Common use of Quality Specifications Clause in Contracts

Quality Specifications. (a) Each Individual System will be operated as a field System, and as such, Product received from Producer at the Receipt Points shall conform to the applicable quality specifications of the relevant Downstream Facility or the following quality specifications, whichever is most restrictive, provided that the following may be varied or adjusted as described in this Section 7.1 or by express language set forth in the applicable Agreement Addendum. Midstream Co will not accept any Product unless it meets the specifications listed in the chart below and unless other properties of such Product (viscosity, pour point, and other properties) are such that it will be readily susceptible to transportation through Midstream Co’s pipeline system. These specifications may be applied to each Barrel of Producer’s nomination and not be limited to the composite sample of the nomination. (b) Midstream Co will reject all tenders when: (i) the ▇▇▇▇ vapor pressure of the Product exceeds ten pounds (10 lbs.) at one hundred degrees Fahrenheit (100ºF); (ii) the true vapor pressure of the Product might result in non-compliance with federal, state or local regulations by Midstream Co or by pipelines downstream of the Delivery Point; (iii) if Midstream Co determines that a Producer has delivered Product that contains or has been contaminated by the presence of any excessive deleterious substances including but not limited to metals, chlorinated or oxygenated hydrocarbons, hydrogen sulfide, or salt; or (iv) if Midstream Co determines that a Producer has delivered Product that will adversely affect the quality of Product received from other producers, cause disadvantage to other producers or Midstream Co, or damage or change the characteristics of the common stream of the Individual System. (c) All Product delivered by Producer to Midstream Co shall have a maximum temperature of one hundred twenty degrees (120º) Fahrenheit at the Receipt Point. (d) From time to time, Midstream Co may require that Producer furnish certified laboratory reports showing the results of quality tests on the Product tendered for gathering. Midstream Co may also from time to time obtain samples for laboratory analysis to check compliance with the specifications cited above. (e) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co will have the rights specified in Section 7.2. (f) If Producer’s Product delivered to the Receipt Points complies with such quality specifications, then all Product redelivered at the Delivery Points by Midstream Co to Producer shall meet the quality specifications applicable at the relevant Delivery Points. Midstream Co may commingle Product received into the Individual System with other Product shipments and, subject to Midstream Co’s obligation to redeliver to Producer at the Delivery Points Product that satisfies the applicable quality specifications of the Delivery Points, (a) such Product shall be subject to such changes in quality, composition and other characteristics as may result from such commingling and the removal of Associated Water and Flash Gas (if any), (b) Midstream Co shall have no other obligation to Producer associated with changes in quality of Product as the result of such commingling and Associated Water and Flash Gas removal, and (c) Midstream Co shall have the right to change the quality specifications to comply with any changes in the Downstream Facility specifications.

Quality Specifications. (a) Each Individual System will be operated as a field System, and as such, Product received from Producer at the Receipt Points shall conform to the applicable quality specifications of the relevant Downstream Facility or the following quality specifications, whichever is most restrictive, provided that the following may be varied or adjusted as described in this Section 7.1 or by express language set forth in the applicable Agreement Addendum. Midstream Co Gatherer will not accept any Product unless it meets the specifications listed in the chart below and unless other properties of such Product (viscosity, pour point, and other properties) are such that it will be readily susceptible to transportation through Midstream CoGatherer’s pipeline system. These specifications may be applied to each Barrel of Producer’s nomination and not be limited to the composite sample of the nomination.. Sulfur Content, Weight % <= 0.40 BS&W <= 3.5% Of which, basic sediment is no more than <= 0.5% (b) Midstream Co will reject all tenders when: (i) the ▇▇▇▇ vapor pressure of the Product exceeds ten pounds (10 lbs.) at one hundred degrees Fahrenheit (100ºF); (ii) the true vapor pressure of the Product might result in non-compliance with federal, state or local regulations by Midstream Co or by pipelines downstream of the Delivery Point; (iii) if Midstream Co determines that a Producer has delivered Product that contains or has been contaminated by the presence of any excessive deleterious substances including but not limited to metals, chlorinated or oxygenated hydrocarbons, hydrogen sulfide, or salt; or (iv) if Midstream Co determines that a Producer has delivered Product that will adversely affect the quality of Product received from other producers, cause disadvantage to other producers or Midstream Co, or damage or change the characteristics of the common stream of the Individual System. (c) All Product delivered by Producer to Midstream Co Gatherer shall have a maximum temperature of one hundred twenty forty degrees (120º140º) Fahrenheit at the Receipt Point. (dc) From time to time, Midstream Co Gatherer may require that Producer furnish certified laboratory reports showing the results of quality tests on the Product tendered for gathering. Midstream Co Gatherer may also from time to time obtain samples for laboratory analysis to check compliance with the specifications cited above. (ed) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co Gatherer will have the rights specified in Section 7.2. (fe) If Producer’s Product delivered to the Receipt Points complies with such quality specifications, then all Product redelivered at the Delivery Points by Midstream Co Gatherer to Producer shall meet the quality specifications of the applicable at the relevant Delivery PointsDownstream Facility. Midstream Co Subject to Section 7.1(f), Gatherer may commingle Product received into the Individual System with other Product shipments and, subject to Midstream CoGatherer’s obligation to redeliver to Producer at the Delivery Points Product that satisfies the applicable quality specifications of the Delivery Points, (ai) such Product shall be subject to such changes in quality, composition and other characteristics as may result from such commingling and the removal of Associated Water and Flash Gas (if any), (bii) Midstream Co Gatherer shall have no other obligation to Producer associated with changes in quality of Product as the result of such commingling and Associated Water and Flash Gas removal, and (ciii) Midstream Co Gatherer shall have the right to change the quality specifications to comply with any changes in the Downstream Facility specifications. (f) Gatherer shall establish a quality bank with respect to Product transported within the same common stream. Such quality bank shall initially apply only to the API gravity of Product transported within the same common stream. Gatherer shall have the right to expand such quality bank to also apply to the sulphur content of Product transported within the same common stream. All shippers shall be required to participate in the quality bank. The quality bank (i) shall be administered by an entity to be designated by Gatherer, which may be Gatherer, (“Administrator”), and such Administrator shall calculate, collect, and remit monetary adjustments among all shippers tendering within the common streams from changes in specified constituents (i.e., API gravity and/or sulphur, as applicable) for which such quality bank is established and which result from common stream operations, and (ii) each shipper agrees to pay the Administrator the computed quality adjustments due from such shipper in accordance with the quality bank policy.

Quality Specifications. (a) Each Individual System will be operated as a field Systeman independent and distinct facility, and as such, Product received from Producer at the each Receipt Points Point shall conform to the applicable quality specifications of the relevant Downstream Facility or the following quality specifications, whichever is most restrictiveset forth in this Section 7.1, provided that the following may be varied or adjusted as described in this Section 7.1 or by express language set forth in the applicable Agreement Addendum. Midstream Co will not accept any Product unless it meets the specifications listed in the chart below and unless other properties of such Product (viscosity, pour point, and other properties) are such that it will be readily susceptible to transportation through Midstream Co’s pipeline systemwriting signed by both Parties. These specifications may be applied to each Barrel of Producer’s nomination and not be limited to the composite sample of the nomination.. API Gravity, º API 33 – 65 Sulfur Content, Weight % <= 0.45 BS&W <= 3.0% (b) Midstream Co will reject all tenders when: (i) the The ▇▇▇▇ vapor pressure of the Product exceeds shall not exceed ten pounds (10 lbs.) at one hundred degrees Fahrenheit (100ºF); (ii) the true vapor pressure of the Product might shall not result in non-compliance with federal, state or local regulations by Midstream Co or by pipelines downstream of the Delivery Point; and (iii) if Midstream Co determines that a Producer has delivered Product that contains shall not contain or has have been contaminated by the presence of any excessive deleterious substances including substances, including, but not limited to to, metals, chlorinated or oxygenated hydrocarbons, hydrogen sulfide, or salt; or (iv) if Midstream Co determines that a Producer has delivered Product that will adversely affect the quality of Product received from other producers, cause disadvantage to other producers or Midstream Co, or damage or change the characteristics of the common stream of the Individual System. (c) All Product delivered by Producer to Midstream Co shall have a maximum temperature of one hundred twenty degrees (120º) Fahrenheit at the Receipt Point. (d) From time to time, Midstream Co may require that Producer furnish certified laboratory reports showing the results of quality tests on the Product tendered for gathering. Midstream Co may also from time to time obtain samples for laboratory analysis to check compliance with the specifications cited above. (e) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co will have the rights specified in Section 7.2. (f) If Producer’s Product delivered to the Receipt Points complies with such quality specifications, then all Product Producer Processed Crude Oil redelivered at the Delivery Points by Midstream Co to Producer shall meet the quality specifications applicable at the relevant Delivery Points. Midstream Co may commingle Product received into the Individual System with other Product shipments and, subject to Midstream Co’s obligation to redeliver to Producer at the Delivery Points Product Producer Processed Crude Oil that satisfies the applicable quality specifications of the Delivery Points, (ai) such Product shall be subject to such changes in quality, composition and other characteristics as may result from such commingling and the removal of Associated Water and Flash Gas (if any)commingling, (bii) Midstream Co shall have no other obligation to Producer associated with changes in quality of Product as the result of such commingling and Associated Water and Flash Gas removal, and (ciii) Midstream Co shall have the right to change the quality specifications to comply with any changes in the Downstream Facility specifications.

Quality Specifications. (a) Each Individual System will be operated as a field System, and as such, Product received from Producer at the Receipt Points shall conform to the applicable quality specifications of the relevant Downstream Facility or the following quality specifications, whichever is most restrictive, provided that the following may be varied or adjusted as described in this Section 7.1 or by express language set forth in the applicable Agreement Addendum. Midstream Co will not accept any Product unless it meets the specifications listed in the chart below and unless other properties of such Product (viscosity, pour point, and other properties) are such that it will be readily susceptible to transportation through Midstream Co’s pipeline system. These specifications may be applied to each Barrel of Producer’s nomination and not be limited to the composite sample of the nomination. (b) Midstream Co will reject all tenders when: (i) the ▇▇▇▇ vapor pressure of the Product exceeds ten pounds (10 lbs.) at one hundred degrees Fahrenheit (100ºF); (ii) the true vapor pressure of the Product might result in non-compliance with federal, state or local regulations by Midstream Co or by pipelines downstream of the Delivery Point; (iii) if Midstream Co determines that a Producer has delivered Product that contains or has been contaminated by the presence of any excessive deleterious substances including but not limited to metals, chlorinated or oxygenated hydrocarbons, hydrogen sulfide, or salt; or (iv) if Midstream Co determines that a Producer has delivered Product that will adversely affect the quality of Product received from other producers, cause disadvantage to other producers or Midstream Co, or damage or change the characteristics of the common stream of the Individual System. (c) All Product delivered by Producer to Midstream Co shall have a maximum temperature of one hundred twenty thirty degrees (120º130º) Fahrenheit at the Receipt Point. (d) From time to time, Midstream Co may require that Producer furnish certified laboratory reports showing the results of quality tests on the Product tendered for gathering. Midstream Co may also from time to time obtain samples for laboratory analysis to check compliance with the specifications cited above. (e) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co will have the rights specified in Section ‎Section 7.2. (f) If Producer’s Product delivered to the Receipt Points complies with such quality specifications, then all Product redelivered at the Delivery Points by Midstream Co to Producer shall meet the quality specifications applicable at the relevant Delivery Points. Midstream Co may commingle Product received into the Individual System with other Product shipments and, subject to Midstream Co’s obligation to redeliver to Producer at the Delivery Points Product that satisfies the applicable quality specifications of the Delivery Points, (a) such Product shall be subject to such changes in quality, composition and other characteristics as may result from such commingling and the removal of Associated Water and Flash Gas (if any), (b) Midstream Co shall have no other obligation to Producer associated with changes in quality of Product as the result of such commingling and Associated Water and Flash Gas removal, and (c) Midstream Co shall have the right to change the quality specifications to comply with any changes in the Downstream Facility specifications. Section 7.2 Failure to Meet Specifications. (a) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co will have the right to immediately discontinue receipt of such non-conforming Product and shall notify Producer of the specifications violation within 24 hours after such discontinuation. Such notification may be verbal initially followed by written confirmation in accordance with the notice requirements set forth in Section 17.2. If Producer disputes Midstream Co’s determination that any Product fails to conform to the applicable specifications, then Producer shall (i) notify Midstream Co thereof within 24 hours after receiving such notice from Midstream Co, (ii) submit the applicable Product to a mutually agreed upon Third Party laboratory, and (iii) cause such laboratory to analyze the Product within 72 hours after Producer’s receipt of Midstream Co’s notice of non-conformance. If the results of such analysis provide that the applicable Product is non-conforming, the costs and expenses associated with such analysis shall be borne by Producer; if the results of such analysis provide that the applicable Product conforms to the specifications, then Midstream Co shall reimburse Producer for all reasonable and documented costs and expenses incurred by Producer to cause such Third Party laboratory to perform such analysis. (b) Midstream Co shall have the right, to be exercised in Midstream Co’s sole discretion, to use commercially reasonable efforts to blend and commingle any or all of such non-conforming Product with other Product in the Individual System so that it meets the applicable specifications. Midstream Co may charge Producer a reasonable fee to compensate Midstream Co for its use of commercially reasonable efforts to cause such Product Tendered by Producer to conform to the applicable specifications. Producer will promptly undertake commercially reasonable measures to eliminate the cause of such non-conformance.

Quality Specifications. (a) Each Individual System will be operated as a field Systeman independent and distinct facility, and as such, Product Crude Oil received from Producer at the each Receipt Points Point shall conform to the applicable quality specifications of the relevant Downstream Facility downstream pipeline or the following quality specifications, whichever is most restrictive, provided that the following may be varied or adjusted as described in this Section 7.1 6.1 or by express language set forth in the applicable Agreement Addendum. . (a) Midstream Co will not accept any Product Crude Oil unless it meets the specifications listed in the chart below and unless other properties of such Product Crude Oil (viscosity, pour point, and other properties) are such that it will be readily susceptible to treating for the removal of impurities and to transportation through Midstream Co’s pipeline systemthe Downstream Facilities. These specifications may be applied to each Barrel of Producer’s nomination and not be limited to the composite sample of the nomination.. API Gravity, º API 33 – 65 Sulfur Content, Weight % <= 0.45 BS&W <= 3.0% (b) Midstream Co will reject all tenders when: (i) the ▇▇▇▇ vapor pressure of the Product Crude Oil exceeds ten pounds (10 lbs.) at one hundred degrees Fahrenheit (100ºF); (ii) the true vapor pressure of the Product Crude Oil might result in non-compliance with federal, state or local regulations by Midstream Co or by pipelines downstream of the Delivery Point; (iii) if Midstream Co determines that a Producer has delivered Product Crude Oil that contains or has been contaminated by the presence of any excessive deleterious substances including but not limited to metals, chlorinated or and/or oxygenated hydrocarbons, hydrogen sulfide, or and/or salt; or (iv) if Midstream Co determines that a Producer has delivered Product Crude Oil that will adversely affect the quality of Product Crude Oil received from other producers, cause disadvantage to other producers or Midstream Co, or damage or change the characteristics of the common stream of the Individual System. (c) All Product Crude Oil delivered by Producer to Midstream Co shall have a maximum temperature of one hundred twenty degrees (120º) Fahrenheit at the Receipt Point. (d) From time to time, Midstream Co may require that Producer furnish certified laboratory reports showing the results of quality tests on the Product Crude Oil tendered for gathering. Midstream Co may also from time to time obtain samples for laboratory analysis to check compliance with the specifications cited above. (e) If any Product Tendered by Producer to the Individual System fails at any time to conform to the applicable specifications, then Midstream Co will have the rights specified in Section 7.2. (f) If Producer’s Product delivered to the Receipt Points complies with such quality specifications, then all Product redelivered at the Delivery Points by Midstream Co to Producer shall meet the quality specifications applicable at the relevant Delivery Points. Midstream Co may commingle Product received into the Individual System with other Product shipments and, subject to Midstream Co’s obligation to redeliver to Producer at the Delivery Points Product that satisfies the applicable quality specifications of the Delivery Points, (a) such Product shall be subject to such changes in quality, composition and other characteristics as may result from such commingling and the removal of Associated Water and Flash Gas (if any), (b) Midstream Co shall have no other obligation to Producer associated with changes in quality of Product as the result of such commingling and Associated Water and Flash Gas removal, and (c) Midstream Co shall have the right to change the quality specifications to comply with any changes in the Downstream Facility specifications.