Partnership Operations. A. The General Partner intends to use reasonable efforts to cause the Partnership to operate in a manner (including, without limitation, incurring indebtedness, establishing and maintaining cash reserves, and undertaking and financing recurring and non-recurring capital expenditures) that enables the Partnership to maintain a distribution rate per Class A Unit that is equal to the distribution rate per REIT Share payable to holders of common stock of the General Partner (after taking into account any appropriate adjustments in Class A Units and REIT Shares to reflect stock splits, stock dividends and other similar adjustments). The General Partner agrees that it will act in good faith in attempting to accomplish the foregoing objective, but there is no assurance that such objective will be accomplished and neither the General Partner nor the Partnership shall have any liability for the failure to achieve such objective so long as the General Partner acts in good faith.
Partnership Operations. Accounting for a partnership form of business is basically similar to that of a sole proprietorship. For example, Purchase of supplies is debited either to Supplies or Supplies Expense account and when merchandise are sold on account, the entry is to debit Accounts receivable and credit the Sales account which is the same as that of a sole proprietorship In fact the Accounting Cycle of a Partnership is similar to that of sole proprietorship:
Partnership Operations. Upon Dissolution of the Partnership as provided in Section 13.1, the continuing operation of the Partnership's business shall be confined to those activities reasonably necessary to wind up the Partnership's affairs, discharge its obligations and preserve and distribute its assets in accordance with this Section 13.4, except as otherwise provided in this Agreement. Allocations of Net Income and Net Loss and allocations of items of income and deduction shall be made among the Partners as provided in Article 5.
Partnership Operations. The Partnership's principal operations include the transportation and gathering of natural gas and oil in the Gulf. It conducts these activities through its ownership of, or interests in, eleven pipeline systems. These systems have a combined capacity of over 7.2 billion cubic feet per day, or Bcf/d, of natural gas and over 480 thousand barrels per day, or MBbls/d, of oil and include over 1,600 miles of pipeline. These systems are strategically placed to serve production activities in some of the most active drilling and development regions in the Gulf, including the offshore regions of Texas, Louisiana, and Mississippi, and provide relatively low cost access to long line transmission pipelines that access multiple markets in the eastern half of the United States. During the years ended December 31, 1999, 1998, and 1997, these systems handled an average of approximately 3.4 million dekatherms per day, or MMdth/d, 3.4 MMdth/d, and 2.9 MMdth/d, respectively, of natural gas and approximately 181 MBbls/d, 97 MBbls/d, and 52 MBbls/d, respectively, of oil. The Partnership also owns or has interests in six platforms which also include certain production, processing, and dehydration facilities. These facilities have a combined product handling capacity of over 630 thousand cubic feet per day, or Mcf/d, of natural gas and over 77 MBbls/d of oil and condensate. Through these facilities, the Partnership is able to provide a variety of producer and midstream services to enhance deliverability and volumes into its pipeline systems. The Partnership conducts its oil and natural gas production activities through its interests in four producing properties having total proved reserves of over 17.5 Bcf of natural gas and over 1.5 million barrels, or MMBbls, of oil. The Partnership also has overriding royalty interests in non-producing properties in the Xxxxx Bank and Garden Banks region of the Gulf to capitalize on future development efforts in those regions.
Partnership Operations. Formatted: Font: Times New Roman, 8 pt Formatted: Tab stops: 3", Centered + 6", Right + Not at 0.73" Management Company, L.P., a California limited partnership. On behalf of the Partnership, the
Partnership Operations
