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. 255 Original Sheet No. 255 : Effective

 

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

EXHIBIT B

Reserve Commitment Agreement

 

Example: Permanent Release

Under Section 2.7 (Connected Fields)

 

Assumptions:

 

- Year 2001

 

- Shipper A: - has TD of 100,000 Mcf/day under its FT-2

Service Agreement

 

- has then current production (as of 1/1/2001)

from Connected Fields of 130,000 dt/day, but

expects its production from such fields to

increase to 175,000 dt/day beginning

1/1/2002, to remain at 175,000 dt/day through

12/31/2003 and to decline to 120,000 dt/day

beginning 1/1/2004 (and thereafter to remain

at that level)

 

- Shipper has been receiving 20,000 dt of IT

and 10,000 dt of Shipper's current production

has been interrupted for 90 consecutive days

(thru 12/31/2000)

 

Procedures:

 

1. Shipper on 1/1/2001 requests permanent release of quantities of gas

in excess of quantities of FT-2 service available to Shipper with

respect to future delivery periods.