Lease Operations. The Manager shall perform all Lease Operations in accordance with the Standards set forth in Section 2.3. The Manager shall manage the progress, evaluation and implementation of all projects (including multi-well drilling, workover and recompletion projects and secondary/tertiary recovery projects) being carried out in connection with the performance of Lease Operations.
Lease Operations. Seller may use the Gas required to be delivered hereunder for the purpose of developing and operating its lease or well(s), excluding the use of Gas for gas lifting or for pressure maintenance and/or cycling operations. Seller may, at any time, without liability to Buyer clean out, deepen, or abandon any well or xxxxx on the above-described lands or may use any efficient, modern, or improved method for the production of oil. Before any well or xxxxx are taken out of service for any reason whatsoever, Seller agrees to first shut off the same from communication with Buyer’s Gathering System.
Lease Operations. Based on the terms of certain natural gas gathering, transportation and processing agreements, the Partnership is considered to be the lessor under several implicit operating lease arrangements in accordance with GAAP. The Partnership’s primary implicit lease operations relate to a natural gas gathering agreement in the Marcellus shale for which it earns a fixed-fee for providing gathering services to a single producer using a dedicated gathering system. As the gathering system is expanded, the fixed-fee charged to the producer is adjusted to include the additional gathering assets in the lease. The primary term of the natural gas gathering arrangement expires in 2023 and will continue thereafter on a year to year basis until terminated by either party. Other significant implicit leases relate to a natural gas processing agreement in the Marcellus shale and a natural gas processing agreement in the Southern Appalachia region for which the Partnership earns minimum monthly fees for providing processing services to a single producer using a dedicated processing plant. The primary term of these natural gas processing agreements expire during 2030 and 2023. The Partnership’s revenue from its implicit lease arrangements, excluding executory costs, totaled approximately $89 million in 2015 and $14 million in 2014 and 2013. Based on the terms of the Partnership’s fee-based transportation services agreement with MPC, HSM is also considered to be a lessor of its marine equipment in accordance with GAAP. The Partnership’s implicit lease arrangements related to the processing facilities contain contingent rental provisions whereby the Partnership receives additional fees if the producer customer exceeds the monthly minimum processed volumes. During the year ended December 31, 2015, the Partnership received less than $1 million in contingent lease payments. No contingent lease payments were received for the year ended December 31, 2014. The following is a schedule of minimum future rentals on the non-cancellable operating leases as of December 31, 2015: (In millions) 2016 $ 265 2017 276 2018 279 2019 282 2020 283 2021 and thereafter 588 Total minimum future rentals $ 1,973 The following schedule summarizes the Partnership’s investment in assets held for operating lease by major classes as of December 31, 2015: (In millions) Natural gas gathering and NGL transportation pipelines and facilities $ 619 Natural gas processing facilities 753 Barges 360 Towing vessels 91 Con...
Lease Operations. Except as set forth in the Due Diligence Documents, the Lease has not been amended, supplemented or otherwise modified. To Buyer’s knowledge, all necessary permits to carry out Tenant’s business operations at the Property have been obtained.
Lease Operations
