December 10, 2009 Contango Operators, Inc. 3700 Buffalo Speedway, Suite 960 Houston, TX 77098 Attn: President
Exhibit 10.11
December 10, 2009
Contango Operators, Inc.
0000 Xxxxxxx Xxxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Attn: President
0000 Xxxxxxx Xxxxxxxx, Xxxxx 000
Xxxxxxx, XX 00000
Attn: President
Re: Amendment to Firm Gas Gathering Agreement between American Midstream Offshore (Seacrest) LP
(formerly Enbridge Offshore Pipelines (Seacrest) L.P.) and Contango Operators, Inc. (formerly
Contango Resources Company) dated as of August 1, 2008 (herein, the “Firm Agreement”)
Gentlemen:
This letter agreement, when executed below, evidences our agreement to amend the referenced Firm
Agreement by substituting the attached Exhibit B and Exhibit D for the existing
Exhibit B and Exhibit D attached to the Firm Agreement.
Additionally, Section 11.1 of the Firm Agreement shall be entirely deleted and replaced with the
following:
“11.1 Effective Date and Term. Unless otherwise terminated or canceled in accordance with
the terms hereof, the term of this Agreement shall commence on the Effective Date and shall end on
November 30, 2014 (“Primary Term”) and continuing from year to year thereafter (each, a “Renewal
Year”) unless terminated by either Party giving at least sixty (60) days written notice to the
other Party prior to the end of the Primary Term or any Renewal Year thereafter.”
AMERICAN MIDSTREAM OFFSHORE (SEACREST) LP | CONTANGO OPERATORS, INC. | |||||||
By: Name: |
/s/ Xxxx X. Xxxxxx
|
By: Name: |
/s/ Xxxxxxx X. Peak
|
|||||
Title:
|
Sr. VP Operations & Eng. | Title: | Chairman & CEO |
EXHIBIT B
POINT OF RECEIPT AND POINT OF DELIVERY
AS AMENDED EFFECTIVE DECEMBER 1, 2009
1. Point(s) of Receipt. 1) The meter facility on the Chevron North American
Exploration and Production Company Xxxxxx Island 24 Platform which Gatherer and Shipper agree shall
serve as a Point of Receipt and Point of Measurement, 2) The future meter facility on the Contango
Operators, Inc. Xxxxxx Island 11H Platform which Gatherer and Shipper agree shall serve as a Point
of Receipt and Point of Measurement (subject to agreement on construction cost).
2. Point of Delivery. The existing interconnect between the Gathering System and
Marathon Oil Company’s Xxxxx Point Processing Plant inlet meter station located in the Bayou Sale
Yard in St. Mary’s Parish, Louisiana.
3. Point(s) of Measurement. 1) Gatherer’s meter facility on the Chevron North
American Exploration and Production Company Xxxxxx Island 24 Platform, and 2) Gatherer’s meter
facility on the Contango Operators, Inc. Xxxxxx Island 11H Platform.
EXHIBIT D
FIRM CAPACITY MDQ
MMBTU/D
(AS AMENDED EFFECTIVE AS OF DECEMBER 1, 2009)
Time Period | MDQ | |||
Effective Date through 11/30/09 |
100,000 | |||
12/01/09 though 11/30/10 |
130,000 | |||
12/01/10 though 11/30/11 |
130,000 | |||
12/01/11 though 11/30/12 |
130,000 | |||
12/01/12 though 11/30/13 |
75,000 | |||
12/01/13 though end of term |
50,000 |
Gatherer will use commercially reasonable efforts to provide Shipper its Firm Capacity MDQ as
described above in 2009 – 2012 of 130,000 MMBTU/D. Should Gatherer discover its pipeline capacity
cannot fulfill Firm Capacity MDQ as described above because of Gatherer’s physical limitations (not
because of commitments to any other shippers except for commitments of 1000 MMBTU/D to another
shipper), the MDQ through 11/30/2012 shall thereafter be reduced to actual (subject to other
shipper commitment) with other MDQ amounts unchanged and no refund obligation.