Common use of Gas Gathering Clause in Contracts

Gas Gathering. The Managing General Partner, not acting as a Partner, shall be responsible for gathering and transporting the natural gas produced by the Partnership to interstate pipeline systems, local distribution companies, and/or end-users in the area (the “gathering services”). In providing the gathering services, the Managing General Partner may use the gathering system owned by Laurel Mountain Midstream, LLC, as described in the Private Placement Memorandum, and natural gas processing plants in Pennsylvania in which the Managing General Partner and/or its Affiliates owns an interest, as well as gathering systems owned by independent third-parties. The Partnership shall pay a gathering fee directly to the Managing General Partner at competitive rates for the gathering services. The gathering fee paid by the Partnership to the Managing General Partner may be increased from time-to-time by the Managing General Partner, in its sole discretion, but may not increase beyond competitive rates as determined by the Managing General Partner. Initially, the Managing General Partner has determined that the competitive rate is an amount equal to 16% of the gross sales price received by the Partnership for its natural gas in the Marcellus Shale (western Pennsylvania) primary area. Gross sales price means the price that is actually received, adjusted to take into account proceeds received or payments made pursuant to hedging arrangements. The payment of a competitive fee to the Managing General Partner for its gathering services shall be subject to the following conditions:

Gas Gathering. The Managing General Partner, not acting as a Partner, shall be responsible for gathering and transporting the natural gas produced by the Partnership to interstate pipeline systems, local distribution companies, and/or end-users in the area (the “gathering services”). In providing the gathering services, the Managing General Partner may use the gathering system owned by Laurel Mountain Midstream, LLC, as described in the Private Placement MemorandumProspectus, and natural gas processing plants in Pennsylvania in which the Managing General Partner and/or its Affiliates owns an interest, as well as gathering systems owned by independent third-parties. The Partnership shall pay a gathering fee directly to the Managing General Partner at competitive rates for the gathering services. The gathering fee paid by the Partnership to the Managing General Partner may be increased from time-to-time by the Managing General Partner, in its sole discretion, but may not increase beyond competitive rates as determined by the Managing General Partner. InitiallyCurrently, the Managing General Partner has determined that the competitive rate is an amount equal to 1613% of the gross sales price received by the Partnership for its natural gas in the Marcellus Shale (western Pennsylvania) primary areaarea as described in the Prospectus. Gross sales price means the price that is actually received, adjusted to take into account proceeds received or payments made pursuant to hedging arrangements. In addition, the Managing General Partner has determined that the competitive rates in the Partnership’s secondary area is as follows: $0.55 per mcf in the north central Tennessee secondary area, as described in the Prospectus. The payment of a competitive fee to the Managing General Partner for its gathering services shall be subject to the following conditions: