Sea Robin Pipeline Company, LLC

Second Revised Volume No. 1

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Effective Date: 12/31/2004, Docket: RP05- 87-000, Status: Effective

Original Sheet No. 385 Original Sheet No. 385 : Effective

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

Release Quantities; provided, however, that the Permanent

Release Quantities shall be deemed to be based on the last

quantities produced so that any release under this Section 2.5

is applicable only to the daily production quantity in excess

of the level of additional FTS-2 MDQs that were made available

to Shipper during such review.

 

Upon such notification to Sea Robin of Shipper's election to

release, Sea Robin will release the Permanent Release

Quantities from the obligations under Section 2.1. An

illustrative example of the permanent release provisions of

this Section 2.5 is provided at Exhibit B to this Agreement.

Shipper may deliver the Permanent Release Quantities from any

field(s) under the Committed Lease(s) of Shipper's choice.

 

2.6 Shipper agrees to provide to Sea Robin, at least annually, an

updated production development plan, to update 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 FTS-2 or ITS,

in accordance with the provisions of the applicable Rate

Schedule. Shipper shall execute no more than one (1) FTS-2

Service Agreement per lease dedicated under this Reserve

Commitment Agreement.

 

3.2 Sea Robin agrees to accept and process Shipper's Requests for

Service under Section 3.1 in accordance with the provisions of

the applicable Rate Schedules. Prior to the execution of an

FTS-2 Service Agreement with Shipper, Sea Robin does not

guarantee sufficient capacity to transport all of Shipper's

production from Committed Lease(s).

 

3.3 Nothing contained herein shall obligate Sea Robin to build or

install new facilities to provide transportation service for

production from Committed Lease(s), and Shipper's sole and

exclusive remedy, in the event of insufficient capacity, shall

be to request a permanent or temporary release as specified in

Sections 2.4 and 2.5 above.