High Island Offshore System, L.L.C.
Third Revised Volume No. 1
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Effective Date: 11/01/2007, Docket: RP08- 55-000, Status: Effective
Original Sheet No. 237 Original Sheet No. 237 : Effective
FORM OF RESERVE COMMITMENT AGREEMENT
(for use under Rate Schedules FT-1 & IT)
THIS RESERVE COMMITMENT AGREEMENT (Agreement) is made and entered into as of the ______
day of _____________________, ____, by and between High Island Offshore System, L.L.C. a
limited liability company of the State of Delaware hereinafter referred to as
"Transporter" or "HIOS" and ___________________________________, a _________________
corporation, hereinafter referred to as "Shipper". Transporter and Shipper shall
collectively be referred to herein as the Parties.
1.1 Committed Lease(s). For purposes of this Agreement, "Committed Lease(s)" shall
mean those OCS leases set forth on Exhibit A hereto.
1.2 Shipper's Gas. For purposes of this Agreement, "Shipper's Gas" shall mean all
Gas produced by or for the account of Shipper, or any affiliate of Shipper, from
the Committed Lease(s).
1.3 Affiliate. For purposes of this Agreement, "affiliate" shall mean any entity
controlling, controlled by, or under common control with the relevant entity.
For purposes of this definition, the term "control" (including derivative terms)
means the direct or indirect ability to direct the management and policy of the
relevant entity, whether by ownership, control of voting interests, contract or
1.4 Any Capitalized terms not defined herein shall have the meaning ascribed thereto
in Transporter's F.E.R.C. Gas Tariff.
2.1 In exchange for the provisions of Article XI as set forth in that certain
Transportation Service Agreement dated _____________, ______ between HIOS and
Shipper, and subject to the provisions of Section 2.4, Shipper hereby agrees to
deliver Shipper's Gas into and transport Shipper's Gas through Transporter's
pipeline facilities under a Transportation Agreement pursuant to Rate Schedules
FT-1 or IT, between Shipper and Transporter for the producible life of the
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 this Article II, that the Committed Lease(s) remain dedicated
for purposes of transportation under Rate Schedules FT-1 or IT 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.