Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 04/16/1997, Docket: CP96-678-001, Status: Effective

Original Sheet No. 285 Original Sheet No. 285 : Effective





2.3 From the obligations in Section 2.1, Shipper expressly reserves

unto itself, its successors and assigns, the following rights

and quantities of production sufficient to satisfy such rights:


(a) The right to operate the Committed Block(s) free from any

control by Transporter including, without limitation, the

right (but never the obligation) to drill new wells, to

repair and rework old wells, to plug and abandon any well

and to renew, surrender, release or terminate any lease

(in whole or in part) covering the affected lands;


(b) The right to deliver production to lessors of leases on

such lands in quantities sufficient to fulfill lease

obligations from time to time, including the right to

take royalty in kind; and


(c) The rights to use production for development and

operations of such lands, including (but not limited to)

the use of gas for fuel, drilling (including gas

drilling), deepening, reworking, compressing, gas

lifting, processing, treating, cycling, repressuring or

other supplemental recovery operations.


2.4 Temporary Release


(a) Shipper shall be released from its obligations under

Section 2.1 with respect to any quantities of Shipper's

production from the Committed Block(s) in excess of the

capacity available on Transporter's Facility (i) under

Shipper's existing Transportation Service Agreement(s),

(ii) under Rate Schedule IT-1 and (iii) for commitment to

firm service (referred to herein as "Excess

Deliverability"). In the event of Excess Deliverability,

Shipper shall be released from its obligations under

Section 2.1 with respect to the Impacted Quantities (as

defined in subsection 2.4(c)) pursuant to the provisions

of subsection 2.4(d).