technical Services Fee”) representing the actual costs (both
direct and incidental) incurred by Atlas, its Affiliates or subcontractors, in the
performance of the Petro-Technical Services, but in no event shall such costs exceed
market-based rates in the following geographic and surrounding areas: Pittsburgh,
Pennsylvania, as to the Petro-Technical Xxxxx located in Pennsylvania; and Traverse City,
Michigan, as to the Petro-Technical Xxxxx located outside of Pennsylvania, in each case for
the provision of the same or similar services.
Section 2.2 Monthly Invoices. Atlas shall invoice AHD on a monthly basis for all Petro-Technical
Services provided during the prior month. Such invoices shall identify the applicable
Petro-Technical Services provided for such month, on a work-order basis as set forth in
Schedule 2.1, and the Petro-Technical Services Fees payable for each such Petro-Technical
Service. All invoices shall be due and payable thirty (30) days from the date AHD receives the
applicable invoice (the “Due Date”).
Section 2.3 Payment Disputes. Payment of any invoice shall not prejudice the right of AHD to
protest or question the correctness thereof; provided however, all invoices rendered to AHD by
Atlas during any calendar year shall conclusively be presumed to be true and correct after six (6)
months following the end of any such calendar year, unless within said six (6) month period AHD
disputes any invoice or portion thereof, by providing Atlas written notice of the disputed amounts,
together with a statement of the particulars of the dispute, including the calculations with
respect to any errors or inaccuracies claimed. No adjustments favorable to AHD shall be made
unless the foregoing time requirements have been satisfied. AHD shall not be entitled to withhold
any such disputed amounts. The forgoing payment dispute and adjustment process shall be the
exclusive remedy for addressing payment disputes between the Parties.
3
Section 2.4 Changes; Termination Of Services.
(a) The Parties may, at any time during the Term, mutually agree in writing to change the
nature, extent or duration of performance of any or all Petro-Technical Services hereunder.
(b) If AHD should in its sole discretion, at any time during the Term, cease to require Atlas
or any of its Affiliates or subcontractors to undertake any part of the Petro-Technical
Services (the “Cancelled Services”), AHD may give written notice to such effect to
Atlas. Atlas and its Affiliates and subcontractors shall, as soon as reasonably practicable
following the receipt of such notice, cease to provide the Cancelled Services.
Section 2.5 Project Managers. Atlas and AHD shall each appoint an individual to act as its project
manager to deal with issues arising out of the performance of this Agreement, and such individuals
shall discuss such issues as often as reasonably necessary in order to facilitate the orderly
provision of the Petro-Technical Services by Atlas. The initial project managers are set forth on
Schedule 2.5.
Section 2.6 Compliance with Laws and Governmental Requirements. Notwithstanding anything to the
contrary in this Agreement, Atlas shall comply (and cause each Affiliate or subcontractor providing
any of the Petro-Technical Services to comply) with (i) all Laws applicable to the provision by it
(or such Affiliate or subcontractor) of the Petro-Technical Services hereunder; and (ii) the
accounting and reporting requirements of any Governmental Entity having jurisdiction over it or its
Affiliates or subcontractors with respect to their respective activities related to Atlas’ or its
Affiliates’ or subcontractors’ performance of the Petro-Technical Services.
Section 2.7 Third-Party Limitations. Each Party acknowledges and agrees that the Petro-Technical
Services provided by Atlas through third parties or using third party Intellectual Property are
subject to the terms and conditions of any applicable agreements between Atlas and such third
parties. Atlas shall use commercially reasonable efforts to (i) obtain any necessary consents from
such third parties in order to provide such Petro-Technical Services or (ii) if any such consent is
not obtained, provide acceptable alternative arrangements to provide the relevant Petro-Technical
Services sufficient for AHD’s and Resource’s purposes. All costs associated with (i) and (ii)
above shall be borne by AHD or Resources, as applicable; provided that such costs shall not
be incurred without the prior written consent (which may be provided by electronic mail) of AHD or
Resources, as applicable. If any such acceptable alternative arrangement is not reasonably
available or AHD or Resources, as applicable, does not consent in writing to pay such additional
costs, the Parties shall negotiate in good faith reasonable modifications of the Petro-Technical
Services such that such consents are not required for the performance of such affected
Petro-Technical Services or, if after such good-faith negotiation the Parties are unable to agree
upon such modifications, Atlas shall not be required to provide such Petro-Technical Service.
4
ARTICLE III
OPERATOR’S INSURANCE
OPERATOR’S INSURANCE
Section 3.1 Atlas’ Insurance. So long as Atlas is providing Petro-Technical Services under this
Agreement, Atlas shall obtain and maintain at its own expense (a) all required workmen’s
compensation insurance and comprehensive general public liability insurance in amounts and coverage
not less than $1,000,000 per person per occurrence for personal injury or death and $1,000,000 for
property damage per occurrence. Subject to the above limits, Atlas’ general public liability
insurance shall be in all respects comparable to that generally maintained in the industry with
respect to services of the type to be rendered and activities of the type to be conducted under
this Agreement. The insurance required to be provided by Atlas pursuant to this Section
3.1 shall, if permitted by such entity’s insurance carrier:
(a) name AHD and the applicable AHD Group member as additional insureds; and
(b) provide that at least thirty (30) days’ prior notice of cancellation and any other
adverse material change in the policy shall be given to AHD and the applicable AHD Group
member.
However, AHD shall, or shall cause the applicable AHD Group member to, reimburse Atlas for the
additional cost, if any, of including it as an additional insured party under Atlas’ insurance.
Current copies of all policies or certificates of Atlas’ insurance coverage shall be delivered to
AHD on request. It is understood and agreed that Atlas’ insurance coverage may not adequately
protect the interests of AHD and that AHD shall carry at its expense the excess or additional
general public liability, property damage, and other insurance, if any, as it deems appropriate.
NOTWITHSTANDING THE FOREGOING, and without limitation of the provisions set forth in Article
IV herein, Atlas may provide AHD with certification of self-insurance for the insurance and
endorsements required under this Section 3.1; provided, that none of AHD, or any applicable
AHD Group entity shall be entitled to file claims under this Agreement against Atlas’
self-insurance for any reason whatsoever.
Section 3.2 Subcontractors’ Insurance. Atlas shall require all of its subcontractors to carry all
required insurance that is otherwise required of Atlas pursuant to Section 3.1 with respect
to the Services such subcontractor is solicited to provide.
5
ARTICLE IV
LIMITATION ON LIABILITY
LIMITATION ON LIABILITY
Section 4.1 Limitation of Liability.
(a) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, (i) EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT, ATLAS MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE
PETRO-TECHNICAL SERVICES, INCLUDING THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR THAT THE PERFORMANCE OF SUCH PETRO-TECHNICAL SERVICES WILL RESULT IN
THE DISCOVERY OR PRODUCTION OF OIL AND/OR GAS IN ANY QUANTITIES, IF ANY; (ii) THE
PETRO-TECHNICAL SERVICES ARE PROVIDED ON AN “AS IS, WHERE IS” BASIS; AND (iii) THE SOLE AND
EXCLUSIVE REMEDY OF AHD IN THE EVENT OF A BREACH OF THIS AGREEMENT BY ATLAS SHALL BE (A) AS
SET FORTH IN SECTION 6.1, AND (B) THE RIGHT TO REPERFORMANCE PURSUANT TO SECTION
4.2.
(b) Notwithstanding anything to the contrary contained in the Transaction Agreement or this
Agreement, Atlas shall not be liable to AHD or any of its Representatives, whether in
contract, tort (including negligence and strict liability) or otherwise, at law or equity,
for any consequential, special or punitive damages whatsoever, which in any way arise out of,
relate to or are a consequence of, the performance or nonperformance by Atlas (including any
Representatives of Atlas and any subcontractors or third-party providers, in each case,
providing the applicable Petro-Technical Services) under this Agreement or the provision of
any Petro-Technical Services under this Agreement, including with respect to loss of profits,
business interruptions or claims of customers.
Section 4.2 Obligation To Reperform; Liabilities. In the event of any breach of this Agreement by
Atlas or any of its Affiliates or subcontractors with respect to the provision of any
Petro-Technical Services, with respect to which Atlas or such Affiliate or subcontractor can
reasonably be expected to reperform in a commercially reasonable manner, Atlas shall, and shall
cause any applicable Affiliate or subcontractor to promptly correct in all material respects such
error, defect or breach or reperform in all material respects such Petro-Technical Services at the
request of AHD and at the sole cost and expense of Atlas. Any request for reperformance in
accordance with this Section 4.2 by AHD must be in writing and specify in reasonable detail
the particular error, defect or breach, and such request must be made no more than sixty (60) days
from the date such breach occurred.
Section 4.3 INDEMNITY.
(a) AHD AGREES TO RELEASE, DISCHARGE, DEFEND, INDEMNIFY, AND HOLD HARMLESS ATLAS, ITS
AFFILIATES, AND THE EMPLOYEES AND AGENTS OF ATLAS AND ITS AFFILIATES, FROM AND AGAINST ALL
CLAIMS, CAUSES OF ACTION, LIABILITIES, PENALTIES, FINES, JUDGMENTS, PAYMENTS, DAMAGES,
LOSSES, COSTS AND EXPENSES (INCLUDING BUT NOT LIMITED TO COURT COSTS AND ATTORNEYS’ FEES AND
EXPERT WITNESS FEES, COSTS OF INVESTIGATING CLAIMS, SITE ASSESSMENTS, TESTING AND REMEDIAL
ACTIONS) INCURRED OR PAID IN CONNECTION WITH SUCH CLAIMS, ARISING FROM OR ASSOCIATED WITH
ATLAS’ ACTS, OMISSIONS, AND CONDUCT OF OPERATIONS UNDER THIS AGREEMENT. AHD’S RELEASE,
DEFENSE AND INDEMNITY OBLIGATIONS HEREUNDER APPLY WITHOUT LIMITATION TO ACTS AND OMISSIONS
OF ATLAS, ITS AFFILIATES, AND THE EMPLOYEES AND AGENTS OF ATLAS AND ITS AFFILIATES
REGARDLESS OF THE NEGLIGENCE (WHETHER SOLE, CONTRIBUTORY, COMPARATIVE, CONCURRENT, ACTIVE,
PASSIVE, SIMPLE OR GROSS), BREACH OF CONTRACT, BREACH OF WARRANTY, STRICT LIABILITY,
REGULATORY LIABILITY, STATUTORY LIABILITY, OR OTHER FAULT OR RESPONSIBILITY OF ATLAS, ITS
AFFILIATES, THE EMPLOYEES AND AGENTS OF ATLAS AND ITS AFFILIATES, OR ANY OTHER PERSON OR
PARTY.
6
(b) The provisions of this Section 4.3 will survive termination of this Agreement.
Section 4.4 Exclusion of Other Remedies. The provisions of Sections 4.2 and 4.3 of
this Agreement shall be the sole and exclusive remedies of the Parties for any claim, loss, damage,
expense or liability, whether arising from statute, principle of common or civil law, principles of
strict liability, tort, contract or otherwise under this Agreement.
ARTICLE V
FORCE MAJEURE
FORCE MAJEURE
Section 5.1 Force Majeure. Neither Party (nor any Person acting on its behalf) shall have any
liability or responsibility for failure to fulfill any obligation (other than a payment obligation)
under this Agreement so long as and to the extent to which the fulfillment of such obligation is
prevented, frustrated, hindered or delayed as a consequence of circumstances of Force Majeure;
provided, that (i) such Party (or such Person) shall have exercised commercially reasonable efforts
to minimize the effect of Force Majeure on its obligations; and (ii) the nature, quality and
standard of care that Atlas shall provide in delivering a Petro-Technical Service after a Force
Majeure shall be substantially the same as the nature, quality and standard of care that Atlas
provides to its Affiliates and its other business components with respect to such Petro-Technical
Service. In the event of an occurrence of a Force Majeure, the Party whose performance is affected
thereby shall give notice of suspension as soon as reasonably practicable to the other stating the
date and extent of such suspension and the cause thereof, and such Party shall resume the
performance of such obligations as soon as reasonably practicable after the removal of such cause.
During the period of a Force Majeure, AHD shall be entitled to seek an alternative service provider
with respect to such Petro-Technical Service(s) (and shall be relieved of the obligation to pay
Petro-Technical Service Fees, for such Petro-Technical Services(s) throughout the duration of such
Force Majeure) if a Force Majeure shall continue to exist for more than 15 consecutive days.
ARTICLE VI
MISCELLANEOUS
MISCELLANEOUS
Section 6.1 Termination. The term of this Agreement (the “Term”) shall be for a period of
one (1) year from the date of this Agreement, and from month-to month thereafter until cancelled by
either Party for any reason whatsoever by giving the other Party ninety (90) days written notice;
provided, however, that (i) AHD may terminate this Agreement by delivering thirty (30) days’ prior
written notice to Atlas, (ii) the Parties may mutually agree in writing to terminate this Agreement
at any time, (iii) either Party may terminate this Agreement if the other Party has materially
breached its covenants or obligations under this Agreement, which breach cannot be or has not been
cured within thirty (30) days after the giving of written notice by the Party desiring to terminate
this Agreement and (iv) in no event shall the Term extend beyond eighteen (18) months from the
Closing Date; and provided further, however, that the covenants in Sections 4.3 and
6.18 shall survive the termination of this Agreement indefinitely.
7
Section 6.2 Effect Of Termination On Fees And Other Provisions.
(a) Upon termination of this Agreement pursuant to Section 6.1, any Petro-Technical
Services Fees owing for Petro-Technical Services actually performed prior to the date of
termination shall be invoiced and paid in accordance with Section 2.2.
(b) In the event of the expiration or termination of this Agreement, Atlas will have no
further obligation to provide the Petro-Technical Services and AHD will have no obligation to
pay any future fees relating to such Petro-Technical Services, provided, however, that AHD
will remain obligated to Atlas for payment of any Petro-Technical Services Fees owing for
Petro-Technical Services provided prior to the effective date of termination of this
Agreement. Any Party nevertheless shall be entitled to seek any remedy to which it may be
entitled under this Agreement for the violation or breach by the other Party of any
agreement, covenant, representation, warranty, or indemnity contained in this Agreement.
(c) Nothing contained in this Section 6.2 shall relieve any Party from liability for
(i) its intentional breach of any covenants or agreements contained herein prior to
termination or (ii) fraud or unlawful activity.
(d) In connection with the termination of this Agreement and the Petro-Technical Services
provided for herein, the provisions of this Agreement not relating solely to the
Petro-Technical Services shall survive any such termination, and in connection with a
termination of this Agreement, Article I, Article IV and Article VI,
shall continue to survive indefinitely.
Section 6.3 Treatment of Confidential and Proprietary Information; Intellectual Property Rights.
(a) The Parties shall not, and shall cause all other persons providing Petro-Technical
Services or having access to information of the other Party that is known to such Party as
confidential or proprietary (other than information that (i) is or becomes generally
available to the public, other than as a result of a disclosure by the disclosing Party not
otherwise permissible hereunder, (ii) the disclosing Party can demonstrate was or became
available to the disclosing Party from a source other than the other Party or (iii) is
developed independently by the disclosing Party without reference to the other confidential
information of the other Party) (collectively, “Confidential Information”) not to,
directly or indirectly, disclose, reveal, divulge or communicate to any third parties, any
such Confidential Information of the other Party, except as permitted by applicable law or
agreement of the Parties.
8
(b) Each Party will process all personal data relating to the employees, customers,
contractors and suppliers of the Parties (“Personal Data”) it processes on behalf of
the other Party in accordance with all applicable Laws and the other Party’s reasonable
requests with respect to protecting Personal Data, including but not limited to: restricting
employee and agent/subcontractor access to Personal Data, following the other Party’s
instructions in connection with processing Personal Data, not disclosing Personal Data to any
third party without the other Party’s written permission, applying appropriate security
measures to protect Personal Data, and deleting any Personal Data in its possession or
control at the expiry or termination of this Agreement unless otherwise agreed between the
Parties. In the event of any unauthorized, unlawful, and/or unintended processing, access,
disclosure, exposure, alteration, loss, or destruction of Personal Data, the applicable Party
will immediately notify the other Party and cooperate with other Party’s reasonable requests
to investigate and remediate such incident and provide appropriate response and redress.
(c) In the event that AHD comes into possession of any information reasonably identified as
the confidential and proprietary information of Atlas, whether oral or written, including,
but not limited to, product development information, software, strategies, intellectual
property, trademarks, copyrights, patents, service marks, trade secrets (collectively herein
after referred to as “Proprietary Information”), AHD acknowledges that ownership of
and title in and to all such Proprietary Information, and any and all modifications thereof,
is and shall remain in Atlas and AHD does not acquire any ownership rights or title in or to
the Proprietary Information. AHD shall not copy such Proprietary Information. Atlas
reserves the right, in its sole discretion, to require the deletion by AHD of any Proprietary
Information. The Parties acknowledge and agree that all intellectual property rights,
including any Proprietary Information, in or relating to the Petro-Technical Services or the
provision thereof, including any such intellectual property rights created or developed
during the Term, shall be owned by Atlas, and AHD hereby assigns any and all rights that it
may have or acquire therein to Atlas.
Section 6.4 Taxes.
(a) Without limiting any provisions of this Agreement, AHD shall bear any and all sales, use,
transaction and transfer taxes and other similar charges (and any related interest and penalties)
imposed on, or payable with respect to, any fees or charges payable by it pursuant to this
Agreement; provided, that any applicable Gross Receipts Taxes shall be borne by Atlas unless Atlas
is required by law to obtain, or allowed to separately invoice for and obtain, reimbursement of
such taxes from AHD.
(b) Notwithstanding anything to the contrary in this Agreement, AHD shall be entitled to
withhold from any payments to Atlas any such taxes that AHD is required by law to withhold and
shall pay over such taxes to the applicable taxing authority.
Section 6.5 Books and Records. Each Party shall keep and maintain books, records, accounts and
other documents sufficient to reflect accurately and completely the transactions conducted, and all
associated costs incurred, pursuant to this Agreement. Such records shall include receipts,
invoices, memoranda, vouchers, inventories, timesheets and accounts pertaining to the
Petro-Technical Services, as well as complete copies of all contracts, purchase orders, service
agreements and other such arrangements entered into in connection therewith.
9
Section 6.6 Audit Assistance. Each Party and its Subsidiaries are or may be subject to audit by
Governmental Authorities, such Party’s third party or internal auditor, such Party’s customers, or
other Persons that are parties to contracts with such Party, in each case pursuant to applicable
Law, contractual provision, or request of such Party’s board of directors (or its audit committee)
(an “Auditing Entity”). If an Auditing Entity exercises its right to audit such first
Party’s or any of its Subsidiary’s books, records, documents, accounting practices or procedures,
internal controls and procedures, or operational, financial or legal practices and procedures, and
such audit relates to the Petro-Technical Services required to be provided to, or from, such first
Party hereunder, upon written request of such first Party, the other Party shall, within a
reasonable period of time, provide, at the sole cost and expense of such first Party, all
assistance, records and access reasonably requested by such first Party in responding to such
audits (including documents related to testing methodologies, test results, audit reports of
significant findings, and remediation plans with respect to any deficiencies with respect to such
other Party’s internal controls or procedures, and work papers of such other Party’s third party or
internal auditor that relate to the matter being subject of such audit), to the extent that such
assistance, records or access is within the reasonable control of such other Party and relates
solely to the Petro-Technical Services provided hereunder.
Section 6.7 Notices. Except with respect to routine communications by the project managers, all
notices, requests, claims, demands and other communications under this Agreement shall be in
writing and shall be given or made (and shall be deemed to have been duly given or made upon
receipt) by delivery in person, by overnight courier service, by facsimile transmission with
receipt confirmed (followed by delivery of an original via overnight courier service) or by
registered or certified mail (postage prepaid, return receipt requested) to the respective Parties
at the following addresses (or at such other address for a Party as shall be specified in a notice
given in accordance with this Section 6.7). Notices sent by email are ineffective.
Notices that do not comply with the requirements of this Section 6.7 are ineffective, and
do not impart actual or any other kind of notice.
(a) | if to AHD, to: |
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX
Facsimile: (000) 000-0000
Attention: Chief Legal Officer
Xxxxxxxxxxxx, XX
Facsimile: (000) 000-0000
Attention: Chief Legal Officer
With a copy to:
Atlas Pipeline Holdings, L.P.
0000 Xxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxxx
Atlas Pipeline Holdings, L.P.
0000 Xxxxxxxxxx Xxxx, Xxxxx 000
Xxxxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxxxx Xxxxxxx
(b) | if to Atlas: |
Xxxx Xxxx
Westpointe Corporate Center One
0000 Xxxxxxxxxx Xxxxxxx Xxxx
Xxxx Xxxxxxxx, XX
Facsimile: (000) 000-0000
Westpointe Corporate Center One
0000 Xxxxxxxxxx Xxxxxxx Xxxx
Xxxx Xxxxxxxx, XX
Facsimile: (000) 000-0000
10
Section 6.8 No Partnership. Nothing contained in this Agreement shall be construed or implied as
creating a partnership, agency, franchise, joint venture, fiduciary or similar relationship between
the Parties other than that of independent contractors. Nothing in this Agreement shall be deemed
to create an employment relationship between a Party, on the one hand, and the employees and/or
agents of the other Party or any Affiliate or Subsidiary who performs the Petro-Technical Services
pursuant to this Agreement, or to make the Parties joint employers thereof. No Party shall incur
any debts or make any commitments for the other Party, except to the extent, if at all,
specifically provided herein.
Section 6.9 No Agency. Nothing in this Agreement shall be deemed in any way or for any purpose to
constitute any Party an agent of another unaffiliated party in the conduct of such other party’s
business. Atlas and its Affiliates and subcontractors shall act as an independent contractor and
not as the agent of any AHD Group member in performing such Petro-Technical Service, maintaining
control over its employees, its subcontractors and their employees and complying with all
withholding of income at source requirements, whether federal, state, local or foreign.
Section 6.10 Subcontractors. Atlas may hire or engage one or more subcontractors to perform any or
all of its obligations under this Agreement; provided, however, that (i) Atlas shall use the same
degree of care in selecting any such subcontractor as it would if such contractor was being
retained to provide similar services to Atlas and (ii) Atlas shall in all cases remain primarily
responsible for all of its obligations under this Agreement with respect to the scope of the
Petro-Technical Services, the standard for services as set forth in Article II and the
content of the Petro-Technical Services provided under this Agreement.
Section 6.11 Severability. If any term or other provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall
remain in full force and effect. The Parties further agree that if any provision contained herein
is, to any extent, held invalid or unenforceable in any respect under the Laws governing this
Agreement, they shall take any actions necessary to render the remaining provisions of this
Agreement valid and enforceable to the fullest extent permitted by applicable Law and, to the
extent necessary, shall amend or otherwise modify this Agreement to replace any provision contained
herein that is held invalid or unenforceable with a valid and enforceable provision giving effect
to the intent of the Parties to the greatest extent legally permissible.
Section 6.12 Further Assurances. Each Party covenants and agrees that, without any additional
consideration, it shall execute and deliver any further legal instruments and perform any acts that
are or may become necessary to effectuate this Agreement.
Section 6.13 Assignment; Successors and Assigns. Each Party may assign all of its rights and
obligations under this Agreement to any party other than an Affiliate without the prior written
consent of any other Party; however: (a) any assignee or successor shall agree in writing to assume
all of the assigning Party’s obligations under this Agreement, (b) any assignee or successor to
Atlas must have the technical competence and the financial and operational capacity to perform the
Services, (c) the assigning Party shall provide a copy of such agreement and the assignment to the
non-assigning Party and (d) no such assignment shall release the Parties from any liability or
obligation arising under this Agreement prior to the effective date of such assignment.
11
Section 6.14 Entire Agreement. Except as otherwise expressly provided in this Agreement, this
Agreement constitutes the entire agreement of the Parties with respect to the subject matter hereof
and supersedes all prior agreements and undertakings, both written and oral, between or on behalf
of the Parties with respect to the subject matter of this Agreement. In the event of any conflict
between this Agreement and the Transaction Agreement, the terms of this Agreement shall control.
Section 6.15 Amendments. No provision of this Agreement, including any Schedules to this
Agreement, may be amended, supplemented or modified except by a written instrument making specific
reference to this Agreement or any such Schedules to this Agreement, as applicable, signed by all
the Parties.
Section 6.16 Third Party Beneficiaries. Except for the provisions of Article IV, which are
intended to be enforceable by the Persons respectively referred to therein, this Agreement is for
the sole benefit of the Parties and their permitted successors and assigns and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other Person, including any
union or any employee or former employee of Atlas or AHD, any legal or equitable right, benefit or
remedy of any nature whatsoever, including any rights of employment for any specified period, under
or by reason of this Agreement.
Section 6.17 Governing Law; Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania, without regard to any conflicts of
law rules (whether of the Commonwealth of Pennsylvania or of any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the Commonwealth of Pennsylvania.
The Parties hereto agree that any Action seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement (whether brought by any Party or any of
its Affiliates or against any Party or any of its Affiliates) shall be brought only in the
Pennsylvania Court of Common Pleas or, if such court shall not have jurisdiction, any federal court
located in the Commonwealth of Pennsylvania or other Pennsylvania state court, and each of the
Parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such Action and irrevocably waives, to the fullest extent
permitted by law, any objection that it may now or hereafter have to the laying of the venue of any
such Action in any such court or that any such Action brought in any such court has been brought in
an inconvenient forum. Process in any such Action may be served on any Party anywhere in the
world, whether within or without the jurisdiction of any such court. Without limiting the
foregoing, each Party agrees that service of process on such Party as provided in Section
6.7 shall be deemed effective service of process on such Party.
12
Section 6.18 Dispute Resolution.
(a) Subject to the limitation on remedies set forth in Section 4.4, in the event of
any dispute, controversy or claim arising out of or relating to the transactions contemplated
by this Agreement, or the validity, interpretation, breach or termination of any provision of
this Agreement, or calculation or allocation of the costs of any Petro-Technical Service,
including claims seeking redress or asserting rights under any Law (each, a
“Dispute”), a Party may send written notice of the Dispute to the other Party
detailing the Dispute. Upon notice of any such Dispute, Atlas and AHD agree that the Atlas
project manager and the AHD project manager (or such other persons as Atlas and AHD may
designate) shall negotiate in good faith in an attempt to resolve such Dispute amicably.
(b) If a Dispute described in Section 6.18(a) has not been resolved by the Parties
within thirty (30) days of receipt of written notice of the Dispute (or such longer period as
the Parties may agree) pursuant to Section 6.18(a), either Party may, upon providing
written notice to the other Party, institute binding arbitration which shall be the exclusive
method for resolution of any such Disputes. The Federal Arbitration Act, 9 U.S.C. Sections
1-16 shall apply to and govern the arbitration. The following procedures shall apply to the
arbitration proceeding: (a) the place of the arbitration hearing shall be a location
mutually agreed by the Parties, or if the Parties do not agree, Philadelphia, Pennsylvania;
(b) one unbiased arbitrator shall conduct the arbitral proceedings in accordance with the
International Institute for Conflict Prevention & Resolution (“CPR”) rules in effect
at the time, with the CPR being the appointing authority; (c) the arbitrator, not any court,
shall exclusively determine all issues or arbitral jurisdiction and validity of this
Agreement; (d) the arbitrator does not have the power to award, nor shall the arbitrator
award, any punitive, indirect or consequential damages (however denominated); (e) each Party
shall bear its own costs of legal representation and witness (fact and expert) expenses; (f)
the arbitrator must render a reasoned award, detailing the findings of fact and conclusions
of Law upon which it is based, in writing within ninety (90) days after the conclusion of the
arbitration hearing; and (g) the decision and/or award is final and binding on the Parties,
and judgment upon an award may be entered in any court of competent jurisdiction.
Section 6.19 Conflict of Interest. No director, employee, or agent of either Party will give or
receive any commission, fee, rebate, gift, or entertainment of significant cost or value in
connection with this Agreement. During the term of this Agreement and for two years after
termination of this Agreement, any representatives authorized by either Party may audit the
applicable records of the other Party solely for the purpose of determining whether there has been
compliance with this provision. In the event a Party violates this Section, the non-violating
Party may, at its sole option, terminate this Agreement. The provisions of this Section will
survive termination of this Agreement.
Section 6.20 Headings. The descriptive headings of the several Articles and Sections of this
Agreement are inserted for convenience only and do not constitute a part of this Agreement.
13
Section 6.21 Rules of Construction. Interpretation of this Agreement shall be governed by the
following rules of construction: (a) words in the singular shall be held to include the plural and
vice versa, and words of one gender shall be held to include the other gender as the context
requires; (b) references to the terms Article, Section, paragraph and Schedule are references to
the Articles, Sections, paragraphs and Schedules of this Agreement unless otherwise specified; (c)
references to “$” shall mean U.S. dollars; (d) the word “including” and words of similar import
when used in this Agreement shall mean “including without limitation,” unless otherwise specified;
(e) the word “or” shall not be exclusive; (f) references to “written” or “in writing” include in
electronic form; (g) provisions shall apply, when appropriate, to successive events and
transactions; (h) Atlas and AHD have each participated in the negotiation and drafting of this
Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be
construed as if drafted jointly by the Parties and no presumption or burden of proof shall arise
favoring or burdening either Party by virtue of the authorship of any of the provisions in this
Agreement or any interim drafts of this Agreement; (i) a reference to any Person includes such
Person’s successors and permitted assigns; (j) any reference to “days” means calendar days unless
business days are expressly specified; and (k) when calculating the period of time before which,
within which or following which any act is to be done or step taken pursuant to this Agreement, the
date that is the reference date in calculating such period shall be excluded, if the last day of
such period is not a business day, the period shall end on the next succeeding business day.
Section 6.22 Counterparts. This Agreement may be executed in one or more counterparts, and by each
Party in separate counterparts, each of which when executed shall be deemed to be an original but
all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page to this Agreement by facsimile or portable document format (PDF)
shall be as effective as delivery of a manually executed counterpart of this Agreement.
14
IN WITNESS WHEREOF, this Petro-Technical Services Agreement has been duly executed and
delivered by each Party as of the date first above written.
ATLAS ENERGY, INC. |
||||
By: | /s/ Xxxxxxxx X. Xxxxx | |||
Name: | Xxxxxxxx X. Xxxxx | |||
Title: | Vice Chairman | |||
ATLAS PIPELINE HOLDINGS, L.P. |
||||
By: | Atlas Pipeline Holdings GP, LLC, its general partner | |||
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | President and Chief Executive Officer | |||
PETRO-TECHNICAL SERVICES AGREEMENT
Signature Page
Signature Page
SCHEDULE 1.1
PETRO-TECHNICAL XXXXX
PETRO-TECHNICAL XXXXX
***
XXXXX-TECHNICAL SERVICES AGREEMENT
Schedule 1.1
Schedule 1.1
i
SCHEDULE 2.1
PETRO-TECHNICAL SERVICES
PETRO-TECHNICAL SERVICES
The Petro-Technical Services to be performed pursuant to this Agreement are limited to the
following professional consulting activities for the Petro-Technical Xxxxx, as requested by AHD
pursuant to the below procedure, in connection with oil and/or gas xxxxx to be drilled by AHD
during the term of this Agreement:
(1) planning for the drilling of a well, including geologic and geophysical services;
(2) designing a well and related production, tankage and gathering facilities;
(3) drilling a well;
(4) stimulating a well, including the hydraulic fracture thereof;
(5) completing a well;
(6) equipping a well for production, including production, tankage and gathering facilities; and
(7) such other professional services and duties as are customarily and ordinarily required in the
regular course of planning, designing, drilling, stimulating, completing and equipping oil and/or
gas xxxxx.
In the event AHD wishes to procure any or all of the foregoing Petro-Technical Services, AHD shall
provide Atlas a written, detailed scope of work for the specific activity(ies) AHD wishes to
conduct. Within fifteen (15) business days from receipt of the scope of work, Atlas shall provide
AHD a written work order detailing the Petro-Technical Services to be performed pursuant to the
scope of work and this Agreement. Unless AHD provides Atlas any written objection or clarification
within five (5) business days, Atlas shall commence the performance of the requested
Petro-Technical Services pursuant to the terms of this Agreement.
PETRO-TECHNICAL SERVICES AGREEMENT
Schedule 2.1
Schedule 2.1
ii
SCHEDULE 2.5
INITIAL PROJECT MANAGERS
INITIAL PROJECT MANAGERS
For Atlas:
For Pennsylvania — Xxxx Xxxx
For Michigan — Phil Koro
For AHD: Xxxxxxx Xxxxxxx
INITIAL PROJECT MANAGERS
Schedule 2.5
Schedule 2.5
iii