Examples of COGA in a sentence
Gatherer may refuse to accept Crude Oil for transportation under this tariff (i) where Shipper, Consignor, or Consignee is (1) not in compliance with this tariff or (2) in breach of a COGA, as applicable, or (ii) where Shipper, Consignor, and/or Consignee is not in material compliance with all Applicable Law regulating shipments of Crude Oil.
In the event Gatherer determines, in a manner not unreasonably discriminatory, that a Shipper’s creditworthiness is at any time unsatisfactory to Gatherer, Gatherer may require, except as otherwise provided for in a COGA, Shipper to provide adequate assurance of performance.
Transportation and all other lawful charges shall be collected on the basis of the quantities of Crude Oil delivered to Delivery Points, and said quantities will be determined in the manner provided in Item 8.The terms of a COGA shall govern the rights of a Priority Shipper and Gatherer with respect to the payment or nonpayment of any deficiency payments and/or other charges set forth in a COGA.
Except as otherwise provided for in a COGA, if, in the reasonable opinion of Gatherer, such prospective Shipper is not creditworthy, Gatherer shall require such Shipper to prepay all transportation and other fees and lawful charges accruing on Crude Oil delivered and accepted by Gatherer or supply an irrevocable letter of credit from a bank acceptable to Gatherer, with terms in a form acceptable to Gatherer and such prepayment must be received within five (5) days of Shipper’s first Nomination.
In order to qualify for this 12 Year Term Committed Rate, a Priority Shipper must have entered into a COGA with a minimum term of 12 years and made an acreage dedication covering at least 2,000 acres of lands located in Winkler County, Texas or Loving County, Texas.