Common use of Future Construction Clause in Contracts

Future Construction. Shipper may request in writing that Gatherer construct additional laterals and pipeline extensions (“Future Construction”) to connect future CDPs within the Acreage to the Gathering Systems. Gatherer shall work diligently to complete the Future Construction as promptly as commercially reasonable. Additionally, upon securing the required rights-of-way and governmental or regulatory permits, Gatherer shall use commercially reasonable efforts to insure any Future Construction is completed within a timeframe allotting [***] ([***]) weeks for each mile of pipeline to be constructed; provided, that any pipeline of [***]. In the event that Gatherer does not complete the Future Construction within the time periods described above, and, as a result of such failure, any of Shipper’s CDPs is “waiting on pipeline”, then Gatherer shall credit Shipper’s Service Fee by [***]% for such CDP for an equivalent time period for which the affected CDP was waiting on pipeline. For purposes of this Section 3.3(a), “waiting on pipeline” means that the affected CDP is not operational and able to accept the Dedicated Gas [***] ([***]) Days following the first Day that both (x) Shipper’s construction responsibilities related to such CDP and upstream well are complete and (y) Shipper fractures the well connected upstream of such CDP.

Appears in 2 contracts

Sources: Gas Gathering Agreement (EQM Midstream Partners, LP), Gas Gathering Agreement (Rice Midstream Partners LP)