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fluctuating requirements for its system, and
Buyer shall balance its receipts hereunder from
each Contract Well over each Contract Year in
order to receive the Contract Annual Volume,
provided that to permit such balancing of
receipts, Buyer shall have the right to require
deliveries hereunder from the well at a daily
rate of at least the Daily Deliverability of that
well as in effect from time to time, and to the
extent that Seller is unable lawfully to deliver
gas at the required rate, Buyer shall be relieved
of its take obligations hereunder.
(B) The provisions of this Section are
subject to all the other terms and conditions
of this contract and to the physical ability
of any given well or wells to lawfully deliver
the quantities of gas herein contemplated in
accordance with such other terms and conditions
and the rules and regulations of any regulatory
authority having jurisdiction.
(C) Except as may otherwise appear in
context, this entire contract presupposes that
it covers 100% of the interests in all wells from
which gas is now or may hereafter be deliverable
hereunder, and accordingly, to the extent that
all the production from any particular well or
wells is not thus subject hereto and deliverable
hereunder during any particular accounting
period, or part thereof, then Buyer’s take
obligations hereunder in respect of such well or
wells shall be reduced proportionately. Reserves
attributable to an interest subject to a prior
call or other such right in a third party to
require delivery of production otherwise
deliverable hereunder, shall not be considered
for purposes of determining any obligations of
Buyer based on reserves until such time as the
interest is unconditionally dedicated to this
contract free and clear of any such prior rights
in third parties.
(D) Buyer shall have the right to purchase
hereunder, in addition to the minimum volumes
provided to be received hereunder, such
additional volumes of gas as Buyer may in the
prudent operation of its business require from
the subject properties from time to time and
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Last modified: May 25, 2011