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the difference between the volume actually
received during the Contract Year and the minimum
volume Buyer was obligated to receive during the
year. If Buyer thus pays for an annual shortage
not actually received, Buyer shall have the right
to recoup the volume thus paid for but not
received out of future production from any or all
wells delivering gas under this contract, without
further payment, and to that end, so long as
there is an unrecouped balance of annual
shortages paid for but not received:
(1) 25% of all volumes of gas
received from any or all wells under
this contract will be credited toward
recoupment whenever Buyer is requesting
full deliverability of gas from such
well or wells under this contract and
receiving all gas delivered by Seller.
As and when recoupment volumes are
credited toward recoupment, such
volumes shall be deemed currently
purchased and received by Buyer for
all other purposes of this contract,
including satisfaction of current take
or pay obligations.
(2) In addition to volumes
credited toward recoupment under the
preceding paragraph, it is also agreed
that all additional gas received by
Buyer during each Contract Year in
excess of the annual minimum Buyer is
obligated hereunder to receive during
that Contract Year will also be
credited toward recoupment.
(3) If recoupment gas can be credited
hereunder to more than one prior Contract
Year in which gas was paid for but not
received, the recoupment gas shall be
credited first to the oldest unrecouped
annual shortage until the same has been
recouped.
(4) If Buyer has not recouped
particular gas paid for but not
received hereunder within 5 years after
the close of the Contract Year in which
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Last modified: May 25, 2011