High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/01/2000, Docket: RP99-227-004, Status: Effective

Original Sheet No. 207 Original Sheet No. 207 : Effective

 

 

FORM OF RESERVE COMMITMENT AGREEMENT

(Continued)

 

 

choice.

 

 

(b) This Section 2.5(b) applies where an Upstream Pipeline, as

defined in Section 2.4(b), permanently releases Shipper's

production attributed to the Reserve Commitment Agreement

that such Upstream Pipeline has executed with Shipper.

 

In the event that an Upstream Pipeline, as defined in

Section 2.4(b), permanently releases Shipper's production

from the Reserve Commitment Agreement that it has executed

with Shipper that is substantially similar in all material

respects to the reserve commitment contained in this

Agreement, and the production released by such Upstream

Pipeline cannot otherwise be delivered to Transporter's

pipeline system, then Shipper shall, upon a written request

to Transporter, be granted a permanent release of production

up to amount equal to the amount of production that was

released by such Upstream Pipeline from its Reserve

Commitment Agreement with Shipper.

 

2.6 Shipper agrees to provide to Transporter, 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 under Rate Schedule FT-2 in

accordance with the provisions of the applicable Rate

Schedule. Shipper shall execute no more than one (1)Service

Agreement per lease or group of leases dedicated under this

Reserve Commitment Agreement.

 

3.2 Transporter 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

FT-2 Agreement with Shipper, Transporter does not guarantee

sufficient capacity to transport all of Shipper's production from

Committed Lease(s).