Common use of Expected Deliveries Clause in Contracts

Expected Deliveries. To the extent not prevented by Force Majeure, Working Interest Owner shall deliver, or cause to be delivered, all Production Payment Hydrocarbons constituting Gas to the relevant Delivery Point in a condition satisfactory to meet or exceed pipeline specifications and qualifications of the applicable sales, transportation or processing contract at such Delivery Point and will deliver all Production Payment Hydrocarbons constituting Oil at the points at which the Working Interest Owner delivers Oil from the same Subject Interests into third party pipelines or to third party transporters or, if requested by Production Payment Owner, at one or more other points of sale reasonably convenient and mutually agreeable to both Working Interest Owner and Production Payment Owner. All tasks required to make such delivery (whether gathering, treating, separating, compressing, processing, transporting, or otherwise) are herein called the "Delivery Services". All Delivery Services, whether performed by Working Interest Owner or by any other Person, shall be performed without any cost or charge to Production Payment Owner, whether incurred or assessed by Working Interest Owner or any other Person, and all costs so incurred or assessed shall be borne and paid by Working Interest Owner as provided in Section 2.3. The Delivery Services shall be provided to Production Payment Owner on a first priority basis, to the extent permitted by law and applicable contracts (meaning, for example, that (A) pipeline and compressor capacity, if owned or controlled by Working Interest Owner or any Affiliate of Working Interest Owner, shall be afforded to Subject Hydrocarbons prior to affording any such capacity to Working Interest Owner, any Affiliates of Working Interest Owner or any other Person with respect to any other Hydrocarbons, and (B) pipeline and compressor capacity owned or controlled by any Person other than Working Interest Owner or any Affiliate of Working Interest Owner shall be afforded to Subject Hydrocarbons prior to affording any such capacity to Working Interest Owner or any Affiliate of Working Interest Owner with respect to any other Hydrocarbons), and Working Interest Owner hereby expressly subordinates any capacity rights it may now or hereafter have to the Production Payment Hydrocarbons. Working Interest Owner shall, to the extent permitted by law and applicable contracts, take whatever action is appropriate to cause any Affiliate of Working Interest Owner or any other Person to afford Subject Hydrocarbons the priority capacity described in this subsection (a), including assigning to Production Payment Owner, upon Production Payment Owner's request following failure by Working Interest Owner to provide Delivery Services as required hereunder, any capacity rights Working Interest Owner may have under assignable contracts or other arrangements with an Affiliate or any other Person as may be necessary or useful to facilitate delivery of Production Payment Hydrocarbons to each Delivery Point in a condition satisfactory to meet or exceed pipeline specifications or qualifications at such Delivery Point.

Appears in 1 contract

Sources: Conveyance of Dollar Denominated Production Payment (Abraxas Petroleum Corp)

Expected Deliveries. To the extent not prevented by Force Majeure, Working Interest Owner Grantor shall deliver, or cause to be delivered, all Production Payment PP Hydrocarbons constituting Gas to the relevant Delivery Point in a condition satisfactory to meet or exceed pipeline specifications and qualifications of the applicable sales, transportation or processing contract at such Delivery Point and will deliver all Production Payment PP Hydrocarbons constituting Oil at the points at which the Working Interest Owner Grantor delivers Oil from the same Subject Interests into third party pipelines or to third party transporters or, if requested by Production Payment OwnerGrantee, at one or more other points of sale reasonably convenient and mutually agreeable to both Working Interest Owner Grantor and Production Payment OwnerGrantee. All tasks required to make such delivery (whether gathering, treating, separating, compressing, processingProcessing, transporting, or otherwise) are herein called the "Delivery Services". All Delivery Services, whether performed by Working Interest Owner Grantor or by any other Person, shall be performed without any cost or charge to Production Payment OwnerGrantee, whether incurred or assessed by Working Interest Owner Grantor or any other Person, and all costs so incurred or assessed shall be borne and paid by Working Interest Owner Grantor as provided in Section 2.32.4. The Delivery Services shall be provided to Production Payment Owner Grantee on a first priority basis, to the extent permitted by law and applicable contracts (meaning, for example, that (A) pipeline and compressor capacity, if owned or controlled by Working Interest Owner Grantor or any Affiliate of Working Interest OwnerGrantor, shall be afforded to Subject Hydrocarbons prior to affording any such capacity to Working Interest OwnerGrantor, any Affiliates of Working Interest Owner Grantor or any other Person with respect to any other Hydrocarbons, and (B) pipeline and compressor capacity owned or controlled by any Person other than Working Interest Owner Grantor or any Affiliate of Working Interest Owner Grantor shall be afforded to Subject Hydrocarbons prior to affording any such capacity to Working Interest Owner Grantor or any Affiliate of Working Interest Owner Grantor with respect to any other Hydrocarbons), and Working Interest Owner Grantor hereby expressly subordinates any capacity rights it may now or hereafter have to the Production Payment PP Hydrocarbons. Working Interest Owner Grantor shall, to the extent permitted by law and applicable contracts, take whatever action is appropriate to cause any Affiliate of Working Interest Owner Grantor or any other Person to afford Subject Hydrocarbons the priority capacity described in this subsection (a), including assigning to Production Payment OwnerGrantee, upon Production Payment OwnerGrantee's request following failure by Working Interest Owner Grantor to provide Delivery Services as required hereunder, any capacity rights Working Interest Owner Grantor may have under assignable contracts or other arrangements with an Affiliate or any other Person as may be necessary or useful to facilitate delivery of Production Payment PP Hydrocarbons to each Delivery Point in a condition satisfactory to meet or exceed pipeline specifications or qualifications at such Delivery Point.

Appears in 1 contract

Sources: Production Payment Conveyance (Transtexas Gas Corp)