Common use of Recovery of Costs Clause in Contracts

Recovery of Costs. (a) If LMM connects an Expansion Well to the Gathering System in accordance with Section 2.6, and after the *** Months following the connection (“Recovery Period”), to the extent LMM’s Actual Cost exceeds the Recovered Cost (as defined below), LMM shall be entitled to recover its Actual Cost from Shipper. LMM’s “Recovered Cost” shall be determined by multiplying the allocated volumes of Gas from Shippers and third parties, in Dth, Gathered by LMM during the Recovery Period by the Gathering Fee and multiply that product by ***. If at the end of the Recovery Period the Recovered Cost is less than the Actual Cost, Shipper shall, within *** Days of the receipt of a statement from LMM detailing LMM’s Actual Cost, pay LMM an amount equal to the difference between the Actual Cost and the Recovered Cost, with such difference being divided by ***, to the extent that Shipper does not dispute LMM’s calculation of its Actual Cost. If this Agreement should terminate or expire prior to the end of the Recovery Period for the well and the Recovered Cost through such termination or expiration is less than the Actual Cost, Shipper shall, within *** Days of the receipt of a statement from LMM, pay LMM an amount equal to the difference between the Actual Cost and the Recovered Cost, to the extent that Shipper does not dispute LMM’s calculation of its Actual Cost. For purposes of this Section 2.8, “Actual Cost” shall be defined as the actual third-party costs incurred by LMM to connect the Expansion Well, but shall be limited to the facilities on and installation of pipeline *** inches (***”) in diameter or less upstream of any compression facilities on the Gathering System.