Common use of Gas Control Clause in Contracts

Gas Control. (a) Should Seller elect to take its share of the residue gas volume in-kind as described in this Article, Seller shall provide all information deemed necessary to Buyer for gas control at least five (5) working days prior to the first day of each calendar month. Information shall include but not be limited to the following: Transporter Purchaser Transportation Service Contract Number Name and Phone Number of Seller’s Gas Control Contact Seller further agrees to be responsible for nominations to the transporting pipeline. Buyer agrees to be responsible for confirmation and delivery to the transporting pipeline. Under no circumstances shall Buyer be required to confirm or deliver more than the estimated available volume. (b) Buyer shall have the right to maintain an “over and short account” for residue gas deliveries for Seller’s account. The statement sent monthly to Seller shall identify any over or under deliveries for the current month and the cumulative over or under deliveries to Seller’s receiving pipeline. Buyer shall endeavor to keep the over and short volumes as much in balance as possible by making flow adjustments monthly. However, if upon termination of this Gas Purchase Contract, an imbalance exists, then Buyer shall have the option to pay Seller for a “short” balance over the subsequent three (3) months. Seller shall have the option to pay Buyer for an “over” balance at an average market price at the plant for the prior three (3) months or by delivering the “over” balance over the subsequent three (3) months. (c) Should Seller fail to establish a market for the disposition of Seller’s residue gas, Buyer shall have the right to market Seller’s allocated share of residue gas and pay ninety-five percent (95%) of the net proceeds to Seller from the sale by Buyer of Seller’s gas at the tailgate of the plant. Buyer shall retain five percent (5%) of the net proceeds from the sale of the Seller’s gas as Buyer’s fee for marketing Seller’s gas. (d) The right to take residue in-kind only applies to Seller including without limitation their subsidiaries or affiliates, and the interests they represent. Notwithstanding Article XIII, ROYALTY, Seller shall act as representative for subsequent distribution of gag and NGL products, or the value of such products, to any owners of royalties, working interest, production payments and the like. If this Contract is assigned by Seller to another party, written notices must be furnished to Buyer and effective the first day of the following month the in-kind deliveries will cease.

Gas Control. (a) Should Seller elect to take its share of the residue gas volume in-kind as described in this Article, Seller shall provide all information deemed necessary to Buyer for gas control at least five (5) working days prior to the first day of each calendar month. Information shall include but not be limited to the following: Transporter Purchaser Transportation Service Contract Number Name and Phone Number of Seller’s Gas Control Contact Seller further agrees to be responsible for nominations to the transporting pipeline. Buyer agrees to be responsible for confirmation and delivery to the transporting pipeline. Under no circumstances shall Buyer be required to confirm or deliver more than the estimated available volume. (b) Buyer shall have the right to maintain an “over and short account” for residue gas deliveries for Seller’s account. The statement sent monthly to Seller shall identify any over or under deliveries for the current month and the cumulative over or under deliveries to Seller’s receiving pipeline. Buyer shall endeavor to keep the over and short volumes as much in balance as possible by making flow adjustments monthly. However, if upon termination of this Gas Purchase Contract, an imbalance exists, then Buyer shall have the option to pay Seller for a “short” balance over the subsequent three (3) months. Seller shall have the option to pay Buyer for an “over” balance at an average market price at the plant for the prior three (3) months or by delivering the “over” balance over the subsequent three (3) months. (c) Should Seller fail to establish a market for the disposition of Seller’s residue gas, Buyer shall have the right to market Seller’s allocated share of residue gas and pay ninety-five percent (95%**) of the net proceeds to Seller from the sale by Buyer of Seller’s gas at the tailgate of the plant. Buyer shall retain five percent (5%**) of the net proceeds from the sale of the Seller’s gas as Buyer’s fee for marketing Seller’s gas. (d) The right to take residue in-kind only applies to Seller including without limitation their subsidiaries or affiliates, and the interests they represent. Notwithstanding Article XIII, ROYALTY, Seller shall act as representative for subsequent distribution of gag and NGL products, or the value of such products, to any owners of royalties, working interest, production payments and the like. If this Contract is assigned by Seller to another party, written notices must be furnished to Buyer and effective the first day of the following month the in-kind deliveries will cease.