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corporation, as seller, and Arkansas Louisiana Gas Co.
(Arkla) as buyer. In this opinion, we refer to the gas
purchase contract as the Contract. Section 9 of the
Contract provides as follows:
Section 9. QUANTITIES.
(A)(1) The following phrases are used in
this agreement with the following meanings:
(a) "Daily Deliverability,” with
respect to a particular well, refers
to the average daily rate at which the
well can lawfully deliver gas under
the conditions of this contract as
determined by a 5-day test, such 5-day
tests to be conducted by Buyer from
time to time as operations may indicate
to be necessary. The results of a
particular 5-day test shall be effec-
tive hereunder from the completion of
the test until the completion of the
next such test.
(b) “Average Daily Volume,” with
respect to a particular well, refers to
75% of the Daily Deliverability of that
well as in effect from time to time.
(c) "Contract Annual Volume,”
with respect to a particular well,
refers to an annual volume equal
to the cumulative total of the
Average Daily Volumes effective
hereunder from time to time for
that well during the particular
Contract Year.
(2) Subject to the further provisions
hereof, Buyer shall receive the Contract Annual
Volume during each Contract Year from each
Contract Well.
(3) Buyer’s receipts of gas hereunder will
fluctuate from time to time because of Buyer’s
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Last modified: May 25, 2011