Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: RP98- 17-000, Status: Effective

Substitute Original Sheet No. 339 Substitute Original Sheet No. 339 : Effective

Superseding: Original Sheet No. 339

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.

 

2.4 [Temporary Release

 

(a) Shipper shall be released from its obligations under

Section 2.1 with respect to any quantities of

Shipper's production from the Dedicated Lease(s) in

excess of the capacity available on Transporter's MP

Facility (i) under Shipper's existing Transportation

Service Agreement(s), (ii) under Rate Schedule IT-1

(MP) and (iii) for commitment to other firm service

(collectively referred to herein as "Excess

Deliverability"). Excess Deliverability shall not

include Shipper's production from the Dedicated

Lease(s) which is transported through Transporter's

MP Facility under another shipper's Transportation

Service Agreement under Rate Schedules FT-1 (MP),

FT-2 (MP), FT-3 (MP), or IT-1 (MP). In the event of

Excess Deliverability, Shipper shall be released

from its obligations under Section 2.1 with respect

to the Affected Quantities pursuant to the

provisions of Subsection 2.4(d).