Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: RP98-239-000, Status: Effective

First Revised Sheet No. 193 First Revised Sheet No. 193 : Effective

Superseding: Original Sheet No. 193

FORM OF SERVICE AGREEMENT

UNDER RATE SCHEDULE FT-2

(Continued)

 

(primary) and Exhibit A-1 (secondary) to this Agreement, and Company

agrees to accept at such point(s) for transportation under this

Agreement, an aggregate quantity of up to ____________ Mcf of natural gas

per day (Transportation Demand) for the applicable Delivery Periods

specified on Exhibit A to this Agreement. The Transportation Demand for

each Delivery Period shall be supported by a life of lease production

forecast for the Committed Lease(s), prepared by Shipper or the

operator(s) of the Committed Lease(s), which reflects production build-up

and expected production throughout the life of the lease. Shipper's

proposed commencement and termination dates of service shall be supported

by the production forecast submitted pursuant to this Section. Subject

to the execution of a mutually acceptable confidentiality agreement,

Shipper's life of lease production profile shall be accompanied by either

(A) technical data necessary to support the production profile and

demonstrate that Shipper's requested TDs are supported by the production

profile, or (B) a report issued by one of the engineering firms listed on

Appendix A to Rate Schedule FT-2 supporting Shipper's production profile

and requested TDs. If Shipper elects to establish its life of lease

production profile and TDs with a report from an engineering firm in

accordance with (B) above, then Shipper shall furnish to such engineering

firm, subject to a mutually acceptable confidentiality agreement, all

information Shipper is required to submit to Company under this Rate

Schedule FT-2 and such other technical data as may be appropriate to

enable the engineering firm to provide to Company an opinion that on the

basis of such data Shipper's production profile and requested TDs appear

reasonable. The cost of such engineering report shall be borne by

Shipper.

 

On or before October 1 of each year this Agreement is in effect, SHIPPER

shall update its production profile to support its TDs and, when

available, provide an actual production history for its Committed

Lease(s) and an update of its technical data, which may be used by

Company in evaluating the reasonableness of Shipper's proposed TDs.

Shipper shall reduce its TDs as may be appropriate based on the updated

production profile.