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. 419 Original Sheet No. 419 : Effective

 

 

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,

 

(e) The right to form or participate in the formation of any unit or units, including,

but not limited to, any field-wide unit or units, and thereafter to increase or

decrease the size of any unit or units so formed; provided, however, that unless

otherwise provided herein, this Agreement shall apply to production from such

unit or units to the extent such production may be allocated to that portion of the

Dedicated Lease(s) included within such unit or units.