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. 251 First Revised Sheet No. 251 : Effective

Superseding: Original Sheet No. 251

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

Shipper's request for increased TDs or (b) Shipper's anticipated start-up

of deliveries from the New Field, to provide to Shipper an average of at

least 90% of the increased TDs requested throughout any four consecutive

3-month delivery periods, then Company shall provide Shipper a written,

permanent release of the Committed Lease(s) composing the New Field from

this Agreement.

 

2.9 Shipper and Company agree to meet at least annually, or as often as they

may agree is necessary, to update and revise Exhibit A hereto in order to

reflect changes in the Committed Lease(s).

 

ARTICLE III

TRANSPORTATION

 

3.1 Shipper may request that its production from the Committed Lease(s) be

transported only under Rate Schedules FT-2 or IT, in accordance with the

provisions of the applicable Rate Schedule. Shipper shall execute no

more than one (1) Rate Schedule FT-2 transportation Service Agreement

per lease dedicated under this Reserve Commitment Agreement.

 

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

Section 3.1 in accordance with the provisions of the applicable Rate

Schedules. Company does not guarantee sufficient capacity to transport

all of Shipper's production from Committed Lease(s).

 

3.3 Company shall have no obligation to build or install new facilities to

provide transportation service for production from Committed Lease(s),

and except in the case of Company's breach of any contractual obligation,

Shipper's sole and exclusive remedy, in the event of insufficient

capacity, shall be as specified in Sections 2.6, 2.7, and 2.8 above.