Common use of Compression Fee Clause in Contracts

Compression Fee. In addition to the Gathering Fee, each month during the Term, Shipper shall pay to Gatherer an amount (the “Compression Fee”) equal to the product obtained by multiplying (a) all volumes of Dedicated Gas, in MMBtu, delivered by Shipper to Gatherer at the Receipt Points of the Low Pressure Pipelines during the relevant month, less all volumes of Dedicated Gas delivered to the Reinjection Points during such month, by (b) the number of stages of compression at the compression facilities on the Low Pressure Pipelines, by (c) the Compression Rate. For purposes of this Agreement, Gatherer’s compression facilities connected to the Low Pressure Pipelines shall be deemed to provide three (3) stages of compression. If, during the Term, compression other than in connection with the Low Pressure Pipeline is provided on Gatherer’s Systems through facilities in operation as of the Effective Date, the Compression Fee payable with respect to such other compression shall be equal to the product obtained by multiplying (x) the volume of Dedicated Gas, in MMBtu, measured at the inlet flange of such other compression facilities, by (y) the number of stages of compression at such other facilities, by (z) the Compression Rate.