Dauphin Island Gathering Partners

First Revised Volume No. 1

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Effective Date: 03/16/1999, Docket: CP98- 6-003, Status: Effective

Original Sheet No. 394 Original Sheet No. 394 : Effective

 

 

2.5 [Permanent Release

 

In the event, and to the extent that quantities of Shipper's production from the Dedicated

Lease(s) fails, for reasons other than force majeure, to flow into Transporter's MP

Facility or to be delivered by Transporter to or for Shipper's account at the Delivery

Point(s) over any period of sixty (60) consecutive days, then upon prior written notice

from Shipper to Transporter, and if such failure is insufficient capacity on Transporter's

MP Facility, Transporter shall prepare and submit to Shipper, within thirty (30) days of

receipt of Shipper's written notice, a plan ("Capacity Plan") to restore such capacity. If

Shipper accepts such Capacity Plan, Transporter shall promptly commence to perform

such work as is required to carry out the Capacity Plan with reasonable dispatch, subject

to the receipt of necessary regulatory approvals. If Shipper rejects such Capacity Plan,

Shipper will propose an alternative Capacity Plan to Transporter for consideration and

response by Transporter within fifteen (15) days after Transporter receives Shipper's

alternative Capacity Plan. In the event Shipper and Transporter fail to reach agreement

as to a Capacity Plan within fifteen (15) days after Transporter receives Shipper's

alternative Capacity Plan, then Shipper may elect at any time thereafter to have

permanently released from the gas dedicated under this Agreement a daily quantity of gas

equal to the largest daily quantity of Shipper's production from the Dedicated Lease(s)

which Shipper duly tendered, according to gas deliverability tests, and which failed to

flow into Transporter's MP Facility or to be delivered by Transporter to or for Shipper's

account at the Delivery Point(s) during the foregoing sixty (60) consecutive day period.

For allocation and scheduling purposes of gas production from the Dedicated Lease(s),

all quantities of gas permanently released pursuant to this Section 2.5 shall be considered

to be the first gas produced on any day.]