Operations Fee Reduction Clause Samples

Operations Fee Reduction. If the Monthly Average Receipt Point Pressure exceeds the applicable Sub-System Turnover Average Receipt Point Pressure for any Sub-System (other than the High-Pressure Sweet Sub-System and the High Pressure Sour Sub-System) during any Month after the one (1) year anniversary of the end of the Expansion Period, then for each Receipt Point on such Sub-System that exceeds the Sub-System Turnover Average Receipt Point Pressure for the Sub-System to which such Receipt Point is connected, the Operations Fees for such Month applicable to such Receipt Point shall be reduced by an amount equal to the product of (i) such Operations Fee and (ii) two percent (2%) for each one percent (1%) that such Monthly Average Receipt Point Pressure exceeds the applicable the Sub-System Turnover Average Receipt Point Pressure. For example, if during the applicable Month, the applicable Operations Fee is $0.10 per Mcf and the applicable the Sub-System Turnover Average Receipt Point Pressure is one hundred (100) psig, but during such Month, the Monthly Average Receipt Point Pressure was one hundred ten (110) psig, then the Operations Fee would be reduced to $0.08 per Mcf. Nothing herein shall relieve Gatherer of any liability for failure to provide Services pursuant to, and in accordance with, the terms of this Agreement. Notwithstanding anything contained in this Section 10.4(b), there will be no reduction in the Operations Fee for any Receipt Point that is first established or re-connected to the Gathering System after the one (1) year anniversary of the end of the Expansion Period, which has, during the first thirty (30) days of production, a weighted average pressure above the Sub-System Turnover Average Receipt Point Pressure for the Sub-System to which such Receipt Point is connected.