Allocation of Fuel. Buyer at its sole discretion shall have the right to utilize either processed or unprocessed Gas as fuel. (a) The volume of processed Gas used as fuel, converted to MMBtu’s using the same conversion factors as in Paragraph 3.3(b), allocated to Seller’s available Gas shall be determined by multiplying the fuel volume in MMBtu by a fraction, the numerator of which is Seller’s available Gas utilizing the facilities utilizing processed Gas as fuel, the denominator of which is the available Gas from all delivery points utilizing the facilities utilizing processed Gas as fuel. (b) The volume of unprocessed Gas used as fuel shall be determined by multiplying the component volume in MCF of the unprocessed Gas utilized as fuel by such facilities, by a fraction, the numerator of which is Seller’s available Gas or monthly delivered volume in MCF whichever is applicable, the denominator of which is the available Gas or monthly delivered volume in MCF from all delivery points utilizing the facilities utilizing unprocessed Gas as fuel. (c) If Buyer utilizes Residue Gas or Gas furnished by a third party for fuel, such Gas value or volume shall be allocated as in Article 3.4(a) herein.
Appears in 3 contracts
Sources: Gas Purchase Contract (Resaca Exploitation, Inc.), Gas Purchase Contract (Resaca Exploitation, Inc.), Gas Purchase Contract (Resaca Exploitation, Inc.)