Cimarron River Pipeline, LLC

Original Volume No. 1

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Effective Date: 09/01/2008, Docket: CP08-17-001, Status: Effective

Original Sheet No. 129 Original Sheet No. 129

 

GENERAL TERMS AND CONDITIONS

 

2. QUALITY continued

 

2.4 Gas Processing continued

 

(d) To reserve and exercise gas processing rights, a Shipper or other

gas processing rights owner must (i) contract for processing with a

processing plant owner or operator with active processing facilities

accessible from Transporter's system, (ii) notify Transporter on

Transporter's gas processing rights election form at least five Business Days

in advance of the initial delivery month in which processing rights are to be

exercised of the processing rights owner's election to retain and exercise

the right to process gas tendered to Transporter and the portion of the

throughput quantity to which the election pertains, attesting to the

ownership of the gas processing rights, and (iii) cause delivery of gas to

the processing plant. A processing election shall remain in place for that

calendar month and for each month thereafter until the Shipper or other

processing rights owner notifies Transporter to the contrary by a subsequent

beginning of the month nomination to modify or terminate the processing

election. If a Shipper owns and is exercising processing rights, the Shipper

will be deemed to have elected to terminate or modify a processing election

by making nominations that direct gas deliveries to Delivery Points other

than to those upstream of the gas processing plant. Upon the effective date

of a processing election and the related conforming nominations, the

processing rights owner's election shall apply to gas that has been nominated

to flow on Transporter's system to a Delivery Point upstream of a processing

plant and is processed at the related processing plant. Transporter will not

allow any person, including a Shipper, to divert gas off-system if a

processing rights owner has designated it for processing at a processing

plant. However, any Shipper of gas for which processing rights have not been

reserved or exercised as discussed herein shall not be precluded from

nominating volumes for transportation to a Delivery Point downstream of the

physical Receipt Point on Transporter's system. In no event is Transporter

required to allow processing by displacement or backhaul.

 

(e) A Shipper or processing rights owner that retains and exercises

the right to process and tenders gas to Transporter for transportation and

processing to or through a processing plant shall be responsible for

transportation charges associated with the gas to be processed. The Shipper

or processing rights owner making this election shall contract directly with

the processing plant owner or operator for processing of gas nominated and

delivered to the inlet of the processing plant. Shipper's NGLs allocations

and compensation for gas processing and for any recovered NGLs shall be as

agreed between Shipper or processing rights owner and the processing plant

owner or operator.