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.