MASTER NATURAL GAS GATHERING AGREEMENT DATED FEBRUARY 2, 2000 AMONG ATLAS PIPELINE PARTNERS, L.P. AND ATLAS PIPELINE OPERATING PARTNERSHIP, L.P., ATLAS AMERICA, INC., RESOURCE ENERGY, INC., AND VIKING RESOURCES CORPORATION
EXHIBIT 10.4
MASTER NATURAL GAS GATHERING AGREEMENT DATED
FEBRUARY 2, 2000 AMONG ATLAS PIPELINE PARTNERS, L.P. AND
ATLAS PIPELINE OPERATING PARTNERSHIP, L.P., ATLAS
AMERICA, INC., RESOURCE ENERGY, INC., AND VIKING
RESOURCES CORPORATION
FEBRUARY 2, 2000 AMONG ATLAS PIPELINE PARTNERS, L.P. AND
ATLAS PIPELINE OPERATING PARTNERSHIP, L.P., ATLAS
AMERICA, INC., RESOURCE ENERGY, INC., AND VIKING
RESOURCES CORPORATION
THIS MASTER NATURAL GAS GATHERING AGREEMENT is made as of February 2, 2000, among ATLAS PIPELINE
PARTNERS, L.P., a Delaware limited partnership, and ATLAS PIPELINE OPERATING PARTNERSHIP, L.P., a
Delaware limited partnership (collectively, “Gatherer”), ATLAS AMERICA, INC., a Delaware
corporation (“Atlas America”), RESOURCE ENERGY, INC., a Delaware corporation (“Resource Energy”),
and VIKING RESOURCES CORPORATION, a Pennsylvania corporation ( “Viking Resources,” and collectively
with Atlas America and Resource Energy, “Shipper”).
Recitals:
A. Gatherer owns a natural gas gathering system and related facilities consisting of approximately
888 miles of pipelines located in New York, Ohio and Pennsylvania, and operated as a private use
gathering system as more particularly described in Exhibit A (as same may be added to or extended,
the “Gathering System”).
B. Shipper has now or may in the future form affiliates for purposes of carrying on Shipper’s
energy industry business. For purposes of this Agreement,
(i) “Affiliate” means, with respect to any person, any other person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under common control with the
person in question; and (ii) the term “control” means (a) direct or indirect beneficial ownership
of 50% or more of the voting securities or voting interest of a person or, in the case of a limited
partnership, of 50% or more of the general partnership interest, either directly or through an
entity which the person controls or (b) the possession of the power to direct the management of a
person, whether through contract or otherwise; provided, however, that Investment Programs (as such
term is hereinafter defined) shall not be deemed to be Affiliates of Shipper for purposes of this
Agreement.
C. Shipper and Affiliates own interests in certain xxxxx connected to the Gathering System, which
are more particularly described in Exhibit B (“Shipper’s Existing Well Interests”).
D. Shipper and Affiliates may drill additional xxxxx, acquire interests in other xxxxx or operate
(with the authority to determine natural gas gathering arrangements) other xxxxx (excluding Future
Investment Program Well Interests, as such term is hereinafter defined), connect them to the
Gathering System or a Third Party Gathering System (as such term is hereinafter defined) after the
date of this Agreement in accordance with the terms of the Omnibus Agreement (as such term is
hereinafter defined) (“Shipper’s Future Well Interests”).
E. Shipper and Affiliates have agreements or other arrangements with respect to the gathering of
natural gas from interests in xxxxx owned by third parties and connected to the Gathering System as
of the date of this Agreement, including well interests owned by Investment Programs (as such term
is hereinafter defined), which are more particularly described in Exhibit C (“Existing Third Party
Well Interests”).
F. Shipper and Affiliates have sponsored or may in the future sponsor Investment Programs (as such
term is hereinafter defined) which, on or after December 1, 1999, have drilled or may in the future
drill xxxxx or acquire interests in other xxxxx and connect them to the Gathering System or connect
them to Third Party Gathering Systems (as such term is hereinafter defined) all as more
particularly provided for in the Omnibus Agreement (including xxxxx for which drilling has
commenced on or after December 1, 1999, “Future Investment Program Well Interests”).
G. Gatherer and Shipper desire to provide for the gathering and redelivery of the gas produced from
Shipper’s Existing Well Interests, Shipper’s Future Well Interests, Existing Third Party Well
Interests and Future Investment Program Well Interests (“Shipper’s Gas”), all as more fully
provided herein.
NOW, THEREFORE, in consideration of the premises, and the mutual covenants and agreements herein
set forth, and intending to be legally bound, the parties agree as follows:
Article 1.
DEFINITIONS
DEFINITIONS
Unless otherwise defined herein, the following terms shall have the following meanings:
“Agreement” means this Master Natural Gas Gathering Agreement, as it may be amended, modified or
supplemented from time to time.
“Common Units” means common units of limited partnership interest of Atlas Pipeline Partners, L.P.
“Day” means a period of time beginning at 7:00 a.m., Eastern Time, on each calendar day and ending
at 7:00 a.m., Eastern Time, on the next succeeding calendar day.
“Delivery Points” means the points on the Gathering System described in Exhibit D-1. Exhibit D-1
will be revised from time to time to reflect any additional Delivery Points that may be established
as a result of the Omnibus Agreement or as may be otherwise agreed to by Shipper and Gatherer.
“Force Majeure Event” means any act of God, strike, lockout, or other industrial disturbance, act
of a public enemy, sabotage, war (whether or not an actual declaration is made thereof), blockade,
insurrection, riot, epidemic, landslide, lightning, earthquake, flood, storm, fire, washout, arrest
and restraint of rules and peoples, civil disturbance, explosion, breakage or accident to machinery
or line or pipe, hydrate obstruction of line or pipe, lack of pipeline capacity, repair,
maintenance, improvement, replacement, or alteration to plant or line of pipe or related facility,
failure or delay in transportation, temporary failure of gas supply or markets, freezing of the
well or delivery facility, well blowout, cratering, partial or entire failure of the gas well, the
act of any court, agency or governmental authority, or any other cause, whether of the kind
enumerated or otherwise, not within the reasonable control of the party claiming suspension.
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“General Partner” means Atlas Pipeline Partners GP, LLC, a Delaware limited liability company.
“Gross Sale Price” shall mean the price, per mcf, actually received by the Seller for natural gas
sold by it, without deduction for brokerage fees, commissions or offsets.
“Investment Program” means a Person for whom Shipper or a direct or indirect subsidiary of Shipper
acts as a general partner, managing partner or manager and the securities of which have been
offered and sold to investors.
“mcf” means one thousand (1,000) cubic feet of gas measured at a base temperature of sixty degrees
(60(Degree)) Fahrenheit and at a pressure base of fourteen and seventy-three one-hundredths (14.73)
psia.
“mmcf” means one million (1,000,000) cubic feet of gas measured at a base temperature of sixty
degrees (60(Degree)) Fahrenheit and at a pressure base of fourteen and seventy-three one-hundredths
(14.73) psia.
“Omnibus Agreement” means the Omnibus Agreement among Gatherer and Shipper of even date herewith.
“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of
Atlas Pipeline Partners, L.P. of even date herewith.
“Person” means an individual, corporation, limited liability company, partnership, joint venture,
trust, unincorporated organization, association or other entity.
“psia” means pounds per square inch absolute.
“psig” means pounds per square inch gauge.
“Receipt Points” means the points on the Gathering System described in Exhibit D-2. Exhibit D-2
will be revised from time to time to reflect any additional Receipt Points that may be established
as a result of the Omnibus Agreement or as may be otherwise agreed to by Shipper and Gatherer.
“Shipper’s Field Fuel” means Shipper’s allocated share of actual Gathering System fuel
requirements, shrinkage, and lost and unaccounted for gas. Such allocations shall be based upon the
proportion volume of natural gas that Shipper’s Gas bears to the aggregate gathered by Gatherer
during the relevant period.
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“Third Party Gathering System” means a natural gas gathering system owned by a Person other than
Gatherer or a subsidiary of Gatherer.
Article 2.
GATHERING SERVICES
GATHERING SERVICES
2.1. Receipt of Gas. Subject to the terms, limitations, and conditions of this Agreement, Shipper
dedicates, and will cause its Affiliates to dedicate, to this Agreement, and agrees, and will cause
its Affiliates to agree, to deliver exclusively to the Receipt Points, and Gatherer agrees to
accept at the Receipt Points, on a fully interruptible basis, all of Shipper’s Gas; provided,
however, that Gatherer shall only be obligated to accept on any Day for gathering hereunder that
volume of Shipper’s Gas which Gatherer determines, in its sole discretion, it has available
capacity to receive.
2.2. Redelivery of Gas. Gatherer will gather, compress, and redeliver, on a fully interruptible
basis, to the Delivery Points, and Shipper will accept, a quantity of gas equal, on a mcf basis, to
the quantity of Shipper’s Gas received at the Receipt Points less Shipper’s Field Fuel.
2.3. Shipper’s Field Fuel. Shipper’s Field Fuel will be calculated monthly by Gatherer by
allocating such quantities of actual Gathering System fuel requirements, shrinkage, and lost and
unaccounted for gas between all shippers using the Gathering System. Gatherer may retain and use
Shipper’s Field Fuel as fuel for compression and other operations on the Gathering System.
2.4. Commingling Shipper’s Gas. Gatherer shall have the right to commingle Shipper’s Gas with other
natural gas in the Gathering System. Gatherer may extract, or permit to be extracted, from
Shipper’s Gas condensate to the extent necessary to meet the quality requirements of the receiving
pipeline at the Delivery Points or for proper functioning of the Gathering System.
Article 3.
TITLE AND LIABILITY
TITLE AND LIABILITY
3.1. Shipper’s Gas. Except for Shipper’s Field Fuel and products removed in treating Shipper’s Gas,
title to Shipper’s Gas shall remain with Shipper or, with respect to Shipper’s Gas from Existing
Third Party Well Interests, the owners of such xxxxx.
3.2. Adverse Claims. Shipper shall indemnify, hold harmless and defend Gatherer, the General
Partner and the officers, agents, employees and contractors of Gatherer and the General Partner
(each, an “Indemnified Person”) against any liability, loss or damage whatsoever, including costs
and attorneys fees (collectively, a “Loss”), suffered by an Indemnified Person, where such Loss
arises, directly or indirectly, out of any demand, claim, action, cause of action or suit brought
by any Person asserting ownership of or an interest in Shipper’s Gas.
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3.3. Possession and Control. As between the parties hereto, Gatherer shall be deemed to be in
control and possession of Shipper’s Gas after Gatherer receives Shipper’s Gas at any Receipt Point
and until Shipper’s Gas is delivered at any Delivery Point; provided, however, that Gatherer shall
not, by any such possession and control, be deemed to have title to Shipper’s Gas it receives.
Shipper shall be deemed to be in control and possession of Shipper’s Gas at all other times.
3.4. Indemnity. The party deemed to be in control and possession of Shipper’s Gas shall be
responsible for and shall indemnify the other party with respect to any Losses arising in
connection with or related to Shipper’s Gas when it is in the indemnifying party’s control and
possession; provided, that no party shall be responsible for any Losses arising from the other
party’s negligence or breach of this agreement.
Article 4.
DELIVERY PRESSURE
DELIVERY PRESSURE
4.1. Receipt Points. Shipper shall deliver Shipper’s Gas at a pressure sufficient to effect
delivery into the Gathering System at the Receipt Points, but not in excess of the maximum pressure
specified by Gatherer from time to time.
4.2. Compression. Gatherer shall maintain all existing compression facilities, unless Shipper shall
otherwise consent in writing, and shall install such additional compression facilities as may be
necessary or appropriate under good industry practices and commercially reasonable.
4.3. Wellhead Equipment. With respect to Shipper’s Existing Well Interests, Shipper’s Future Well
Interests and Future Investment Program Well Interests, Shipper shall install, operate and
maintain, at its sole expense, all wellhead and pressure regulating equipment necessary to prevent
Shipper’s delivery pressure at the Receipt Point from exceeding the maximum pressure specified by
Gatherer from time to time.
4.4. Inspection. Gatherer shall have the right at any time, but not the obligation, to inspect
Shipper’s facilities at the Receipt Points, and Gatherer may immediately cease accepting Shipper’s
Gas if the pressure in Shipper’s facilities exceeds the maximum pressure reasonably established by
Gatherer from time to time, or require Shipper to install equipment necessary to limit the pressure
to such maximum.
Article 5.
GAS QUALITY
GAS QUALITY
5.1. Minimum Specifications. Shipper’s Gas delivered into the Gathering System shall be
commercially free from liquids of any kind, air, dust, gum, gum forming constituents, harmful or
noxious vapors, or other solid or liquid matter which, in the sole judgment of Gatherer, may
interfere with the merchantability of Shipper’s Gas or cause injury to or interfere with proper
operation of the lines, regulators, meters or other equipment of the Gathering System. Shipper’s
Gas shall also conform to applicable quality specifications of the receiving pipeline at each
applicable Delivery Point.
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5.2. Suspension. Gatherer may, at its option, (i) refuse to accept delivery of any Shipper’s Gas
not meeting the above-described quality specifications or (ii) accept delivery of all or any part
of Shipper’s Gas (notwithstanding the deficiency in quality) and in such event Shipper shall be
responsible for all damages to the Gathering System, including costs of repair, due to its failure
to comply with such quality specifications.
Article 6.
MEASUREMENT AND TESTING
MEASUREMENT AND TESTING
6.1. Measurement Equipment. Measurement of Shipper’s Gas shall take place at the Receipt Points.
Shipper will install, or cause to be installed, at or near the Receipt Points, orifice meters or
other measuring equipment necessary in Gatherer’s judgment to accurately measure the volumes of
Shipper’s Gas being delivered into the Gathering System to the extent such meters or other
measuring equipment have not been installed as of the date of this Agreement. Such measuring
equipment shall be comparable to the measuring equipment of other parties delivering gas into the
Gathering System. Shipper shall be responsible for, and bear the cost of, acquiring, installing,
maintaining and operating such measurement equipment.
6.2. Chart Integration. Gatherer shall be responsible for reading the meters at the Receipt Points.
Gatherer shall furnish, install, remove, and integrate all recording charts used in such meters in
accordance with Gatherer’s standard practices.
6.3. Delivery Points. The measurement of and tests for quality of Shipper’s Gas redelivered at the
Delivery Points shall be governed by and determined in accordance with the requirements of the
receiving pipeline at each Delivery Point.
6.4. Unit of Volume. The unit of volume for purposes of measurement shall be one (1) cubic foot of
gas at a temperature base of sixty degrees (60(Degree)) Fahrenheit and at a pressure base of
fourteen and seventy-three one-hundredths (14.73) psia.
6.5. Testing Procedures. Shipper shall follow the meter calibrations schedule established by
Gatherer for each meter on the Gathering System. Such calibrations shall occur at least once every
twelve (12) months but not more frequently than once every six (6) months. No testing, calibration,
or adjustment of a meter or related equipment shall be performed without Gatherer first being given
five (5) days’ notice thereof and having the opportunity to be present.
6.6. Meter Inaccuracy. If, at any time, any meter is found to be out of service or registering
inaccurately in any percentage, it shall be adjusted at once by Shipper to read accurately within
the limits prescribed by the meter’s manufacturer. If such equipment is out of service or
inaccurate by an amount exceeding three percent (3%) of a reading corresponding to the average flow
rate for the period since the last test, the previous readings shall be corrected for the period
that the meter is known to be inaccurate, or, if not known, a period of one-half (1/2) the elapsed
time since the last test. The volume of Shipper’s
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Gas delivered during such period shall be estimated by Gatherer either (i) by using the data
recorded by any check measuring equipment if installed and accurately registered, (ii) by
correcting the error if the percentage of error is ascertainable by calibration, test, or
mechanical calculation or, if neither such method is feasible, (iii) by estimating the quantity
delivered based upon deliveries under similar conditions during a period when the equipment
registered accurately. No volume correction shall be made for metering inaccuracies of three
percent (3%) or less.
6.7. Meter Testing. If Gatherer requests to have any meter tested, then Shipper shall have the
meter tested in the presence of and to the satisfaction of Gatherer. If the meter tested proves to
be accurate within plus or minus three percent (3%) at its normal operating range, then the cost of
testing and recalibrating the meter shall be borne by Gatherer. Shipper will schedule all required
tests within ten (10) days of a request by Gatherer. Shipper will notify Gatherer at least five (5)
working days prior to the test of the date, time, and location of such test.
6.8. Books and Records. Gatherer shall keep and maintain proper books of account during the term of
this Agreement and for a period of three (3) years thereafter showing (a) the total volume of
Shipper’s Gas transported through the Gathering System from the Receipt Points to the Delivery
Points and (b) the volume of gas allocated to each Receipt Point. Gatherer shall also preserve, or
cause to be preserved, for at least one (1) year all test data, charts, and similar data pertaining
to the measurement and testing of Shipper’s Gas, unless a longer period is prescribed by applicable
regulations. Shipper shall have the right during normal business hours, after reasonable notice to
Gatherer, to inspect Gatherer’s books and records not older than three (3) years from the date of
request for inspection. Such inspections shall take place at Gatherer’s office. Any costs
attributable to such audits or inspections shall be borne by Shipper.
Article 7.
GATHERING FEES
GATHERING FEES
7.1. Consideration. As consideration for Gatherer’s gathering Shipper’s Gas, Atlas America and
Resource Energy, jointly and severally, shall pay to Gatherer one of the following fees, as
applicable.
7.2. Gathering Fees For Gathering Production from Existing Third Party Well Interests, Shipper’s
Future Well Interests and Future Investment Program Well Interests. The gathering fees for
gathering production from Existing Third Party Well Interests, Shipper’s Future Well Interests and,
except as set forth in Section 7.4 hereof, Future Investment Program Well Interests shall be the
greater of Thirty Five Cents for each mcf ($0.35/mcf) delivered by Shipper at the Receipt Points
and sixteen percent (16%) of the Gross Sale Price for each such mcf.
7.3. Gathering Fee For Gathering Production From Shipper’s Existing Well Interests. The gathering
fees for gathering production from Shipper’s Existing Well Interests shall be the greater of Forty
Cents for each mcf
($0.40/mcf) delivered by Shipper at the Receipt Points and sixteen percent (16%) of the Gross Sale Price for each such mcf.
($0.40/mcf) delivered by Shipper at the Receipt Points and sixteen percent (16%) of the Gross Sale Price for each such mcf.
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7.4. Fees Payable to Gatherer for Shipper’s Future Well Interests in Xxxxx Not Connected to the
Gathering System. In the event that Shipper shall connect Shipper’s Future Well Interests or Future
Investment Program Well Interests to a Third Party Gathering System pursuant to Section 2.3.3(ii)
of the Omnibus Agreement and Gatherer shall assume the cost of constructing that connection,
Shipper shall pay Gatherer a fee that shall be equal to the excess, if any, of the greater of (i)
Thirty Five Cents for each mcf ($0.35/mcf) delivered by Shipper at the Receipt Points for the Third
Party Gathering System and sixteen percent (16%) of the Gross Sale Price for each such mcf, over
(ii) the gathering fees charged by the Third Party Gathering System.
7.5. Assignment of Rights and Obligations; Agreement to Fees by Affiliates. Viking Resources
assigns to Atlas America and Resource Energy, and shall cause its Affiliates to assign to Atlas
America and Resource Energy, all of their rights and obligations under and pursuant to gathering
arrangements between the Affiliate or Viking Resources and owners of Existing Third Party Well
Interests.
Article 8.
BILLING AND PAYMENT
BILLING AND PAYMENT
8.1. Statements and Payments. In connection with fees payable to Gatherer under Article 7 of this
Agreement, Gatherer shall prepare and submit to Shipper each month a statement showing for the
prior month (i) the volume of Shipper’s Gas received at the Receipt Points, (ii) Shipper’s Field
Fuel, and
(iii) the volume of Shipper’s Gas delivered to the Delivery Points. Shipper shall provide Gatherer,
within thirty (30) days after the end of each month, a statement of the gathering fees due for such
month. Shipper’s statement shall set forth (i) the volumes of Shipper’s Gas for which payments have
been received; (ii) an allocation of such Shipper’s Gas among the three gathering fee categories
established by Sections 7.2, 7.3 and 7.4, respectively; (iii) an itemization of the Gross Sale
Price or Prices received for the Shipper’s Gas in each category; and (iv) a calculation of the
gathering fees for such Shipper’s Gas. Gatherer shall have the right to inspect Shipper’s books and
records relating to such Shipper’s Gas for purposes of verifying the accuracy of Shipper’s
statement. Gatherer shall advise Shipper within 30 days of Gatherer’s receipt of Shipper’s
statement if Gatherer believes Shipper’s statement to be inaccurate in any respect. If Gatherer
does not so advise Shipper, Shipper’s statement shall be deemed to be correct. The gathering fee
shall be due and payable upon Gatherer’s receipt of Shipper’s statement. Each of Gatherer and
Shipper shall preserve its records relating to any statement delivered pursuant to this Section 8.1
for a period of at least three (3) years after such statement is delivered.
8.2. Payment Default. If Shipper fails to pay Gatherer in accordance with Section 8.1, Gatherer
may, at its option and without limiting any other remedies, either, singularly or in combination,
(i) terminate this Agreement forthwith and without notice or (ii) suspend performance under this
Agreement until all indebtedness under this Agreement is paid in full.
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8.3. Overdue Payments. Any overdue balance shall accrue daily interest charges at the rate equal to
the lesser of (i) 15% per annum or (ii) the maximum lawful rate of interest.
8.4. Remittance of Revenues. If any revenues for sales of Shipper’s Gas are paid directly to
Gatherer, Gatherer shall remit such revenues to Shipper within fifteen (15) days; provided,
however, that Gatherer may offset from any such revenues any amounts as shall then be due and
payable to Gatherer under this Agreement.
8.5. Gathering Fees Payable to Shipper. Shipper shall have sole and exclusive responsibility for
settling with all Persons having an interest in Shipper’s Gas and collecting gathering fees payable
to Shipper with respect thereto. Shipper’s obligations hereunder shall be without regard to receipt
or collection by Shipper of any such fees.
Article 9.
TERM
TERM
9.1. Term. Subject to the other provisions of this Agreement, this Agreement shall become effective
as of its date and shall remain in effect so long as gas is produced from any of Shipper’s Existing
Well Interests, Shipper’s Future Well Interests, Future Investment Program Well Interests or
Existing Third Party Well Interests in economic quantities without a lapse of more than ninety (90)
days.
9.2. Uneconomic Operation. Notwithstanding anything contained herein to the contrary, if at any
time Gatherer determines, in its sole discretion, that continued operation of all or any part of
the Gathering System is not economically justified, Gatherer may cease receiving Shipper’s Gas from
the relevant part of the Gathering System and terminate this Agreement as to such part of the
Gathering System (the “Terminated System”) by giving at least ninety
(90) days’ notice to Shipper. In such event, and concurrently with such notice, Gatherer shall
offer Shipper the right to purchase the Terminated System from Gatherer for $10.00. Shipper shall
exercise such right on or before sixty (60) days after receipt of the termination notice. Shipper
shall be responsible for all costs and expenses related to such purchase, including filing fees,
and such purchase shall be without recourse, representation or warranty. Closing on the purchase
shall be on the day specified in the termination notice as the termination date. If the Terminated
System is acquired by Shipper and remains connected to any other portion of the Gathering System,
Shipper shall have the right to deliver natural gas from the Terminated System to the Gathering
System, and this Agreement shall continue in effect with respect to the natural gas so delivered by
Shipper.
9.3. Removal of General Partner. In the event that the General Partner is removed as general
partner of Gatherer pursuant to Section 11.2 of the Partnership Agreement under circumstances where
cause (as such term is defined in Section 1.1 of the Partnership Agreement) for such removal does
not exist and the General Partner does not consent to that removal, then Shipper and Affiliates
shall have no obligation under this Agreement with respect to xxxxx drilled by Shipper on or after
the effective date of such removal.
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Article 10.
FORCE MAJEURE
FORCE MAJEURE
10.1. Non-Performance. No failure or delay in performance, whether in whole or in part, by either
Gatherer or Shipper shall be deemed to be a breach hereof (other than the obligation to pay amounts
when due under this Agreement) when such failure or delay is occasioned by or due to a Force
Majeure Event.
10.2. Force Majeure Notice. The party affected by a Force Majeure Event shall give notice to the
other party as soon as reasonably possible of the Force Majeure Event and the expected duration of
the Force Majeure Event.
10.3. Remedy of a Force Majeure Notice. The affected party will use all reasonable efforts to
remedy each Force Majeure Event and resume full performance under this Agreement as soon as
reasonably practicable, except that the settlement of strikes, lockouts or other labor disputes
shall be entirely within the discretion of the affected party.
Article 11.
GOVERNMENTAL RULES AND REGULATIONS
GOVERNMENTAL RULES AND REGULATIONS
This Agreement and all operations hereunder shall be subject to all valid laws, orders, directives,
rules, and regulations of any governmental body, agency, or official having jurisdiction in the
premises, whether state or federal. Notwithstanding any other provisions in this Agreement, in the
event the Federal Energy Regulatory Commission or other governmental authority imposes a rule,
regulation, order, law or statute which directly or indirectly materially and adversely affects a
party’s ability to perform its obligations under this Agreement, then the party so affected may
terminate this Agreement as to the xxxxx or portions of the Gathering System affected thereby by
giving ten
(10) days prior written notice to the other parties.
Article 12.
INSURANCE
INSURANCE
Shipper and Gatherer shall procure and maintain the insurance coverage described in Exhibit E.
Article 13.
TAXES
TAXES
Shipper shall pay or cause to be paid all taxes and assessments imposed on Shipper hereunder with
respect to Shipper’s Gas gathered hereunder prior to and including its delivery to Gatherer.
Shipper shall pay to Gatherer all taxes, levies or charges which Gatherer may be required to
collect from Shipper by reason of all services performed for Shipper hereunder other than taxes or
assessments with respect to Gatherer’s income, capital, properties, franchises or similar matters
relating solely to Gatherer’s general business activities or partnership or corporate existence or
those of any of its subsidiaries. Neither party shall be responsible or liable for any taxes or
other statutory charges levied or assessed against any of the facilities of the other party used
for the purposes of carrying out the provisions of this Agreement.
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Article 14.
MISCELLANEOUS
MISCELLANEOUS
14.1. Choice of Law; Submission to Jurisdiction. This Agreement shall be subject to and governed by
the laws of the Commonwealth of Pennsylvania, excluding any conflicts-of-law rule or principle that
might refer the construction or interpretation of this Agreement to the laws of another state. Each
party hereby submits to the jurisdiction of the state and federal courts in the Commonwealth of
Pennsylvania and to venue, respectively, in Philadelphia, Pennsylvania and the Eastern District of
Pennsylvania.
14.2. Notice. All notices or requests or consents provided for or permitted to be given pursuant to
this Agreement must be in writing and must be given by depositing same in the United States mail,
addressed to the party to be notified, postpaid, and registered or certified with return receipt
requested or by delivering such notice in person or by telecopier to such party. Notice given by
personal delivery or mail shall be effective upon actual receipt. Notice given by telecopier shall
be effective upon actual receipt if received during the recipient’s normal business hours, or at
the beginning of the recipient’s next business day after receipt if not received during the
recipient’s normal business hours. All notices to be sent to a party pursuant to this Agreement
shall be sent to 000 Xxxxxx Xxxx, X.X. Xxx 000, Xxxx Xxxxxxxx, Xxxxxxxxxxxx 00000, Facsimile: (000)
000-0000, Attention: Xxxx X. Xxxxx at such other address as such party may stipulate to the other
parties in the manner provided in this Section.
14.3. Entire Agreement. This Agreement constitutes the entire agreement of the parties relating to
the matters contained herein, superseding the provisions of all other contracts or agreements,
whether oral or written, that are in conflict with the provisions hereof.
14.4. Effect of Waiver or Consent. No waiver or consent, express or implied, by any party to or of
any breach or default by any party in the performance by such party of its obligations hereunder
shall be deemed or construed to be a consent or waiver to or of any other breach or default in the
performance by such Person of the same or any other obligations of such Person hereunder. Failure
on the part of a party to complain of any act of any Person or to declare any Person in default,
irrespective of how long such failure continues, shall not constitute a waiver by such party of its
rights hereunder until the applicable statute of limitations period has run.
14.5. Amendment or Modification. This Agreement may be amended or modified from time to time only
by the written agreement of all the parties hereto; provided, however, that Gatherer may not,
without the prior approval of the conflicts committee of the General Partner, agree to any
amendment or modification of this Agreement that, in the reasonable discretion of the General
Partner, will adversely affect the Common Unit holders.
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14.6. Assignment. No party shall have the right to assign its rights or obligations under this
Agreement without the consent of the other parties hereto.
14.7. Counterparts. This Agreement may be executed in any number of counterparts with the same
effect as if all signatory parties had signed the same document. All counterparts shall be
construed together and shall constitute one and the same instrument.
14.8. Severability. If any provision of this Agreement or the application thereof to any Person or
circumstance is determined by a court of competent jurisdiction to be invalid, void or
unenforceable, the remaining provisions hereof, or the application of such provision to Persons or
circumstances other than those as to which it has been held invalid or unenforceable, shall remain
in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long
as the economic or legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination, the parties shall negotiate in
good faith in an effort to agree upon a suitable and equitable substitute provision to effect the
original intent of the parties.
14.9. Further Assurances. In connection with this Agreement and all transactions contemplated by
this Agreement, each signatory party hereto agrees to execute and deliver such additional documents
and instruments and to perform such additional acts as may be necessary or appropriate to
effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and
all such transactions.
14.10. Third Party Beneficiaries. The provisions of this Agreement are enforceable solely by the
parties to it, and no Common Unit holder or its assignee or any other Person shall have the right,
separate and apart from Gatherer, to enforce any provision of this Agreement or to compel any party
to this Agreement to comply with its terms.
14.11. Headings. The headings throughout this Agreement are inserted for reference purposes only,
and are not to be construed or taken into account in interpreting the terms and provisions of any
Article, nor to be deemed in any way to qualify, modify or explain the effects of any such term or
provision.
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IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the date first
written above.
Shipper:
ATLAS AMERICA, INC.
By: |
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Name: |
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Its: |
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RESOURCE ENERGY, INC.
By: |
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Name: |
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Its: |
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VIKING RESOURCES CORPORATION
By: |
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Name: |
||
Its: |
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Gatherer:
ATLAS PIPELINE OPERATING PARTNERSHIP, L.P.
By: Atlas Pipeline Partners GP, LLC,
its general partner
its general partner
By: |
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Name: |
||
Its: |
||
ATLAS PIPELINE PARTNERS, L.P.
By: Atlas Pipeline Partners GP, LLC,
its general partner
its general partner
By: |
||
Name: |
||
Its: |
||
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EXHIBIT A
GATHERING SYSTEM DESCRIPTION
GATHERING SYSTEM DESCRIPTION
EXHIBIT B
SHIPPER’S EXISTING WELL INTERESTS
SHIPPER’S EXISTING WELL INTERESTS
EXHIBIT C
EXISTING THIRD PARTY WELL INTERESTS
EXISTING THIRD PARTY WELL INTERESTS
EXHIBIT X-0
XXXXXXXX XXXXXX
XXXXXXXX XXXXXX
XXXXXXX X-0
RECEIPT POINTS
RECEIPT POINTS
EXHIBIT E
INSURANCE REQUIREMENTS
INSURANCE REQUIREMENTS