EnCana System Clause Samples

EnCana System. The Parties recognize that it will be necessary for EnCana to construct, own, maintain and operate a gathering system to move production from the North Block from EnCana operated ▇▇▇▇▇ to the facilities contemplated by the Tenaska Agreement. Assuming the existence of this EnCana operated or controlled gathering system, EnCana agrees that STML shall have the right, but not the obligation, to transport gas on this gathering system from ▇▇▇▇▇ in which STML owns an interest and that produce from an interval outside of the Assigned Interval. This right by STML shall be on a space available basis with no obligation on the part of EnCana to provide space on the gathering system, unless such space is readily available. EnCana will also allow STML the right to use its rights-of-way related to the gathering system provided such use is not prohibited by the terms of the particular right-of-way grant. If STML moves gas on the EnCana gathering system in accordance with this paragraph, EnCana shall charge STML a reasonable market-based fee to which the Parties mutually agree acting in a commercially reasonable manner. In addition, EnCana agrees that STML shall have the right, but not the obligation, to transport gas on this gathering system from ▇▇▇▇▇ in the North Block in which STML owns an interest within the Assigned Interval. If STML moves gas produced from the Assigned Interval in the North Block on the EnCana gathering system in accordance with this paragraph, EnCana shall charge STML a reasonable market-based fee to which the Parties mutually agree acting in a commercially reasonable manner.