Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 245 Original Sheet No. 245 : Effective

 

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

 

1.3 Capitalized terms not defined herein shall have the meaning ascribed thereto

in Company's FERC Gas Tariff.

 

ARTICLE II

RESERVE DEDICATION

 

2.1 Subject to the provisions of Article V and this Article II, Shipper

hereby

agrees to deliver into and transport through Company's pipeline facilities

under the FT-2 Service Agreement or under an interruptible transportation

(IT) Service Agreement between Shipper and Company all natural gas produced

by or for the account of Shipper, or any affiliate of Shipper which Shipper

controls (as defined in Section 1.2(ii) above), from the Committed Lease(s)

for the economic life of the Committed Lease(s).

 

2.2 The following described leases dedicated pursuant to Section 2.1 shall, at

Shipper's option, be permanently released from dedication under this

Agreement:

 

(a) Leases which would be connected to deepwater laterals or deepwater

hubs that would be connected to Company's pipeline and related

facilities, but where the subject subsea topography prohibits the

construction of such laterals or hubs to connect such leases to

Company's pipeline because of the absence of commercially reasonable

methods;

 

(b) Leases which would be connected to deepwater laterals or deepwater

hubs that would be connected to Company's pipeline and related

facilities in which Shipper or its affiliate is unable to consent or

obtain consent by the necessary interest holders (other than Shipper

or its affiliate) to construct a line to connect to Company's

pipeline for which Shipper or its affiliate has voted in favor,

unless such voting would materially and adversely affect Shipper's or

its affiliate's interest in such leases, and otherwise diligently

supported; provided, however, that Company shall have the right to