Common use of BALANCING PROCEDURES Clause in Contracts

BALANCING PROCEDURES. Producer will inform Processor of the amount of Gas to be delivered by Producer at each Receipt Point and of Producer’s nomination for Gas to be delivered at the Redelivery Point, in accordance with the nomination procedures described above, as same may be amended from time to time. In the event that Producer does not, on a daily basis, arrange for the sale, transportation and disposition of its Gas at the Redelivery Point, or if Producer nominates for sale Gas volumes in a greater or lesser amount than Producer’s contractual share of the Gas at the Redelivery Point, then a condition of imbalance shall exist. A “Positive Imbalance” is the volume by which Producer’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages, is in excess of the confirmed nominated pipeline Gas sales volumes disposed of by Producer or Producer’s designee. A “Negative Imbalance” is the volume by which Producer’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages is less than the confirmed nominated pipeline Gas sales volumes disposed of by Producer or Producer’s designee. Processor and Producer shall work to minimize any imbalance and agree to exchange pertinent information in writing in good faith in an attempt to minimize the imbalance. As soon as practicable Processor shall provide Producer written notice that Producer has a condition of imbalance during any Accounting Period, and Producer shall take immediate corrective action to conform Producer’s nominations to Producer’s physical flows adjusted for relief of existing imbalance, if requested by Processor. Imbalance adjustments may be limited by the downstream pipeline’s acceptance of such adjustments.

BALANCING PROCEDURES. Producer Chipeta will inform Processor of the amount of Gas to be delivered by Producer Chipeta at each Receipt Point and of ProducerChipeta’s nomination for Gas to be delivered at the Redelivery Point, in accordance with the nomination procedures described above, as same may be amended from time to time. In the event that Producer Chipeta does not, on a daily basis, arrange for the sale, transportation and disposition of its Gas at the Redelivery Point, or if Producer Chipeta nominates for sale Gas volumes in a greater or lesser amount than ProducerChipeta’s contractual share of the Gas at the Redelivery Point, then a condition of imbalance shall exist. A “Positive Imbalance” is the volume by which ProducerChipeta’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages, is in excess of the confirmed nominated pipeline Gas sales volumes disposed of by Producer Chipeta or ProducerChipeta’s designee. A “Negative Imbalance” is the volume by which ProducerChipeta’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages is less than the confirmed nominated pipeline Gas sales volumes disposed of by Producer Chipeta or ProducerChipeta’s designee. Processor and Producer Chipeta shall work to minimize any imbalance and agree to exchange pertinent information in writing in good faith in an attempt to minimize the imbalance. As soon as practicable Processor shall provide Producer Chipeta written notice that Producer Chipeta has a condition of imbalance during any Accounting Period, and Producer Chipeta shall take immediate corrective action to conform ProducerChipeta’s nominations to ProducerChipeta’s physical flows adjusted for relief of existing imbalance, if requested by Processor. Imbalance adjustments may be limited by the downstream pipeline’s acceptance of such adjustments.

BALANCING PROCEDURES. 5.1. Producer will inform Processor of the amount of Gas to be delivered by Producer at each Receipt Point and of Producer’s nomination for Gas to be delivered at the Redelivery Point, in accordance with the nomination procedures described above, as same may be amended from time to time. In the event that Producer does not, on a daily basis, arrange for the sale, transportation and disposition of its Gas at the Redelivery Point, or if Producer nominates for sale Gas volumes in a greater or lesser amount than Producer’s contractual share of the Gas at the Redelivery Point, then a condition of imbalance shall exist. A “Positive Imbalance” is the volume by which Producer’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages, is in excess of the confirmed nominated pipeline Gas sales volumes disposed of by Producer or Producer’s designee. A “Negative Imbalance” is the volume by which Producer’s contractual share of the Gas allocated pursuant to this Agreement in accordance with confirmed wellhead Entitlement Percentages is less than the confirmed nominated pipeline Gas sales volumes disposed of by Producer or Producer’s designee. Processor and Producer shall work to minimize any imbalance and agree to exchange pertinent information in writing in good faith in an attempt to minimize the imbalance. As soon as practicable Processor shall provide Producer written notice that Producer has a condition of imbalance during any Accounting Period, and Producer shall take immediate corrective action to conform Producer’s nominations to Producer’s physical flows adjusted for relief of existing imbalance, if requested by Processor. Imbalance adjustments may be limited by the downstream pipeline’s acceptance of such adjustments. The “Entitlement Percentages” are the percentages of the Receipt Point Thermal Content that the eligible Producers for a given Receipt Point are entitled to deliver from that Receipt Point, as determined by the operator of the well delivering to the Receipt Point. The sum of the Entitlement Percentages for all eligible Producers for any Receipt Point shall equal 100%. For purposes of this provision, eligible Producers shall mean Producers who have an agreement with Processor for delivery of Gas at the Receipt Point.