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waives any and all claims relating to or arising
out of the Contract, including any failure to
take gas or to pay for gas not taken by Buyer
[Arkla], in respect of all natural gas available
for production from all properties committed to
the Contract from the Effective Date of the
Contract through June 30, 1990.
As to Malibu's obligation to sell gas produced from
the subject wells to Arkla, the Settlement Agreement
provides that, upon Malibu's request, the parties to the
settlement shall enter into a Release Agreement under which
gas committed to the performance of the Contract that is
in excess of the quantity requested by Arkla can be
released from the Contract and sold to third parties.
In consideration of the release of gas from the Contract,
Malibu would agree in the Release Agreement that Arkla
would be entitled to credit any gas released and sold to
third parties against "any obligations and liabilities
it may have to take gas, or to pay for gas not taken".
Furthermore, Malibu would also agree in the Release
Agreement to waive and release Arkla from any obligations
and liabilities for failure to take gas, or to pay for
gas not taken, during the time the Release Agreement is in
effect. If Malibu requests it, the Release Agreement would
continue for a primary term beginning on May 1, 1988, and
extending through to June 30, 1990, and would continue on
a month-to-month basis thereafter, unless and until
terminated by either party upon 30 days' written notice.
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