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. 405 Original Sheet No. 405 : Effective

 

 

2.2 In the event Shipper should transfer or assign any or all of its rights, title and/or interest

in the Dedicated Lease(s), Shipper agrees that any such transfer or assignment will be

made subject to the terms of this Agreement, it being the intent of the parties hereto that

the Dedicated Lease(s) remain dedicated as MPS Excess Quantity for purposes of

transportation through Transporter's MP Facility for the economic life of the Dedicated

Lease(s). All of the provisions of this Agreement shall be applicable to assignees of

Shipper's interests in the Dedicated Lease(s) and such assignees shall receive a

proportionate assignment of the rights and obligations hereunder with respect to the

Dedicated Lease(s) so assigned, to the extent that such assignee satisfies the requirements

of Section 6.3 of Rate Schedule FT-3 (MP). Upon such assignment, Shipper shall be

relieved of its obligations accruing on or after the effective date of the assignment to the

extent, and only to the extent, such obligations are so assigned to the assignee.

 

2.3 From the obligations in Section 2.1, Shipper expressly reserves unto itself, its successors

and assigns, the following rights and quantities of production sufficient to satisfy such

rights:

 

(a) The right to operate the Dedicated Lease(s) free from any control by Transporter

including, without limitation, the right (but never the obligation) to drill new

wells, to repair and rework old wells, to plug and abandon any well and to

renew, surrender, release or terminate any Dedicated Lease (in whole or in part);

 

(b) The right to deliver production to lessors of the Dedicated Lease(s) and/or the

owner(s) of overriding royalty interests therein in quantities sufficient to fulfill

lease and other overriding royalty obligations from time to time, including any

obligation to deliver a share of production in kind;

 

(c) The right to use production for development and operations of such Dedicated

Lease(s), including (but not limited to) the use of gas for fuel, drilling (including

gas drilling), deepening, reworking, compressing, gas lifting, processing,

treating, cycling, repressuring or other supplemental recovery operations;

 

(d) To process gas for the extraction of any components other than methane

contained therein, except for such methane reasonably removed in such

processing; and,