Gas Sales and Purchase Agreement between MC Panhandle, Inc. and MidCon Gas Services Corp.
This agreement, effective July 1, 1997, is between MC Panhandle, Inc. (Seller) and MidCon Gas Services Corp. (Buyer). The Seller agrees to sell, and the Buyer agrees to purchase, all natural gas produced from specified properties. The contract outlines pricing, delivery, quality, and payment terms, and includes provisions for new wells, gathering charges, and the right for either party to terminate after the primary term ending January 1, 2012, with proper notice. The agreement also details measurement, testing, and other operational requirements for the sale and purchase of gas.
MC Panhandle, Inc., Seller and MidCon Gas Services Corp., Buyer
I. | DEFINITIONS | 2 | ||||
II. | COMMITMENT AND DEDICATION | 3 | ||||
III. | TERM | 4 | ||||
IV. | PRICE | 5 | ||||
V. | DELIVERIES | 6 | ||||
VI. | MEASUREMENT AND TESTING | 6 | ||||
VII. | WARRANTY OF TITLE | 8 | ||||
VIII. | SCHEDULING AND NOMINATIONS | 8 | ||||
IX. | QUALITY AND PROCESSING | 8 | ||||
X. | BILLING AND PAYMENT | 9 | ||||
XI. | FORCE MAJEURE | 11 | ||||
XII. | NOTICES | 11 | ||||
XIII. | OPTION TO LEASE | 12 | ||||
XIV. | MISCELLANEOUS | 13 |
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1.1. | British Thermal Unit (Btu). The term British thermal unit shall mean the amount of heat required to raise the temperature of one pound of water from fifty-nine degrees Fahrenheit (59°F) to sixty degrees Fahrenheit (60°F). | ||
1.2. | Business Day. The term Business Day shall mean from 8:00 a.m. to 5:00 p.m.. Central Standard Time on any weekday excluding holidays. | ||
1.3. | Buyers Processing Plant. The term Buyers Processing Plant shall mean the Stinnett Processing Plant currently owned by MidCon Gas Products Corp., located in the NW/4 of Section 1, T.T. RR Survey, in Moore County, Texas, any reconfiguration or replacement thereof, and any other functionally similar facility which Buyer may designate from time to time during the term hereof. | ||
1.4. | Day. The term Day shall mean a period of twenty-four (24) consecutive hours beginning and ending at 9:00 A.M. Local Clock Time. The reference date for any Day shall be the date of the beginning of such Day. |
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1.5. | Delivery Point. The term Delivery Point(s) shall mean the point(s) at which Seller delivers Gas to the Buyer, or to Buyers designee for Buyers account, which shall be the outlet flange of Sellers EFM located at or near the well(s). | ||
1.6. | EFM. The term EFM shall mean electronic flow measurement and control equipment. | ||
1.7. | Fuel. The term fuel shall mean the volume of Gas used for fuel by the Gathering Facilities and Sellers Facilities located downstream of the Delivery Point(s), as stipulated in paragraph 4.2 hereof. | ||
1.8. | Gas. The term Gas shall mean natural gas, or any mixture of hydrocarbons or of hydrocarbons and non-combustible gases, including helium, in a gaseous state, the quantity of which shall be determined on an MMBtu basis. | ||
1.9. | Gathering Facility(ies). The term Gathering Facility(ies) shall mean any and all equipment used by Gatherer to gather Gas under this Agreement or any other gathering agreement including, but not limited to, pipe, meters, and field booster compression equipment and wet gas compression equipment located at Buyers Processing Plant. | ||
1.10. | Gatherer. The term Gatherer shall mean Buyer or Buyers designee who delivers gas from the Point(s) of Delivery to the inlet of Buyers Processing Plant. | ||
1.11. | Index. The term Index shall mean the first of the month index price for Natural Gas Pipeline Company of America Mid-Continent as published by Inside F.E.R.C. | ||
1.12. | Interest Rate. The term Interest Rate shall mean the lesser of (i) two percent (2%) over the per annum rate of interest announced from time to time by Citibank, N.A., as its prime rate for commercial loans, effective for such date as established from time to time by such bank or (ii) the highest rate permitted by applicable law. | ||
1.13. | Mcf. The term Mcf shall mean 1,000 cubic feet of Gas measured at 14.73 psia and sixty degrees Fahrenheit (60°F). | ||
1.14. | MMBtu. The term MMBtu shall mean 1,000,000 Btu. |
II. | COMMITMENT AND DEDICATION |
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2.1. | Sellers Dedication. Seller dedicates for sale to Buyer herein all of its interest in the Gas now or hereafter produced from the area set forth and described on Exhibit A attached hereto and made a part hereof from all producing formations from the surface to the base of the Granite Wash formation as found in the existing Panhandle Field producing horizons (Dedicated Formations). | ||
2.2. | Sellers Reservations. Seller reserves the right to deepen, rework, plug or perform any other work on the gas, wells or property dedicated to Buyer herein at its sole discretion. | ||
2.3. | New Wells Dedicated Formations. For gas from new wells drilled by Seller on the dedicated acreage which is produced from the Dedicated Formations, Seller shall construct the facilities necessary to connect Sellers well(s) to a mutually agreeable interconnection point on Gatherers existing gathering system. Following the installation of such facilities, Seller shall submit to Buyer an invoice identifying the costs incurred by Seller in constructing those facilities downstream of Sellers production equipment (which equipment includes wellhead compression, if any). Buyer, within thirty (30) days of receipt of Sellers invoice, shall reimburse Seller for twenty-five percent (25%) of the costs identified on such invoice. | ||
2.4 | New Wells Other Formations. For gas from new or recompleted wells which is produced from other than the Dedicated Formations, Seller shall be permitted to solicit third-party offers to purchase such production. Upon receipt of any such third-party offers, Buyer shall have the right to purchase such production on the same terms and conditions as those offered to Seller by such third party. | ||
2.5. | Buyers Commitment. Buyer shall take and purchase all gas tendered by Seller at the Point(s) of Delivery. |
III. | TERM |
3.1 | The term of this Agreement shall be from the effective date hereof until January 1, 2012 (Primary Term), and year-to-year thereafter. This contract may be terminated by either party at the end of the Primary Term or any anniversary date thereafter upon sixty (60) days prior written notice. | ||
3.2 | This Agreement supersedes that certain Gas Sales and Purchase Agreement between the parties dated December 1, 1996 as of the effective date hereof. |
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IV. | PRICE AND GATHERING CHARGES |
4.1. | Base Price. The price payable by Buyer to Seller for all gas delivered at the Point(s) of Delivery shall be the Index Price, as adjusted pursuant to the Gathering Charge set forth in paragraph 4.2, below. | ||
4.2 | Gathering Charge. In consideration for the gathering service provided by Buyer hereunder, Buyer shall be able to deduct from the amount payable to Seller pursuant to 4.1 the following: |
(i) | a fuel and lost gas charge equal to eight point five percent (8.5%) of the gas volumes delivered by Seller to Buyer at Point(s) of Delivery; | ||
(ii) | a gathering fee which shall be the sum of: |
(a) | a fixed monthly charge of Three Hundred Forty-five Thousand and 00/100s Dollars ($345,000), and | ||
(b) | a variable charge of seven cents per MMBtu ($.07/MMBtu) actually delivered by Seller to Buyer at the point of delivery. |
(iii) | an example of a monthly statement to support the amount payable to Seller is attached hereto as Exhibit C. |
4.3 | Redetermination of Gathering Charge. |
(i) | The Gathering Charge set forth in 4.2 shall remain in effect for a period of five (5) years from the effective date hereof and year to year thereafter unless redetermined pursuant to 4.3(ii). | ||
(ii) | Either party, upon sixty (60) days written notice prior to the end of the term set forth in 4.3(i), may request a redetermination of the Gathering Charge, and the parties shall negotiate in good faith to determine a new charge based both on reasonable estimates of Buyers expected costs associated with the provision of gathering the gas produced and sold hereunder to the Plant, as well the volumes Seller expects to produce and sell hereunder. | ||
(iii) | The redetermined Gathering Charge shall be effective the first day of July following the notice of the party requesting same and shall |
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be effective for a minimum of two (2) years thereafter, after which period either party may again request another redetermination. |
Unless the parties specifically agree to the contrary, in no event shall any part of the Gathering Charge set forth in 4.2 be required to be changed more than ten percent (10%) from that previously in effect. | |||
4.4. | Curtailment or Restrained Capacity. In the event Buyer is unable to receive and purchase all of the volumes tendered by Seller pursuant to this Agreement for a period of three (3) consecutive days, except by reason of force majeure, then for so long as such condition exists the fixed portion of the gathering fee set forth in 4.2(ii) shall be prorated by the ratio of (i) the volumes actually taken by Buyer to (ii) the lower of the volumes tendered or the average of the latest 3-month production during which no curtailment occurred, for so long as such condition exists. |
V. | DELIVERIES AND PRESSURES |
5.1. | Title, Possession and Risk of Loss. As between Buyer and Seller, title, possession and control of the gas sold and purchased hereunder shall pass from Buyer to Seller at the Point(s) of Delivery. Prior to delivery, Seller shall be liable for any damages resulting from Sellers possession of same, except for damages resulting from the gross negligence or willful misconduct of Buyer. Subsequent to delivery, Buyer shall be liable for all damages resulting from Buyers ownership and control of same, except for those damages resulting from the gross negligence or willful misconduct of Seller. | ||
5.2. | Pressure Requirements. Buyer shall use its best efforts to maintain operating pressures prevailing at the Delivery Point(s) at the effective date hereof. Buyer shall not adversely affect Sellers deliverability through the purchase of Gas from third parties for delivery into Gatherers existing Gathering Facilities. Buyer and Seller each agree that each will act as a prudent operator of their respective facilities in endeavoring to maintain such operating pressures to accommodate reasonable development of Sellers reserves. |
VI. | MEASUREMENT AND TESTING |
6.1. | EFM as Custody Transfer Point. It is agreed between the parties that where EFM is currently operating or installed by Seller, that EFM will be the |
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custody transfer point. New measurement facilities installed by Seller shall be EFM and shall meet current AGA standards. In order to minimize pulsation problems, the design and layout of new or relocated measurement facilities shall be approved by Buyer prior to installation. Seller will provide and transfer to Buyer within 48 hours of collection, gas measurement data via electronic transfer for all wells connected to Buyers Gathering Facilities. Additionally, Seller and Buyer agree that Seller shall be responsible for the performance of primary measurement. Seller shall provide buyer remote electronic access to EFM and compressor alarm polling computers for the purpose of downloading volume and alarm data. It is understood that electronic flow data, rather than charts, will be provided for audit purposes. |
6.2. | Gas Sampling. Every six (6) months Seller or Sellers designee shall collect spot gas samples and perform or have performed analysis, on such samples, for Sellers well(s) connected to Gatherers Gathering Facilities. Seller or Sellers Designee shall be responsible for data input of analysis information into Sellers measurement facilities within seven (7) days from the date of analysis. Additionally Seller shall be responsible for providing the collection and analysis service within 72 hours from initial deliveries from all new Delivery Points on Gatherers Facilities. Seller will provide a hard (paper) copy record of all analysis to Buyer and Gatherer in a timely fashion. Buyer shall have the right to witness and Seller shall give Buyer sufficient notice to allow Buyer to witness all gas sampling conducted by Seller. Seller shall provide sufficient notice of such sampling to Buyer. | ||
6.3. | Location of EFM with respect to Wellhead Compressors. Subsequent to the effective date hereof, any new installation or relocation of either EFM facilities or wellhead compression units that results in the EFM being located upstream of the wellhead compression unit will require adjustment to the fuel charge specified in paragraph 4.2(i). |
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VII. | WARRANTY OF TITLE |
7.1. | Title. Seller warrants that Seller at the time of Delivery of Gas to Gatherer will have good title to all such Gas pursuant to contractual arrangements entered into prior to commencement of Service, and that it will deliver, or cause to be delivered, such Gas free from all liens, encumbrances and claims whatsoever. Seller will indemnify Buyer and save it harmless from all suits, actions, debts, liabilities, accounts, damages, costs, losses, and expenses (including attorneys fees and court costs) arising out of the adverse claim of any person or persons claiming ownership of any interest in the Gas or for any taxes, licenses, royalties, fees or charges which are applicable prior to the time of delivery of such Gas to Buyer. |
VIII. | SCHEDULING AND NOMINATIONS |
8.1. | Subject to Buyers obligation to take and purchase all volumes made available for sale by Seller hereunder, Seller recognizes Buyers interest in maintaining as constant a rate of flow as is reasonably possible. Seller shall provide Buyer with such advance notice as is reasonably possible of any material changes in volumes tendered (or to be tendered) to Buyer under this Agreement and will cooperate in providing Buyer whatever information is required by Buyer to accommodate Buyers obligations to nominate gas for gathering service with Gatherer. |
IX. | QUALITY AND PROCESSING |
9.1. | Quality. The Gas delivered and sold to Buyer hereunder shall be in its natural state and will meet the quality specifications of Gatherer from time to time. The current specifications of Gatherer are identified in Exhibit B attached hereto and made a part hereof. Notwithstanding the foregoing, Buyer also agrees to accept Gas tendered by Seller which does not meet Gatherers quality specification for water, nitrogen, and maximum Btu content until such time as Buyer or Gatherer determine that acceptance poses operational problems for Buyer or the Gatherer. | ||
9.2. | Processing. Seller grants to Buyer the right to process all Gas produced from the Dedicated Formations during the term hereof. Except for the operation of traditional non-refrigerated wellhead mechanical separation |
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equipment of the type generally in use in the industry, Seller shall not operate or allow to be operated any equipment to extract any liquefiable hydrocarbons from the Gas delivered hereunder prior to the Delivery Point(s). |
X. | BILLING AND PAYMENT |
10.1. | Invoicing. Seller shall submit to Buyer a statement and billing for the actual volumes (in MMBtus adjusted for actual delivery conditions) delivered at the Delivery Point(s) during the preceding month. Buyer shall, within the later of ten (10) days of the receipt of such billing or the twenty-fifth (25th) day of the month, render to Seller, wire transfer payment of the amount billed by Buyer, less applicable Fuel charges incurred by Buyer, for the preceding month. Payment shall be made to the payment address provided in Article 11 of this Agreement. | ||
10.2. | Disputed Billings. If Buyer, in good faith, disputes any part of any statement, Buyer shall pay the portion of such statement conceded to be correct. If the disputed billing is determined to be correct, it shall be paid within ten (10) business days of such determination, along with interest calculated at the Interest Rate from the original due date until the date paid. If an error is discovered in any billing, such error shall be adjusted within thirty (30) days of the determination thereof, provided that claims therefor shall have been made within two (2) years from the date of such billing. | ||
10.3. | Late Payments. Should Buyer fail to pay part or all of the amount of any billing for gas delivered hereunder, Seller may impose interest calculated at the Interest Rate, from the due date until date of payment. If such failure to pay continues, Seller, in addition to any other remedy it may have and subject to the provisions of paragraph 10.2, above, may suspend deliveries hereunder upon thirty (30) day written notification to Buyer and may be released from the terms of this Agreement. | ||
10.4. | Audit. Each party has the right, as its sole expense and during normal working hours, to examine the records of the other party as necessary to verify the accuracy of any statement, charge or computation made pursuant to the provisions of this Agreement. If any such examination reveals any inaccuracy in any statement, the necessary adjustments to such statement and the payments thereof will be promptly made; provided that no adjustment for any statement or payment will be made after the lapse of two (2) years from the rendition thereof; and provided further that this provision |
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of this Agreement will survive any termination of the Agreement for a period of two (2) years from the date of such termination for the purpose of such statement and payment adjustments. |
10.5. | Credit Worthiness. Seller shall not be required to perform or to continue deliveries if Buyer is or has become insolvent or who, at Sellers request, fails within a reasonable period to demonstrate credit worthiness; provided, however, Buyer may continue to receive deliveries if Buyer prepays for such service or furnishes good and sufficient security, as determined by Seller in its reasonable discretion, in an amount equal to the cost of estimated gas deliveries under this Agreement for a two (2) month period. For purposes herein, the insolvency of Buyer shall be evidenced by the filing by Buyer, or any parent entity thereof, of a voluntary petition in bankruptcy or the entry of a decree or order by a court having jurisdiction in the premises adjudging the Buyer bankrupt or insolvent, or approving as properly filed, a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Buyer under the Federal Bankruptcy Act or any other applicable federal or state law, or appointing a receiver, liquidator, assignee, trustee, or sequestrator (or other similar official) of the Buyer or of any substantial part of its property, or the ordering of the winding-up or liquidation of its affairs, with said order or decree continuing unstayed and in effect for a period of sixty (60) consecutive days. |
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XI. | FORCE MAJEURE |
11.1. | In the event either Seller or Buyer is rendered unable, by an event of force majeure, to carry out wholly or in part its obligations under the provisions hereunder except payment obligations hereunder, it is agreed that if such Party gives written notification and full particulars of such event of force majeure to the other Party as soon as practicable after the occurrence of the cause relied on, then the obligations of the Party affected by such event of force majeure, other than the obligation to make payments then due or becoming due hereunder, shall be suspended from the inception and throughout the continuance of any such inability so caused, but for no longer period, and such event of force majeure shall, so far as practicable, be remedied with all reasonable dispatch. The term force majeure as employed herein shall mean any cause of any kind not reasonably within the control of the party claiming suspension and which by the exercise of due diligence such party could not have prevented or is unable to overcome. |
XII. | NOTICES |
12.1. | Any notice, statement, or bill provided for in this Agreement shall be in writing and shall be considered as having been given if delivered personally, by facsimile, or if mailed by United States mail, postage prepaid, to the following addresses, or any changed address if provided by the other Party: |
To Buyer: |
(I) Invoices for Gas: | MidCon Gas Services Corp. | |||
P.O. Box 283 | ||||
Houston, TX 77001-0283 | ||||
Attention: Gas Purchase Accounting | ||||
Facsimile: (713) 963-3087 | ||||
(II) Notices: | MidCon Gas Services Corp. | |||
P.O. Box 283 | ||||
Houston, TX 77001-0283 | ||||
Phone: (713) 963-3700 | ||||
Facsimile: (713)  ###-###-#### |
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Notices: | MC Panhandle | |||
c/o OXY USA Inc. | ||||
P.O. Box 300 | ||||
Tulsa, OK 74102 | ||||
Phone: (918) 561-_____ | ||||
Payments: | MC Panhandle | |||
c/o OXY USA Inc. | ||||
P.O. Box 300 | ||||
Tulsa, OK 74102 | ||||
Wire Transfers: | [to be provided] |
XIII. | OPTION TO LEASE |
13.1. | Option to Lease Gathering System. Seller shall have the option, exercisable on or before December 31, 1998, to lease a portion of Buyers gathering system by executing a Lease and License agreement in the form attached as Exhibit D. Such portion shall consist of the lines, drips, meters and field booster compressors up to the inlet of Buyers four wet gathering trunklines as more fully described in said Exhibit. The said lease will be effective January 1, 2000 and terminate concurrently with the sale of the gas hereunder. Should the requisite regulatory approvals set forth in 13.2 not be obtained prior to January 1, 2000, then such lease shall be effective the first day of the month following thirty (30) days after the receipt of such authorization. |
13.2 | Option Subject to Regulatory Approval; Contract Revisions. The option to lease set forth herein is subject to receipt by Natural Gas Pipeline Company of America receiving the requisite authorization to spindown the Gathering Facilities. Notwithstanding the provisions of 4.3(i), the parties recognize that should Seller exercise its option to lease such facilities, then certain contract modifications including, but not limited to gathering charges, fuel, pressures, measurement and testing shall be renegotiated by the parties in good faith to be effective with the effective date of the lease. |
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13.3. | Buyer to Provide Information. Buyer shall provide Seller, on a timely basis, all relevant information requested by Seller needed to evaluate whether to exercise its option herein. Such information shall include, but not be limited to, permits, licenses, rights-of-way, leases, easements and servitudes related to the Gathering Facilities. |
XIV. | MISCELLANEOUS |
14.1 | Laws, Orders and Regulations. This Agreement and the respective rights and obligations of the Parties hereto is subject to all present and future valid laws, orders, rules and regulations of any legislative body, or duly constituted authority now or hereafter having jurisdiction and shall be varied and amended to comply with or conform to any valid rule, regulation, order, or direction of any board, tribunal, or administrative agency which affects any of the provisions of this Agreement. | ||
14.2 | Authority to Execute. The Parties represent and warrant that each party has the requisite power and authority to execute, deliver and perform this Agreement. Execution, delivery and performance of this Agreement by the Parties hereto and the consummation of the transactions contemplated hereby have been duly authorized by all requisite corporate action. | ||
14.3. | Entire Agreement. This Agreement constitutes the entire agreement between the Parties and no other representations, memoranda, agreements or other matter, oral or written, prior to the date hereof, shall vary, alter or aid in the interpretation of the provisions hereof. | ||
14.4. | No Third-Party Beneficiary. There is no third party beneficiary to this Agreement, and the provisions of this Agreement shall not impart rights enforceable by any person, firm or organization not a Party or not bound as a Party, or not a successor or assignee of a Party bound to this Agreement. | ||
14.5. | Amendments in Writing. All modifications, amendments or changes to this Agreement, whether made simultaneously with or after the execution of this Agreement, shall be in writing, and executed with the same formality as this Agreement. | ||
14.6. | Waiver of Default. No waiver by either Party hereto of any one or more defaults by the other in the performance of any of the provisions of this Agreement shall operate or be construed as a waiver of any subsequent default or defaults whether of a like or a different character. |
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14.7. | Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY, CONSTRUED, ENFORCED AND PERFORMED IN ACCORDANCE WITH THE LAW OF THE STATE OF TEXAS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. | ||
14.8. | Headings. The headings used for the Articles herein are for convenience and reference purposes only and shall in no way affect the meaning or interpretation of the provisions of this Agreement. | ||
14.9. | Taxes. The Contract Price is inclusive of all royalties, production taxes, severance taxes, ad valorem taxes, or other sums now or hereafter levied on the production of the gas prior to its delivery to Buyer at the Delivery Point(s). All such taxes and royalties shall be borne and paid exclusively by Seller. | ||
14.10. | Special Damages Waiver. THE PARTIES WAIVE ALL PUNITIVE, SPECIAL, EXEMPLARY OR CONSEQUENTIAL DAMAGES FOR ANY BREACH OF THIS CONTRACT. |
MidCon Gas Services Corp. | MC Panhandle, Inc. | |||||
By: | /s/ Steven M. Salato | By: | /s/ | |||
Title: Senior Vice President | Title: Attorney-In-Fact |
By: | /s/ C.E. Doulrava | |||
Title: SVP |
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EXHIBIT A | ORIGINAL DOCUMENT IS BELOW STANDARD LEGIBLE IMAGE NOT POSSIBLE |

Wellhead Volume | 1,650,000 | MMBTU | ||||
Fuel and GLU Volume | 140,250 | MMBTU | ||||
Index Price | 2.50 | $/MMBTU | ||||
Gross Wellhead Purchase | $ | 4,125,000 | ||||
Fuel Charge | $ | (350,625 | ) | |||
Fixed Demand Charge | $ | (345,000 | ) | |||
Commodity Charge | $ | (115,500 | ) | |||
Net Monthly Payment | $ | 3,313,875 |
(a) | Additions means all Improvements not constituting Extensions, including, but not limited to equipment, machinery, pipeline, compressor stations, expansions of the system, loop lines, or related facilities and materials, that serve to improve the operation of the Leased Assets as they exist on the Commencement Date. | |
(b) | Agreement means this Lease and License Agreement, as |
amended from time to time. |
(c) | Base Rent means, for each twelve-month period during the Term, seven hundred thousand dollars ($700,000). | |
(d) | Commencement Date means January 1, 2000. | |
(e) | Contracts means the gas Purchase and Sales Agreements described on Schedule 2 hereto. | |
(f) | Default has the meaning assigned to such term in Section 17.1. | |
(g) | Easements means the easements, rights of way, benefits, servitudes, and leases described with more particularity on Schedule 1 hereto. | |
(h) | Extensions means Improvements that consist of natural gas pipelines that are extensions from, or connections to the Pipeline Assets, including interconnects or gathering systems, constructed after the Commencement Date. | |
(i) | Improvements means Additions and Extensions as defined herein. | |
(j) | Term has the meaning assigned to such term in Article IV. | |
(k) | Leased Assets means the Real Property and Pipeline. | |
(1) | Leased Inventory means the materials and supplies more particularly described on Schedule 1. | |
(m) | Licensed Assets means the Easements and the Permits. | |
(n) | Permits means the permits and licenses described with more particularity on Schedule 1 hereto. | |
(o) | Pipeline means the approximate 368-mile gathering system in Carson, Gray, Hutchinson, and Moore Counties, Texas, all |
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as more particularly described and shown in Exhibit A. | ||
(p) | Pipeline Assets means the Leased Assets and the Licensed Assets in place as of the Commencement Date. | |
(q) | Real Property means the fee property and surface leases and easements described with more particularity on Schedule 1 hereto. | |
(r) | Rent means, collectively, Base Rent and Taxes payable by Lessee pursuant to Article V. | |
(s) | Taxes means all federal, state and local government taxes, assessments and charges of any kind or nature, whether general, special, ordinary or extraordinary, payable with respect to the Pipeline Assets, and all related improvements thereto or thereon and all machinery, equipment, fixtures and other facilities, including personal property, as may now or hereafter exist in or on the Pipeline Assets, including, without limitation, real estate and transit district taxes and assessments, impact fees, ad valorem taxes, personal property taxes, all taxes, assessments and charges in lieu of, substituted for, or in addition to, any or all of the foregoing taxes, assessments and charges, but excluding any federal, state or local government income or franchise taxes. | |
(t) | Term as it is defined in Article IV. | |
(u) | Transfer has the meaning assigned to such term in Section 16.1. |
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