Common use of Dedicated Gas Clause in Contracts

Dedicated Gas. (a) Subject to the reservations stated in Article 1.2, the GMX Parties hereby commit and dedicate to the performance of this Agreement, for the Term, all of the Gas that is produced from all present and future ▇▇▇▇▇ (except for the ▇▇▇▇▇ identified on Exhibit B-3) that are located on the oil and gas leases covering lands in ▇▇▇▇▇▇▇▇ and Panola Counties, Texas, identified on Exhibit B-1 (the “Leases”) as to which GMX or a GMX Producer Affiliate serves as operator and in which one or more GMX Parties owned a Working Interest on the Effective Date (the “Dedicated Gas”). The ▇▇▇▇▇ from which Dedicated Gas was being produced as of the Effective Date are also identified on Exhibit B-1. Notwithstanding that the ▇▇▇▇▇ identified on Exhibit B-3 are located on the Dedicated Acreage, Gas produced from such ▇▇▇▇▇ shall not constitute Dedicated Gas for purposes of this Agreement. The lands covered by the Leases are shown on the map attached hereto as Exhibit B-2, and such lands are referred to herein as the “Dedicated Acreage.” The geographic area of ▇▇▇▇▇▇▇▇ and Panola Counties, Texas, is referred to herein as the “Area of Interest”. (b) If, after the Effective Date, a GMX Party acquires Working Interests in additional oil and gas leases covering lands in the Area of Interest, all Gas owned or Controlled by the relevant GMX Party that is produced from all ▇▇▇▇▇ located on such additional oil and gas leases as to which GMX or a GMX Producer Affiliate serves as operator shall constitute Dedicated Gas for purposes hereof; such additional oil and gas leases shall be deemed to be Leases for purposes hereof; and all of the lands covered thereby shall be deemed to be a part of the Dedicated Acreage. Notwithstanding the foregoing, if, after the Effective Date, a GMX Party acquires oil and gas leases covering lands in the Area of Interest that, at the time of the relevant GMX Party’s acquisition thereof, are subject to existing Gas gathering, transportation, purchase (at the wellhead), or similar agreements with third Persons, such oil and gas leases and lands shall not be deemed to constitute, respectively, Leases or a part of the Dedicated Acreage for purposes hereof until such existing agreements expire or are terminated or released pursuant to the terms of any such agreements. The relevant GMX Parties shall use reasonable commercial efforts to obtain or cause the release or termination of any such existing agreement at the earliest possible date; provided, however, if any such existing Gas gathering, transportation, wellhead purchase, or similar agreement provides for gathering or other fees for the services provided thereunder to similar delivery points for Gas that are, in the aggregate, less than the fees payable pursuant to Article 3, or provides for more favorable delivery points for Gas, the GMX Parties shall not be obligated to use reasonable commercial efforts to obtain or cause the release or termination of the relevant existing agreement, and the GMX Parties may exercise any option to renew or otherwise negotiate to extend any such existing agreement, unless in each case Gatherer elects to provide the services contemplated in this Agreement based on the fee structure contained in such existing gathering, transportation, wellhead purchase, or similar agreement. (c) If a GMX Party is not the operator of a well located in the Area of Interest, but is nonetheless able to obtain the agreement of all of the owners of Gas produced from such well to commit and dedicate such Gas production to this Agreement, then upon delivery to Gatherer of written evidence of such agreement, all Gas thus owned or Controlled by the relevant GMX Party that is produced from such non-GMX Party-operated well shall constitute Dedicated Gas for purposes hereof; the oil and gas lease(s) on which such well is located shall be deemed to be Leases for purposes hereof; and the lands covered thereby shall become part of the Dedicated Acreage. (d) From time to time as GMX and Gatherer deem appropriate, the Parties shall amend Exhibit B to reflect the periodic changes to the Leases, producing ▇▇▇▇▇, and Dedicated Acreage contemplated in this Article 1.1. (e) Consistent with the preceding provisions of this Article 1.1, the GMX Parties agree to sell to Shipper, pursuant to current or future Gas sale and purchase agreements between such Parties, all of the Dedicated Gas; and Shipper hereby commits and dedicates to the performance of this Agreement, for the Term, all Dedicated Gas sold by any of the GMX Parties to Shipper pursuant to such current and future Gas sale and purchase agreements. (f) If, at any time during the Term, an Affiliate of GMX that is not a signatory to this Agreement as a GMX Producer Affiliate acquires a Working Interest in an oil and gas lease covering lands in the Area of Interest that, if acquired by a GMX Party, would constitute a Lease for purposes hereof, GMX shall cause such Affiliate to agree in writing to assume and to agree to pay, perform, and discharge all of the duties, obligations, responsibilities, and Liabilities of a GMX Party under, and otherwise to be bound by the terms of, this Agreement. Thereafter, such Affiliate of GMX shall be deemed to be a GMX Producer Affiliate for all purposes hereunder, and any such oil and gas lease or Working Interest acquired by such Affiliate of GMX shall be deemed to be a Lease subject to and in accordance with the terms hereof.