Common use of INITIAL FACILITES Clause in Contracts

INITIAL FACILITES. (a) Gatherer shall diligently proceed with the acquisition of all applicable governmental approvals, permits, and rights-of-way required to construct and install facilities capable of providing gathering and compression services for 9,000 Mcf per day of Owner’s Daily Deliverability of Gas from Owner’s acreage located in 48N/74W and 47N/74W as fully described in Exhibit A hereunder. (b) At such time as Owner provides at lease one hundred eighty (180) days prior written notice to Gatherer of Owner’s development plan capable of producing Gas having a deliverability of not less than 9,000 Mcf per day from the Kudzu area, as such area is more particularly described in Exhibit A hereunder, Gatherer shall diligently proceed with the acquisition of all applicable governmental approvals, permits, and rights-of-way required to construct and install facilities capable of providing gathering and compression services for 9,000 Mcf per day of Owner’s Daily Deliverability of Gas from such Kudzu area.