Common use of SCOPE AND BUDGET Clause in Contracts

SCOPE AND BUDGET. By October 1st of each Year during the Redetermination Period, Gatherer will develop and deliver to Producers a projected Scope and budget (the “Budget”) for the following Year to meet System Requirements. The Budget will be broken down into five general categories: well connect capital expenditure, infrastructure capital expenditure, facilities capital expenditure, operations support and other capital expenditure, and Operating Expense. Gatherer will reasonably consider and incorporate the suggestions and input of Producers into the preparation of the Scope and Budget. The Scope and Budget also will include projects that Gatherer reasonably believes are necessary for the System to be in compliance with applicable laws, rules, and regulations of any governmental authority and any other projects that Gatherer reasonably believes are necessary to meet applicable health, safety, and environmental requirements or standards (“Compliance Projects”). With respect to a single project or a series of related projects with Capital Expenditures in excess of ** (“Material Project”), Gatherer will provide project level detail for such projects as part of the Budget, along with key assumptions and design basis by Budget category.

SCOPE AND BUDGET. By October 1st of each Year during the Redetermination Period, Gatherer will develop and deliver to Producers a projected Scope and budget (the “Budget”) for the following Year to meet System Requirements. The Budget will be broken down into five four general categories: well connect capital expenditure, infrastructure capital expenditure, facilities capital expenditure, operations support and other capital expenditure, and Operating Expense. Gatherer will reasonably consider and incorporate the suggestions and input of Producers into the preparation of the Scope and Budget. The Scope and Budget also will include projects that Gatherer reasonably believes are necessary for the System to be in compliance with applicable laws, rules, and regulations of any governmental authority and any other projects that Gatherer reasonably believes are necessary to meet applicable health, safety, and environmental requirements or standards (“Compliance Projects”). With respect to a single project or a series of related projects with Capital Expenditures in excess of ** (“Material Project”), Gatherer will provide project level detail for such projects as part of the Budget, along with key assumptions and design basis by Budget category.