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. 248 Original Sheet No. 248 : Effective

 

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

stations, processing, treating, cycling, repressuring or other

supplemental recovery operations; and

 

(d) To process gas and retrograde condensate for the extraction of any

components other than methane contained therein, except for such

methane reasonably removed in such processing.

 

2.5 The provisions of Sections 2.6, 2.7, and 2.8 shall apply with respect to

periods beginning when Company's pipeline commences service.

 

2.6 Temporary Release

 

(a) In the event that prior to a month or during a month Shipper

nominates and has available for transportation (x) a daily quantity

of production from Committed Lease(s) that in the aggregate exceeds

the sum of (y) the daily amount of capacity available for

transportation on Company's pipeline facilities under all of

Shipper's existing FT-2 Service Agreements, plus (z) the daily

quantity of IT service that Company notifies Shipper it reasonably

expects to be able to provide to Shipper during such month, then

Shipper shall upon request to Company be released for such month, or

the remainder of such month, as applicable, from its obligations

under Section 2.1 of a daily quantity of gas of up to (x) minus the

sum of (y) plus (z) (the "Temporary Release Quantity").

 

(b) The Temporary Release Quantity shall be deemed to be the last

quantities produced, so that any release under this Section 2.6 is

applicable only to the daily production quantity in excess of the

quantity that Company is able to accept into Company's pipeline

facilities on a given day.

 

(c) Shipper may deliver the Temporary Release Quantity from any of its

Committed Lease(s) which Shipper chooses.