Common use of Installation of Conditioning Facilities by LMM Clause in Contracts

Installation of Conditioning Facilities by LMM. LMM shall provide written notice to Shipper within *** Days following the receipt of all information that LMM has reasonably requested that Shipper provide (which request shall be made within *** Business Days of the Day on which the well or ▇▇▇▇▇ were shut-in pursuant to Section 3.1 above) to evaluate whether the construction of facilities or the utilization of existing available facilities (either owned by LMM or by any third party) is necessary to bring Gas back into the required specifications. If LMM fails to timely provide notice to Shipper as set forth above, Shipper’s Gas which has been shut in shall be released from dedication hereunder. In the event LMM elects to construct and operate conditioning facilities to handle the off-specification Gas, or otherwise utilizes existing available facilities, LMM may choose on a well-by-well basis to condition the Gas either (a) on a Dth/keep whole basis, in which case LMM shall retain the natural gas liquids processed from Shipper’s Gas and will make available for Shipper’s account one hundred percent (100%) of Shipper’s allocated plant inlet Dth at the Delivery Point(s) (in which case, LMM shall install sampling mechanisms at each plant inlet and draw samples from the Gas at each plant inlet at least semi-annually, and Shipper shall also have access to such sampling mechanisms to draw samples in its discretion) or (b) for a fee, which conditioning fee shall be sixteen percent (16%) of the sale of the processed natural gas liquids. If LMM elects to condition Shipper’s Gas on a keep whole basis, as described above, and if gas is unavailable for LMM to deliver to Shipper’s account in order to keep Shipper whole, then LMM may make payment to Shipper to account for the dekatherms of Shipper’s Gas that were shrunk out of the processing of Shipper’s Gas with reference to pricing and volumes at the relevant Delivery Point; provided, however, that in no event shall LMM remove natural gas liquids to the extent that Shippers’ Gas delivered at any Delivery Point is below the minimum heating value specification, if any, required by the Interconnecting Pipeline at such Delivery Point. Regardless of the conditioning option chosen by or for LMM, Shipper shall continue to pay the Gathering Fee on the Gas conditioned.