Gas Processing. (a) Gatherer has designed, engineered, procured, constructed and installed, or caused to be designed, engineered, procured, constructed and installed, the initial processing plant and all related and ancillary facilities and equipment at the Plant Site as of the Effective Date (such initial processing plant and all such related and ancillary facilities and equipment, the “Initial Plant”). As of Effective Date, the Initial Plant has a nameplate processing capacity of 80 MMCF per Day with design recoveries of less than [***]% ethane, greater than [***]% propane, and greater than [***]% isobutane, normal butane and natural gasolines (the “Design Recoveries”). The Parties agree and acknowledge that Gatherer will recover minimal ethane based on the Design Recoveries due to current ethane pricing economics. If the Design Recoveries are modified after the Effective Date to allow for further ethane recoveries, then Shipper shall have the sole right to determine whether Gatherer will recover or reject ethane during any Month. Until construction and placement into service of the Additional Processing Plant, all volumes of Shipper’s Gas processed at the Initial Plant shall be charged the Processing Fee and shall be processed on the terms set forth in this Agreement. The Processing Fee collected by Gatherer for all volumes processed at the Initial Plant shall be allocated to the DevCo that owns the Initial Plant. (b) If at any time the then-current Development Plan indicates that additional processing capacity is required beyond the processing capacity of the Processing Plant as it exists at that time to continue to provide the gas processing Services pursuant to the terms of this Agreement, then OMS may elect to provide additional gas processing capacity following the Effective Date in order to provide the processing services under this Agreement, which may be in the form of one or more additional processing plants (including all facilities and equipment constructing and installed in connection with such processing facilities and used solely in the operation of such processing facilities, the “Additional Processing Plant”), and shall cause such Additional Processing Plant to be installed and made operational as soon as reasonably practicable. If OMS elects not to build the Additional Processing Plant, then Gatherer shall provide additional Upstream Delivery Point capacity at Gatherer’s sole cost and expense. Notwithstanding the foregoing, the obligation of Gatherer pursuant to this Section 3.4(b) shall not apply to the connection of additional Upstream Delivery Points requested by Producer pursuant to Section 3.3(e). For the avoidance of doubt, MLP shall have no obligation to build the Additional Processing Plant. (c) If OMS elects to build the Additional Processing Plant pursuant to Section 3.4(b), from and after the date that the Additional Processing Plant is constructed and placed into service, all volumes of Shipper’s Gas processed at any Processing Plant shall continue to be charged the Processing Fee and shall continue to be processed on the terms set forth in this Agreement.
Appears in 1 contract
Sources: Gas Gathering, Compression, Processing and Gas Lift Agreement (Oasis Midstream Partners LP)
Gas Processing. (a) Gatherer has designed, engineered, procured, constructed and installed, or caused to be designed, engineered, procured, constructed and installed, 6.1 Following the initial processing plant and all related and ancillary facilities and equipment at the Plant Site as execution of the Effective Date (such initial processing plant and all such related and ancillary facilities and equipment, the “Initial Plant”). As of Effective Date, the Initial Plant has a nameplate processing capacity of 80 MMCF per Day with design recoveries of less than [***]% ethane, greater than [***]% propanethis Agreement, and greater than [***]% isobutanesubject to the other provisions of this Agreement, normal butane MarkWest shall design, engineer, procure, construct, install and natural gasolines (the “Design Recoveries”). The Parties agree and acknowledge that Gatherer will recover minimal ethane based on the Design Recoveries due to current ethane pricing economics. If the Design Recoveries are modified after the Effective Date to allow for further ethane recoveries, then Shipper shall have the sole right to determine whether Gatherer will recover or reject ethane during any Month. Until construction and placement into service of the Additional Processing Plant, all volumes of Shipper’s Gas processed at the Initial Plant shall be charged operate the Processing Fee and shall be processed on the terms set forth in this Agreement. The Processing Fee collected by Gatherer for all volumes processed at the Initial Plant shall be allocated to the DevCo that owns the Initial Plant.
(b) If 6.2 Producer will have Priority Capacity Rights at any time the then-current Development Plan indicates that additional processing capacity is required beyond the processing capacity of the Processing Plant as follows:
a. Commencing on the Trigger Date and until [REDACTED]*, an aggregate of [REDACTED]* of processing capacity at the Processing Plant;
b. Beginning [REDACTED]* and until [REDACTED]*, an aggregate of [REDACTED]* of processing capacity at the Processing Plant;
c. Beginning [REDACTED]* and until [REDACTED]*, an aggregate of [REDACTED]* of processing capacity at the Processing Plant. In addition, to the extent that MarkWest determines in good faith that it exists can, safely and without unreasonable cost or risk to MarkWest, operate Bluestone 2 in a manner that allows for processing a volume of Gas in excess of [REDACTED]*, then Producer shall be granted the right to utilize such excess capacity on a priority basis;
d. Beginning on the [REDACTED]* and until [REDACTED]* of processing capacity at the Processing Plant;
e. Beginning on the [REDACTED]* and continuing for [REDACTED]*, an aggregate of [REDACTED]* of processing capacity at the Processing Plant; and
f. Beginning on the [REDACTED]* and for the remainder of the term of the Agreement, an aggregate of [REDACTED]* of processing capacity at the Processing Plant. If Producer determines that time it requires capacity in excess of its Priority Capacity Rights, and in addition to continue any additional capacity that results from the Additional Processing Facilities (as defined below) previously installed by MarkWest in accordance with this Section 6.2 (collectively referred to as “Increased Capacity”), Producer will provide timely written notice to MarkWest of its Increased Capacity requirements and will attempt to provide MarkWest with such notice at least eighteen (18) months in advance. Producer shall reasonably demonstrate to MarkWest Producer’s drilling plans to support the gas processing Services pursuant amount of Increased Capacity, and MarkWest will propose a schedule for providing such Increased Capacity. Subject to the terms remaining provisions of this AgreementSection 6.2, then OMS may elect if the terms, fees and schedule relating to provide additional gas processing capacity following such Increased Capacity are mutually agreed upon by the Effective Date Parties in order to provide the processing services under this Agreementwriting, which may be in the form of one MarkWest will, at its sole cost and expense, design, construct and install expanded or more additional processing plants (including all facilities and equipment constructing and installed in connection with such new processing facilities and used solely in the operation of such processing facilities, the (“Additional Processing PlantFacilities”), ) to meet Producer’s Increased Capacity requirements and shall cause such will complete the Additional Processing Plant to be installed and made operational Facilities as soon as reasonably practicable. If OMS elects not to build Following the completion of the Additional Processing PlantFacilities, then Gatherer shall provide additional Upstream Delivery Point capacity at Gatherer’s sole cost and expense. Notwithstanding the foregoing, the obligation of Gatherer pursuant to this Section 3.4(b) shall not apply Producer will have Priority Capacity Rights to the connection of additional Upstream Delivery Points Increased Capacity in such Additional Processing Facilities so requested by Producer pursuant to this Section 3.3(e). For 6.2, subject to the avoidance remaining terms of doubt, MLP shall have no obligation to build the Additional Processing Plant.
(c) If OMS elects to build the Additional Processing Plant pursuant to Section 3.4(b), from and after the date that the Additional Processing Plant is constructed and placed into service, all volumes of Shipper’s Gas processed at any Processing Plant shall continue to be charged the Processing Fee and shall continue to be processed on the terms set forth in this Agreement.. [REDACTED]*
Appears in 1 contract
Sources: Gas Gathering, Compression and Processing Agreement (Rex Energy Corp)
Gas Processing. (a) Gatherer has designed, engineered, procured, constructed and installed, or caused to be designed, engineered, procured, constructed and installed, the initial processing plant and all related and ancillary facilities and equipment at the Plant Site as of the Effective Date (such initial processing plant and all such related and ancillary facilities and equipment, the “Initial Plant”). As of Effective Date, the Initial Plant has a nameplate processing capacity of 80 MMCF per Day with design recoveries of less than [***]% ethane, greater than [***]% propane, and greater than [***]% isobutane, normal butane and natural gasolines (the “Design Recoveries”). The Parties agree and acknowledge that Gatherer will recover minimal ethane based on the Design Recoveries due to current ethane pricing economics. If the Design Recoveries are modified after the Effective Date to allow for further ethane recoveries, then Shipper shall have the sole right to determine whether Gatherer will recover or reject ethane during any Month. Until construction and placement into service of the Additional Processing Plant, all volumes of Shipper’s Gas processed at the Initial Plant shall be charged the Processing Fee and shall be processed on the terms set forth in this Agreement. The Processing Fee collected by Gatherer for all volumes processed at the Initial Plant shall be allocated to the DevCo that owns the Initial Plant.
(b) If at any time the then-current Development Plan indicates that additional processing capacity is required beyond the processing capacity of the Processing Plant as it exists at that time to continue to provide the gas processing Services pursuant to the terms of this Agreement, then OMS may elect to provide additional gas processing capacity following the Effective Date in order to provide the processing services under this Agreementcapacity, which may be in the form of one or more additional processing plants (including all facilities and equipment constructing and installed in connection with such processing facilities and used solely in the operation of such processing facilities, the “Additional Processing Plant”), and shall cause such Additional Processing Plant to be installed and made operational as soon as reasonably practicable. If OMS elects not to build the Additional Processing Plant, then Gatherer shall provide additional Upstream Delivery Point capacity at Gatherer’s sole cost and expense. Notwithstanding the foregoing, the obligation of Gatherer pursuant to this Section 3.4(b) shall not apply to the connection of additional Upstream Delivery Points requested by Producer pursuant to Section 3.3(e). For the avoidance of doubt, MLP shall have no obligation to build the Additional Processing Plant.
(c) If OMS elects to build the Additional Processing Plant pursuant to Section 3.4(b), from and after the date that the Additional Processing Plant is constructed and placed into service, all volumes of Shipper’s Gas processed at any Processing Plant shall continue to be charged the Processing Fee and shall continue to be processed on the terms set forth in this Agreement.
Appears in 1 contract
Sources: Gas Gathering, Compression, Processing and Gas Lift Agreement (Oasis Midstream Partners LP)