Hugoton Term Clause Samples

Hugoton Term. For Y-grade from Hugoton, this Agreement shall become effective on January 1, 1998 and shall remain in effect for a period of 15 years; provided, however, either Amoco or MNGL may terminate this Agreement on the tenth anniversary of its effective date by giving written notice to the other during the eighth year of the Agreement. If notice of termination is not given by the end of the eighth anniversary of the effective date, then this Agreement shall remain in effect for the full 15 year term. The 10 year or 15 year period, whichever is applicable, will be called the “Hugoton Term” of this Agreement. If notice of termination is given, Amoco and MNGL shall enter into good faith negotiations for ***** days after receipt of the notice to reach terms acceptable to both parties for the continued fractionation of Y-grade after the termination of this Agreement. MNGL shall have the right to negotiate with Amoco if any third party offer for fractionation is received by Amoco during the eighth year which Amoco intends to accept and which is to become effective after the termination of this Agreement. Amoco shall provide MNGL with information which accurately represents the terms and conditions of any such offer it receives. Notwithstanding the foregoing, the ***** day negotiation period shall not commence until after MNGL’s receipt of the terms and conditions of such offer. In the event Amoco has notified MNGL of such a third party offer and Amoco elects not to accept such offer after the negotiation period indicated above has expired, then the final offer by MNGL for that period shall be deemed to be accepted by Amoco.