Common use of Processing Plant Clause in Contracts

Processing Plant. Processor hereby agrees as follows with respect to the Processing Plant. (a) Processor shall design, engineer, procure, construct and install the Processing Plant, or shall procure the same, and shall use commercially reasonable efforts to construct and install the Processing Plant as soon as is practicable under the circumstances that, 4 The appropriate description will depend upon whether or not fractionation services are to be provided under this Agreement. from time to time, may exist. After the Processing Effective Date, the Processing Plant will have processing capacity of at least [____] MMcf per day with design recoveries (“Design Recoveries”) as follows: Helium 0.0 % 0.0 % CO2 - Carbon Dioxide 0.0 % 0.0 % N2 - Nitrogen 0.0 % 0.0 % H2S - Hydrogen Sulfide 0.0 % 0.0 % C1 - Methane 0.0 % 0.0 % C2 - Ethane 2.0 % 85.0 % C3 - Propane 90.0 % 98.0 % IC4 - Isobutane 98.0 % 99.5 % NC4 - Normal Butane 99.5 % 99.8 % C5+ - Natural Gasoline 99.9 % 99.9 % (b) The Processing Plant shall include the installation, at Processor’s cost, of a residue gas pipeline for redelivery of the Residue Gas to the Delivery Points set forth on Exhibit A attached hereto. (c) The Processing Plant will be constructed at a site to be determined by Processor that is reasonably acceptable to Producer (the “Plant Site”). The Plant Site may be acquired in fee or under a site lease or other form of interest as is reasonably acceptable to Processor. The Plant Site will reserve in favor of Producer, for the use of Producer and its contractors [(including the Gatherer under the Gathering Agreement)] and their respective successors and assigns, appropriate fee parcels, easements or other surface and underground rights sufficient for Producer and such contractors to construct, locate, and operate the inlet facilities required for the delivery of Producer’s Gas to the Processing Plant at the Receipt Points, including, but not limited to, inlet slug catchers, pig receivers, and compression facilities. (d) If the Processing Effective Date has not occurred by the end of twenty-one (21) months after the Effective Date (the “Required Processing Effective Date”), and such delay is not due to Force Majeure, then after the Processing Effective Date occurs, Processor will not charge Producer any of the Fees for a number of Days equal to the number of Days following the Required Processing Effective Date until the Processing Effective Date, but only with respect to those volumes of Producer’s Gas up to its Firm Capacity that were not processed at the Processing Plant as Interruptible Gas during such delay period. The remedy described above shall be Producer’s sole and exclusive remedy for any such delay.