AMENDMENT NO. 2 TO GAS GATHERING AGREEMENT FOR THE MERCURY, PANDORA, PLUTO AND SATURN GAS GATHERING SYSTEMS

EX-10.1 3 eqm3312017ex101.htm EXHIBIT 10.1 Exhibit
Exhibit 10.1
Portions of this Exhibit have been redacted pursuant to a request for confidential treatment under Rule 24b-2 of the General Rules and Regulations under the Securities Exchange Act. Omitted information marked “[***]” in this Exhibit has been filed with the Securities and Exchange Commission together with such request for confidential treatment.    

EXECUTION VERSION
AMENDMENT NO. 2
TO

GAS GATHERING AGREEMENT FOR THE MERCURY, PANDORA,
PLUTO AND SATURN GAS GATHERING SYSTEMS
This Amendment No. 2 to the Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems (this “Amendment”) is made and entered into as of March 28, 2017, with an effective date as of November 1, 206 (the “Effective Date”), by and between EQT Production Company (“Producer”) and EQT Energy, LLC (collectively with Producer, “Shipper”), on the one hand, and EQM Gathering OPCO, LLC (“Gatherer”), on the other hand. Producer, Shipper and Gatherer are each referred to herein as a “Party” and collectively as the “Parties”.

WHEREAS, the Parties made and entered into that certain Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems dated March 1, 2015 (the “Agreement”), as amended by that certain Amendment No. 1 to the Gas Gathering Agreement for the Mercury, Pandora, Pluto and Saturn Gas Gathering Systems dated September 18, 2015, pursuant to which, among other provisions, Shipper requested that Gatherer provide the gathering of natural gas on behalf of Shipper by receiving quantities of natural gas and redelivering it to or for Shipper’s account; and

WHEREAS, the Parties intend to amend the Agreement, upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the Parties hereby agree as follows:

1.Definitions. All capitalized terms used but not otherwise defined or amended herein shall have the meanings ascribed to them in the Agreement.

2.Amendments.

a.
Exhibit A-1 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit A-1 attached hereto.

b.
Exhibit A-2 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit A-2 attached hereto.

c.
Exhibit B-1 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit B-1 attached hereto.




d.
Section II (Table of Incremental Capital Fees) of Exhibit B-2 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Section II (Table of Incremental Capital Fees) of Exhibit B-2 attached hereto.

e.
Exhibit D attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit D attached hereto.

f.
Exhibit D-2 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit D-2 attached hereto.

g.
Exhibit D-4 attached to the Agreement is hereby deleted in its entirety and replaced with the revised Exhibit D-4 attached hereto.

h.
The table set forth in Section III A.1. of Exhibit F attached to the Agreement is hereby deleted in its entirety and replaced with the revised table set forth in Section III A.1. of Exhibit F attached hereto.

3.Effect of Amendment. The Agreement, as amended hereby, shall remain in full force and effect, and all terms hereof are hereby ratified and confirmed by the Parties.

4.Further Actions. The Parties agree to execute such other documents and take such further actions necessary to effectuate this Amendment.

5.Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same agreement. It is agreed by the Parties that facsimile or electronic (.pdf) copies of the signature pages signed by the Parties shall be binding to the same extent as original signature pages.

6.Entire Agreement. This Amendment is the entire agreement between the Parties concerning the subject matter hereof and neither Party shall be bound by representations except as set forth in this Amendment.

7.Amendments. This Amendment may not be modified or amended except by a written agreement signed by the Parties.


[Remainder of page intentionally blank]





EXECUTION VERSION
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.

EQT PRODUCTION COMPANY
EQM GATHERING OPCO, LLC
By:   /s/ David E. Schlosser, Jr.   
By:   /s/ M. Elise Hyland      
Name:   David E. Schlosser, Jr.   
Name:   M. Elise Hyland      
Title:   President         
Title:    President         

EQT ENERGY, LLC
 
By:   /s/ Donald M. Jenkins      
 
Name:   Donald M. Jenkins      
 
Title:    President         
 


[SIGNATURE PAGE TO AMENDMENT NO. 2 TO GAS GATHERING AGREEMENT FOR THE MERCURY, PANDORA, PLUTO AND SATURN GAS GATHERING SYSTEMS]






EXHIBIT A-1
RECEIPT POINTS, DELIVERY POINTS AND RECEIPT POINT MDQ

RECEIPT POINTS
 
System
Receipt Point Meter ID
Receipt Point Meter Name
Receipt Point MDQ
Mcf / Day
 
 
Mercury
5100016
Big 176 Gathering MM A Run
68,600
 
Mercury
5100042
Big 333/192 MM A Run
117,300
 
Mercury
5100045
PNG 129 Gathering MM A Run
117,300
 
Mercury
5100069
PNG 103 MM A RUN UPGRADE
117,300
 
Mercury
5100070
PNG 103 MM B RUN UPGRADE
68,600
 
Mercury
5100115
Big 7 MM
68,600
 
Mercury
###-###-####
Big 333/192 B Run
68,600
 
Mercury
###-###-####
BIG 176 Gathering MM B Run
117,300
 
Mercury
###-###-####
PNG 129 Gathering MM B Run
117,300
 
Mercury
###-###-####
BIG177 MM
117,300
 
Pandora
###-###-####
CPT 11 MM
68,600
 
Pandora
###-###-####
SMI 27 Gathering MM
117,300
 
Pandora
###-###-####
WEU4 MM
117,300
 
Pandora
###-###-####
SHR60 MM A RUN
68,600
 
Pandora
###-###-####
SHR60 MM B RUN
68,600
 
Pluto
24491
RSM16
68,600
 
Pluto
24582
RSM110/112 Gathering Meter
68,600
 
Pluto
24595
RSM 118 Gathering MM
68,600
 
Pluto
24596
RSM 119 Gathering MM
68,600
 
Pluto
###-###-####
RSM110/112 Gathering Meter
68,600
 
Pluto
###-###-####
RSM 118 Gathering MM B Run
117,300
 
Saturn
24454
OXF 114, 115
19,600
 
Saturn
24455
OXF 121
19,600
 
Saturn
24456
OXF 43 and 44 MM
45,900
 
Saturn
24470
OXF 149/150/156 MM A Run
45,900
 
Saturn
24471
OXF 138 Interconnect
45,900
 
Saturn
24472
OXF 127 Interconnect
45,900
 
Saturn
24481
OX131/152/153Gathering MM
45,900
 
Saturn
24492
WEU 1&2 B Gathering Meter
45,900
 
Saturn
24556
OXF 16 MM
19,600
 
Saturn
24625
OXF 131/152/153 Gathering B Run
45,900
 
Saturn
5100020
PEN 15 Master Meter A Run
45,900
 
Saturn
5100048
PEN15 MM B RUN
45,900
 
Saturn
###-###-####
PUL96 MM A RUN
45,900
 
Saturn
###-###-####
PUL96 MM B RUN
45,900
 
Saturn
5100059
SMI 28 MM A Run
78,500

Exhibit A-1
Page A-1


Saturn
5100061
SMI 28 MM B Run
45,900
Saturn
###-###-####
WEU-8 Gathering MM
78,500
Saturn
###-###-####
WEU 51 MM
78,500
Saturn
###-###-####
WEU 6 Gathering MM A Run
45,900
Saturn
###-###-####
OXF 149/150/156MM B Run
45,900
Saturn
###-###-####
OXF 157-159 Gathering MM A Run
45,900
Saturn
###-###-####
OXF 157-159 Gathering MM B Run
45,900
Saturn
###-###-####
WEU 6 MM B Run
45,900
Saturn
###-###-####
WEU 1-2-49 MM
45,900
Saturn
###-###-####
OXF163 MM Gather
78,500
Saturn
###-###-####
OXF122 MM Gather
78,500
Saturn
###-###-####
PEN 54 - MM1
78,500
Saturn
###-###-####
PEN 54 – MM2
78,500

DELIVERY POINTS
 
System
Delivery Point Meter ID
Delivery Point Meter Name
 
 
Mercury
5100025
MarkWest Mobley 2 (High pressure)
 
Mercury
###-###-####
Mercury to MarkWest B Run (High pressure)
 
Mercury
###-###-####
Mercury to MW - 16" run 1 (Low pressure)
 
Mercury
###-###-####
Mercury to MW - 16" run 2 (Low pressure)
 
Mercury
5100017
Mercury to 302 (Mobley bypass)
 
Mercury
###-###-####
Mercury to H-515 (Mobley bypass)
 
Pluto
24490
Pluto to GSF-604
 
Saturn
24452
Pierce North to Equitrans Gathering
 
Saturn
24453
Leeson South to Equitrans Gathering
 
Saturn
24484
Saturn Discharge to WG100
 
Saturn
###-###-####
Saturn Units 6 & 7 Discharge to WG100
 
Saturn
###-###-####
Janus Discharge 8” USM
 
Pandora
###-###-####
Pandora Discharge 8" USM

DRIP LIQUIDS DELIVERY POINT
 
System
Delivery Point Meter ID
Delivery Point Meter Name
 
 
Mercury
5100093
MarkWest Mobley (Logansport, West Virginia)
 
Saturn
###-###-####
NGLs from Saturn to WG100
 
Saturn
###-###-####
Saturn CS Liquids to WG100
 
Saturn
###-###-####
Janus CS Liquids to WG100
 
Pandora
###-###-####
Pandora Liquid Meter


Exhibit A-1
Page A-2



EXHIBIT A-2
CONTRACT MDQ, COMPRESSION MDQ AND TARGET RECEIPT POINT PRESSURES

Gathering System
Contract MDQ
Compression MDQ
Target Receipt Point Pressure
(Psig)
(Mcf/d)

(Dth/d)
(Mcf/d)

(Dth/d)
Mercury System
200,000
236,000
[***]
[***]
[***]
Pandora System
100,000
122,800
[***]
[***]
[***]
Pluto System
40,000
41,080
[***]
[***]
[***]
Saturn System
300,000
371,100
[***]
[***]
[***]
System
Receipt Point Meter ID
Receipt Point Meter Name
Receipt Point Contract MDQ
Mcf/Day*
Saturn
24454
OXF 114, 115
2,000
Saturn
24455
OXF 121
2,000
Saturn
24456
OXF 43 and 44 MM
5,000
Saturn
24470
OXF 149/150/156 MM A Run
12,000
Saturn
24471
OXF 138 Interconnect
3,000
Saturn
24472
OXF 127 Interconnect
17,000
Saturn
24481
OX131/152/153Gathering MM
28,000
Saturn
24492
WEU 1&2 B Gathering Meter
17,500
Saturn
24556
OXF 16 MM
1,000
Saturn
24625
OXF 131/152/153 Gathering B Run
28,000
Saturn
5100020
PEN 15 Master Meter A Run
12,500
Saturn
5100048
PEN15 MM B RUN
12,500
Saturn
###-###-####
PUL96 MM A RUN
46,000
Saturn
###-###-####
PUL96 MM B RUN
46,000
Saturn
5100059
SMI 28 MM A Run
8,500
Saturn
5100061
SMI 28 MM B Run
8,500
Saturn
###-###-####
WEU-8 Gathering MM
13,000
Saturn
###-###-####
WEU 51 MM
17,000
Saturn
###-###-####
WEU 6 Gathering MM A Run
5,000
Saturn
###-###-####
OXF 149/150/156MM B Run
12,000
Saturn
###-###-####
OXF 157-159 Gathering MM A Run
16,000

Exhibit A-2
Page A-3


Saturn
###-###-####
OXF 157-159 Gathering MM B Run
16,000
Saturn
###-###-####
WEU 6 MM B Run
5,000
Saturn
###-###-####
WEU 1-2-49 MM
17,500
Saturn
###-###-####
OXF163 MM Gather
39,500
Saturn
###-###-####
OXF122 MM Gather
39,500
Saturn
###-###-####
PEN 54 - MM1
30,000
Saturn
###-###-####
PEN 54 – MM2
30,000

*The Receipt Point Contract MDQ in this table shall be used for the purposes of calculating Actual Average Receipt Point Pressure under Section 5.4(b).


Exhibit A-2
Page A-4




EXHIBIT B-1
FEES
1.
Fee. The Fees to be paid by Shipper to Gatherer for Gathering Services shall include the following:
[***] Four (4) pages omitted from this exhibit pursuant to confidential treatment request.



Exhibit B-1
Page B-1



EXHIBIT B-2
Section II - Table of Incremental Capital Fees

[***]



Exhibit B-2
Page B-5




EXHIBIT D
DESCRIPTION OF GATHERING SYSTEM

[***] Three (3) pages omitted from this exhibit pursuant to confidential treatment request.



Exhibit D-1
Page D-1



  
PRESSURE REDUCTION PROJECTS DEPICTED ON EXHIBIT D-4

PIPELINES
Pipeline Name
Commencement Date
Outside Diameter (inches)
Length
(approx. miles)
MOSAD002
10/19/2016
16
2.5
MOSAD003
10/19/2016
16
4.0
MOSAS031
8/31/2017
20
8.5
MOSAS032
8/14/2018
20
1.8
MOSAS033
10/3/2016
20
6.5
MOSAS034
12/4/2018
20
2.6
MOSAS037
12/17/2018
12
4.9

COMPRESSION
Station Name
Commencement Date
Incremental Horsepower
Total Station Horsepower
Janus Station
12/31/2017
10,000
20,000



Exhibit D-4
Page D-4



EXHIBIT F
Section III A.1. – Receipt Point Interconnect Data

 
System
Meter ID
Meter Name
GPS Coordinates
MAOP
Min DQ
Mcf/Day
Max DQ
Mcf/Day
 
 
Mercury
5100016
Big 176 Gathering MM A Run
-80.55179
39.55602
1,440
1,900
68,600
 
Mercury
5100042
Big 333/192 MM A Run
-80.58099
39.52385
1,440
3,200
117,300
 
Mercury
5100045
PNG 129 Gathering MM A Run
-80.64344
39.55349
1,440
3,200
117,300
 
Mercury
5100069
PNG 103 MM A RUN UPGRADE
-80.62447
39.56334
1,440
3,200
117,300
 
Mercury
5100070
PNG 103 MM B RUN UPGRADE
-80.62447
39.56334
1,440
1,900
68,600
 
Mercury
5100115
Big 7 MM
-80.61385
39.57679
1,440
1,900
68,600
 
Mercury
###-###-####
Big 333/192 B Run
-80.58099
39.52385
1,440
1,900
68,600
 
Mercury
###-###-####
BIG 176 Gathering MM B Run
-80.55179
39.55602
1,440
3,200
117,300
 
Mercury
###-###-####
PNG 129 Gathering MM B Run
-80.64344
39.55349
1,440
3,200
117,300
 
Mercury
###-###-####
BIG177 MM
-80.5842
39.58225
1,440
1,900
117,300
 
Pandora
###-###-####
CPT 11 MM
-80.72431
39.38134
1,440
1,900
68,600
 
Pandora
###-###-####
SMI 27 Gathering MM
-80 ###-###-####
39 ###-###-####
1,440
3,200
117,300
 
Pandora
###-###-####
SHR60 MM A RUN
-80.8177
39.38813
1440
800
68,600
 
Pandora
###-###-####
SHR60 MM B RUN
-80.8177
39.38813
1440
800
68,600
 
Pandora
###-###-####
WEU4 MM
39.36664
-80.82072
1440
3,200
117,300
 
Pluto
24491
RSM16
-80.14147
39.32203
1,440
1,900
68,600
 
Pluto
24582
RSM110/112 Gathering Meter
-80.16256
39.31757
1,440
1,900
68,600
 
Pluto
24595
RSM 118 Gathering MM
-80.18918
39.29457
1,440
1,900
68,600
 
Pluto
24596
RSM 119 Gathering MM
-80.15786
39.29579
1,440
1,900
68,600
 
Pluto
###-###-####
RSM110/112 Gathering Meter
-80.16256
39.31757
1,440
1,900
68,600
 
Pluto
###-###-####
RSM 118 Gathering MM B Run
-80.1892
39.29487
1440
1,450
117,300
 
Saturn
24454
OXF 114, 115
-80.80857
39.14277
720
600
19,600
 
Saturn
24455
OXF 121
-80.8068
39.1359
720
600
19,600
 
Saturn
24456
OXF 43 and 44 MM
-80.81166
39.14533
720
1,200
45,900
 
Saturn
24470
OXF 149/150/156 MM A Run
-80.78491
39.21018
720
1,200
45,900
 
Saturn
24471
OXF 138 Interconnect
-80.78468
39.20905
720
1,200
45,900
 
Saturn
24472
OXF 127 Interconnect
-80.80583
39.19561
720
1,200
45,900
 
Saturn
24481
OX131/152/153Gathering MM
-80.79538
39.18596
720
1,200
45,900
 
Saturn
24492
WEU 1&2 B Gathering Meter
-80.7872
39.2635
720
1,200
45,900
 
Saturn
24556
OXF 16 MM
-80.77924
39.18906
720
600
19,600
 
Saturn
24625
OXF 131/152/153 Gathering B Run
-80.7952
39.18556
720
1,200
45,900
 
Saturn
5100020
PEN 15 Master Meter A Run
-80.936507
39 ###-###-####
720
1,200
45,900
 
Saturn
5100048
PEN15 MM B RUN
-80.936507
39 ###-###-####
720
1,200
45,900
 
Saturn
5100059
SMI 28 MM A Run
-80.74666
39.25743
720
2,100
78,500
 
Saturn
5100061
SMI 28 MM B Run
-80.74666
39.25743
720
1,200
45,900
 
Saturn
###-###-####
WEU-8 Gathering MM
-80.80077
39.27448
720
2,100
78,500
 
Saturn
###-###-####
WEU 51 MM
-80.76367
39.25619
720
2,100
78,500

Exhibit F
Page F-1


Saturn
###-###-####
WEU 6 Gathering MM A Run
-80.75645
39.29037
720
1,200
45,900
Saturn
###-###-####
OXF 149/150/156MM B Run
-80.78491
39.21018
720
1,200
45,900
Saturn
###-###-####
OXF 157-159 Gathering MM A Run
-80.76716
39.21132
720
1,200
45,900
Saturn
###-###-####
OXF 157-159 Gathering MM B Run
-80.76716
39.21132
720
1,200
45,900
Saturn
###-###-####
WEU 6 MM B Run
-80.75645
39.29037
720
1,200
45,900
Saturn
###-###-####
WEU 1-2-49 MM
-80.7872
39.2635
720
1,200
45,900
Saturn
###-###-####
OXF163 MM Gather
-80.8069
39.13586
720
1,650
78,500
Saturn
###-###-####
OXF122 MM Gather
-80.8069
39.13586
720
1,650
78,500
Saturn
###-###-####
PUL96 MM A RUN
-80.98591
39.21114
720
1,200
45,900
Saturn
###-###-####
PUL96 MM B RUN
-80.98591
39.21114
720
1,200
45,900
Saturn
###-###-####
PEN 54 - MM1
-80.92757
39.25374
720
2,100
78,500
Saturn
###-###-####
PEN 54 – MM2
-80.92757
39.25374
720
2,100
78,500


Exhibit F
Page F-2