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. 423 Original Sheet No. 423 : Effective

 

 

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

DI 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.]

 

ARTICLE III

 

TRANSPORTATION

 

3.1 Shipper may request that its production from the Dedicated Lease(s) be transported under

Rate Schedules FT-1 (DI), FT-2 (DI) or IT-1 (DI), in accordance with the provisions of

the applicable Rate Schedule.

 

3.2 Transporter agrees to accept and process Shipper's Requests for Service under Section

3.1 in accordance with the provisions of the applicable Rate Schedules. Transporter's

obligation to transport Shipper's production from the Dedicated Lease(s) is limited to the

Maximum Daily Quantity for each Path provided under Shipper's FT-2 (DI)

Transportation Service Agreement, including any reduction of the Maximum Daily

Quantity by Shipper as provided in the FT-2(DI) Rate Schedule; Transporter makes no

representation that it has or will have capacity to transport Shipper's production from the

Dedicated Lease(s) in excess of such Maximum Daily Quantity. In the event of

insufficient capacity, Shipper's sole and exclusive remedy shall be as specified in

Sections 2.4 and 2.5 above.

 

3.3 Transporter shall have no obligation to build or install new facilities to provide

transportation service for production from Dedicated Lease(s).