Common use of Processing Facilities Clause in Contracts

Processing Facilities. (a) The Partnership shall construct the Fortune Creek Gas Plant. Contemporaneously with the execution and delivery of this Agreement, QRCI and the Partnership are entering into a Processing Agreement in the form attached hereto as Schedule E which will, inter alia, provide that the processing charge (the “Processing Charge”) for Natural Gas will be calculated such that the Partnership's investment in the Fortune Creek Gas Plant will: (i) achieve a 15% Hurdle Rate, on the basis of the capital component of the Processing Charge alone, at the end of the 10-year period following the estimated Commercial In-Service Date of the Fortune Creek Gas Plant; (ii) include a variable fee reflecting a pass-through of actual cash operating and maintenance capital expenses incurred by the Partnership such that the Partnership will not be affected by variances in such expenses; and (iii) include a capital component that increases or decreases, as the case may be, to the extent that actual capital costs exceed or are less than the estimates, such that the Partnership would achieve its 15% Hurdle Rate on the basis of TOP obligations alone over the 10 year period based on the actual capital costs.

Processing Facilities. (a) The Partnership shall construct the Fortune Creek Gas Plant. Contemporaneously with the execution and delivery of this Agreement, QRCI and the Partnership are entering into a Processing Agreement in the form attached hereto as Schedule E which will, inter alia, provide that the processing charge (the “"Processing Charge”") for Natural Gas will be calculated such that the Partnership's investment in the Fortune Creek Gas Plant will: (i) achieve a 15% Hurdle Rate, on the basis of the capital component of the Processing Charge alone, at the end of the 10-year period following the estimated Commercial In-Service Date of the Fortune Creek Gas Plant; (ii) include a variable fee reflecting a pass-through of actual cash operating and maintenance capital expenses incurred by the Partnership such that the Partnership will not be affected by variances in such expenses; and (iii) include a capital component that increases or decreases, as the case may be, to the extent that actual capital costs exceed or are less than the estimates, such that the Partnership would achieve its 15% Hurdle Rate on the basis of TOP obligations alone over the 10 year period based on the actual capital costs.