Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

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Effective Date: 08/01/2009, Docket: RP08-436-004, Status: Effective

Third Revised Sheet No. 320 Third Revised Sheet No. 320

Superseding: Second Revised Sheet No. 320

 

1.6 If Stingray, for any reason, fails to provide transportation service for

the Dedicated Reserves under the ITS Agreement for more than ninety (90)

consecutive Days in any twelve (12) Month period, Shipper or Shipper's

Designee may request, in writing, from Stingray a prospective permanent

release of the Dedicated Reserves for which Stingray has been unable to

provide transportation service under the ITS Agreement ("Impacted

Quantities"). Within sixty (60) Days following receipt of a request from

Shipper or Shipper's Designee for a permanent release of Impacted

Quantities, Stingray shall either:

 

(a) prepare a project schedule and review with Shipper or Shipper's

Designee the steps or actions that Stingray is taking or proposes

to take to enable Stingray to receive and transport the Impacted

Quantities from Shipper or Shipper's Designee within a

Construction Period (defined below), or

 

(b) grant Shipper's or Shipper's Designee's request for a permanent

release of the Impacted Quantities.

 

Stingray shall have the following time periods, beginning from the date

of receipt of Shipper's or Shipper's Designee's request for a permanent

release of Impacted Quantities, to take action (including, but not

limited to, the installation of facilities) to enable Stingray to

receive and transport the Impacted Quantities: six (6) Months if minor

construction is required, or fifteen (15) Months if additional pipeline,

platform and/or compression facilities are required ("Construction

Period"); provided, however, Stingray shall have the right to extend a

Construction Period for an additional three (3) Months if Stingray has

made a significant economic commitment with respect to the actions it is

taking to enable Stingray to receive and transport the Impacted

Quantities, and if it is reasonable to believe that such actions will

enable Stingray to receive the Impacted Quantities within the additional

three (3) Month extension of the original Construction Period.

 

1.7 The Parties hereby agree to execute a Memorandum of Agreement in the

form of Exhibit A, which may be filed, together with all applicable

leases and assignments of interests for the Dedicated Reserves, with the

Minerals Management Service of the United States Department of the

Interior or any successor agency and in the parish and county records of

the appropriate jurisdictions to the extent such documents have not been

filed previously.