High Island Offshore System, L.L.C.
Third Revised Volume No. 1
Contents / Previous / Next / Main Tariff Index
Effective Date: 10/01/2007, Docket: RP06-540-004, Status: Effective
Second Revised Sheet No. 202 Second Revised Sheet No. 202 : Effective
Superseding: Substitute First Revised Sheet No. 202
FORM OF RESERVE COMMITMENT AGREEMENT
(Continued)
1.3 Any Capitalized terms not defined herein shall have the meaning ascribed thereto
in Transporter's F.E.R.C. Gas Tariff.
ARTICLE II
RESERVE DEDICATION
2.1 Subject to the provisions of Sections 2.4 and 2.5, Shipper hereby agrees to
deliver into and transport through Transporter's pipeline facilities under a
Transportation Agreement under Rate Schedule FT-2, "FT-2 Agreement," or under
Rate Schedule FT-1, "FT-1 Agreement" between Shipper and Transporter all gas
produced by or for the account of Shipper, or any affiliate of Shipper, from the
Committed Lease(s) for the producible life of the Committed Lease(s).
2.2(a) In the event Shipper should transfer or assign any or all of its rights, title
and/or interest in the Committed Lease(s), Shipper agrees that (i) it shall
notify Transporter in writing of its intent of such assignment as soon as
practicable and (ii) any such transfer or assignment will be made subject to the
terms of this Agreement, it being the intent of the parties hereto subject to
the provisions of Article V and this Article II, that the Committed Lease(s)
remain dedicated for purposes of transportation under Rate Schedule FT-2, and/or
Rate Schedule FT-1, to Transporter's pipeline facilities for the producible
life of the Committed Lease(s). All of the provisions of this Agreement shall
be applicable to assignees of Shipper's interests in the Committed Lease(s), and
such assignees shall receive a proportionate assignment of the rights and
obligations hereunder with respect to the Committed Lease(s) so assigned. Upon
such assignment, Shipper shall be relieved of its obligations under this
Agreement to the extent, and only to the extent, such obligations are assigned
to a third party.
(b) Shipper shall be entitled to unitize any Committed Lease(s) with one or more
additional OCS leases without the consent of Transporter. In the event of such
unitization, then (i) such unitization shall not be deemed a transfer or
assignment of Shipper's interest for the purpose of this Agreement and (ii) only
the gas production attributable to Shipper's interest in the unit shall be
subject to the provisions of this Agreement or be entitled to the services
provided by the associated FT-2 Agreement. For purposes of this Section 2.2
(b), "unitize" or "unitization" shall mean the combination of all or parts of
the leases in a prospect, reservoir, or field such that development and
operation of the unit are provided