SECOND AMENDMENT TO BASE CONTRACT FOR SALE AND PURCHASE OF NATURAL GAS
Exhibit 10.9
SECOND AMENDMENT TO BASE CONTRACT FOR SALE AND
PURCHASE OF NATURAL GAS
PURCHASE OF NATURAL GAS
SECOND AMENDMENT TO
BASE CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS
BASE CONTRACT FOR THE SALE AND PURCHASE OF NATURAL GAS
This Second Amendment To Base Contract For The Sale And Purchase Of Natural Gas (this
“Amendment”) is made and entered into on December 18, 2006 (the “Effective Date”)
by and among Atlas America, Inc. a Delaware corporation (“Atlas DE”), Viking Resources,
LLC, a Pennsylvania limited liability company (“Viking”), Atlas Resources, LLC, a
Pennsylvania limited liability company (“Atlas Resources”) Atlas Noble, LLC, a Delaware
limited liability company (“Atlas Noble”), Resource Energy, LLC, a Delaware limited
liability company (“Resource Energy” and together with Viking, Atlas Resources and Atlas
Noble, the “ATN Subsidiaries”), and UGI Energy Services, Inc. d/b/a/ GASMARK, a
Pennsylvania corporation (“GASMARK”). This Amendment modifies, supplements, forms part of,
and amends that certain Base Contract for the Sale and Purchase of Natural Gas entered into as of
November 13, 2002 between GASMARK and Viking Resources Corporation and assigned by Viking Resources
Corporation to Atlas PA by Assignment and Assumption Agreement dated October 1, 2004 (the “Base
Contract”) and amended by First Amendment to Base Contract for the Sale and Purchase of Natural
Gas dated November 22, 2005. Capitalized terms used in this Amendment that are not herein defined
will have the meanings ascribed to them in the Base Contract. In the event of a conflict between
the terms of this Amendment and the Base Contract, the terms of this Amendment shall apply.
WHEREAS, Atlas DE will transfer all of its natural gas and oil production and development
assets to Atlas Energy Resources, LLC (“ATN”) and its subsidiaries in connection with the
initial public offering of ATN and Atlas DE wishes to assign its rights, duties and interests as
seller under the Base Contract to the ATN Subsidiaries which will supply gas under the Base
Contract as of the Effective Date, and GASMARK has agreed to the assignment to and assumption by
the ATN Subsidiaries;
NOW, THEREFORE, for and in consideration of the premises and mutual covenants herein contained
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be bound hereby the Parties hereby agree as follows:
I.
ASSIGNMENT AND ASSUMPTION
ASSIGNMENT AND ASSUMPTION
1.1 Assignment. Effective as of the Effective Date, Atlas DE does hereby sell,
grant, convey, assign, transfer and set over to the ATN Subsidiaries, jointly and severally, all of
its right, title and interest in and to the Base Contract and all transactions confirmed
thereunder.
1.2 Consent to Assignment. GASMARK hereby consents to the assignment of the Base
Contract, and all transactions confirmed thereunder, from Atlas DE to the ATN Subsidiaries
effective as of the Effective Date.
1.3 Assumption. The ATN Subsidiaries, jointly and severally, hereby assume and
agree to pay, discharge or perform, as appropriate, the Base Contract and all transactions
confirmed thereunder, and such Base Contract is hereby declared to be the debts, liabilities and
obligations of the ATN Subsidiaries from and after the Effective Date.
1.4 Release and Discharge. Upon execution of this Amendment by the ATN
Subsidiaries, Atlas DE will be released from any liability or obligation under this Base Contract
and any transaction confirmed thereunder, that arises or accrues after the Effective Date of
assignment.
II.
MISCELLANEOUS
MISCELLANEOUS
2.1 Warranties. Each Party represents and warrants to the others that it has the
corporate authority to execute, deliver and perform this Amendment and has taken all actions
necessary to secure all necessary approvals required to be secured in connection therewith. The
execution, delivery and performance of this Amendment and the Base Contract have been duly
authorized by all necessary corporate action.
2.2. No Third Party Benefit. Nothing contained in this Amendment, express or
implied, is intended to or shall be construed to confer upon or give any person, firm, or
corporation, other than the Parties and their respective permitted successors and assigns, any
remedy or claim under, or by reason of, this Amendment, or any term, covenant or condition hereof.
All conditions, promises and agreements contained in this Amendment shall be for the sole and
exclusive benefit of the Parties and their respective permitted successors and assigns.
2.3 Entire Agreement. This Amendment and the Base Contract set forth the entire
understanding and agreement between the Parties as to matters covered herein and therein and
supersedes any other prior understanding, agreement or statement (written or oral) between the
Parties as to matters covered herein and therein.
2.4 Headings. The headings contained in this Amendment are for convenience of
reference only and shall not affect, in any way, the meaning or interpretation of this Amendment.
2.5 Amendments; Waivers. To be binding, any amendment of this Amendment must be
effected by an instrument in writing signed by all of the Parties. Rights hereunder shall not be
waived, except pursuant to a writing signed by the Party against which enforcement of the waiver is
sought.
2.6 Rights and Remedies. The rights and remedies granted under this Amendment
shall not be exclusive but shall be in addition to all other rights and remedies available under
the Base Contract, at law or in equity.
2.7 Expenses of Negotiation. All costs and expenses incurred in connection with
this Amendment are to be borne by the Party incurring such costs.
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2.8 Severability. It is the intention of the Parties hereto that whenever
possible, each provision of the Base Contract and this Amendment will be interpreted in such manner
as to be effective and valid under applicable law, but that if any provision of the Base Contract
or this Amendment, as the case may be, is held to be invalid, illegal or unenforceable in any
respect under any applicable law, such invalidity, illegality or unenforceability will not affect
any other provision, and the Base Contract and this Amendment, as the case may be, will be
reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein and/or therein, as the case may be.
2.9 Counterparts; and Facsimile Signatures. This Amendment may be executed,
including by facsimile signature, in one or more counterparts, each of which when so executed shall
be deemed to be an original and all of which together shall constitute one and the same instrument.
2.10 Governing Law. The interpretation and performance of this Amendment shall be
governed by the laws of the jurisdiction indicated in the Base Contract.
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IN WITNESS WHEREOF, the Parties hereto have duly executed this instrument or have caused this
instrument to be duly executed on their behalf, on the Effective Date.
UGI ENERGY SERVICES, INC. | ATLAS AMERICA, INC., | |||||||||
By:
|
By: | |||||||||
Name: Xxxxxxx X. Xxxx | Name: Xxxxxxx X. Xxxxx | |||||||||
Title: President | Title: Chief Financial Officer | |||||||||
VIKING RESOURCES, LLC | ATLAS RESOURCES, LLC | |||||||||
By:
|
By: | |||||||||
Name: Xxxxxxx X. Xxxxx | Name: Xxxxxxx X. Xxxxx | |||||||||
Title: Chief Financial Officer | Title: Chief Financial Officer | |||||||||
ATLAS NOBLE, LLC | RESOURCE ENERGY, LLC | |||||||||
By:
|
By: | |||||||||
Name: Xxxxxxx X. Xxxxx | Name: Xxxxxxx X. Xxxxx | |||||||||
Title: Chief Financial Officer | Title: Chief Financial Officer |
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