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EXECUTION VERSION CRUDE OIL GATHERING AGREEMENT May 21, 2018 SALT CREEK
MIDSTREAM, LLC “Gatherer” And LILIS ENERGY, INC. “Shipper”

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TABLE OF CONTENTS Page ARTICLE I CERTAIN DEFINITIONS
........................................................................................
1 ARTICLE II TERM
.......................................................................................................................
8 2.1 Term
..................................................................................................................
8 ARTICLE III DEDICATION
........................................................................................................
9 3.1 Dedication
.........................................................................................................
9 3.2 Subsequently Acquired Interests
........................................................................9 3.3
New Dedications and
Commitments............................................................... 10
3.4 Releases and Exclusions from the Dedication; Reservations
..........................10 3.5 Covenant Running with the Land
................................................................... 12 3.6
Memorandum of Agreement
........................................................................... 12
ARTICLE IV COMMENCEMENT DATE AND CONSTRUCTION OF FACILITIES ........... 12 4.1
Commencement Date
......................................................................................
13 4.2 Construction of Commencement Date Facilities
.............................................13 4.3 Construction of Receipt
Point(s); Drilling Plans .............................................13 4.4
License and Right-of-Use
...............................................................................
16 4.5 Construction Delay
..........................................................................................16
4.6 Connecting
Pipelines.......................................................................................
17 ARTICLE V DELIVERY TO CONNECTING PIPELINES
...................................................... 17 ARTICLE VI GATHERER
OBLIGATIONS
............................................................................. 18
6.1 Provision of Services
.......................................................................................18
6.2 Gatherer’s Prorationing Obligations; Priority Service
.....................................18 ARTICLE VII NOMINATIONS AND OTHER TERMS
........................................................... 18 7.1 Nominations
.....................................................................................................18
7.2 Unused Capacity
.............................................................................................
18 7.3 Tariff
...............................................................................................................
19 7.4 Linefill
.............................................................................................................
19 7.5 Off-Spec Crude Oil
.........................................................................................
19 7.6 Loss Allowance
................................................................................................20
7.7 Commingling; Quality Bank
........................................................................... 20
7.8 Possession and Control; Liability
....................................................................20 ARTICLE
VIII FEES
..................................................................................................................
21 8.1 Tariff Filings and
Rates...................................................................................
21 8.2 Governmental Modifications
...........................................................................21
8.3 Fee Escalation
.................................................................................................
21 ARTICLE IX WARRANTY OF TITLE
.....................................................................................
22 i

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9.1 Title Warranty
.................................................................................................
22 9.2 Proceeds of Production
....................................................................................22
9.3 Indemnification
...............................................................................................
22 9.4 Title to Shipper Crude Oil
...............................................................................
22 ARTICLE X WAIVER OF CERTAIN DAMAGES
................................................................... 22 ARTICLE
XI FORCE MAJEURE
..............................................................................................
23 11.1 Suspension of Obligations
...............................................................................23
11.2 Definition of Force Majeure
........................................................................... 23
11.3 Interruption of Operations.
...............................................................................
24 ARTICLE XII DISPUTE RESOLUTION
...................................................................................
24 12.1 Resolution of Disputes
.....................................................................................
24 12.2 Dispute Notice
................................................................................................
24 12.3 Direct Negotiation
...........................................................................................
24 12.4 Jurisdiction and Venue; Jury Waiver
.............................................................. 24 12.5 Costs and
Expenses
..........................................................................................25
12.6 Confidentiality of Dispute Resolution
.............................................................25 ARTICLE XIII
DUTY TO SUPPORT
........................................................................................
26 13.1 Arm's Length Negotiations
............................................................................. 26
13.2 Shipper Support
...............................................................................................26
13.3 No Tariff Rate Revision Proceedings
............................................................. 26 13.4 Third
Party Proceedings
..................................................................................
26 13.5 Modification of Agreement
............................................................................. 27
ARTICLE XIV COMMON CARRIER AND COMPLIANCE WITH APPLICABLE LAWS . 27 14.1 Common
Carrier Pipeline
...............................................................................
27 14.2 Compliance with Laws
...................................................................................
27 ARTICLE XV TAXES
................................................................................................................
27 ARTICLE XVI ASSIGNMENT
..................................................................................................
28 ARTICLE XVII OFFER
..............................................................................................................
29 17.1 Effect of Unsigned Copy
................................................................................
29 17.2 Irrevocable Offer by Shipper
.......................................................................... 29
ARTICLE XVIII NOTICES AND STATEMENTS
................................................................... 29 18.1
Notice
..............................................................................................................
29 18.2 Change of Address
...........................................................................................31
ARTICLE XIX DEFAULTS AND REMEDIES
........................................................................ 31 19.1
Shipper Default
...............................................................................................
31 19.2 Remedies on Shipper Default
..........................................................................31
19.3 Gatherer Default
..............................................................................................
32 19.4 Remedies on Gatherer Default
.........................................................................32 19.5
Excused Performance
......................................................................................
33 ii

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19.6 Adequate Assurances
......................................................................................
33 19.7 Audit
...............................................................................................................
33 ARTICLE XX MISCELLANEOUS
............................................................................................
33 20.1 Entire Agreement; Amendments.
..................................................................... 33 20.2
Governing Law
...............................................................................................
33 20.3 No Drafting Presumption
................................................................................
34 20.4 Waiver
.............................................................................................................
34 20.5 No Third Party Beneficiaries
.......................................................................... 34
20.6 No Partnership
.................................................................................................34
20.7 Confidentiality
................................................................................................
34 20.8 Headings
.........................................................................................................
35 20.9 Rules of Construction
......................................................................................35
20.10 Survival
............................................................................................................36
20.11 Severability
.....................................................................................................
36 20.12 Further Assurances
...........................................................................................36
20.13 Liquidated Damages
.......................................................................................
36 20.14 Counterpart Execution
....................................................................................
36 Exhibits Exhibit A Dedicated Area Exhibit B Initial Receipt Points; Initial
Delivery Points; MDQ; Rates Exhibit C Form of Memorandum of Agreement Exhibit D
Commencement Date Facilities Exhibit E Form of New Receipt Point Notification
Exhibit F Pro Forma Tariff Exhibit G Prior Dedications iii

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CRUDE OIL GATHERING AGREEMENT This Crude Oil Gathering Agreement (this
“Agreement”) is made and entered into effective as of this 21st day of May, 2018
(the “Effective Date”), by and between Salt Creek Midstream, LLC, a Delaware
limited liability company (“Gatherer”), and Lilis Energy, Inc., a Nevada
corporation (“Shipper”). Shipper and Gatherer may be referred to individually as
“Party,” or collectively as the “Parties.” WITNESSETH: WHEREAS, Shipper is the
owner and operator of certain interests in land, Wells and leases with the right
to produce Crude Oil therefrom and is or will be the operator of certain
producing properties located in Loving and Winkler Counties, Texas and Lea
County, New Mexico; and WHEREAS, Shipper has title to or the right to gather
Shipper Crude Oil; and WHEREAS, Shipper desires that Gatherer, in accordance
with the terms set forth in this Agreement, (i) design, engineer and construct
the Gathering System to enable Gatherer to provide gathering services for
Shipper Crude Oil, and (ii) gather Shipper Crude Oil on the Gathering System;
and WHEREAS, Gatherer desires to (i) construct, own and operate the Gathering
System, and (ii) gather Shipper Crude Oil on the Gathering System, all in
accordance with the terms set forth in this Agreement; and WHEREAS, Gatherer and
Shipper are not Affiliates and are entering into this Agreement as independent
parties. NOW THEREFORE, in consideration of the mutual promises, covenants and
agreements herein contained, the Parties hereby covenant and agree as follows:
ARTICLE I CERTAIN DEFINITIONS Unless otherwise required by the content, the
terms defined in this ARTICLE I shall have, for all purposes of this Agreement,
the respective meanings set forth in this ARTICLE I: “Actual Shipments” shall
mean, for any period of time, the volumes of Shipper Crude Oil that Shipper
delivers to Gatherer hereunder at the Receipt Points and that are ultimately
delivered by Gatherer to Shipper hereunder at the Delivery Points. “ADV” shall
mean, for any period of calculation, the average Daily volume of Shipper Crude
Oil accepted into all Receipt Point(s) hereunder during such period, which will
be calculated by dividing (A) the sum of (i) the aggregate volume of all Shipper
Crude Oil accepted into the Gathering System hereunder during such period, plus
(ii) the sum, for each Day in such period, of the volume of Shipper Crude Oil,
up to the MDQ in effect on each such Day during

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such period, that Shipper was ready, willing and able to deliver on such Day but
which Gatherer was unable or failed to accept on such Day as required under this
Agreement during such period, by (B) the number of Days in such period.
“Affiliate” shall mean any Person that directly or indirectly through one or
more intermediaries, controls or is controlled by or is under common control
with another Person. The term “control” (including its derivatives and similar
terms) shall mean possessing the power to direct or cause the direction of the
management and policies of a Person, whether through ownership, by contract, or
otherwise. Any Person shall be deemed to be an Affiliate of any specified Person
if such Person owns fifty percent (50%) or more of the voting securities of the
specified Person, or if the specified Person owns fifty percent (50%) or more of
the voting securities of such Person, or if fifty percent (50%) or more of the
voting securities of the specified Person and such Person are under common
control. “Agreement” shall have the meaning given to such term in the preamble
of this Agreement. “API” shall mean the American Petroleum Institute.
“Applicable Law” shall mean all applicable laws, statutes, directives, codes,
ordinances, rules, regulations, municipal by-laws, judicial, arbitral,
administrative, ministerial, departmental or regulatory judgments, orders,
decisions, rulings or awards, consent orders, consent decrees and policies of
any Governmental Authority. “Barrel” or “bbl” shall mean forty-two (42) gallons
of 231 cubic inches per gallon at 60 degrees Fahrenheit (60° F) and equilibrium
vapor pressure of the liquid. “BLM” shall mean the Bureau of Land Management and
any lawful successor agency thereto. “BPD” shall mean Barrels per Day. “Business
Day” shall mean any calendar day other than Saturdays and Sundays that
commercial banks in Houston, Texas are open for business. “Central Clock Time”
shall mean the then prevailing time in the Central Time Zone of the United
States of America. “Claims” shall mean any and all claims, demands and causes of
action of any kind and all losses, damages, liabilities, fines, penalties, costs
and expenses of whatever nature (including court costs and reasonable attorneys’
fees). “COGA” shall mean a Crude Oil Gathering Agreement executed by a Priority
Shipper with Gatherer with respect to the Gathering System pursuant to the Open
Season. “Commencement Date” shall have the meaning given to such term in Section
4.1 of this Agreement. 2

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“Commencement Date Facilities” shall mean those facilities specifically
described on Exhibit D, including without, limitation, the Initial Receipt
Point(s), the Initial Delivery Point(s). Gatherer’s Wink Terminal, and the Crude
Oil pipeline and equipment and facilities located at and downstream of the
Initial Receipt Points necessary to commence Services with respect to the
receipt, gathering, handling and delivery of Crude Oil as contemplated by this
Agreement; provided, however, truck racks and truck injection facilities are
specifically excluded from the Commencement Date Facilities. “Committed Volume”
shall mean (i) with respect to a Priority Shipper that has committed to deliver
a specified volume of Crude Oil to the Gathering System pursuant to such
Priority Shipper’s COGA, such specified volume (expressed in BPD), and (ii) with
respect to a Priority Shipper that has not committed to deliver a specified
volume of Crude Oil, but has made an acreage dedication pursuant to such
Priority Shipper’s COGA, a volume of Crude Oil (expressed in BPD) equal to such
Priority Shipper’s Maximum Daily Quantity. “Connecting Pipelines” shall mean all
downstream pipeline systems now and hereafter connected to the Gathering System
at the Delivery Point(s), which, as of the Effective Date, are contemplated to
be (i) the Plains All-American, LP Pipeline or other pipeline with direct, long-
haul transportation to the Midland, Texas area, and (ii) the EPIC Crude Oil
Pipeline or other pipeline with direct, long-haul transportation to the Corpus
Christi, Texas area, provided that, as of the Effective Date, the EPIC Crude Oil
Pipeline is not expected to be in service until the second half of 2019.
“Contract Year” shall mean a period commencing at 7:00 a.m., Central Clock Time,
on the Commencement Date and ending at 7:00 a.m., Central Clock Time on the same
day and calendar month of the following calendar year and thereafter for
succeeding periods of twelve (12) consecutive Months each. “Crude Oil” shall
have the meaning given to such term in the Tariff. “Day” or “Daily” shall mean a
period of twenty-four (24) hours, commencing at 7:00 a.m., Central Clock Time,
on a calendar day and ending at 7:00 a.m., Central Clock Time, on the next
succeeding calendar day. “Dedicated Area” shall mean the area depicted and
described in Exhibit A attached hereto. “Dedication” shall have the meaning
given to such term in Section 3.1 of this Agreement. “Delay Period” shall have
the meaning given to such term in Section 4.5(b) of this Agreement. “Delivery
Point(s)” shall mean the furthest downstream flange of Gatherer’s facilities on
the Gathering System where Gatherer redelivers Crude Oil in accordance with the
Services to Shipper or for Shipper’s account, and includes, collectively, (i)
the Initial Delivery Points, (ii) any additional points of interconnection
specified by Shipper and added to the Gathering System pursuant to Section 4.6,
and (iii) any other points of interconnection between the Gathering 3

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System and any Connecting Pipeline as mutually agreed upon by the Parties at
which Gatherer will redeliver Shipper Crude Oil for the account of Shipper.
“Dispute” shall mean any controversy or claim, whether based on contract, tort,
statute or other legal or equitable theory (including, but not limited to, any
claim of fraud, misrepresentation or fraudulent inducement or any question of
validity or effect of this Agreement including this clause) arising out of or
related to this Agreement (including any amendments or extension), or breach or
termination thereof. “Dispute Notice” shall have the meaning given to such term
in Section 12.2 of this Agreement. “Effective Date” shall have the meaning given
to such term in the preamble to this Agreement. “Energy Costs” shall mean the
total actual, out-of-pocket cost of purchased electricity or fuel (without
mark-up), including actual transmission costs, loss and other costs associated
with providing such electricity services to equipment associated with the
Receipt Point(s), including, without limitation, Gatherer’s LACT(s); provided,
however, “Energy Costs” shall not include any costs or expenses related to
Gatherer’s installation or construction of any utility lines, measurement
equipment or other infrastructure necessary to provide electricity or fuel.
“Extended Term” shall have the meaning given to such term in Section 2.1 of this
Agreement. “FERC” shall mean the United States Federal Energy Regulatory
Commission and any lawful successor agency thereto. “Force Majeure” shall have
the meaning given to such term in Section 11.2 of this Agreement. “Gatherer”
shall have the meaning given to such term in the preamble of this Agreement.
“Gatherer Default” shall have the meaning given to such term in Section 19.3 of
this Agreement. “Gatherer Default Notice” shall have the meaning given to such
term in Section 19.4 of this Agreement. “Gatherer Indemnified Party” means
Gatherer and its Affiliates, and all of its and their respective equityholders,
partners, members, directors, officers, managers, employees, agents and
representatives. “Gatherer’s Wink Terminal” means that certain Crude Oil
terminal facility located in Wink, Texas, being more particularly described on
Exhibit D. “Gathering System” means the Crude Oil gathering system, Receipt
Point(s), Delivery Point(s), LACTs, Gatherer’s Wink Terminal, any Service
related facilities, including, pipelines, 4

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controls, pumps, pig receiving facilities, tanks, meters and measurement
facilities, treating (if any treating is performed hereunder) and other
conditioning facilities, meters and measurement facilities, storage and handling
facilities, truck racks and truck injection facilities, vapor recovery units,
rights of way, fee parcels, surface rights, and permits, and all appurtenant
facilities, constructed or to be constructed and owned and operated by Gatherer
to provide Services to Shipper or other shippers. “Governmental Authority” shall
mean (i) the United States of America, (ii) any state, county, parish,
municipality or other governmental subdivision within the United States of
America, and (iii) any court or any governmental department, commission, board,
bureau, agency or other instrumentality of the United States of America or of
any state, county, municipality or other governmental subdivision within the
United States of America. “Impaired Party” shall have the meaning given to such
term in Section 19.6 of this Agreement. “Initial Delivery Points” shall mean the
Delivery Points identified on Exhibit B attached hereto. “Initial Receipt
Points” shall mean the Receipt Points identified on Exhibit B attached hereto.
“Insecure Party” shall have the meaning given to such term in Section 19.6 of
this Agreement. “Interests” shall mean any right, title, or interest in lands,
Wells, or leases with the right to produce oil and/or gas therefrom whether
arising from fee ownership, working interest ownership, mineral ownership,
leasehold ownership, or arising from any pooling, unitization or communitization
of any of the foregoing rights. “LACT” shall mean a lease automatic custody
transfer unit whereby custody of Shipper Crude Oil will transfer from one Party
to the other Party or its designee, as applicable, that is installed and
operated in accordance with the latest revision of API Manual of Petroleum
Measurement Standards, Chapter 6.1. “Losses” shall mean any actual loss, cost,
expense, liability, damage, demand, suit, sanction, claim, judgment, lien, fine
or penalty, including attorneys’ fees, asserted by a third party not Affiliated
with the Party incurring such, and which are incurred by the applicable
indemnified Persons on account of injuries (including death) to any person or
damage to or destruction of any property, sustained or alleged to have been
sustained in connection with or arising out of the matters for which the
indemnifying party has indemnified the applicable indemnified Persons. “Maximum
Daily Quantity” shall mean the maximum volume of Crude Oil (expressed in BPD) a
Priority Shipper, including Shipper, is allowed to deliver to the Gathering
System pursuant to such Priority Shipper’s COGA. 5

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“Memorandum” shall have the meaning given to such term in Section 3.6 of this
Agreement. “Month” shall mean a period of time beginning at 7:00 a.m., Central
Clock Time on the first day of the calendar month and ending at 7:00 a.m.,
Central Clock Time on the first day of the next succeeding calendar month. “New
Receipt Point Notification” shall have the meaning given to such term in Section
4.3(b) of this Agreement. “Nomination” (including “Nominates” and the
syntactical variants thereof) shall mean the written or electronic communication
from Shipper to Gatherer, pursuant to and in accordance with the Tariff,
requesting that Gatherer transport for Shipper in a given Month a stated volume
of Crude Oil from a specified Receipt Point to the applicable Delivery Point
pursuant to this Agreement. “Notification Date” shall have the meaning given to
such term in Section 4.3(b) of this Agreement. “Off-Spec Crude Oil” shall have
the meaning given to such term in Section 7.5 of this Agreement. “Open Season”
shall mean the open season initiated and conducted by Gatherer to determine
interest by Priority Shippers in the Gathering System. “Parties” shall have the
meaning given to such term in the preamble of this Agreement. “Party” shall have
the meaning given to such term in the preamble of this Agreement. “Person” shall
mean any individual, firm, corporation, trust, partnership, limited liability
company, association, joint venture, other business enterprise or Governmental
Authority. “Primary Term” shall have the meaning given to such term in Section
2.1 of this Agreement. “Prior Dedications” shall mean, as of the applicable date
of determination, any and all existing agreements or arrangements (including any
joint operating agreements, pooling agreements, unitization or communitization
agreements) or rights of any third Persons that are binding on the applicable
Person or on the applicable Interest within the Dedicated Area or any Crude Oil
produced therefrom that would require or necessitate (i) Shipper Crude Oil to be
gathered on any gathering system or similar system other than the Gathering
System (including deliveries of Shipper Crude Oil as necessary to satisfy any
minimum volume or similar commitment), or (ii) Shipper Crude Oil to be trucked
by a third party from the Dedicated Area. “Priority Rate” shall have the meaning
given to such term in the Tariff. “Priority Service” shall have the meaning
given to such term in Section 6.2 of this Agreement. 6

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“Priority Shipper” shall mean Shipper and any other Shipper whose COGA provides
for a term of at least ten (10) years and either (i) a commitment to deliver a
specified volume of Crude Oil on the Gathering System of at least 2,000 BPD, or
(ii) with respect to a Priority Shipper that has not committed to deliver a
specified volume of Crude Oil, but has made an acreage dedication pursuant to
such Priority Shipper’s COGA, a dedication of Interests covering at least 2,000
net acres of lands located in Winkler County, Texas, Loving County, Texas and/or
Lea County, New Mexico. “Project Deadline” shall have the meaning given to such
term in Section 4.5(a) of this Agreement. “Receipt Point” shall mean, a point
where the custody and control of Shipper Crude Oil transfers from Shipper to
Gatherer located at the inlet flange of Gatherer’s LACT through which such
Shipper Crude Oil flows into the Gathering System. “Services” shall mean
receipt, gathering and transportation on the Gathering System of Crude Oil for
Shipper’s account from the Receipt Point(s) and delivery to the Delivery
Point(s) specified in Shipper’s Nomination, together with all other services to
be provided by Gatherer as contemplated in this Agreement. “Shipper” shall have
the meaning given to such term in the preamble of this Agreement. “Shipper Crude
Oil” shall have the meaning given to such term in Section 3.1 of this Agreement.
“Shipper Default” shall have the meaning given to such term in Section 19.1 of
this Agreement. “Shipper Default Notice” shall have the meaning given to such
term in Section 19.2 of this Agreement. “Shipper Indemnified Party” means
Shipper and its Affiliates, and all of its and their respective equityholders,
partners, members, directors, officers, managers, employees, agents and
representatives. “Shipper’s Maximum Daily Quantity” or “MDQ” shall mean, with
respect to any Contract Year, the volume of Crude Oil (expressed in BPD) set
forth for such Contract Year in the table captioned “MDQ” in Exhibit B attached
hereto, for which Shipper shall receive Priority Service as set forth in Section
6.2 hereof. With respect to any Contract Year beginning on or after the fourth
(4th) anniversary of the Commencement Date, Gatherer shall have the option, by
delivering written notice to Shipper on or before the date that is thirty (30)
Days prior to the start of any such Contract Year, to reduce Shipper’s Maximum
Daily Quantity for such Contract Year to an amount equal to the lesser of (x)
the MDQ that was in effect at the end of the immediately preceding Contract Year
or (y) 110% of the ADV of Shipper Crude Oil delivered or available for delivery
hereunder by Shipper to Gatherer during the immediately preceding twelve (12)
Month period. Conversely, beginning on or after the fourth (4th) anniversary of
the Commencement Date, Shipper shall have the option, by delivering written
notice to Gatherer on or before the date that is thirty (30) Days prior to the
start of any such Contract Year, to request an increase in 7

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Shipper’s Maximum Daily Quantity for such Contract Year to an amount equal to
120% of the ADV of Shipper Crude Oil delivered or available for delivery
hereunder by Shipper to Gatherer during the immediately preceding twelve (12)
Month period, and if, in the sole determination of Gatherer, consistent with
Gatherer’s obligations under Section 6.2 hereunder and to the extent permitted
by Applicable Law, Gatherer has adequate capacity eligible for Priority Service
in the Gathering System and related facilities to provide Priority Service with
respect to such requested amount, then such requested increase shall become
effective. “Shipper’s Permitted Liens” shall mean (i) any liens, security
interests or other encumbrances benefiting one or more lenders to Shipper as
part of a financing provided by such lenders to Shipper for which such lenders
have not taken actions to foreclose on such liens; and (ii) normal and customary
liens under financing agreements, operating agreements, unitization agreements,
pooling orders, drilling contracts and similar agreements for upstream operators
and mechanic's and materialman's liens, tax liens or mineral liens related to
claims or obligations that are not delinquent or that are being contested in
good faith and by appropriate proceedings. “Shipper’s Priority Rate” shall have
the meaning given to such term in Section 8.1(a) of this Agreement. “Shipper’s
Uncommitted Rate” shall have the meaning given to such term in Section 8.1(b) of
this Agreement. “Target RP In-Service Date” shall have the meaning given to such
term in Section 4.3(b) of this Agreement. “Tariff” shall mean Gatherer’s rate,
rules and regulations tariff for the Gathering System on file and in effect with
the FERC or other Governmental Authority, as such tariff may be amended or
supplemented by Gatherer from time to time, a pro forma copy of which,
materially in the form expected to be filed by Gatherer with the FERC, is
attached hereto as Exhibit F. “Tariff Rate Revision Proceeding” shall have the
meaning given to such term in Section 13.3 of this Agreement. “Taxes” shall mean
any or all current or future taxes, fees, levies, charges, assessments and/or
other impositions levied, charged, imposed, assessed or collected by any
Governmental Authority having jurisdiction. “Term” shall have the meaning given
to such term in Section 2.1 of this Agreement. “Uncommitted Rate” shall have the
meaning given to such term in the Tariff. “Well” shall mean a well for the
production of gas and/or liquid hydrocarbons, including Crude Oil, which is
operated by Shipper or its Affiliates. ARTICLE II TERM 8

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2.1 Term. The term of this Agreement shall commence on the Effective Date, and
unless sooner terminated as provided herein, shall remain in full force and
effect through the twelfth (12th) anniversary of the Effective Date (the
“Primary Term”); provided, however, this Agreement shall continue beyond the
expiration of the Primary Term for additional terms of one year each (each an
“Extended Term,” and, the Primary Term as may be extended by one or more
Extended Terms, the “Term”) unless this Agreement is terminated by either Party
as of the end of the Primary Term or the then-current Extended Term, as
applicable, by providing not less than sixty (60) Days written notice of
termination prior to the end of the Primary Term or such Extended Term to the
other Party. ARTICLE III DEDICATION 3.1 Dedication. Subject to the other terms
and conditions hereof, Shipper hereby (i) dedicates for Services with respect to
Shipper Crude Oil under this Agreement to Gatherer all Interests now owned or
hereafter acquired by Shipper and/or its Affiliates and their respective
successors and assigns that cover lands located within the Dedicated Area, and
(ii) dedicates for Services under this Agreement and shall deliver, or cause to
be delivered, hereunder to Gatherer, at the Receipt Points, the following (the
“Dedication,” and the Crude Oil that is the subject of the Dedication being
herein referred to as “Shipper Crude Oil”): (a) all Crude Oil produced and saved
on or after the Commencement Date for the remainder of the Term from those Wells
for which Shipper and/or any of its Affiliates is the operator now or hereafter
located within the Dedicated Area or on lands pooled or unitized therewith, to
the extent such Crude Oil is attributable to the Interests within the Dedicated
Area now owned or hereafter acquired by Shipper and/or its Affiliates and their
respective successors and assigns; and (b) with respect to those Wells for which
Shipper and/or any of its Affiliates is the operator, Crude Oil produced on or
after the Commencement Date for the remainder of the Term from such Wells which
is attributable to the Interests in such Wells owned by other working interest
owners and royalty owners which is not taken “in-kind” by such working interest
owners and royalty owners and for which Shipper and/or its Affiliates has the
right or obligation to deliver such Crude Oil and only for the period that
Shipper and/or its Affiliates has such right or obligation. For the avoidance of
doubt, Shipper shall not be required to deliver Crude Oil from any well operated
by an operator other than Shipper or its Affiliates, including any well where
Shipper would be required to install split stream connection facilities or
similar facilities to take such Crude Oil in kind, and such Crude Oil shall not
be Shipper Crude Oil subject to the Dedication hereunder. 3.2 Subsequently
Acquired Interests. In the event that after the date hereof Shipper and/or any
of its Affiliates acquire Interests within the Dedicated Area, then the Shipper
Crude Oil produced and saved from such Interests shall automatically be included
within the Dedication; provided, however, if any of the Shipper Crude Oil
produced from such Interests is subject to a Prior Dedication, then such Shipper
Crude Oil shall be excluded from the 9

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[exhibit1029llex10k201912014.jpg]
Dedication, to the extent and only to the extent of such Prior Dedication, until
such Prior Dedication expires or terminates. In the event that any such Prior
Dedication expires or terminates, then the Shipper Crude Oil subject to such
Prior Dedication shall, to the extent not already subject to the Dedication,
automatically be included within the Dedication and subject to this Agreement
without any further actions by the Parties. 3.3 New Dedications and Commitments.
Shipper represents and warrants to Gatherer that, as of the Effective Date,
except as set forth on Exhibit G attached hereto, none of the Interests owned by
Shipper and/or its Affiliates within the Dedicated Area are subject to a Prior
Dedication. With respect to any such Interests which are subject to a Prior
Dedication, Shipper shall have the right to comply with such Prior Dedication
and the Shipper Crude Oil produced from such Interests shall be excluded from
the Dedication, to the extent and only to the extent of such Prior Dedication,
until such Prior Dedication expires or terminates. In the event that any such
Prior Dedication expires or terminates, then the Shipper Crude Oil subject to
such Prior Dedication shall, to the extent not already subject to the
Dedication, automatically be included within the Dedication and subject to this
Agreement without any further actions by the Parties. Commencing on the
Effective Date of this Agreement, Shipper shall not, as to the Interests owned
by Shipper and/or its Affiliates within the Dedicated Area as of the Effective
Date, enter into any dedication or commitment for Crude Oil gathering or
transportation services burdening such Interests if the term of such dedication
or commitment extends beyond the Commencement Date; provided, however, Shipper
may enter into such dedication and commitment (i) for periods beyond the
Commencement Date, to the extent that Shipper reasonably anticipates that
Commencement Date Facilities will not be completed and placed in-service on or
before the anticipated Commencement Date set forth in Section 4.5, but not for a
period in excess of six (6) Months past the anticipated Commencement Date, and
(ii) during periods when Shipper is released from Dedication pursuant to the
terms and conditions of this Agreement. 3.4 Releases and Exclusions from the
Dedication; Reservations. Notwithstanding Section 3.1 hereof, (a) if, at any
time during the Term, Gatherer suspends, curtails, is unable or fails to receive
all volumes of Shipper Crude Oil hereunder, for more than twenty-four (24)
consecutive hours for any reason, including an event of Force Majeure, the
affected Well(s) (including the volumes of Crude Oil associated therewith)
delivering to the affected Receipt Point(s) where all such volumes of Shipper
Crude Oil are not received shall automatically be temporarily released from this
Agreement; provided, however, during such suspension, curtailment, or
interruption event, Gatherer shall have the right, but shall have no obligation,
to (or to cause its designee to) truck all or a portion of the Shipper Crude Oil
delivered hereunder, and by doing so, such Shipper Crude Oil trucked by Gatherer
or its designee shall be considered received hereunder and not temporarily
released hereunder. If Gatherer elects the option to truck Barrels of Shipper
Crude Oil as provided in the immediately preceding sentence, (i) Shipper’s
Priority Rate will apply to all such Barrels, and (ii) Gatherer shall redeliver
such Shipper Crude Oil to Gatherer’s Wink Terminal via the Gathering System (if
available) or to one or more alternative markets, purchasers, pipelines,
processor or transporters designated by Producer in close proximity thereto (if
Gatherer’s Wink Terminal is not available). Shipper may, at its sole option,
store or deliver all or any portion of the Shipper Crude Oil temporarily
released hereunder to Gatherer’s Wink Terminal via the Gathering System (if
available) or an alternative 10

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[exhibit1029llex10k201912015.jpg]
market, purchaser, pipeline, processor or transporter (if Gatherer’s Wink
Terminal is not available); provided, however, to the extent that Gatherer does
not elect its trucking option under this Section 3.4(a) and the temporary
release is not attributable to a Force Majeure or an interruption of operations
described in Section 11.3, Gatherer shall reimburse Producer for Producer’s out
of pocket costs incurred during such release period on a per Barrel basis to
truck Shipper Crude Oil to Gatherer’s Wink Terminal via the Gathering System (if
available) or such alternative markets, purchasers, pipelines, or transporters
(if Gatherer’s Wink Terminal is not available), less the Shipper’s Priority Rate
per Barrel. This temporary release shall cease, and Shipper shall resume
deliveries of such temporarily released Shipper Crude Oil, as soon as Shipper,
exercising commercially reasonable efforts, can terminate all alternative
gathering and/or marketing arrangements without penalty, but in no event later
than the first Day of the Month commencing after the passage of ninety (90) Days
after Gatherer has provided Shipper written notice that Gatherer is ready,
willing and able to resume receiving the affected volumes of Shipper Crude Oil.
(b) If Gatherer suspends, curtails, is unable or fails to receive all volumes of
Shipper Crude Oil (i) for any reason other than an event of Force Majeure, for
one hundred twenty (120) consecutive Days or one hundred twenty (120) or more
cumulative Days during any consecutive one hundred eighty (180) Day period
following the Commencement Date, or (ii) as a result of an event of Force
Majeure, for two hundred seventy (270) consecutive Days or two hundred seventy
(270) Days or more cumulative Days during any consecutive three hundred
sixty-five (365) Day period following the Commencement Date, then Shipper shall
have the right, immediately following such period, to request and receive a
permanent release from Gatherer of the affected Well(s) and Interest(s)
delivering to the affected Receipt Point(s) where all such volumes of Shipper
Crude Oil are not received (including the volumes of Crude Oil associated
therewith). (c) Shipper Crude Oil may be released from the Dedication in
accordance with Sections 4.3(c) and (e) hereof. (d) Shipper reserves the
following rights respecting Shipper Crude Oil: (i) to operate the Well(s) and
Interests in its sole discretion, including, without limitation, the right, but
never the obligation, to drill new Well(s), to repair and rework old Well(s),
renew or extend, in whole or in part, any oil and gas lease covering any of
lands within the Dedicated Area, and to cease production from or abandon any
Well or surrender any such oil and gas lease, in whole or in part, in Shipper’s
discretion; (ii) to deliver or furnish to Shipper’s and its Affiliates’ lessors
and holders of other existing burdens on production such Shipper Crude Oil as is
required to satisfy the terms of the applicable oil and gas leases and other
applicable instrument creating the burdens; (iii) to pool, communitize, or
unitize the lands covered by the Interests of Shipper and its Affiliates’,
including with lands not covered by such Interests; provided that Shipper’s
and/or its Affiliates’ share of Crude Oil produced from 11

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[exhibit1029llex10k201912016.jpg]
such pooled, communitized, or unitized interests shall be dedicated and
committed to this Agreement to the extent that such Crude Oil would constitute
Shipper Crude Oil hereunder; (iv) to construct, install, maintain, own and
operate any treating and/or conditioning facilities upstream of the Gathering
System as reasonably necessary to (i) comply with any environmental, legal, or
Interest requirements, or (ii) meet the quality specifications of the Gathering
System set forth in this Agreement and/or the quality specification of any
Connecting Pipeline; (v) to deliver or furnish to Shipper’s and its Affiliates’
non-operators or other Persons all Crude Oil that such non-operators or Persons
elect to separately take in-kind and market; and (vi) to retain any and all
Crude Oil that is not Shipper Crude Oil dedicated and committed to this
Agreement, including, without limitation, Crude Oil produced prior to the
Commencement Date or released hereunder, and to transport by truck and/or sell
or otherwise dispose of such Crude Oil. (e) In the event of a release from the
Dedication hereunder, at the request of Shipper, the Parties shall execute a
release reasonably acceptable to Shipper (which, in the case of a permanent
release, shall be in recordable form) reflecting the release of any Receipt
Point(s), Well(s), Interest(s) and Shipper Crude Oil released from Dedication
hereunder. 3.5 Covenant Running with the Land. So long as this Agreement is in
effect, this Agreement shall (i) be a covenant running with the Interests now
owned or hereafter acquired by Shipper and/or its Affiliates within the
Dedicated Area (including, without limitation, all Wells operated by Shipper or
its Affiliates) and (ii) be binding on and enforceable by Gatherer and its
successors and assigns against Shipper, its Affiliates and their respective
successors and assigns. Notwithstanding this Section 3.5, to the extent all or a
portion of such Interests within the Dedicated Area are sold to a non-Affiliated
Person, such acquiring Person shall only be required to dedicate for delivery
hereunder that Crude Oil that is produced from such Interests within the
Dedicated Area acquired by such non-Affiliated Person from Shipper. The
acquiring Person shall not be required to dedicate Crude Oil produced from
Interests already held by or acquired after such date by such acquiring Person.
Notwithstanding the foregoing, with prior written notice to Gatherer, Shipper
and its Affiliates shall each be permitted to convey, sell, assign, or otherwise
transfer its interest in the Interests that are not connected to or in the
process of being connected to the Gathering System free of the Dedication
hereunder in an “acreage swap” or exchange transaction in which such undeveloped
Interests within the Dedicated Area are exchanged for other properties or
Interests of approximately equal net acreage and projected production located in
the Dedicated Area that are not subject to a Prior Dedication and would become
subject to the Dedication hereunder. Gatherer and Shipper shall prepare,
execute, acknowledge, deliver, and record any such instruments and other
documents reasonably necessary to effectuate such release and memorialize such
acquired Interests subject to the Dedication. 12

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[exhibit1029llex10k201912017.jpg]
3.6 Memorandum of Agreement. Contemporaneously with the execution of this
Agreement, the Parties shall execute, acknowledge, deliver and record a “short
form” memorandum of this Agreement in the form of Exhibit C attached hereto (the
“Memorandum”). ARTICLE IV COMMENCEMENT DATE AND CONSTRUCTION OF FACILITIES 4.1
Commencement Date. The “Commencement Date” under this Agreement shall be the
first Day of the Month following the date Gatherer notifies Shipper that (i)
Gatherer has obtained all required operating permits and/or approvals of
regulatory authorities, and (ii) all of the Commencement Date Facilities are
ready to be placed in-service and operational to the extent necessary to
commence the full performance of the Services as contemplated by this Agreement
from the Receipt Point(s) to the Connecting Pipeline(s) (subject to Shipper’s
obligation to provide its pro rata share of line fill hereunder). Gatherer
shall, subject to Force Majeure, use commercially reasonable efforts to achieve
the Commencement Date within one hundred eighty (180) Days after the Effective
Date; provided, however, the Parties acknowledge and agree that there are a
number of contingencies that may affect the actual Commencement Date, and,
accordingly, except for the rights and remedies set out in Section 4.5, neither
Party shall have any right or remedy against the other Party if the actual
Commencement Date is earlier or later than the anticipated Commencement Date.
4.2 Construction of Commencement Date Facilities. Except for new facilities
provided by Gatherer pursuant to Section 4.3 hereof, Shipper shall, at its sole
cost and expense, install, own, operate and maintain all facilities and
equipment upstream of the Receipt Points, including on-lease tank batteries.
Without limitation of the foregoing, Shipper shall arrange for the supply of,
and pay all Energy Costs associated with supplying of, continuous electrical
power service as required to operate all equipment, including Gatherer’s
equipment, at all Receipt Points to the extent Shipper has power available. If
Shipper does not have power available at a Receipt Point, Gatherer will use its
commercially reasonable efforts to make power available for its operations and
Shipper will reimburse Gatherer for all Energy Costs. Shipper shall not bear any
responsibility for any Energy Costs attributable to the Gathering System
downstream of the Receipt Point(s). Gatherer shall, at its sole cost and
expense, design, engineer, modify, construct and equip, maintain and operate or
caused to be designed, engineered, modified, constructed and equipped,
maintained and operated, the Gathering System, including the Commencement Date
Facilities and any facilities constructed by Gatherer pursuant to Section 4.3
hereof to connect new Receipt Point(s), as necessary to perform the Services and
all its obligations under this Agreement as a reasonably prudent operator and in
accordance with the Tariff. Gatherer may design and shall expand, and may add or
remove components of the Gathering System, as it determines to be best, provided
that such operations are consistent with Gatherer’s obligations hereunder.
Except through the payment of the rates specified in Article VIII or as
otherwise expressly provided in this Agreement, Shipper shall have no
responsibility for the cost of the Gathering System or any facilities
constructed or to be constructed by Gatherer. The Receipt Point(s), including
the Initial Receipt Point(s), installed by Gatherer hereunder, at its sole cost
and expense, will contain a LACT and transfer pumps with the capacity at each
such Receipt Point to measure and pump at least 5,000 BPD of Shipper Crude Oil.
Gatherer’s LACTs shall include pipeline sample pots with capabilities to record
quantity, API gravity, sediment and water and sulfur content. 13

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[exhibit1029llex10k201912018.jpg]
4.3 Construction of Receipt Point(s); Drilling Plans. (a) In order to assist
Gatherer in planning for future facilities which Gatherer may install under this
Agreement following the Effective Date, every six (6) Months during the Term,
Shipper shall provide to Gatherer copies of its current drilling plan(s) with
respect to the Dedicated Area. Shipper shall provide Gatherer with an update to
its drilling plan(s) promptly following any material change to a plan previously
provided to Gatherer. Each drilling plan and any associated updates provided to
Gatherer by Shipper of the drilling plan(s) shall include (i) the name and
location of any new potential Receipt Point, (ii) Shipper’s estimate of the spud
date, completion date and date of first production with respect to each new
Well(s) associated with such new potential Receipt Point, and (iii) Shipper’s
good faith estimate of the average daily volume from such new potential Receipt
Point. (b) If, at any time after the Effective Date, Shipper desires that a new
Receipt Point for any Well(s) located within the Dedicated Area (other than
Wells delivering Crude Oil to the Initial Receipt Points identified in Exhibit
B) be connected to the Gathering System, Shipper shall provide written notice to
Gatherer for new Receipt Points associated with Shipper Crude Oil setting forth
the expected date of first flow to Gatherer (the “Notification Date”), location
and volume profile for such Receipt Point in the form attached hereto as Exhibit
E (a “New Receipt Point Notification”). Following Gatherer’s receipt of a New
Receipt Point Notification, Gatherer shall promptly commence and diligently
conduct all reasonable operations at Gatherer’s sole cost and expense necessary
to extend the existing Gathering System to each such new Receipt Point described
in such New Receipt Point Notification that Shipper desires to be connected to
the Gathering System by the later of (i)(A) for a new Receipt Point that is
within two (2) miles of the existing Gathering System and does not require BLM
approval to be connected to the Gathering System, one hundred twenty (120) Days
after Gatherer’s receipt of the applicable New Receipt Point Notification, or
(B) for a new Receipt Point that is either more than two (2) miles from the
existing Gathering System and/or requires BLM approval to be connected to the
Gathering System, one hundred eighty (180) Days after Gatherer’s receipt of the
applicable New Receipt Point Notification, and (ii) the Notification Date (each
such date, a “Target RP In-Service Date”); provided, however, with respect to
Receipt Point(s) that are identified in New Receipt Point Notification(s)
delivered by Shipper to Gatherer between the Effective Date and the Commencement
Date, the Target RP In-Service Date with respect to such Receipt Point(s) shall
be the later of the (i) Target RP In-Service Date (as defined above) or (ii)
within sixty (60) Days after the Commencement Date. (c) If Gatherer fails or is
unable to connect any such additional Receipt Point by the applicable Target RP
In-Service Date for any reason, then the Shipper Crude Oil associated with such
Receipt Point and the affected Well(s) and Interest(s) to which such Shipper
Crude Oil is attributable shall be temporarily released from the Dedication
until such time as such Receipt Point is connected, provided that, during such
period, Gatherer shall have the right, but shall have no obligation, to (or to
cause its designee to) truck all or a portion of the Shipper Crude Oil
associated with such Receipt Point prior to the completion of such connection to
Gatherer’s Wink Terminal via the Gathering System (if available) or to one or
more alternative markets, purchasers, pipelines, processor or transporters
designated by Producer in close proximity thereto (if Gatherer’s Wink Terminal
is not available), and by doing so, such Shipper Crude Oil trucked by Gatherer
or its designee shall be considered received hereunder and not 14

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[exhibit1029llex10k201912019.jpg]
temporarily released hereunder. If Gatherer elects the option to truck Barrels
of Shipper Crude Oil as provided in the immediately preceding sentence, (w)
Shipper’s Priority Rate will apply to all such Barrels, and (x) Gatherer shall
redeliver such Shipper Crude Oil to Gatherer’s Wink Terminal via the Gathering
System (if available) or to one or more alternative markets, purchasers,
pipelines, processor or transporters designated by Producer in close proximity
thereto (if Gatherer’s Wink Terminal is not available). Shipper may, at its sole
option, store or deliver all or any portion of the Shipper Crude Oil temporarily
released hereunder to Gatherer’s Wink Terminal via the Gathering System (if
available) or an alternative market, purchaser, pipeline, processor or
transporter (if Gatherer’s Wink Terminal is not available); provided, however,
to the extent that Gatherer does not elect its trucking option under this
Section 4.3(c) and the temporary release is not attributable to a Force Majeure,
Gatherer shall reimburse Producer for Producer’s out of pocket costs incurred
during such release period on a per Barrel basis to truck Shipper Crude Oil to
Gatherer’s Wink Terminal via the Gathering System (if available) or such
alternative markets, purchasers, pipelines, or transporters (if Gatherer’s Wink
Terminal is not available), less the Shipper’s Priority Rate per Barrel. (d) In
addition to Gatherer’s obligations set forth in Section 4.3(c) above, if
Gatherer fails or is unable to connect any such additional Receipt Point by the
date that is thirty (30) Days beyond the applicable Target RP In-Service Date
for any reason other than Force Majeure, then, for each Day of unexcused delay
until Gatherer connects such additional Receipt Point beyond the Target RP
In-Service Date, Gatherer shall temporarily reduce Shipper’s Priority Rate to
$0.375 per Barrel and Shipper’s Uncommitted Rate to $0.370 per Barrel for
Shipper Crude Oil delivered to such additional Receipt Point for only a period
of time equal to the amount of Days from the deadline set forth in the first
sentence of this Section 4.3(d) until the date such additional Receipt Point is
connected; provided, however, on the first Day after the expiration of such
period of time, Shipper’s Priority Rate and Shipper’s Uncommitted Rate will be
increased to such rates, respectively, set out in Article VIII and Exhibit B. By
means of example, if Gatherer connects a requested Receipt Point fifty (50) Days
after the Target In- Service Date for such additional Receipt Point, and such
delay is not due to an event of Force Majeure, then the reduction in Shipper’s
Priority Rate and Shipper’s Uncommitted Rate described in the preceding sentence
would apply to Shipper Crude Oil received at such additional Receipt Point for
the first twenty (20) Days after such additional Receipt Point is connected. (e)
Notwithstanding anything in this Section 4.3 to the contrary, if Gatherer fails
or is unable to connect any such additional Receipt Point by the date that is
(i) one hundred eighty (180) Days beyond the applicable Target RP In-Service
Date for any reason other than Force Majeure or (ii) two hundred seventy (270)
Days beyond the applicable Target RP In- Service Date due to Force Majeure, then
Shipper shall have the right, immediately following such period, to request and
receive a permanent release from Gatherer of the affected Interest(s) and
Well(s) delivering to such additional Receipt Point (including the volumes of
Crude Oil associated therewith). Shipper acknowledges that the rights and
remedies set forth in this Section 4.3 shall be its sole and exclusive remedies
in the event of Gatherer’s failure to timely connect a requested additional
Receipt Point. (f) In the event that Gatherer completes an interconnection
requested by Shipper and paid for by Gatherer for any new Receipt Point, and
after one hundred eighty (180) Days following the date of completion of any such
Receipt Point, Shipper has not used the 15

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[exhibit1029llex10k201912020.jpg]
additional Receipt Point for any reason other than Force Majeure, then Shipper
shall reimburse any and all reasonable and documented out-of-pocket costs,
expenses or fees incurred by Gatherer related to the connection of such Receipt
Point to the Gathering System (but excluding trunklines, terminals or other
facilities located downstream of the lateral gathering lines constructed to
connect such Receipt Point); provided that (i) Shipper shall not be required to
reimburse such costs, expenses or fees in the event Gatherer is otherwise
utilizing the installed pipelines and related equipment in a manner that is not
reasonably expected to result in lost profits or additional costs beyond the
amounts anticipated for connecting the applicable additional Receipt Point to
the Gathering System, (ii) Gatherer shall prepare and deliver to Shipper an
itemized invoice of such costs, fees and expenses, which total amount shall be
reimbursed by Shipper in equal Monthly installments over a five (5) year period,
with the first such installment due within thirty (30) Days of receipt of
Gatherer’s invoice, and (iii) in the event Shipper reimburses Gatherer for all
or a portion of such costs, fees and expenses and, subsequently, such additional
Receipt Point is later used by Shipper to deliver Shipper Crude hereunder, then
Shipper shall receive a credit, equal to the total or partial amount of such
costs, fees and expenses so reimbursed by Shipper, towards the payment of the
amounts that would be due from Shipper to Gatherer hereunder for the delivery of
such Shipper Crude Oil at such new Receipt Point. 4.4 License and Right-of-Use.
Gatherer is responsible, at its sole cost and expense, for the acquisition and
maintenance of easements, rights-of-way, fee lands and surface use and/or
surface access agreements necessary to construct, own and operate the Gathering
System. Notwithstanding the foregoing, upon Gatherer’s written request, to the
extent that Shipper is legally and contractually entitled to do so without the
incurrence of cost or expense, Shipper shall grant to Gatherer for purposes of
constructing, owning, operating, repairing, replacing and maintaining any
portion of the Gathering System, a non-exclusive license and right-of-use
(including, without limitation, such license or right-of-use encompassed in
Shipper’s or its Affiliates’ oil and gas leases or other agreements with third
parties) over, across and under Shipper’s or its Affiliates, Interests as are
reasonably necessary for such purposes. Shipper shall have no obligation to
execute any easements, rights-of-way, and/or other conveyances of real property
in connection with the foregoing license and right-of-use. All facilities and
other equipment acquired, placed, or installed by Gatherer for the purposes of
this Agreement pursuant to the provisions of this Section 4.4, will remain the
property of Gatherer. In the event Shipper identifies any issue with such
Gatherer’s facilities on Shipper’s or its Affiliates’ Interests, Shipper will
notify Gatherer of such issue and Gatherer and Shipper will work collaboratively
to remedy the same. Gatherer shall be responsible for and release, defend,
indemnify, and hold the Shipper Indemnified Parties harmless from and against
any and all Claims and Losses, arising from or relating to Gatherer’s use of, or
operations on, any such non-exclusive license and right-of-use granted by
Shipper, except to the extent such Claims or Losses are caused by or
attributable to the negligence, gross negligence or willful misconduct of any of
the Shipper Indemnified Parties. Shipper shall be responsible for and release,
defend, indemnify, and hold the Gatherer Indemnified Parties harmless from and
against any and all Claims and Losses, arising from or relating to Shipper’s use
of, or operations on, any fee lands, easements, right-of-way, or similar surface
access rights owned or maintained by Gatherer, except to the extent such Claims
or Losses are caused by or attributable to the negligence, gross negligence or
willful misconduct of any of the Gatherer Indemnified Parties. 16

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[exhibit1029llex10k201912021.jpg]
4.5 Construction Delay. (a) If the Commencement Date does not occur within two
hundred ten (210) Days after the Effective Date (“Project Deadline”), then
Gatherer shall reimburse Shipper for Shipper’s out of pocket costs on a per
Barrel basis minus $0.75 per Barrel to truck Shipper Crude Oil from the
Dedicated Area to Gatherer’s Wink Terminal via the Gathering System (if
available) or to one or more alternative markets, purchasers, pipelines,
processor or transporters designated by Producer in close proximity thereto (if
Gatherer’s Wink Terminal is not available) after the Project Deadline that if
not for the delay in the Commencement Date such Shipper Crude Oil would have
been gathered and transported on the Gathering System. Gatherer’s payment
obligation under this Section 4.5 hereunder shall continue until the earlier of
the Commencement Date or the termination of this Agreement. However, Gatherer
shall have the right, but shall have no obligation, to (or cause its designee
to) truck all or a portion of such Shipper Crude Oil as contemplated above and
Shipper shall pay Gatherer Shipper’s Priority Rate with respect to such trucking
services. In the event that Gatherer’s Wink Terminal is not complete during such
period described above, Shipper Crude Oil may be trucked to an to one or more
alternative markets, purchasers, pipelines, processor or transporters designated
by Producer in close proximity thereto. Notwithstanding anything herein to the
contrary, if the Project Deadline is delayed due to a properly noticed event of
Force Majeure, then the Project Deadline shall be extended for each Day of any
such delay. (b) In addition to Gatherer’s obligations set forth in Section
4.5(a) above, if the Commencement Date does not occur by the Project Deadline,
then upon the Commencement Date, Gatherer shall temporarily reduce Shipper’s
Priority Rate to $0.375 per Barrel and Shipper’s Uncommitted Rate to $0.370 per
Barrel for only a period of time equal to the amount of Days from the Project
Deadline until the Commencement Date (“Delay Period”); provided, however, on the
first Day after the expiration of the period of time after the Commencement Date
equal to the Delay Period, Shipper’s Priority Rate and Shipper’s Uncommitted
Rate will be increased to such rates, respectively, set out in Article VIII and
Exhibit B. By way of example, if the Delay Period is equal to thirty (30) Days,
then Shipper’s Priority Rate and Shipper’s Uncommitted Rate will be $0.375 per
Barrel and $0.370 per Barrel, respectively, for only the first 30 Days after the
Commencement Date and on the 31st Day after the Commencement Period, Shipper’s
Priority Rate and Shipper’s Uncommitted Rate shall be as set out in Article VIII
and Exhibit B. Notwithstanding anything herein to the contrary, if the Project
Deadline is delayed due to a properly noticed event of Force Majeure, then the
Project Deadline shall be extended for each Day of any such delay. (c) If
Gatherer fails to cause the Commencement Date to occur on or before the four
hundred eightieth (480th) Day after the Effective Date for any reason, due to
Force Majeure or otherwise, then Shipper, at Shipper’s option, shall be entitled
to terminate this Agreement in its entirety. Shipper’s right to terminate
pursuant to this Section 4.5(c) shall expire when the Commencement Date occurs.
4.6 Connecting Pipelines. Gatherer shall install two (2) initial
interconnections with Connecting Pipelines: (i) at the Initial Delivery Point as
of the Commencement Date, and (ii) at one additional Delivery Point with the
EPIC Crude Oil Pipeline or other pipeline with direct, long-haul transportation
to the Corpus Christi, Texas area, which Gatherer shall use 17

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[exhibit1029llex10k201912022.jpg]
commercially reasonable efforts to install on or before December 31, 2019,
subject to any delay in the in service date for the EPIC Crude Oil Pipeline. In
addition to such two (2) initial interconnections, Shipper has the right to
propose that Gatherer, at Gatherer’s sole cost and expense, construct up to two
additional interconnections with Connecting Pipelines, provided that such
additional interconnections are within five (5) miles of the Gathering System.
In the event Shipper reasonably requests additional interconnections with
Connecting Pipelines in excess of such two additional interconnections described
in the immediately preceding sentence, if Shipper agrees to pay Gatherer
pursuant to a mutually agreeable facilities reimbursement agreement an amount
equal to all of the actual reasonable, direct and out-of-pocket costs associated
with such additional facilities, as determined by Gatherer, then Gatherer shall
be obligated to construct the proposed interconnection(s). ARTICLE V DELIVERY TO
CONNECTING PIPELINES Gatherer shall deliver Shipper Crude Oil in accordance with
the Services to Shipper or for Shipper’s account at the Delivery Point(s)
pursuant to the Tariff. ARTICLE VI GATHERER OBLIGATIONS 6.1 Provision of
Services. Subject to the terms and conditions of this Agreement, Gatherer shall,
commencing on the Commencement Date and continuing through the remainder of the
Term of this Agreement, provide Services for Shipper Crude Oil in accordance
with this Agreement, including the Tariff, which is incorporated herein by
reference and constitutes part of this Agreement, expressly including provisions
in the Tariff relating to the charges and rules and regulations applicable to
Shipper as a Party to this Agreement. Other than Gatherer’s working tanks
required in the process of transporting Crude Oil, the Services do not include
any terminaling, tankage or storage. 6.2 Gatherer’s Prorationing Obligations;
Priority Service. As set forth in the Tariff, notwithstanding any other
provisions of this Agreement, to the extent permitted by Applicable Law, the
terms of the Tariff shall provide generally that, subject to Gatherer’s rights
and remedies under Article XIX hereof, Defaults and Remedies, a tender of
Shipper Crude Oil by Shipper for transport on the Gathering System not exceeding
Shipper’s Maximum Daily Quantity and paying the Priority Rate for levels of
applicable service on the Gathering System (“Priority Service”), shall be
entitled to the highest level of service on the Gathering System and not be
subject to prorationing to accommodate nominations of uncommitted volumes for
transport on the Gathering System or nominations of volumes for transport on the
Gathering System by shippers who do not elect to pay (or are not eligible
thereunder) the Priority Rate for such nominations. The allocation of the
operational capacity of the Gathering System at any given time among Priority
Shippers and other Shippers is set forth in the Tariff. Notwithstanding anything
herein to the contrary, consistent with the Tariff, Gatherer agrees that, during
the Term of this Agreement, it will not enter into contracts with other Priority
Shippers which, when taken in the aggregate, along with Gatherer’s obligations
to provide Priority Service to Shipper hereunder, would obligate Gatherer to
provide Priority Service on the Gathering System that would exceed ninety
percent (90%) of the capacity of the Gathering System. Gatherer agrees 18

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[exhibit1029llex10k201912023.jpg]
that during the Term of this Agreement, Gatherer shall note create a higher
level than Priority Service. ARTICLE VII NOMINATIONS AND OTHER TERMS 7.1
Nominations. Commencing on the Commencement Date and continuing thereafter
during the Term, Shipper agrees to tender (or cause to be tendered) at the
Receipt Points, Shipper Crude Oil to Gatherer for gathering and transportation
on the Gathering System as set forth on Exhibit B, in accordance with the
nomination and tender procedures set forth in the Tariff. Shipper expressly
acknowledges and affirms that Gatherer is relying on Shipper’s Dedication,
together with the volume commitments and dedications from other Priority
Shippers executing COGAs, in order to establish the economic justification for
the Gathering System. 7.2 Unused Capacity. Shipper agrees, to the extent Shipper
does not nominate or tender up to Shipper’s Maximum Daily Quantity on the
Gathering System in any Month, Gatherer shall be free to utilize such unused
capacity on the Gathering System for the provision of gathering and
transportation services to other shippers, but only to the extent and duration
of Shipper’s under-utilization of its capacity, without impacting the payment
obligations of Shipper or any other obligations of Shipper, including, but not
limited to Shipper’s obligations pursuant to Article III or otherwise crediting
or paying Shipper in any manner. Nothing in this Section 7.2 shall operate to
reduce or otherwise alter Shipper’s Maximum Daily Quantity. 7.3 Tariff.
Shipper’s nominations and tenders of Crude Oil for shipment, and Gatherer’s
scheduling, acceptance, gathering, transporting, measuring and delivering of
Crude Oil, shall, at all times, be subject to, and implemented in accordance
with the Tariff. Shipper shall comply with the Tariff at all times. The Tariff
is subject to amendment by Gatherer in accordance with Section 14.1 and Section
20.1. 7.4 Linefill. Shipper shall provide (a) its share of linefill sufficient
for the operation of the Gathering System utilized by Shipper as required by the
Tariff and (b) at least thirty (30) Days prior to the Commencement Date (to the
extent that the Commencement Date Facilities can receive such linefill at such
time), its proportionate share of linefill for the Gathering System to be
utilized by Shipper, as reasonably determined by Gatherer and specified in a
written notice given by Gatherer to Shipper at least thirty (30) Days prior to
the Commencement Date. Gatherer shall not be required to provide the Services
hereunder until Shipper provides its pro rata portion of linefill. 7.5 Off-Spec
Crude Oil. The Tariff sets out that Gatherer reserves the right to reject all
tenders of Crude Oil and refuse transportation if Gatherer determines that
Shipper has delivered Crude Oil that does not conform to the Tariff’s
specifications (as defined in the Tariff, “Off-Spec Crude Oil”), all of which
shall be determined by Gatherer in its reasonable discretion. The Tariff also
sets out under what conditions Gatherer may accept Off-Spec Crude Oil and
commingle the same with the common stream. In addition to the provisions in the
Tariff, Shipper and Gatherer may agree that (i) Gatherer will install and
operate treatment facilities at Receipt Point(s), for a mutually agreeable
treating fee (which treating fee would be in lieu of Shipper’s reimbursement of
the actual costs and expenses incurred by Gatherer to treat, handle, 19

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[exhibit1029llex10k201912024.jpg]
or otherwise dispose of such Off-Spec Crude Oil, as authorized in the Tariff),
or (ii) Shipper or its designee will install and operate treatment facilities
upstream of the Receipt Point(s), provided that such Party that is to install
(or cause to be installed) such facilities shall use commercially reasonable
efforts to install (or cause to be installed) such facilities in a timely
manner. If Shipper and Gatherer agree that either Gatherer or Shipper shall
install and operate such treating facilities pursuant to the immediately
preceding sentence, then Off-Spec Crude Oil shall be temporarily released from
this Agreement (free of any obligation to pay Gatherer the Priority Rate or the
Uncommitted Rate, as applicable), and Shipper may deliver such Off-Spec Crude
Oil to a third party, from the time such Crude Oil is determined to be Off-Spec
Crude Oil until such time as Gatherer is able to accept such Off-Spec Crude
following the installation of such treating facilities, provided, that Gatherer
shall have the right, but shall have no obligation, to (or cause its designee
to) truck all or a portion of such Off-Spec Crude Oil to Gatherer’s Wink
Terminal via the Gathering System, and by doing so, such Off-Spec Crude Oil
trucked by Gatherer or its designee shall be considered received hereunder and
accepted under the Tariff, and not temporarily released hereunder. If Gatherer
elects the option to truck Barrels of Off- Spec Crude Oil as provided in the
immediately preceding sentence, (i) Shipper’s Priority Rate will apply to all
such Barrels, and (ii) Gatherer shall redeliver such Off-Spec Crude Oil to
Gatherer’s Wink Terminal via the Gathering System. Notwithstanding the
foregoing, if Shipper and Gatherer do not agree (x) upon the terms under which
Gatherer will install and operate treatment facilities, or (y) that Shipper or
its designee shall install and operate treatment facilities upstream of the
Receipt Point(s), within thirty (30) Days of the date of Gatherer’s initial
proposal to Shipper regarding the same, then, subject to Gatherer’s right to
truck Off-Spec Crude Oil as set forth in the previous two sentences of this
Section 7.5, Off-Spec Crude Oil shall be temporarily released from this
Agreement from the time such Crude Oil is determined to be Off- Spec Crude Oil;
provided, however, after the expiration of such thirty (30) Day period until the
date that Shipper and Gatherer agree that either Gatherer or Shipper shall
install and operate treating facilities as provided in this Section 7.5, Shipper
may continue to deliver such Off-Spec Crude Oil to a third party, but shall pay
Gatherer the Priority Rate or the Uncommitted Rate, as applicable, for such
volumes of Off-Spec Crude Oil as if such volumes were delivered to Gatherer
hereunder. For the avoidance of doubt, Shipper shall not be entitled to a
release of Off- Spec Crude Oil except as provided in this Section 7.5. 7.6 Loss
Allowance. Pursuant to the Tariff, Gatherer shall deduct the actual losses of
Shipper Crude Oil on a pro rata basis to cover losses inherent in the
transportation of Shipper’s Crude Oil on the Gathering System, provided that
such loss allowance shall not exceed (i) two- tenths of one percent (0.20%) of
the volumes of Shipper Crude Oil received into the Gathering System, with
respect to Shipper Crude Oil having an API Gravity of 49.9 degrees or less, or
(ii) four-tenths of one percent (0.40%) of the volumes of Crude Oil received in
the Gathering System, with respect to Shipper Crude Oil having an API Gravity of
49.9 degrees to 60 degrees (Gatherer will not accept for transportation Crude
Oil with API Gravity above 60 degrees). The volumes delivered to Shipper or its
designee from Gatherer’s facilities shall be net of such deduction. 7.7
Commingling; Quality Bank. Pursuant to the Tariff, Gatherer shall be entitled to
commingle Shipper Crude Oil with other Crude Oil delivered to the Gathering
System from other shippers, and to transport Crude Oil in a common stream to the
Delivery Point(s), provided that Gatherer shall not knowingly accept any
shipper’s delivery of Off-Spec Crude Oil if 20

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[exhibit1029llex10k201912025.jpg]
Gatherer determines that the quality of such Off-Spec Crude Oil, when commingled
as a common stream, would not meet the quality specifications in the Tariff.
Gatherer shall not be liable to Shipper for changes in gravity or quality of
Shipper’s Crude Oil which may occur from commingling or intermixing Shipper
Crude Oil with other Crude Oil in the same common stream while in transit,
except to the extent that such commingling or intermixing would render Shipper’s
Crude Oil to be Off-Spec Crude Oil or undeliverable as a result of Off-Spec
Crude Oil received from other shippers. Shipper acknowledges that Shipper Crude
Oil may be commingled with other Crude Oil that Gatherer has purchased from
and/or gathered for others; therefore, the Crude Oil delivered at the Delivery
Point(s) may not contain the same molecules as those received by Gatherer at the
Receipt Point(s). In the event that Crude Oil delivered from the common stream
to one or more Priority Shippers on the Gathering System consistently has an API
Gravity greater than ten degrees API than the Crude Oil delivered by such
Priority Shipper to Gatherer into the Gathering System, and (ii) a majority of
Priority Shippers (at least two out of three) request a quality bank agreement
to address such differences in gravity, then Gatherer and all Priority Shippers
shall negotiate in good faith in an effort to enter into such an agreement, and
to the extent entered into, all Shippers on the Gathering System shall be
subject thereto and settled thereunder. 7.8 Possession and Control; Liability.
As between Shipper and Gatherer, (i) Shipper is deemed in control and possession
of Shipper Crude Oil delivered for Services hereunder until Shipper delivers, or
causes to be delivered, such Shipper Crude Oil at the Receipt Point(s) and after
Gatherer re-delivers, or causes to be re-delivered, such Shipper Crude Oil at
the Delivery Point(s), and (ii) Gatherer is deemed in control and possession of
Shipper Crude Oil delivered for Services hereunder from and after the time
Shipper delivers, or causes to be delivered, such Shipper Crude Oil at the
Receipt Point(s) until Gatherer re-delivers, or causes to be re-delivered, such
Shipper Crude Oil at the Delivery Point(s). ARTICLE VIII FEES 8.1 Tariff Filings
and Rates. Shipper shall pay rates for all volume of Crude Oil transported by
Shipper on the Gathering System in accordance with the Tariff, which shall, to
the extent permitted by Applicable Law, provide for the following: (a) Rate for
Volumes up to Shipper’s Maximum Daily Quantity. For Actual Shipments on the
Gathering System each Day during a Month up to Shipper’s Maximum Daily Quantity,
Shipper shall pay to Gatherer a per Barrel Tariff rate (“Shipper’s Priority
Rate”) equal to the applicable base priority rate corresponding to Shipper’s
average Daily Actual Shipments during such Month, which shall be, as of the
Commencement Date, the applicable base priority rate set forth in Exhibit B
attached hereto, and which shall be increased by Gatherer annually, effective
each January 1st after the Commencement Date, as provided in Section 8.3 hereof.
(b) Rate for Volumes in Excess of Shipper’s Maximum Daily Quantity. For Actual
Shipments on the Gathering System each Day during a Month in excess of Shipper’s
Maximum Daily Quantity, Shipper shall pay to Gatherer a per Barrel Tariff rate
(“Shipper’s Uncommitted Rate”) equal to the applicable base uncommitted rate
corresponding to Shipper’s average Daily Actual Shipments during such Month on
the Gathering System, which shall be, as 21

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[exhibit1029llex10k201912026.jpg]
of the Commencement Date, the applicable base uncommitted rate set forth in
Exhibit B attached hereto, and which shall be increased by Gatherer annually,
effective each January 1st after the Commencement Date, as provided in Section
8.3 hereof. 8.2 Governmental Modifications. Notwithstanding anything herein to
the contrary, the Parties acknowledge that the Tariff rates payable for all
Services are subject to the approval of and modification by the FERC or any
other Governmental Authority having jurisdiction, subject in all respects to the
terms and provisions and limitations of Article XIII. 8.3 Fee Escalation.
Effective as of 9:00 a.m., Central Clock Time, on the first January 1st that
occurs two years after the Commencement Date, and each January 1st occurring
thereafter, Shipper’s Priority Rates and Shipper’s Uncommitted Rates shall be
adjusted upwards or downwards following FERC’s indexing adjustment, as set out
in 18 C.F.R. § 342.3, including future amendments or modifications thereof,
provided, however, that such indexing adjustment shall not result in an increase
or decrease in the Shipper’s Priority Rate and/or Shipper’s Uncommitted Rate
that exceeds two percent (2%) or a decrease in the Shipper’s Priority Rate
and/or Shipper’s Uncommitted Rate that would result in a rate less than the
rates set out in Exhibit B. In the event that Gatherer is unable to make a
tariff filing pursuant to 18 C.F.R. § 342.4(c) to adjust Shipper’s Uncommitted
Rates, then Gatherer will make a tariff filing to adjust Shipper’s Uncommitted
Rates effective as of the subsequent July 1 pursuant to 18 C.F.R. § 342.3.
However, if the FERC indexing adjustment is eliminated, the Parties agree to
increase or decrease Shipper’s Priority Rates and Shipper’s Uncommitted Rates to
reflect any positive changes or negative changes in the Producer Price Index for
Finished Goods, on a year-over-year basis, subject to the above-noted increase
and decrease limitations. ARTICLE IX WARRANTY OF TITLE 9.1 Title Warranty.
Shipper represents and warrants to Gatherer that Shipper has title to and/or the
right to transport all Shipper Crude Oil delivered hereunder, and that, other
than Shipper’s Permitted Liens, said Shipper Crude Oil is free from liens,
claims, encumbrances and adverse claims, including liens to secure payment of
production taxes, severance taxes, and other taxes. SHIPPER SHALL RELEASE,
INDEMNIFY, DEFEND, AND HOLD HARMLESS THE GATHERER INDEMNIFIED PARTIES FROM AND
AGAINST ALL CLAIMS OF ANY AND ALL PERSONS RELATING TO OWNERSHIP OF SAID SHIPPER
CRUDE OIL OR TO ROYALTIES, OVERRIDING ROYALTIES, TAXES, LICENSE FEES, OR CHARGES
THEREON. Gatherer shall not allow any liens, claims, encumbrances or adverse
claims arising by, through or under Gatherer to attach to Shipper Crude Oil
while in the possession and control of Gatherer, and GATHERER SHALL RELEASE,
INDEMNIFY, DEFEND, AND HOLD HARMLESS THE SHIPPER INDEMNIFIED PARTIES FROM AND
AGAINST ALL CLAIMS OF ANY AND ALL PERSONS RELATING TO ANY SUCH LIENS, CLAIMS,
ENCUMBRANCES OR ADVERSE CLAIMS. 9.2 Proceeds of Production. Shipper agrees to
make payment of all royalties, overriding royalties, production payments, and
all other payments for interests attributable to 22

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[exhibit1029llex10k201912027.jpg]
Shipper Crude Oil delivered hereunder due to any Person under any leases or
other documents in accordance with the terms thereof. 9.3 Indemnification.
Shipper agrees to indemnify and hold the Gatherer Indemnified Parties harmless
from any and all Claims and Losses incurred in connection with, or in any manner
whatsoever relating to (i) any breach of the representations and warranties made
by Shipper pursuant to Section 9.1 above, and (ii) payment of Taxes, royalties,
overriding royalties, production payments, and all other payments for interests
attributable to Shipper Crude Oil delivered hereunder. 9.4 Title to Shipper
Crude Oil. Title to Shipper Crude Oil delivered or caused to be delivered by
Shipper to Gatherer hereunder at the Receipt Point(s) shall remain with Shipper
and shall not pass to nor vest in Gatherer at any point under this Agreement.
ARTICLE X WAIVER OF CERTAIN DAMAGES NOTWITHSTANDING ANYTHING TO THE CONTRARY IN
THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR
ITS AFFILIATES, ANY SUCCESSORS IN INTEREST OR ANY BENEFICIARY OR ASSIGNEE OF
THIS AGREEMENT FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE
DAMAGES, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS OR REVENUES THAT
CONSTITUTE SUCH DAMAGES, THAT ARISE OUT OF OR RELATE TO THIS AGREEMENT OR ANY
BREACH HEREOF; PROVIDED, HOWEVER, THE FOREGOING SHALL NOT BE CONSTRUED AS
LIMITING AN OBLIGATION OF A PARTY HEREUNDER TO INDEMNIFY, DEFEND AND HOLD
HARMLESS PERSONS ENTITLED TO INDEMNIFICATION HEREUNDER AGAINST CLAIMS ASSERTED
BY UNAFFILIATED THIRD PARTIES, INCLUDING, BUT NOT LIMITED TO, THIRD PARTY CLAIMS
FOR SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES. ARTICLE XI
FORCE MAJEURE 11.1 Suspension of Obligations. If either Party is unable to
perform any obligations due to an event of Force Majeure, such failure shall not
be a default under this Agreement, insofar as such obligations are affected by
such event of Force Majeure, for the duration of such event of Force Majeure,
and any additional period when Gatherer remains unable to perform such
obligations as a result of such event of Force Majeure. The Party incurring the
Force Majeure event will make reasonable attempts to remedy such event (it being
agreed, without limitation, that the terms of settlement of any strike, lockout,
or other industrial disturbance will be wholly in the discretion of such Party).
The Party incurring the Force Majeure event will promptly notify the other Party
in writing of any event of Force Majeure affecting the ability to perform its
obligations and will provide a nonbinding, written estimate of the anticipated
duration of such Force Majeure event. Notwithstanding the foregoing, the
existence of an event 23

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[exhibit1029llex10k201912028.jpg]
of Force Majeure will not relieve either Party’s obligations hereunder to the
extent any action or inaction is not the result of Force Majeure. 11.2
Definition of Force Majeure. The term “Force Majeure” shall mean any cause or
causes not reasonably within the control of the Party claiming suspension and
which, by the exercise of reasonable diligence, such Party is unable to prevent
or overcome, including acts of God, acts of Governmental Authorities, compliance
with rules, regulations or orders of any Governmental Authority, strikes,
lockouts or other industrial disturbances, acts of the public enemy, acts of
terrorism, wars, blockades, insurrections, riots, epidemics, landslides,
lightning, earthquakes, fires, extreme cold, storms, hurricanes, floods, or
other adverse weather conditions, washouts, arrests and restraint of rulers and
people, civil disturbances, explosions, breakage or accident to machinery,
equipment or pipelines, freezing of wells, pipelines or equipment, requisitions,
directives, diversions, embargoes, priorities or expropriations of government or
Governmental Authorities, legal or de facto, whether purporting to act under
some constitution, decree, law or otherwise, failure of pipelines or other
gatherers to gather or furnish facilities for transportation, failures,
disruptions, or breakdowns of machinery or of facilities for production,
manufacture, transportation, distribution, processing or consumption (including,
but not by way of limitation, the Gathering System), allocation or curtailment
by third parties of downstream capacity, inability to secure or delays in
securing permits from Governmental Authorities, transportation embargoes or
failures or delays in transportation or poor road conditions, partial or entire
failure of Crude Oil supply and downstream pipeline market constraints. “Force
Majeure” shall expressly exclude (i) delays in permitting that are not
extraordinary or unusual for the Dedicated Area and the development of the
Permian Basin and other relevant basins, or (ii) any matters within the
reasonable control of Gatherer (such as easement, right-of-way, fee land and
surface right acquisition, the availability of labor, materials and supplies,
and other similar matters). 11.3 Interruption of Operations. Pursuant to the
Tariff, Gatherer may, without liability to Shipper (but subject to and without
limitation of Shipper’s release rights pursuant to the terms and conditions of
Section 3.4), interrupt the operations of its facilities for the purpose of
performing inspections, pigging, maintenance, testing, alterations,
modifications, expansions, connections, repairs or replacements, but such
interruption shall be for only such time as may be reasonable. Gatherer shall
give Shipper at least thirty (30) Days’ advance written notice, except in case
of emergency, of its intention to interrupt operations and of the estimated time
thereof. ARTICLE XII DISPUTE RESOLUTION 12.1 Resolution of Disputes. Any Dispute
shall be resolved pursuant to the provisions of this ARTICLE XII, which shall be
the sole and exclusive procedures for the resolution of any such Dispute. While
the procedures in this ARTICLE XII are pending, each Party shall continue to
perform its existing obligations under the Agreement to the extent those
obligations are not the subject of the Dispute. 12.2 Dispute Notice. Prior to
submitting any Dispute for resolution by a court, a Party shall provide written
notice (a “Dispute Notice”) to the other of the occurrence of such dispute. The
Dispute Notice shall contain (i) a concise statement describing the Dispute,
including a 24

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[exhibit1029llex10k201912029.jpg]
description of its nature, circumstances and cause, (ii) an explanation of the
basis and justification for the Dispute, including reference to any pertinent
provision(s) of the Agreement, (iii) if applicable, the estimated dollar amount
of the Dispute and how that estimate was determined, (iv) the claiming Party's
desired resolution, and (v) any other information the claiming Party deems
relevant. 12.3 Direct Negotiation. Commencing within thirty (30) Days after the
Dispute Notice is received and concluding fifteen (15) Business Days thereafter,
the authorized representatives of the Parties with decision-making authority
shall meet in person in Houston, Texas (or in a place mutually agreed upon by
the Parties to the Dispute) in an attempt to resolve the Dispute raised in the
Dispute Notice. If the Parties are unable to resolve the Dispute for any reason
within such fifteen (15) Business Day period, then either Party shall be
entitled to pursue any remedies available at law or in equity; or as otherwise
provided in this Agreement; provided, however, this ARTICLE XII shall not limit
a Party’s right to initiate litigation prior to the expiration of the time
periods set forth in this Section 12.3 if application of such limitations would
prevent a Party from filing a lawsuit or claim within the applicable period for
filing lawsuits (e.g. statutes of limitation, prescription, etc.). 12.4
Jurisdiction and Venue; Jury Waiver . The Parties hereby irrevocably consent to
the exclusive jurisdiction of the state or federal courts located in Houston,
Harris County, Texas and irrevocably and unconditionally waive, to the fullest
extent they may legally and effectively do so, any objection which they may now
or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby in any federal or state court located in Houston, Harris County, Texas.
EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY
THIS AGREEMENT. 12.5 Costs and Expenses. The prevailing Party in any litigation
pertaining to any Dispute hereunder shall be entitled to recover its reasonable
costs, expenses and attorney’s fees in connection with such litigation. 12.6
Confidentiality of Dispute Resolution. 25

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[exhibit1029llex10k201912030.jpg]
(a) The Parties agree that any Dispute and any negotiations among the Parties in
relation to any Dispute shall be subject to the confidentiality provisions of
this Agreement. The Parties further agree that any information, documents or
materials produced for the purposes of, or used in, negotiations of any Dispute
shall be subject to the confidentiality provisions of this Agreement. The
Parties further agree that upon the request of the providing Party, any
information, documents or materials produced by such Party for the purpose of
negotiations of any Dispute shall be destroyed or returned to the providing
Party within thirty (30) Days of the resolution of such Dispute or the issuance
of a final decision with respect to such Dispute; provided, however, any
confidential information (i) found in drafts, notes, studies and other documents
prepared by or for the receiving Party or its representatives, or (ii) found in
electronic format as part of receiving Party’s off-site or on-site data
storage/archival process system, will be held by the receiving Party or
destroyed at the receiving Party’s option. (b) Without limiting the foregoing,
the Parties agree that disclosure of confidential information to third parties
may only be made if: (i) necessary to enforce any of the provisions of this
Agreement, including without limitation, any court judgment; (ii) such third
party is an auditor, advisor, insurer, expert witness or Affiliate of the
disclosing party and has a legitimate need to know such confidential
information; (iii) the disclosing Party is under a legal or regulatory
obligation to make such disclosure, but such disclosure shall be limited to the
extent of such legal obligation; or (iv) the non-disclosing Party provides prior
written consent to the disclosing Party to disclose such information. (c) The
Parties agree to submit to the jurisdiction of a court of competent jurisdiction
located in Houston, Harris County, Texas for the purpose of any proceedings to
enforce this Section 12.6 and, except as permitted under this Section 12.6(b),
the receiving Party shall prevent any information, documents or materials
belonging to a disclosing Party from being disclosed to third parties. ARTICLE
XIII DUTY TO SUPPORT 13.1 Arm's Length Negotiations. Each of the Parties
acknowledges and agrees that this Agreement is the result of good faith, arm's
length negotiations which have resulted in an agreement that is fair and
equitable to Gatherer and Shipper. 13.2 Shipper Support. Shipper hereby agrees
to any tariff rate filings for the Gathering System which are made in accordance
with this Agreement. Shipper agrees (i) not to challenge, nor to encourage or
recommend to any other Person that it challenge, or voluntarily assist in any
way any other Person in challenging, in any forum, any or all of the tariff
rates for the Gathering System and (ii) not to protest or file a complaint, nor
encourage or recommend to any other 26

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[exhibit1029llex10k201912031.jpg]
Person that it protest or file a complaint, or voluntarily assist in any way any
other Person in protesting or filing a complaint, with respect to any or all of
the tariff rates for the Gathering System in each case so long as the tariff
rates are in accordance with, or not inconsistent with, the terms of this
Agreement. Furthermore, Shipper hereby agrees at its own cost, upon written
request by Gatherer provided at least ten (10) Days prior to the deadline for
such action: (a) to support Gatherer's applications for necessary certificates,
approvals, authorizations and permits of the FERC and Texas and New Mexico
regulating bodies, if any, in relation to the Gathering System; (b) to support
the tariff rates calculated in accordance with the terms of this Agreement, and
not take any action directly or indirectly that could be interpreted as evidence
of Shipper's lack of support for such Tariff rates; and (c) to support the pro
forma Tariff materially in the form attached as Exhibit F, in any and all
regulatory proceedings relating thereto and not take any action or inaction that
could be interpreted as evidence of Shipper's lack of support therefor; provided
that nothing in the foregoing shall obligate Shipper to support future changes
to the Tariff rates that are inconsistent with this Agreement, or prevent
Shipper from opposing any position taken by Gatherer before FERC and/or Texas
and/or New Mexico regulating bodies that is inconsistent with this Agreement.
13.3 No Tariff Rate Revision Proceedings. Each of the Parties further
acknowledges that the setting of Tariff rates for the Gathering System is
subject to the approval of, and potential modification by, the FERC, from time
to time, and each of the Parties hereby agrees not to, directly or indirectly,
commence or support any application, motion or other proceeding (a "Tariff Rate
Revision Proceeding") before the FERC for the purpose of requesting the FERC to
set tariff rates applicable to the Gathering System which are inconsistent with
this Agreement. 13.4 Third Party Proceedings. In the event of any Tariff Rate
Revision Proceeding being commenced by a third party or by the FERC itself, and
in the event of any other proceedings pursuant to which the Tariff rates for the
Gathering System may be reviewed by the FERC or other Governmental Authority
having jurisdiction, Shipper agrees to support or defend the setting of Tariff
rates applicable to the Gathering System that are consistent with this
Agreement. In the event of any other proceedings challenging any of the terms of
this Agreement being commenced by a third party or by the FERC itself, Shipper
agrees to provide all reasonable support and cooperation in defending such terms
or otherwise resolving the complaint or other challenge (which may include,
without limitation, modifying the terms of this Agreement that are the subject
of the challenge) as shall be requested by Gatherer. 13.5 Modification of
Agreement. Notwithstanding anything to the contrary set forth herein, it is the
intent of the Parties that Gatherer provide the Services to Shipper on a
negotiated- contract basis pursuant to the terms and conditions of this
Agreement and the Tariff, and the Parties hereby agree that, in the event that
FERC or any other Governmental Authority seeks to modify any rates under, or
terms or conditions of, this Agreement that would have a greater than de minimis
detrimental economic or operational impact on either Party, then: (a) to the
maximum extent permitted by Applicable Law, it is the intent of the Parties that
the rates and terms and conditions established by FERC or such Governmental
Authority having jurisdiction will not alter the rates or terms and conditions
set forth in this Agreement, and the Parties shall vigorously defend and support
in good faith the enforceability of the rates and terms and conditions of this
Agreement; and 27

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[exhibit1029llex10k201912032.jpg]
(b) if FERC or such Governmental Authority modifies the rates or terms and
conditions set forth in this Agreement, then the Parties hereby agree to
negotiate in good faith to enter into such amendments to this Agreement and or
enter into a separate arrangement in order to give effect, to the greatest
extent permitted by law, to the rates and other provisions of this Agreement;
provided, however, if Gatherer and Shipper cannot arrive at such agreement
following such negotiations, either Party may terminate this Agreement by
delivering written notice thereof to the other Party, with such termination to
be effective ninety (90) Days after the delivery of such notice. ARTICLE XIV
COMMON CARRIER AND COMPLIANCE WITH APPLICABLE LAWS 14.1 Common Carrier Pipeline.
The Gathering System will be operated as a common carrier pipeline, and
Shipper's rights hereunder shall be subject to all laws related to and governing
the operation of common carrier pipelines, including, without limitation, laws
and regulations that prevent discrimination in favor of any given shipper or the
provision of service for consideration other than the rate set forth in a
published tariff. The Tariff shall apply to the Services provided hereunder, and
if there is a conflict between a provision of this Agreement and the Tariff, the
terms and conditions of the Tariff shall control and govern. Gatherer reserves
the right to modify or amend the Tariff, in its sole discretion, as it deems
necessary in a manner consistent with this Agreement and subject to the terms
and conditions of Article XIII. 14.2 Compliance with Laws. Both Parties shall,
in carrying out the terms and provisions of this Agreement, abide by all present
and future laws of any Governmental Authorities. ARTICLE XV TAXES Gatherer shall
not be responsible for or pay, and Shipper hereby agrees to pay and indemnify,
defend and hold harmless the Gatherer Indemnified Parties for, any and all
Taxes, import duties, license fees or other governmental charges, if any, levied
on (i) Shipper Crude Oil tendered under this Agreement, including property Taxes
on such Crude Oil in the Gathering System, (ii) the gathering of Shipper Crude
Oil, (iii) Tariff rates, surcharges, or any other payment, fee, charge or amount
provided for in this Agreement or (iv) the provision of Services hereunder;
provided, however, that Shipper shall not be liable hereunder for (x) Taxes
(including ad valorem taxes) assessed against Gatherer based on Gatherer’s
income, revenues, gross receipts, net worth or ownership of the Gathering
System, and (y) state franchise, license and similar Taxes required for the
maintenance of Gatherer’s corporate existence. In the event Gatherer is required
to pay any Tax for Shipper, Shipper shall reimburse Gatherer for the same per
invoice provided by Gatherer. The payment, indemnity, defense and hold harmless
obligations set forth in this ARTICLE XV shall survive the termination of this
Agreement. ARTICLE XVI ASSIGNMENT 28

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[exhibit1029llex10k201912033.jpg]
This Agreement shall extend to and inure to the benefit of and be binding upon
the Parties, and their respective successors and permitted assigns, including
any assigns of Shipper’s Interests covered by the Dedication and of any interest
of Gatherer in the Gathering System; provided, however, (i) neither Party may
assign this Agreement without the prior written consent of the non-assigning
Party, such consent not to be unreasonably withheld, conditioned or delayed,
(ii) any transfer by Shipper of any of its Interests in the Dedicated Area and
any transfer by Gatherer of any of its interest in the Gathering System or this
Agreement shall be expressly made subject to the terms and conditions of this
Agreement and (iii) if requested by the non- assigning Party, the assigning
Party shall not transfer or assign this Agreement or its Interests in the
Dedicated Area or Gathering System, as applicable, without first requiring the
transferee to execute and deliver to the non-assigning Party an agreement
expressly assuming the assigning Party’s obligations under this Agreement and
including such other items that need to be addressed in connection with any such
transfer or assignment or as may be reasonably requested by the non-assigning
Party. Assignment by either Party in compliance with the foregoing requirements
shall not relieve such Party of any liabilities, obligations or duties accruing
hereunder before the date of such assignment, but shall relieve such Party of
any liabilities, obligations or duties accruing hereunder after the date of such
assignment. Notwithstanding the foregoing: (a) Shipper may assign its rights and
obligations under this Agreement to any Person to whom Shipper assigns or
transfers an interest in any of the Interest(s) or Well(s), insofar and only
insofar as, this Agreement relates to such Interest(s) or Well(s), without the
consent of Gatherer; provided that (i) such Person is at least as creditworthy
as Shipper is as of the Effective Date and at the time of such assignment, (ii)
such Person assumes in writing the obligations of Shipper under this Agreement
insofar as it relates to such Interest(s) or Well(s), and (ii) if such transfer
or assignment is to a Person that is not an Affiliate of Shipper, Shipper shall
be released from its obligations under this Agreement with respect to such
Interest(s) or Well(s) so assigned or transferred, except for its obligations
arising prior to the date of assignment. For the avoidance of doubt, (i) no
assignee or transferee of Shipper shall assume the Dedication of this Agreement
in its entirety, but shall only be subject to, and assume, such Dedication
insofar and only insofar as the Interest(s) or Well(s) assigned or transferred
to such assignee or transferee and (ii) Gatherer shall not be required to
install supplemental meters or other facilities at existing Receipt Points, or
undertake additional obligations or incur additional expenses as a result of
such assignment (provided the Parties shall reasonably cooperate to establish a
procedure for the allocation of Crude Oil delivered at existing Receipt Points
between Shipper and such transferee or assignee, if applicable); and (b) either
Party may assign (or grant a lien or security interest in) this Agreement to any
Person as security in connection with arranging financing for such Party or any
Affiliate of such Party or upon enforcement of any such lien or security (and
each Party agrees to execute all consents, estoppels, waivers and other
documents and instruments reasonable requested by any such Person). Any
assignment made in violation of this ARTICLE XVI shall be void ab initio.
ARTICLE XVII OFFER 29

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[exhibit1029llex10k201912034.jpg]
17.1 Effect of Unsigned Copy. The submission of an unsigned copy of this
Agreement to Shipper shall not constitute an offer. 17.2 Irrevocable Offer by
Shipper. Shipper acknowledges that, upon closing of the Open Season, Gatherer
will undertake significant work and incur significant expense in connection with
the Gathering System. Further, Gatherer may be required to allocate capacity
among potential Priority Shippers; provided, however, such allocation shall not
limit or otherwise alter Shipper’s MDQ as set forth in this Agreement. In
consideration of the foregoing and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by Shipper, Shipper
agrees that the submission of a signed copy of this Agreement by Shipper to
Gatherer shall constitute an offer by Shipper that shall be irrevocable. ARTICLE
XVIII NOTICES AND STATEMENTS 18.1 Notice. Any notice, statement, payment, claim
or other communication required or permitted hereunder shall be in writing and
shall be sent by: (i) facsimile transmission; (ii) email, (iii) delivered by
hand; (iv) sent by United States mail with all postage fully prepaid; or (v) by
courier with charges paid in accordance with the customary arrangements
established by such courier, in each of the foregoing cases addressed to the
Party at the following addresses: Gatherer: NOTICES AND CORRESPONDENCE: Salt
Creek Midstream, LLC 200329 State Highway 249 Floor 4 Houston, TX 77070 Attn:
Paul Williams Email: paul.williams@armenergy.com With a copy to: Salt Creek
Midstream, LLC 20329 State Highway 249 Floor 4 Houston, TX 77070 Attn: Contract
Administration Email: contracts@armenergy.com ACCOUNTING MATTERS: 30

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[exhibit1029llex10k201912035.jpg]
Salt Creek Midstream, LLC 200329 State Highway 249 Floor 4 Houston, TX 77070
Attn: Bryan Fullmer Email: bryan.fullmer@armenergy.com PAYMENTS Bank Name: ABA
No.: Account No.: Shipper: NOTICES AND CORRESPONDENCE: Lilis Energy, Inc. 300 E.
Sonterra Blvd, Suite 1220 San Antonio, TX 78258 Attention: Accounting and
Operations Telephone: 210-999-5400 Facsimile 210-999-5401 With a copy to: RDP
Producer Services, LLC 10300n Town Park, Suite SE1000 Houston, TX 77072 Attn:
David Lipp Fax: 281-849-8911 Email: dlipp@republicpartnersllc.com ACCOUNTING
MATTERS: Lilis Energy, Inc. 300 E. Sonterra Blvd, Suite 1220 San Antonio, TX
78258 Attention: Patrick Tumer Telephone: 817-502-1635 Facsimile: 210-999-5401
Email: AP@Lilisenergy.com PAYMENTS Bank Name: 31

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[exhibit1029llex10k201912036.jpg]
Account Name: Account Number: ABA: Such notices, statements, payments, claims or
other communications shall be deemed received as follows: (i) if delivered
personally, upon delivery; (ii) if sent by United States mail, whether by
express mail, registered mail, certified mail or regular mail, the Day receipt
is refused or is confirmed orally or in writing by the receiving Party; (iii) if
sent by a courier service, upon delivery; or (iv) if sent by facsimile or email,
upon completion of the transmission thereof, except that if such transmission is
on any Day other than a Business Day, or on or after 4:00 p.m., Central Clock
Time, such notice shall be deemed to be received on the next Business Day. 18.2
Change of Address and Payment Instructions. Notices of change of address or
payment instructions of either of the Parties shall be given in writing to the
other Party in the manner aforesaid and shall be observed in the giving of all
future notices, statements, payments, claims or other communications required or
permitted to be given hereunder. ARTICLE XIX DEFAULTS AND REMEDIES 19.1 Shipper
Default. The following events shall be a “Shipper Default”: the occurrence and
continuation of (i) a breach or default by Shipper of any of its payment
obligations under this Agreement or the Tariff, or (ii) a material breach or
default by Shipper of any of its obligations under this Agreement or the Tariff,
unless such breach or default, or material breach or default, as applicable,
occurs as a result of a breach or default by Gatherer of its obligations under
this Agreement or the Tariff. 19.2 Remedies on Shipper Default. Upon the
occurrence of a Shipper Default, Gatherer may provide written notice to Shipper,
describing the Shipper Default in reasonable detail and requiring Shipper to
cure the Shipper Default (the “Shipper Default Notice”). If (a) a Shipper
Default comprising Shipper’s failure to make any payment due hereunder has not
been cured within ten (10) Business Days following receipt by Shipper of a
Shipper Default Notice, or (b) a Shipper Default comprising Shipper’s failure to
comply with any obligation under this Agreement or the Tariff, other than a
payment obligation, has not been cured within thirty (30) Days after receipt by
Shipper of a Shipper Default Notice, or, if such failure is not reasonably
capable of being cured within a thirty (30) Day period, but Shipper
expeditiously commences to cure the same following its receipt of a Shipper
Default Notice and diligently proceeds with such cure, within such longer period
of time as shall be reasonably necessary to cure such failure, then in any such
case, Gatherer may, by written notice to Shipper: (a) inform Shipper of its
intention to terminate this Agreement if such Shipper Default is not cured
within a further thirty (30) Day period, and if any such Shipper Default has not
been cured within such further period of thirty (30) Days, Gatherer may, by
written notice to Shipper, terminate this Agreement, any such termination to be
effective upon receipt of such termination notice by Shipper; and/or 32

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[exhibit1029llex10k201912037.jpg]
(b) temporarily suspend Shipper's right to be treated as a Priority Shipper for
purposes of the prorationing rule of the Tariff until such default is cured. The
rights and remedies under this Section 19.2 shall be in addition to all of
Gatherer's other rights and remedies under this Agreement or which Gatherer may
otherwise have at law, in equity or by statute or regulation, and the exercise
of one or more rights or remedies shall not prejudice or impair the concurrent
or subsequent exercise by Gatherer of other rights or remedies. 19.3 Gatherer
Default. Subject to Section 11.1 hereof, the following events shall be a
“Gatherer Default”: the occurrence and continuation of (i) a breach or default
by Gatherer of any of its payment obligations under this Agreement or the
Tariff, or (ii) a material breach or default by Gatherer of any of its
obligations under this Agreement, unless such breach or default, or material
breach or default, as applicable, occurs as a result of a breach or default by
Shipper of its obligations under this Agreement or the Tariff. 19.4 Remedies on
Gatherer Default. Upon the occurrence of a Gatherer Default, Shipper may provide
written notice to Gatherer, describing the Gatherer Default in reasonable detail
and requiring Gatherer to cure the Gatherer Default (the “Gatherer Default
Notice”). If (a) a Gatherer Default comprising Gatherer's failure to make any
payment due hereunder has not been cured within ten (10) Business Days following
receipt by Gatherer of a Gatherer Default Notice, or (b) a Gatherer Default
comprising Gatherer's failure to comply with any obligation under this Agreement
or the Tariff, other than a payment obligation, has not been cured within thirty
(30) Days after receipt by Gatherer of a Gatherer Default Notice, or, if such
failure is not reasonably capable of being cured within a thirty (30) Day
period, but Gatherer expeditiously commences to cure the same following its
receipt of a Gatherer Default Notice and diligently proceeds with such cure,
within such longer period of time as shall be reasonably necessary to cure such
failure, then in any such case, Shipper may, by written notice to Gatherer,
inform Gatherer of its intention to terminate this Agreement if such Gatherer
Default is not cured within a further thirty (30) Day period, and if any such
Gatherer Default has not been cured within such further period of thirty (30)
Days, Shipper may, by written notice to Gatherer, terminate this Agreement, any
such termination to be effective upon receipt of such termination notice by
Gatherer. The rights and remedies under this Section 19.4 shall be in addition
to all of Shipper’s other rights and remedies under this Agreement or the Tariff
or which Shipper may otherwise have at law, in equity or by statute or
regulation, and the exercise of one or more rights or remedies shall not
prejudice or impair the concurrent or subsequent exercise by Shipper of other
rights or remedies. 19.5 Excused Performance. Either Party shall be entitled to
suspend performance hereunder in the event: (a) the other Party has voluntarily
filed for bankruptcy protection under any chapter of the United States
Bankruptcy Code; (b) the other Party is the subject of an involuntary petition
of bankruptcy under any chapter of the United States Bankruptcy Code, and such
involuntary petition has not been settled or otherwise dismissed within ninety
(90) Days of such filing; or 33

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[exhibit1029llex10k201912038.jpg]
(c) the other Party otherwise becomes insolvent, whether by an inability to meet
its debts as they come due in the ordinary course of business or because its
liabilities exceed its assets on a balance sheet test; and/or however such
insolvency may otherwise be evidenced. 19.6 Adequate Assurances. When reasonable
grounds for insecurity of payment or performance arise with respect to a Party
(the “Impaired Party”), including, without limitation, as a result of the
occurrence of a material change in the creditworthiness of the Impaired Party or
the Impaired Party’s failure to timely pay any amounts due hereunder other than
amounts subject to a good-faith dispute, the other Party (the “Insecure Party”)
may demand adequate assurance of performance, and in the absence of the
provision of such assurance from the Impaired Party within three (3) Business
Days of request, suspend further performance and/or exercise its rights under
this Article XIX, including the right to terminate this Agreement. Adequate
assurance shall mean security in the form, amount and for the term reasonably
specified by the Insecure Party, including, but not limited to, a standby
irrevocable letter of credit issued by a financial institution reasonably
acceptable to the Insecure Party, a prepayment or a guarantee by an entity
deemed creditworthy at the sole discretion of the Insecure Party, advance cash
payment or other satisfactory security reasonably acceptable to the Insecure
Party. 19.7 Audit. Either Party, upon notice in writing to the other Party, may
during normal business hours audit the accounts and records relating to any
invoice under this Agreement and the Tariff within the twenty four (24) Month
period following the end of the calendar year in which an invoice was rendered;
provided, however, that the auditing Party must make a claim in writing upon the
other Party for all discrepancies disclosed by said audit within said twenty
four (24) Months. Any audit shall be conducted by the auditing Party or its
representative at the auditing Party’s expense. Any invoices or settlement
statements shall be final as to all Parties unless questioned within said twenty
four (24) Months. ARTICLE XX MISCELLANEOUS 20.1 Entire Agreement; Amendments.
This Agreement and the Exhibits hereto constitute the entire agreement and
understanding between the Parties with respect to the subject matter hereof and
thereof, supersede all prior agreements and understandings with respect thereto,
and may be amended, restated or supplemented only by written agreement of the
Parties. Notwithstanding the foregoing, the Tariff is subject to amendment by
Gatherer from time to time subject to Applicable Law (and subject to the
limitations of Section 14.1 and Article XIII). 20.2 Governing Law. This
Agreement shall be governed and construed in accordance with the laws of the
state of Texas without giving effect to the conflict of law rules thereof. 20.3
No Drafting Presumption. No presumption will operate in favor of or against any
Party as a result of any responsibility that any Party may have had for drafting
this Agreement. Shipper and Gatherer acknowledge and mutually agree that this
Agreement and all contents herein were jointly prepared by the Parties. 34

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[exhibit1029llex10k201912039.jpg]
20.4 Waiver. No waiver of any term, provision or condition of this Agreement
shall be effective unless in writing signed by the Parties, and no such waiver
shall be deemed to be or construed as a further or continuing waiver of any such
term, provision or condition or as a waiver of any other term, provision or
condition of the Agreement, unless specifically so stated in such written
waiver. 20.5 No Third Party Beneficiaries. Except for Persons indemnified
hereunder, this Agreement is not for the benefit of any third party and nothing
herein, expressed or implied, confers any right or remedy upon any Person not a
party hereto. 20.6 No Partnership. It is not the intention of the Parties to
create, nor is there created hereby, a partnership, trust, joint venture or
association. The status of each Party hereunder is solely that of an independent
contractor. 20.7 Confidentiality. (a) Except with respect to the Memorandum and
as otherwise set forth herein, each Party agrees that it shall maintain all
terms and conditions of this Agreement in strictest confidence, and that it
shall not cause or permit disclosure of this Agreement or any provisions
contained herein without the express written consent of the other Party. (b)
Permitted Disclosures. Notwithstanding Section 20.7(a) of this Agreement,
disclosures of any terms and provisions of this Agreement otherwise prohibited
may be made by either Party (i) to the extent necessary for such Party to
enforce its rights hereunder against the other Party; (ii) to the extent to
which a Party is required to disclose all or part of this Agreement by a statute
or by the order or rule of a court, agency, or other governmental body
exercising jurisdiction over the subject matter hereof, by order, by
regulations, or by other compulsory process (including, but not limited to,
deposition, subpoena, interrogatory, or request for production of documents);
(iii) to the extent required by the applicable regulations of a securities or
commodities exchange; (iv) to a third Person in connection with a proposed sale
or other transfer of a Party’s interest in this Agreement, provided such third
Person agrees in writing to be bound by the terms of this Section 20.7; (v) to
its own directors, officers, employees, agents and representatives; (vi) to an
Affiliate; or (vii) to a co-working interest owner or royalty owner of Shipper
Crude Oil delivered hereunder, provided such co-working interest owner or
royalty owner agrees in writing to be bound by the terms of this Section 20.7.
(c) Notification. If either Party is or becomes aware of a fact, obligation, or
circumstance that has resulted or may result in a disclosure of any of the terms
and conditions of this Agreement authorized by Section 20.7(b) (ii), (iii) or
(iv) above, it shall so notify in writing the other Party promptly and shall
provide documentation or an explanation of such disclosure as soon as it is
available. (d) Party Responsibility. Each Party shall be deemed solely
responsible and liable for the actions of its directors, officers, employees,
agents, representatives and Affiliates for maintaining the confidentiality
commitments of this Section 20.7. (e) Public Announcements. The Parties agree
that prior to making any public announcement or statement with respect to this
Agreement or the transaction represented herein, 35

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[exhibit1029llex10k201912040.jpg]
the Party desiring to make such public announcement or statement shall provide
the other Party with a copy of the proposed announcement or statement prior to
the intended release date of such announcement. The other Party shall thereafter
consult with the Party desiring to make the release, and the Parties shall
exercise their reasonable best efforts to (i) agree upon the text of a joint
public announcement or statement to be made by both such Parties or (ii) in the
case of a statement to be made solely by one Party, obtain approval of the other
Party to the text of a public announcement or statement. Nothing contained in
this Section 20.7 shall be construed to require either Party to obtain approval
of the other Party to disclose information with respect to this Agreement or the
transaction represented herein to any Governmental Authority to the extent
required by Applicable Law or necessary to comply with disclosure requirements
of the Securities and Exchange Commission, New York Stock Exchange, or any other
regulated stock exchange. 20.8 Headings. The headings and captions in this
Agreement have been inserted for convenience of reference only and shall not
define or limit any of the terms and provisions hereof. 20.9 Rules of
Construction. In construing this Agreement, the following principles shall be
followed: (a) examples shall not be construed to limit, expressly or by
implication, the matter they illustrate; (b) the word “includes” and its
syntactical variants mean “includes, but is not limited to” and corresponding
syntactical variant expressions; (c) the plural shall be deemed to include the
singular and vice versa, as applicable; (d) all references in this Agreement to
an “Article,” “Section,” “subsection,” or “Exhibit” shall be to an Article,
Section, subsection, or Exhibit of this Agreement, unless the context requires
otherwise; (e) unless the context otherwise requires, the words “this
Agreement,” “hereof,” “hereunder,” “herein,” “hereby,” or words of similar
import shall refer to this Agreement as a whole and not to a particular Article,
Section, subsection, clause or other subdivision hereof; and (f) each Exhibit to
this Agreement is attached hereto and incorporated herein as a part of this
Agreement, but if there is any conflict or inconsistency between the main body
of this Agreement and any Exhibit, the provisions of the main body of this
Agreement shall prevail, except as to any conflicts with the Tariff. 20.10
Survival. Notwithstanding the termination of this Agreement for any reason, (a)
ARTICLES VIII, IX, X, XII, XIII, XV, XVIII, XIX and XX shall survive the
termination of this Agreement; and (b) each Party to this Agreement will be
liable for all of its accrued obligations hereunder up to and including the date
on which the termination becomes effective. 36

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[exhibit1029llex10k201912041.jpg]
20.11 Severability. If any provision of this Agreement shall be held to be
invalid, illegal or unenforceable, (i) the validity, legality and/or
enforceability of the remaining provisions shall not, in any way, be affected or
impaired thereby and (ii) in lieu of such invalid, illegal or unenforceable
provision, there shall be automatically added to this Agreement a provision as
similar to such invalid, illegal or unenforceable provision as may be possible
and be legal, valid and enforceable. 20.12 Further Assurances. Each Party shall
take such acts and execute and deliver such documents as may be reasonably
required to effectuate the purposes of this Agreement. 20.13 Liquidated Damages.
The circumstances of this Agreement are such that a Party will be exposed to
substantial injury if the other Party does not timely perform under this
Agreement, and the injuries that may occur to such Party could take a variety of
forms. Where this Agreement imposes on a Party an obligation to pay to the other
Party certain monetary sums, or provide other value to the other Party, as a
result of certain non-performance or delayed performance under this Agreement,
such sums or other value are intended to serve as liquidated damages for certain
of the injuries to such other Party. The Parties stipulate and agree that (a)
the injury that would be caused to a Party as a result of the other Party’s
non-performance or delayed performance would be difficult to estimate
accurately, (b) the sums or other value to be provided to such Party under this
Agreement in such circumstances are intended to serve as a liquidated damages
and not as a penalty, and (c) such sums or other value represent the Parties’
reasonable estimate at this time of the probable damages that would be suffered
by a Party in the various scenarios addressed in this Agreement. 20.14
Counterpart Execution. This Agreement may be executed in any number of
counterparts, each of which shall be considered an original, and all of which
shall be considered one and the same instrument. Neither Party shall be bound
until both Parties have executed a counterpart. Facsimile or other electronic
copies of signatures shall constitute original signatures for all purposes of
this Agreement and any enforcement hereof. [Signature page follows] 37

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[exhibit1029llex10k201912042.jpg]
IN WITNESS WHEREOF, the Parties have executed this Agreement to be effective as
of the Effective Date. GATHERER SALT CREEK MIDSTREAM, LLC By: /s/ Michael S.
Christopher Name: Michael Christopher Title: Chief Financial Officer SHIPPER
LILIS ENERGY, INC. By: /s/ Joseph C. Daches Name: Joseph C. Daches Title: CFO 38

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[exhibit1029llex10k201912043.jpg]
EXHIBIT A DEDICATED AREA TEXAS AND NEW MEXICO Legal Description County Sec. 1,
Blk. 75 Winkler Sec. 1, Blk. C-24 Winkler Sec. 10, Blk. 74 Winkler Sec. 10, Blk.
C-23 Winkler Sec. 11, Blk. 74 Winkler Sec. 11, Blk. C-23 Winkler Sec. 12, Blk 74
Winkler Sec. 12, Blk. C-23 Winkler Sec. 13, Blk. 74 Winkler Sec. 13, Blk. C-23
Winkler Sec. 14, Blk. 74 Winkler Sec. 14, Blk. C-23 Winkler Sec. 15, Blk. 27
Winkler Sec. 15, Blk. C-17 Reeves Sec. 15, Blk. C-23 Winkler Sec. 16, Blk. C-23
Winkler Sec. 17, Blk. C-23 Winkler Sec. 17, T26S R36E Lea Sec. 18, Blk. C-23
Winkler Sec. 18, T25S R36E Lea Sec. 18, T26S R36E Lea Sec. 19, Blk. C-23 Winkler
Sec. 19, Blk. C-25 Loving Sec. 19, T25S R36E Lea Sec. 19, T26S R36E Lea Sec. 2,
Blk. C-24 Winkler/Loving Sec. 20, Blk. C-23 Winkler Sec. 20, T26S R36E Lea Sec.
21, Blk. C-23 Winkler Sec. 21, T26S R35E Lea Sec. 22, Blk. 74 Winkler Sec. 22,
Blk. C-23 Winkler Sec. 23, Blk. 74 Winkler Sec. 23, Blk. C-17 Reeves Sec. 23,
Blk. C-23 Winkler Sec. 24, Blk. 74 Winkler Sec. 24, Blk. C-23 Winkler Sec. 25,
Blk. 74 Winkler Sec. 25, Blk. C-23 Winkler Sec. 26, Blk. 74 Winkler Sec. 26,
Blk. C-23 Winkler Sec. 27, Blk. 74 Winkler Sec. 27, Blk. C-23 Winkler Sec. 27,
T26S R36E Lea Sec. 29, Blk. 74 Winkler Sec. 29, T25S R36E Lea Sec. 3, Blk. C-24
Winkler/Loving

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[exhibit1029llex10k201912044.jpg]
Sec. 30, Blk. 74 Winkler Sec. 30, T25S R36E Lea Sec. 31, Blk. 74 Winkler Sec.
32, Blk. 74 Winkler Sec. 33, Blk. 74 Winkler Sec. 4, Blk. C-24 Winkler/Loving
Sec. 5, Blk. 74 Winkler Sec. 6, Blk. 27 Winkler/Loving Sec. 6, Blk. 74 Winkler
Sec. 6, T26S R36E Lea Sec. 7, Blk 74 Winkler Sec. 7, Blk. C-23 Winkler Sec. 7,
T26S R36E Lea Sec. 8, Blk. 74 Winkler Sec. 8, Blk. C-23 Winkler Sec. 9, Blk. 74
Winkler Sec. 9, Blk. C-23 Winkler The above-described Dedicated Area is depicted
in the attached plat.

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[exhibit1029llex10k201912045.jpg]
2 E 2 E 2 E 2 2E 2 E 2 E 2 E 2 E 2 E 2 2 E 2 E 2 2E 2 E 2 E 2 E 2 E 2 E 2 E D E
2 A E Y Y D D D D E 2 E E 2 E 2 2E 2 E 2 E 2 E 2 E 2 E 2 E 22 2 2E 2 E 2 E 2 E 2
E 2 E 2 E 2 E 2 E M C22 C2 C C2 C2 2 2 C2 2 A V N G 2 2 2 2 2 2 2 2 2 \
LILIS_ACREAGE.mxdLilis \ 2 LILIS 2 C2 C2 2 \ Energy Companies 2 E E N E 2 E E N
E \ SALT_CREEK Projects \ 2 \ GIS C2 ‘ Miles Document Path: M:

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[exhibit1029llex10k201912046.jpg]
EXHIBIT B INITIAL RECEIPT POINTS; INITIAL DELIVERY POINTS; MDQ; RATES Shipper’s
MDQ of 35,000 BPD Priority Rate of $0.75 per Barrel Uncommitted Rate of $0.74
per Barrel Other Charges: Notwithstanding anything to the contrary in the
Tariff, Shipper shall not be subject to or obligated to pay any truck loading or
unloading charges for any Crude Oil shipments trucked hereunder, regardless of
whether trucked by Shipper or Gatherer, that are delivered to truck injection
points on the Gathering System that are owned or controlled by Gatherer.
Notwithstanding anything to the contrary in the Tariff, Shipper shall not be
subject to or obligated to pay any tax, fee or other charges levied against
Gatherer in connection with such Crude Oil by any Governmental Authority for the
purpose of creating a fund for the prevention, containment, clean up, and/or
removal of spills and/or the reimbursement of Persons sustaining a loss
therefrom or any program where Gatherer is acting as a collecting agent. Initial
Receipt Point(s): Those Receipt Point(s) depicted on Exhibit D. Initial Delivery
Points(s): Meter Number Points of Delivery Name County, State Lat/Long TBD
Plains All-American, LP Winkler County, TX TBD Pipeline or other pipeline with
direct, long-haul transportation to the Midland, Texas area

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[exhibit1029llex10k201912047.jpg]
EXHIBIT C FORM OF MEMORANDUM OF AGREEMENT MEMORANDUM OF AGREEMENT THIS
MEMORANDUM OF CRUDE OIL GATHERING AGREEMENT (this “Memorandum”) is made and
entered into as of May [ ], 2018 (the “Effective Date”), by and between Salt
Creek Midstream, LLC, a Delaware limited liability company (“Gatherer”), and
Lilis Energy, Inc., a Nevada corporation (“Shipper”). Shipper and Gatherer may
be referred to individually as “Party,” or collectively as the “Parties.”
RECITALS: WHEREAS, Shipper and Gatherer have entered into that certain Crude Oil
Gathering Agreement dated as of the Effective Date (the “Agreement”), pursuant
to which Gatherer will (i) design, engineer and construct the Gathering System
to enable Gatherer to provide gathering services for Shipper Crude Oil, and (ii)
gather Shipper Crude Oil on the Gathering System, as more particularly described
below and in the Agreement; WHEREAS, any capitalized term used but not defined
in this Memorandum shall have the meaning given to such term in the Agreement;
and WHEREAS, the Parties desire to file this Memorandum of record in the
official public records of Loving and Winkler Counties, Texas and Lea County,
New Mexico to give notice of the existence of the Agreement and the dedication
of Shipper Crude Oil and certain other provisions contained therein. FOR GOOD
AND VALUABLE CONSIDERATION, the receipt and sufficiency whereof are hereby
acknowledged, the Parties hereby agree as follows: 1. Notice. Notice is hereby
given of the existence of the Agreement and certain provisions contained
therein, which are summarized in Sections 2 – 4 below. 2. Term: The term of the
Agreement shall commence on the Effective Date, and unless sooner terminated as
provided herein, shall remain in full force and effect through the twelfth
(12th) anniversary of the Effective Date (the “Primary Term”); provided,
however, the Agreement shall continue beyond the expiration of the Primary Term
for additional terms of one year each (each an “Extended Term,” and, the Primary
Term as may be extended by one or more Extended Terms, the “Term”) unless the
Agreement is terminated by either Party as of the end of the Primary Term or the
then-current Extended Term, as applicable, by providing not less than sixty (60)
Days written notice of termination prior to the end of the Primary Term or such
Extended Term to the other Party. 3. Dedication. Subject to the terms and
conditions of the Agreement and certain exclusions from dedication described in
the Agreement, Subject to the other terms and conditions thereof, Shipper hereby
(i) dedicates for Services with respect to Shipper Crude Oil under the Agreement
to Gatherer all Interests now owned or hereafter acquired by Shipper and/or its
Affiliates and 2

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[exhibit1029llex10k201912048.jpg]
their respective successors and assigns that cover lands located within the
Dedicated Area, and (ii) dedicates for Services under the Agreement and shall
deliver, or cause to be delivered, under the Agreement to Gatherer, at the
Receipt Points, the following (the “Dedication,” and the Crude Oil that is the
subject of the Dedication being therein referred to as “Shipper Crude Oil”): (a)
all Crude Oil produced and saved on or after the Commencement Date for the
remainder of the Term from those Wells for which Shipper and/or any of its
Affiliates is the operator now or hereafter located within the Dedicated Area (a
description of which is attached to Schedule 1) or on lands pooled or unitized
therewith, to the extent such Crude Oil is attributable to the Interests within
the Dedicated Area now owned or hereafter acquired by Shipper and/or its
Affiliates and their respective successors and assigns; and (b) with respect to
those Wells for which Shipper and/or any of its Affiliates is the operator,
Crude Oil produced on or after the Commencement Date for the remainder of the
Term from such Wells which is attributable to the Interests in such Wells owned
by other working interest owners and royalty owners which is not taken “in-kind”
by such working interest owners and royalty owners and for which Shipper and/or
its Affiliates has the right or obligation to deliver such Crude Oil and only
for the period that Shipper and/or its Affiliates has such right or obligation.
For the avoidance of doubt, Shipper shall not be required to deliver Crude Oil
from any well operated by an operator other than Shipper or its Affiliates,
including any well where Shipper would be required to install split stream
connection facilities or similar facilities to take such Crude Oil in kind, and
such Crude Oil shall not be Shipper Crude Oil subject to the Dedication under
the Agreement. 4. Covenant Running with the Land. So long as the Agreement is in
effect, the Agreement shall (i) be a covenant running with the Interests now
owned or hereafter acquired by Shipper and/or its Affiliates within the
Dedicated Area (including, without limitation, all Wells operated by Shipper or
its Affiliates) and (ii) be binding on and enforceable by Gatherer and its
successors and assigns against Shipper, its Affiliates and their respective
successors and assigns. Notwithstanding anything in the Agreement to the
contrary, to the extent all or a portion of such Interests within the Dedicated
Area are sold to a non-Affiliated Person, such acquiring Person shall only be
required to dedicate for delivery under the Agreement that Crude Oil that is
produced from such Interests within the Dedicated Area acquired by such
non-Affiliated Person from Shipper. The acquiring Person shall not be required
to dedicate Crude Oil produced from Interests already held by or acquired after
such date by such acquiring Person. Notwithstanding the foregoing, with prior
written notice to Gatherer, Shipper and its Affiliates shall each be permitted
to convey, sell, assign, or otherwise transfer its interest in the Interests
that are not connected to or in the process of being connected to the Gathering
System free of the Dedication under the Agreement in an “acreage swap” or
exchange transaction in which such undeveloped Interests within the Dedicated
Area are exchanged for other properties or Interests of approximately equal net
acreage and projected production located in the Dedicated Area that are not
subject to a Prior Dedication and would become subject to the Dedication.
Gatherer and Shipper shall prepare, execute, acknowledge, deliver, and record
any such instruments and other documents reasonably necessary to effectuate such
release and memorialize such acquired Interests subject to the Dedication. 3

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[exhibit1029llex10k201912049.jpg]
5. No Amendment to Agreement. This Memorandum is executed and recorded solely
for the purpose of giving notice and shall not amend nor modify the Agreement in
any way. To the extent of a conflict between any provisions of this Memorandum
and any provisions of the Agreement, the provisions of the Agreement shall
govern and control. 6. Miscellaneous. This Memorandum may be executed in
multiple counterparts, each of which, when executed, will be deemed an original,
and all of which will constitute but one and the same instrument. Remainder of
page intentionally left blank: Signature page follows 4

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[exhibit1029llex10k201912050.jpg]
DULY AUTHORIZED REPRESENTATIVES of the Parties have executed this Memorandum on
the dates of their respective acknowledgments below, effective for all purposes
as of the Effective Date. GATHERER SALT CREEK MIDSTREAM, LLC By: Name: Title:
SHIPPER LILIS ENERGY, INC. By: Name: Title: 5

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[exhibit1029llex10k201912051.jpg]
Acknowledgements STATE OF [ ] § § COUNTY OF [ ] § This instrument was
acknowledged before me on day of , 20 , by , of Salt Creek Midstream, LLC, a
Delaware limited liability company, on behalf of such limited liability company.
Notary Public in and for [ ] Printed or Typed Name of Notary STATE OF [ ] § §
COUNTY OF [ ] § This instrument was acknowledged before me on day of , 20 , by ,
of Lilis Energy, Inc., a Nevada corporation, on behalf of such corporation.
Notary Public in and for [ ] Printed or Typed Name of Notary 6

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[exhibit1029llex10k201912052.jpg]
Schedule 1 DEDICATED AREA

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[exhibit1029llex10k201912053.jpg]
EXHIBIT D COMMENCEMENT DATE FACILITIES [ATTACHED]

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[exhibit1029llex10k201912054.jpg]
6 6 6 5 4 2 1 6 5 4 2 1 6 5 4 2 1 6 5 4 2 1 6 5 4 1 15 1 9 1 24 22 21 14 2 25
A25 2 12 1 7 8 5 7 8 9 1 11 12 7 8 9 1 11 12 7 8 9 1 11 12 7 8 9 1 11 12 4 1 7 8
9 11 5 12 Pri e Hog BWZ 11 16 5 4 2 1 6 1 17 2 18 17 16 15 14 1 18 17 16 15 14 1
18 17 16 15 14 1 18 17 16 15 14 1 1 22 9 18 8 17 16 5tate Com 1H 2 8 14 1 6 7 8
9 1 7 11 21 1 15 19 2 25N D R E W 156 19 2 21 22 2 24 19 2 21 22 2 24 19 2 21 22
2 24 19 2 21 22 2 24 1 ● Wi dhogN D BWXR E W 5 255 255 255 255 9 2 21 . 24 A54
17 24 28 255 5tate Com 1H 2 34E 35E 36E 37E 15 14 12 11 ● 18 22 29 38E A15 5 26
21 29 28 27 26 25 29 28 27 26 25 29 28 27 26 25 29 28 27 26 25 25 29 28 27 A41
28 16 26 16 17 18 19 2 A2 22 27 1 2 1 28 6 4 1 2 4 5 6 1 2 4 5 6 1 2 4 5 6 1 2 4
5 6 1 2 29 1 2 29 7 5 25 24 2 22 21 A 54 1 4 4 5 1 6 9 6 5 4 2 1 6 5 4 2 1 L 6 E
5 4 2 1 6 5 4 2 1 6 5 4 2 2 7 1 8 45 T2 5 4 2 1 9 8 7 4 7 7 8 9 1 11 12 7 8 9 1
11 12 7 8 9 1 11 12 7 8 9 1 11 12 7 8 9 6 41 48 5 42 47 5 6 7 8 9 1 8 46 45 6 9
1 18 17 16 15 14 1 18 17 16 15 14 1 18 17 16 15 14 1 18 17 16 15 14 1 1 8 17 16
1 44 4 4 2 8 265 38E 15 14 A51 6 12 11 15 45 T1 265 265 35E 265 36E 265 37E 4 9
7 A57 9 2 14 A 57 16 1 2 24 19 2 21 22 2 24 19 2 21 22 2 21 1 1 17 8 19 2134E 22
2 ● . 24 19 2 21 22 2 24 1 16 17 18 19 2 18 46 7 7 6 18 29 2 19 14 6 28 5 11 2
29 28 27 26 25 29 28 27 26 25 29 28 27 26 25 29 28 27 26 25 21 26 45 TI 25 24 2
22 21 25 12 19 1 1 2 24 14 21 1 2 4 5 6 1 2 4 5 6 1 2 4 5 6 1 2 4 5 6 2 2 22 15
9 2757 1 19 25 5 2 19 7 6 8 8 A57 18 28 2 19 6 14 27 1 12 6 2 1 11 7 15 4 18 1 7
7 A 57 17 22 6 29 28 16 2 18 8 5 5 4 7 46 46 24 6 21 11 4 C22 9 24 2 21 5 4 7 9
1 26 C2 14 5 4 88 25 12 1 16 1 2 Gri 5 26 T1 2 17 8 2 7 17 9 1 .22 11 1 6 27 . 1
2 8 4 22 2 12 24 C 2H 8 1 1 4 12 25 15 77 2 Gri 267 9 16 9 22 17 C24 2 1 19 29 4
C25 4 22 2 1 5 . 16 4 1 11 28 . 18 8 21 . 15 6 . 1H .Lion 7 R . 5 R . 17 14 2 11
. . 15 2 R 4 . 1 42 8 16 G 16 19 G 5 9 1 41 24 8 G 16 1 2 E 18 6 E 12 15 19 E 1
8 17 4 3H 12 15 21 9 . 24 7 N 9 N L 2 Lion . N 7 18 8 14 2 L 11 1 24 18 L 2 1 .
I 76 1 I .9 1 21 I 1 26 17 7 6 11 19 K 12 19 2 K 25 6 25 K Hippo 12 22 V V 1 1H
1 6 14 2 V Tiger1 24 11 2 2 2 5 N 1 4 N 9 15 14 25 1 N 19 221 2 5 O 2 O 1 24 4 I
2 O I 11 46 T1S 6 12 5 8 I 6 6 18 18 4 25 74 1 L 21 L . 1 4 14 1 WF L . 46 5 17
2 W 12 Kudu 17 6 26 2 7 W 1H 26 W 2 7 5 6 16 27 1 6 1 16 . 2H .G. Hi5 7 7 2 . 22
. 4 74 TIS 8 15 19 4 12 Kudu 1H 2 . 8 9 15 8 14 2 29 142 19 1H 5 11 24 7 7 24 9
1 21 28 . 4 12 6 1 15 18 2H 25 29. 6 8 11 48 11 22 6 1 9 17 . 5 16 2 5 2 1 21 .
28 Hippo 9 7 .G. Hi 1 2 1 8 14 22 27 1 1 . 12 75 24 4 7 2 26 2 11 11 1 25 4 12
15 16 . Wo e . . 1 16 24 24 . 1H 12 1. 1 17 26 2 5 16 E C1 T 4 22 11 17 2 29 4 1
4 15 1 27 1 6 1 28 7nit 1 . 1 C26 2 18 22 W I N K L E R 5 . 9 14 1 9 W I N K L E
R 14 12 18 1 21 25 27 1 8 1 15 46 TIS 7 29 2 8 Bi on 17 21 14 2 26 26 2 7 11 16
25 28 7 15 26 18 18 4 12 19 27 6 1H 12 19 17 29 19 1 16 24 28 6 16 2 1 2 5 17 2
29 4 1 1 6 1 11 27 5 18 22 4 24 21 26 9 5 9 14 6 19 L O V I N G 1 21 25 7 2 2 24
2 8 14 2 8 15 19 22 2 7 15 19 27 26 2 8 7 11 18 21 22 4 12 27 1 9 6 12 17 25 T2
16 24 28 6 21 24 4 48 1 16 26 25 5 11 17 2 29 5 22 27 4 2 1 41 47 14 2 2 22 18
22 4 42 248 2 9 1 21 46 15 5 19 24 1 4 8 14 25 7 45 8 18 1 2 26 25 2 6 19 28 2 8
44 9 17 5 8 16 15 24 27 1 9 4 16 22 21 4 29 2 1 28 6 4 48 41 7 1 4 7 17 29 2 4 2
5 9 6 22 29 4 5 41 47 42 6 5 4 1 7 18 21 42 46 24 1 8 5 25 5 25 2 7 9 14 2 7 45
1 4 26 11 8 2 26 2 8 44 6 12 9 7 15 48 19 27 9 4 2 27 4 1 1 11 I ITIAL RECEIPT P
I T 1 2 1 6 ● 28 6 4 28 5 9 14 2 12 48 4 12 29 1 17 29 5 41 47 1 8 19 46 6 5 11
2 7 11 12 14 16 8 4 42 1 18 15 18 WI K TER M I AL 1 6 12 17 24 ■B 7 45 1 9 1 4
17 21 16 12 \ LILIS_Crude_Well_2.mxdLilis 2 \ 2 8 44 2 8 14 1 16 22 1 25 4 1 ■B
5 11 2 4 7 15 2 11 19 SALT CREEK MIDSTREAMC 929 PIPELI E WINK 6 1 15 4 24 2 4 4
48 12 16 24 1 1 9 11 4 9 18 41 47 5 11 17 2 25 1 5 42 46 6 8 14 17 21 9 21 1 14
C627 1 18 5 12 \ Energy Companies LISIS 45 1 21 22 7 15 16 2 1 21 22 51 29 6 2 9
25 16 12 24 2 7 44 2 8 2 14 2 26 17 2 8 6 7 4 7 2 24 71 49 1 5 15 19 27 18 25 9
\ SALT_CREEK 61 4 22 52 4 11 16 24 28 28 5 1 17 6 21 A 91 69 Projects 6 7 1 15 \
5 9 19 18 8 12 \ GIS 1 2 4 19 27 11 89 5 7 1 21 25 27 7 51 49 2 7 28 F 92 68 16
14 19 26 2 8 9 4 6 1 5 ‘ 27 1 9 29 1 7 47 15 8 1 48 42 15 Miles 48 9 2 16 19 2
28 6 4 5 12 88 54 26 5 41 29 5 7 51 29 9 67 5 5 Document Path: M: 47 4 18 4 42
41 46 47 71 49 2 8 87 74 46 16 11

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[exhibit1029llex10k201912055.jpg]
EXHIBIT E FORM OF NEW RECEIPT POINT NOTIFICATION NEW RECEIPT POINT NOTIFICATION
1. Operator Contact Name 2. Phone Numbers 3. E-Mail 4. Notification Date 5.
Receipt Point/New Well 6. County/Township/Range/Section : 7. Expected Date of
First Flow/Delivery 8. Projected Volume (Barrels) 9. Receipt Point (location) ’
” -_ ’ ” 10. Surface site provided by Shipper⁰ or SCM ⁰ 11. Expected Crude Oil
composition Attach sample analysis 12. Sulfur Content Expected (Y / N) and
quantity (Weight %) 13. Basic Sediment and Water (% of Volume)

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[exhibit1029llex10k201912056.jpg]
SUBMITTED BY SHIPPER: LILIS ENERGY, INC. By: Name: Title: Date: ACKNOWLEDGED BY
GATHERER SALT CREEK MIDSTREAM, LLC By: Name: Title: Date:

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[exhibit1029llex10k201912057.jpg]
EXHIBIT F PRO FORMA TARIFF [ATTACHED]

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[exhibit1029llex10k201912058.jpg]
[COGA – EXECUTION] FERC ICA OIL TARIFF F.E.R.C. No. 1.0.0 Salt Creek Midstream,
LLC LOCAL TARIFF CONTAINING RULES, REGULATIONS AND RATES GOVERNING THE GATHERING
AND TRANSPORTATION OF CRUDE OIL BY PIPELINE Rules and regulations published
herein apply only under tariffs making specific reference by number to this
tariff; such references will include subsequent reissues hereof. Filed in
accordance with 18 CFR 342.2(b) (Establishing initial rates). Issued on [ ( )]
days notice under authority of 18 CFR 341.14. This tariff publication is
conditionally accepted subject to refund pending a 30 day review period. The
provisions published herein will, if effective, not result in an effect on the
quality of the human environment. ISSUE DATE: [ ], 2018 EFFECTIVE DATE: [ ],
2018 ISSUED BY: COMPILED BY: [name] [name] [title] [title] Salt Creek Midstream,
LLC Salt Creek Midstream, LLC [address] [address] [contact info] [contact info]
1

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[exhibit1029llex10k201912059.jpg]
[COGA – EXECUTION] TABLE OF CONTENTS SECTION I RULES AND REGULATIONS
............................................................................. 3
1. DEFINITIONS
...........................................................................................................................
3 2. COMMODITY
...........................................................................................................................
6 3. QUALITY SPECIFICATIONS
..................................................................................................
6 4. VARIATIONS IN QUALITY AND GRAVITY
....................................................................... 9 5.
MINIMUM TENDER
................................................................................................................
9 6. NOMINATIONS REQUIRED
...................................................................................................
9 7. PRORATIONING PROCEDURES
.........................................................................................
10 8. MEASUREMENT
....................................................................................................................
12 9. RECEIPT FACILITIES
............................................................................................................
12 10. STORAGE OF CRUDE OIL
.................................................................................................
13 11. DELIVERY FACILITIES
.....................................................................................................
13 12. NOTICE OF ARRIVAL, DELIVERY AT DESTINATION
.................................. 13 13. LINE FILL REQUIREMENTS
.............................................................................................
14 14. TITLE
.....................................................................................................................................
16 15. RATES APPLICABLE
..........................................................................................................
16 16. RATES APPLICABLE FROM INTERMEDIATE POINTS
.................................. 17 17. PAYMENT OF CHARGES
...................................................................................................
17 18. FINANCIAL ASSURANCES
...............................................................................................
18 19. CHARGE FOR FUND COMPENSATION
.......................................................................... 19
20. LIABILITY OF SHIPPER
.....................................................................................................
19 21. LIABILITY OF GATHERER
................................................................................................
19 22. CLAIMS, SUITS, AND TIME FOR FILING
....................................................................... 20 23.
CONNECTIONS
....................................................................................................................
20 24. GATHERER DISCRETION
..................................................................................................
21 25. LOSS ALLOWANCE
............................................................................................................
21 SECTION II RATES
.................................................................................................................
22 1

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[exhibit1029llex10k201912060.jpg]
[COGA – EXECUTION] SECTION I RULES AND REGULATIONS 1. DEFINITIONS “Affiliate”
means any Person that directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with another Person. The
term “control” (including its derivatives and similar terms) means possessing
the power to direct or cause the direction of the management and policies of a
Person, whether through ownership, by contract, or otherwise. Any Person shall
be deemed to be an Affiliate of any specified Person if such Person owns fifty
percent (50%) or more of the voting securities of the specified Person, or if
the specified Person owns fifty percent (50%) or more of the voting securities
of such Person, or if fifty percent (50%) or more of the voting securities of
the specified Person and such Person are under common control. “API” means the
American Petroleum Institute. “API Gravity” means gravity determined in
accordance with the American Society for Testing Materials Designation set out
in Item 3(A). “Applicable Law” means all applicable laws, statutes, directives,
codes, ordinances, rules, regulations, municipal by-laws, judicial, arbitral,
administrative, ministerial, departmental or regulatory judgments, orders,
decisions, rulings or awards, consent orders, consent decrees and policies of
any Governmental Authority. “ASTM” means the American Society for Testing
Materials. “Barrel” means forty-two (42) gallons of 231 cubic inches per gallon
at 60 degrees Fahrenheit (60° F) and equilibrium vapor pressure of the liquid.
“COGA” means a Crude Oil Gathering Agreement executed by a Priority Shipper with
Gatherer with respect to the Gathering System pursuant to the Open Season.
“Commencement Date” means the date that the Gathering System commenced initial
service. “Committed Volume” means (i) with respect to a Priority Shipper that
has committed to deliver a specified volume of Crude Oil to the Gathering System
pursuant to such Priority Shipper’s COGA or pay a deficiency payment, such
specified volume (expressed in Barrels per day), and (ii) with respect to a
Priority Shipper that has not committed to deliver a specified volume of Crude
Oil, but has made an acreage dedication pursuant to such Priority Shipper’s
COGA, a volume of Crude Oil (expressed in Barrels per day) equal to such
Priority Shipper’s Maximum Daily Quantity. “Consignee” means the Person to whom
a Shipper has ordered the delivery of Crude Oil. “Consignor” means the Person
from whom a Shipper has ordered the receipt of Crude Oil. 2

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[exhibit1029llex10k201912061.jpg]
[COGA – EXECUTION] “Crude Oil” means liquid hydrocarbons that meet the Quality
Specifications set forth in Item 3(A). “Delivery Point” means the points of
interconnection between the Gathering System and any downstream pipeline as
mutually agreed upon by the Parties at which Gatherer will redeliver Shipper
Crude Oil for the account of Shipper, as such points are specified in Section II
of this tariff. “Encumbered Crude Oil” has the meaning set forth in Item 14(B).
“Excess Line Fill” has the meaning set forth in Item 13(B). “Force Majeure”
means any cause or causes not reasonably within the control of the Party
claiming suspension and which, by the exercise of reasonable diligence, such
Party is unable to prevent or overcome, including acts of God, acts of
Governmental Authorities, compliance with rules, regulations or orders of any
Governmental Authority, strikes, lockouts or other industrial disturbances, acts
of the public enemy, acts of terrorism, wars, blockades, insurrections, riots,
epidemics, landslides, lightning, earthquakes, fires, extreme cold, storms,
hurricanes, floods, or other adverse weather conditions, washouts, arrests and
restraint of rulers and people, civil disturbances, explosions, breakage or
accident to machinery, equipment or pipelines, freezing of wells, pipelines or
equipment, requisitions, directives, diversions, embargoes, priorities or
expropriations of government or Governmental Authorities, legal or de facto,
whether purporting to act under some constitution, decree, law or otherwise,
failure of pipelines or other gatherers to gather or furnish facilities for
transportation, failures, disruptions, or breakdowns of machinery or of
facilities for production, manufacture, transportation, distribution, processing
or consumption (including, but not by way of limitation, the Gathering System),
allocation or curtailment by third parties of downstream capacity, inability to
secure or delays in securing permits from Governmental Authorities,
transportation embargoes or failures or delays in transportation or poor road
conditions, partial or entire failure of Crude Oil supply and downstream
pipeline market constraints. “Force Majeure” shall expressly exclude (i) delays
in permitting that are not extraordinary or unusual for the dedicated area under
a COGA and the development of the Permian Basin and other relevant basins, or
(ii) any matters within the reasonable control of Gatherer (such as easement,
right-of-way, fee land and surface right acquisition, the availability of labor,
materials and supplies, and other similar matters). “Gatherer” means Salt Creek
Midstream, LLC. “Gathering System” means that portion of Gatherer’s pipeline
system, including all appurtenances thereto, related to the provision of
gathering and transportation services provided by Gatherer pursuant to this
tariff. “Governmental Authority” or “Governmental Authorities” means (i) the
United States of America, (ii) any state, county, parish, municipality or other
governmental subdivision within the United States of America, and (iii) any
court or any governmental department, commission, board, bureau, agency or other
instrumentality of the United States of America or of any state, county,
municipality or other governmental subdivision within the United States of
America. “Guarantee” has the meaning set forth in Item 18(B). 3

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[exhibit1029llex10k201912062.jpg]
[COGA – EXECUTION] “Inaccuracy Period” has the meaning set forth in Item 8(D).
“Line Fill” has the meaning set forth in Item 13(A). “Maximum Daily Quantity”
shall mean the maximum volume of Crude Oil (expressed in Barrels per day) a
Priority Shipper is allowed to deliver to the Gathering System pursuant to such
Priority Shipper’s COGA. “Monthly Committed Volume” means the product of (i) the
Priority Shipper’s Committed Volume and (ii) the number of days in the
applicable month. “Nomination” (including “Nominates” and the syntactical
variants thereof) means the written or electronic communication from Shipper to
Gatherer, pursuant to and in accordance with this tariff, requesting that
Gatherer transport for Shipper in a given month a stated volume of Crude Oil
from a specified Receipt Point to the applicable Delivery Point in accordance
with the terms of this tariff. “Non-Priority Capacity” means the System Capacity
available for allocation to Uncommitted Shippers each Proration Month following
the allocation of System Capacity to Priority Shippers under Item 7(C), which
shall equal at least ten percent (10%) of the System Capacity, assuming Gatherer
receives sufficient Nominations from Uncommitted Shippers. “Notification” has
the meaning set forth in Item 13(C)(3). “Off-Spec Crude Oil” has the meaning set
forth in Item 3(E). “Open Season” means that open season held by Gatherer to
obtain volume commitments and/or acreage dedications on the Gathering System,
and any supplemental open season held by Gatherer to obtain additional volume
commitments and/or acreage dedications on the Gathering System prior to the
commencement of service on the Gathering System. “Party” shall refer to either
Shipper or Gatherer, individually, and “Parties” shall refer to Gatherer and
Shipper, collectively. “Person” means any individual, corporation, limited
liability company, partnership, trust or other entity, or any Governmental
Authority. “Priority Rates” means the rates identified as “Priority Rates” in
Section II of this tariff. “Priority Service” means that a tender of Crude Oil
by a Priority Shipper for transport on the Gathering System not exceeding
Shipper’s Maximum Daily Quantity and paying the Priority Rate for levels of
applicable service on the Gathering System, shall be entitled to the highest
level of service on the Gathering System and not be subject to prorationing to
accommodate nominations of uncommitted volumes for transport on the Gathering
System or nominations of volumes for transport on the Gathering System by
Shippers who do not elect to pay (or are not eligible thereunder) the Priority
Rate for such nominations. “Priority Shipper” means a Shipper with which
Gatherer has executed a COGA for Priority Service on the Gathering System
pursuant to the open season(s) held by Gatherer and such 4

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[exhibit1029llex10k201912063.jpg]
[COGA – EXECUTION] COGA provides for a term of at least ten (10) years and
either (i) a commitment to deliver a specified volume of Crude Oil on the
Gathering System of at least 2,000 Barrels per day, or (ii) with respect to a
Priority Shipper that has not committed to deliver a specified volume of Crude
Oil, but has made an acreage dedication pursuant to such Priority Shipper’s
COGA, an acreage dedication covering at least 2,000 net acres of lands located
in Winkler County, Texas, Loving County, Texas and/or Eddy and Lea Counties, New
Mexico. “Prime Rate” has the meaning set forth in Item 17(C). “Proration Month”
means the month for which capacity is to be allocated under Item 7. “Qualified
Institution” means the domestic office of a commercial bank or trust company
that is not an Affiliate of Shipper and that has assets of at least $10 billion
and an investment-grade credit rating as established by Standard and Poor’s and
Moody’s. “Quality Specifications” has the meaning set forth in Item 3(A).
“Receipt Point” means the receipt/inception point(s) where Crude Oil is received
into the Gathering System, as such points are specified in Section II of this
tariff. “Shipper” means a party that contracts with Gatherer for transportation
of Crude Oil in accordance with this tariff and any other applicable tariffs of
Gatherer. “Shipper’s Permitted Liens” means (i) any liens, security interests or
other encumbrances benefiting one or more lenders to Shipper as part of a
financing provided by such lenders to Shipper for which such lenders have not
taken actions to foreclose on such liens; and (ii) normal and customary liens
under financing agreements, operating agreements, unitization agreements,
pooling orders, drilling contracts and similar agreements for upstream operators
and mechanic's and materialman's liens, tax liens or mineral liens related to
claims or obligations that are not delinquent or that are being contested in
good faith and by appropriate proceedings. “System Capacity” means the
operational capacity of the Gathering System at any applicable point in time.
“Tender” or “Tendered” means delivery by Shipper to Gatherer of a stated
quantity of Crude Oil for transportation from a specified Receipt Point to a
specified Delivery Point on the Gathering System in accordance with this tariff.
“Uncommitted Rates” means the rates identified as “Uncommitted Rates” in Section
II of this tariff. “Uncommitted Shipper” means a Shipper that is not a Priority
Shipper. “Unremoved Crude Oil” means Crude Oil that Shipper fails to arrange for
receipt of, or refuses to receive, upon Gatherer’s delivery at the Nominated
Delivery Point. 5

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[exhibit1029llex10k201912064.jpg]
[COGA – EXECUTION] 2. COMMODITY Gatherer is engaged in the transportation on the
Gathering System of Crude Oil meeting the Quality Specifications set forth in
Item 3 and will not accept any other commodity for transportation under this
tariff. 3. QUALITY SPECIFICATIONS A. The quality specifications for Crude Oil
set forth below (“Quality Specifications”) shall apply to Shipper’s Tender.
Shipper shall not deliver to Gatherer and Gatherer shall not be obligated to
accept Crude Oil that, as determined by Gatherer, has on receipt qualities which
are outside of the minimum and maximum ranges specified in the following table:
Quality Units Min Max Reference Test Method API Gravity (60F) deg. API 36 44
ASTM D287 AND API MPMS CHAPTER 9 Sulfur Content Weight % < 0.4 ASTM D4294 Reid
Vapor Pressure PSIA 9.5 ASTM D6377 True Vapor Pressure PSIA 11.0 ASTM D6377
Basic Sediment and % of Volume < 1.0% API MPMS Water CHAPTER 10.4 B. Gatherer
shall have the right to change or modify the Quality Specifications provided in
Item 3(A) in order to conform Gatherer’s Quality Specifications to those of
downstream connecting facilities. C. Shipper shall perform applicable tests to
ensure that the Crude Oil it Tenders to Gatherer for transportation on the
Gathering System conforms to the Quality Specifications. Gatherer may also
require Shipper to furnish a certificate setting forth in detail the
specifications of each shipment of Crude Oil offered for transportation
hereunder, and Shipper shall be liable for any contamination or damage to other
Crude Oil in Gatherer’s custody or to the Gathering System or other facilities
caused by failure of the Crude Oil Tendered by Shipper to meet the
specifications stated in Shipper’s certification. D. Gatherer or its
representative may test all Crude Oil Tendered for transportation on the
Gathering System for compliance with the Quality Specifications. All such tests
shall be performed by Gatherer, but Shipper, Consignor, or Consignee may 6

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[exhibit1029llex10k201912065.jpg]
[COGA – EXECUTION] be present or represented at the testing provided such
witnessing does not unreasonably interfere with Gatherer’s operation of the
Gathering System. Gatherer shall provide reasonable advance notice of any such
testing (other than the continuous monitoring of the Gathering System) to
Shipper. Quantities shall be tested in accordance with applicable API/ASTM
standards and pipeline industry practice or such other tests as may be agreed
upon by Gatherer and Shipper. All tests performed by Gatherer shall be
determinative unless Shipper, Consignor, or Consignee submits to Gatherer,
within sixty (60) days of the date of the test, appropriate documentation
contesting the test. In the event of variance between Gatherer’s test results
and Shipper’s test results or the specifications contained in a certificate
provided by Shipper pursuant to Item 3(C), Gatherer’ test results shall prevail
(absent error demonstrated by Shipper or fraud). E. Gatherer reserves the right
to reject all Tenders of Crude Oil and refuse transportation if Gatherer
determines that Shipper has delivered Crude Oil that (i) does not conform to the
Quality Specifications, (ii) is not merchantable, (iii) is not readily
acceptable for transportation through the Gathering System, (iv) would otherwise
adversely affect the Gathering System or other Crude Oil on the Gathering
System, (v) would make other Crude Oil on the Gathering System undeliverable at
the Delivery Point(s) and/or (vi) would expose any Person or property (including
the Gathering System) to an undue risk of harm or property damage (“Off-Spec
Crude Oil”), all of which shall be determined by Gatherer, in Gatherer’s
reasonable discretion. F. In the event Shipper Tenders Off-Spec Crude Oil to the
Gathering System: (i) Gatherer may accept such Shipper’s delivery if Gatherer
determines, in its sole discretion, that the quality of the Off-Spec Crude Oil,
when commingled as a common stream, will nonetheless meet the Quality
Specifications; provided, however, that Gatherer shall not knowingly accept
Shipper's delivery of Off-Spec Crude Oil (a) if Gatherer determines that the
quality of Off-Spec Crude Oil when commingled as a common stream, would not meet
the Quality Specifications or (b) if the common stream is not meeting the
Quality Specifications; and (ii) if Gatherer does not accept such Off-Spec Crude
Oil as provided in (i) of this Item 3(F), Gatherer may exclude such Shipper with
respect to such Off-Spec Crude Oil from further entry into the Gathering System
until such time as Shipper returns the quality of its Off-Spec Crude Oil to a
level satisfactory to Gatherer in accordance with this tariff. Nothing contained
in this tariff, any other tariff filing, any pipeage contract or transportation
services agreement or any other document, nor any receipt by Gatherer of
Off-Spec Crude Oil (either unknowingly, as a temporary accommodation, or in its
sole discretion), shall be construed to affect the Gatherer’s right, at any time
and from time to time, to reject Tenders of Off- Spec Crude Oil and to refuse or
suspend receipt of such Off-Spec Crude Oil until it is established to such
Gatherer’s reasonable satisfaction that subsequent deliveries of Crude Oil will
conform to the applicable Quality Specifications. During any period when
Gatherer is knowingly accepting Off-Spec Crude Oil, Gatherer shall (x) regularly
monitor the API Gravity of the Off-Spec Crude Oil at all Receipt Points from
which Off-Spec Crude Oil is knowingly accepted by 7

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[exhibit1029llex10k201912066.jpg]
[COGA – EXECUTION] Gatherer, and (y) manage the cumulative volume of Off-Spec
Crude Oil so accepted to reduce the likelihood of the common stream failing to
meet the Quality Specifications. G. Gatherer may monitor, but is not responsible
for monitoring, receipts or deliveries for contaminants. Further, Gatherer
reserves the right to dispose of any Off-Spec Crude Oil (other than such Crude
Oil accepted pursuant to Item 3(F)(i)) blocking the Gathering System. Disposal
thereof may be made in any reasonable manner, including, but not limited to,
commercial sales. Shipper shall be liable for and shall defend, indemnify and
hold Gatherer harmless from and against any and all claims, actions, suits,
losses, demands, costs and expenses (including attorney’s fees and costs of
repairing, inspecting, cleaning and decontaminating the Gathering System or the
facilities of third parties) of every kind, nature or description to the extent
caused by Off-Spec Crude Oil (other than such Crude Oil accepted pursuant to
Item 3(F)(i)) that Shipper has delivered into the Gathering System. H. In
addition to any other remedies available to Gatherer, if Crude Oil received by
Gatherer into the Gathering System does not meet the Quality Specifications
(other than such Crude Oil accepted pursuant to Item 3(F)(i)), Gatherer reserves
the right to charge the Shipper the actual costs and expenses incurred by
Gatherer to treat, handle, or otherwise dispose of all such Off-Spec Crude Oil
so received; provided, however, Shipper shall not be subject to any such costs
and expenses to the extent that the treatment of such Crude Oil and the costs
related thereto are addressed pursuant to a COGA. In the event that, based upon
Gatherer’s own testing, it is determined that Shippers are or have been
delivering Crude Oil into the Gathering System at the Receipt Point that does
not meet the Quality Specifications, then (i) Gatherer may add an off-spec
penalty provision to this tariff in order to discourage deliveries of Crude Oil
to the Gathering System that violate the Quality Specifications and (ii) for the
avoidance of doubt, any Shipper who has delivered Off-Spec Crude Oil that, when
commingled as a common stream, results in the common stream not meeting the
Quality Specifications, shall be liable for damages caused to other Shippers’
Crude Oil to the extent that such Shipper’s delivery of Off-Spec Crude Oil
results in other Shippers receiving Crude Oil that does not meet the Quality
Specifications (other than such Crude Oil accepted pursuant to Item 3(F)(i)). I.
As set forth in Item 3(G), Shipper shall not be liable for any claims or losses
or other damages caused by or resulting from Crude Oil accepted pursuant to Item
3(F)(i), and Gatherer hereby waives its claims against Shipper with respect to
any such claims or losses or other damages. 4. VARIATIONS IN QUALITY AND GRAVITY
A. Gatherer shall not be liable to Shipper for changes in gravity or quality of
Shipper’s Crude Oil which may occur from commingling or intermixing Shipper’s
Crude Oil with Crude Oil from other Shippers in the same common stream while in
transit except to the extent that such commingling or intermixing 8

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[exhibit1029llex10k201912067.jpg]
[COGA – EXECUTION] would render Shipper’s Crude Oil to be Off-Spec Crude Oil or
undeliverable as a result of Off-Spec Crude Oil received from other Shippers.
Gatherer is not obligated to deliver to Shipper the identical Crude Oil
Nominated and Tendered by Shipper; Gatherer will deliver the grade of Crude Oil
it is regularly transporting as a common stream. B. Except as provided in Item
4(A), Gatherer shall have no responsibility in, or for, any revaluation or
settlements which may be deemed appropriate by Shippers and/or Consignees
because of mixing or commingling of Crude Oil shipments between the receipt and
delivery of such shipments by Gatherer within the same common stream. C.
Gatherer shall not be required to transport Crude Oil except with reasonable
diligence, considering the quality of the Crude Oil, the distance of
transportation and other material elements. Gatherer cannot commit to delivering
Crude Oil to a particular destination, at a particular time. 5. MINIMUM TENDER
Gatherer may impose minimum Tender requirements to the extent reasonably
necessary for the efficient operation of the Gathering System. 6. NOMINATIONS
REQUIRED A. Crude Oil for shipment through the Gathering System will be received
only on a properly executed Nomination from Shipper identifying the month for
which transportation is desired, the Receipt Point at which the Crude Oil is to
be received by Gatherer, the Delivery Point of the shipment, Consignee (if any),
and the amount of Crude Oil to be transported. Gatherer may refuse to accept
Crude Oil for transportation unless satisfactory evidence is furnished that
Shipper or Consignor has made adequate provisions for prompt receipt of all
volumes at the Delivery Point. B. Any Shipper desiring to Nominate Crude Oil for
transportation shall make such Nomination to Gatherer in writing on or before
the twentieth (20th) day of the calendar month, before 12:00 a.m. Central Time,
preceding the month during which the transportation of Crude Oil under the
Nomination is to begin; provided, however, that if operating conditions permit,
Gatherer, in its sole discretion, may consider and accept Nominations submitted
after the date specified above. C. 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.
D. All Crude Oil accepted for transportation will be transported at such time
and in such quantity as scheduled by Gatherer. 9

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[exhibit1029llex10k201912068.jpg]
[COGA – EXECUTION] 7. PRORATIONING PROCEDURES A. When System Capacity will be
prorated. When Gatherer receives more Nominations in a month for transportation
of Crude Oil on the Gathering System than Gatherer is able to transport,
Gatherer shall allocate the System Capacity under the provisions of this Item 7.
B. Division of System Capacity between Shipper classes. System Capacity will be
allocated among Priority Shippers as a class and Uncommitted Shippers as a
class; any remaining System Capacity will be allocated in accordance with the
provisions of Item 7(E). C. Allocation to Priority Shippers. (1) Except as
provided in Item 7(C)(2), Gatherer shall allocate each Priority Shipper an
amount of System Capacity equal to the lesser of the Priority Shipper’s
Nomination for the Proration Month or its Monthly Committed Volume. If a
Priority Shipper Nominates volumes in excess of its Monthly Committed Volume,
then the excess incremental volumes shall be subject to prorationing under Item
7(E) below. (2) If an event of Force Majeure or other operational issue causes
System Capacity to be reduced for the Proration Month, the allocation of System
Capacity to each Priority Shipper under this Item 7(C) shall be reduced by the
same percentage as the reduction in System Capacity that is caused by the Force
Majeure event or operational issue. If an event of Force Majeure or other
operational issue causes a service disruption on only a portion of the Gathering
System or at a particular Receipt Point or Delivery Point, Gatherer shall
continue to provide full operational service with respect to the unaffected
portions of the Gathering System and to the unaffected Receipt Points and
Delivery Points. Gatherer will reduce the allocations of System Capacity to each
Priority Shipper affected by such Force Majeure event by the same percentage as
the reduction in capacity of the affected portion of the Gathering System or the
reduction in receipt or delivery capability of the affected Receipt Point or
Delivery Point, respectively and as applicable. Pursuant to the terms of a
Priority Shipper’s COGA, Gatherer may temporarily suspend such Shipper’s right
to be treated as a Priority Shipper for purposes of this Item 7 during the
occurrence of a default of the COGA by such Shipper. D. Allocation to
Uncommitted Shippers. (1) Following the allocation of System Capacity set forth
in Item 7(C) above, Gatherer shall next allocate the Non-Priority Capacity on
the Gathering System among all Uncommitted Shippers in the following manner: i.
Each Uncommitted Shipper shall be allocated an amount of System Capacity in the
Proration Month that is equal to: 10

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[exhibit1029llex10k201912069.jpg]
[COGA – EXECUTION] a. its Nomination, if the total volume Nominated by all
Uncommitted Shippers is less than or equal to ten percent (10%) of System
Capacity on the Gathering System; or b. its pro rata share, in accordance with
its Nomination, of ten percent (10%) of the System Capacity on the Gathering
System, if the total volume Nominated by all Uncommitted Shippers is greater
than ten percent (10%) of such System Capacity. E. Remaining System Capacity.
Any remaining System Capacity not allocated through the application of Items
7(C) or 7(D) shall be allocated first, pro rata, among all Priority Shippers
having remaining unmet Nominations according to the level of each Priority
Shipper’s Monthly Committed Volume. If allocation to any Shipper pursuant to
this Item 7(E) exceeds such Shipper’s remaining Nomination or there remains
unallocated System Capacity following this additional allocation to Priority
Shippers, then the excess volume will be allocated among all other Shippers
having unmet Nominations until the remaining System Capacity is fully allocated
or all of the remaining Nominations have been fulfilled. F. Basis for
Allocation; Notification. When prorationing of System Capacity is in effect: (1)
Gatherer shall allocate System Capacity on a monthly basis; and (2) Gatherer
will use reasonable efforts to notify each Shipper of its allocation not later
than the first working day of the Proration Month. G. Reallocation of Unused
Allocated System Capacity. If a Shipper does not use the portion of System
Capacity allocated to it under this Item 7 at the times and in the amounts
designated by Gatherer, Gatherer shall have the right to use Shipper’s unused
portion of System Capacity to fulfill the unmet Nominations of other Shippers,
but only to the extent and duration of Shipper’s under-utilization of its
capacity, without impacting the payment obligations of Shipper or any other
obligations of Shipper, or otherwise crediting or paying Shipper in any manner.
Nothing in this Item 7(G) shall operate to reduce or otherwise alter Shipper’s
Maximum Daily Quantity. H. Failure of Uncommitted Shipper to Use Allocated
System Capacity. (1) Except as provided in Item 7(H)(2) below, an Uncommitted
Shipper that fails to use all of its allocated System Capacity during a
Proration Month shall have its allocation of System Capacity reduced in each
subsequent Proration Month until the total reductions equal the amount of the
deficiency. The amount of any such reduction shall be treated as unused
allocated System Capacity and shall be reallocated among other Shippers in
accordance with Item 7(G). 11

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[exhibit1029llex10k201912070.jpg]
[COGA – EXECUTION] (2) Reduction of an Uncommitted Shipper’s allocation for
failure to use its allocated System Capacity during a Proration Month may be
waived, in whole or in part, if Gatherer determines that Shipper’s failure to
use all or some of its allocated System Capacity was due to a Force Majeure. I.
Transfer of Allocated System Capacity; Use of Affiliates. Except as provided in
this Item 7(I), capacity allocated to a Shipper under this Item 7 may not be
assigned, conveyed, loaned, transferred to, or used in any manner by another
Shipper; provided, however, that a Shipper’s allocation of capacity may be
transferred as an incident of the bona fide sale of the Shipper’s business or to
a successor to the Shipper’s business by the operation of law, such as an
executor or trustee in bankruptcy. 8. MEASUREMENT Crude Oil delivered hereunder
shall be measured by in accordance with Gatherer’s [Measurement Policy], dated [
], 2018. A copy of the [Measurement Policy] is available on Gatherer’s website
at [ ]. 9. RECEIPT FACILITIES Gatherer will receive Crude Oil from Shippers at
the Receipt Points on the Gathering System. Crude Oil will be received only from
pipelines, tanks or other facilities that are provided by Shipper or Consignor,
or a connecting carrier. Gatherer will not accept a Nomination unless such
facilities have been provided and conform to the operating requirements of
Gatherer, in Gatherer’s sole discretion. 10. STORAGE OF CRUDE OIL Gatherer does
not provide storage for Crude Oil, except storage incidental to transportation
on the Gathering System. Gatherer has the right to coordinate with downstream
connecting facilities to ensure that Shipper has arranged for receipt of its
Crude Oil at the Nominated Delivery Point; by Nominating Crude Oil for
transportation on the Gathering System, Shipper agrees to permit such
coordination. 11. DELIVERY FACILITIES Gatherer will accept Crude Oil for
transportation only when Shipper or Consignee has provided the necessary
facilities for taking delivery of the shipment as it arrives at the Delivery
Point. Gatherer will not accept a Nomination unless such facilities have been
provided and conform to the operating requirements of Gatherer, in Gatherer’s
reasonable discretion. The cost of such facilities shall be provided at the sole
cost of Shipper, except as otherwise provided for in a COGA. 12. NOTICE OF
ARRIVAL, DELIVERY AT DESTINATION A. After a shipment of Crude Oil has had time
to arrive at Shipper’s Nominated Delivery Point and on twenty-four (24) hours’
notice to Shipper or Consignee, 12

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[exhibit1029llex10k201912071.jpg]
[COGA – EXECUTION] Gatherer may begin delivery of such Crude Oil to Shipper or
Consignee at Gatherer’s current rate of pumping. Shipper shall timely remove its
Crude Oil, or cause such Crude Oil to be removed, from the Gathering System
following transportation to a Nominated Delivery Point. If Shipper or Consignee
is unable or refuses to receive said shipment, Gatherer will assess a demurrage
charge of 1.25 cents ($0.0125) per Barrel for each day (or fractional part
thereof) commencing twenty-four (24) hours following Gatherer’s notification
described above and Shipper’s failure to promptly accept such Crude Oil. In
addition to such demurrage charge, Gatherer shall also have the right to curtail
the amount of Crude Oil it will accept from Shipper until such Unremoved Crude
Oil is removed. B. In addition to such demurrage charge, Gatherer also reserves
the right if deemed necessary to clear the Gathering System, provided that the
notices set out in Item 12(A) have been given, to make whatever arrangements for
disposition of the Unremoved Crude Oil that are appropriate, which includes
selling the Unremoved Crude Oil at a private sale for the best price reasonably
obtainable. Gatherer may be a purchaser at such sale. The proceeds of any sale
shall be applied in the following order: (i) to the reasonable expenses of
holding, preparing for sale, selling, and transporting the Crude Oil, and to the
extent allowed by Applicable Law reasonable attorneys’ fees and legal expenses
incurred by Gatherer; and (ii) to the satisfaction of Shipper’s indebtedness
including interest herein provided from the date payment is due. The balance of
the proceeds of the sale remaining, if any, shall be paid to Shipper or, if
there is a dispute or claim as to entitlement, held for whoever may be lawfully
entitled thereto. Gatherer will have a claim for and against Shipper with
respect to any deficiency arising from the debt due to Gatherer from Shipper and
the proceeds of any sale after reduction as set forth above. Shipper shall
indemnify Gatherer for all losses associated with Unremoved Crude Oil and
Gatherer’s disposition of the Unremoved Crude Oil. Gatherer shall have no
liability to Shipper associated with Shipper’s Unremoved Crude Oil or Gatherer’s
disposition of Unremoved Crude Oil except as set forth herein. 13. LINE FILL
REQUIREMENTS A. Gatherer shall require Shipper to supply, and Shipper shall
supply, Crude Oil constituting its proportionate share of Crude Oil for line
fill necessary for operation of the Gathering System (“Line Fill”). For purposes
of clarity, a Priority Shipper’s proportionate share of Line Fill shall be the
percentage equal to Priority Shipper’s Committed Volume divided by ninety
percent (90%) of the total System Capacity at such time. B. In the event a
Shipper’s Line Fill balance drops below its proportionate share of the volume of
Crude Oil necessary for operation of the Gathering System, Gatherer will notify
Shipper of the amount of Line Fill that Shipper owes and Shipper shall supply
such Line Fill to Gatherer before Gatherer is obligated to accept Shipper’s
Nominations or Tenders or make deliveries or shipments on 13

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[exhibit1029llex10k201912072.jpg]
[COGA – EXECUTION] behalf of Shipper. Any notice to Shipper of additional Line
Fill requirements under this Item 13(B) shall provide adequate time for Shipper
to make the required Nominations under Item 6. Subject to the provisions of Item
17, in the event Shipper’s Line Fill balance is above its proportionate share of
the volume of Crude Oil necessary for Line Fill (“Excess Line Fill”), then
Gatherer shall notify Shipper of such Excess Line Fill amount and will return
such Excess Line Fill to Shipper upon written request by Shipper to Gatherer and
following a reasonable period of time to allow for administrative and
operational requirements associated with the withdrawal of such Excess Line
Fill. C. Subject to the provisions of Item 17, Line Fill furnished by Shipper
may be withdrawn from the Gathering System under two circumstances (i) if
Shipper intends to discontinue shipments on the Gathering System for the
foreseeable future and/or, (ii) if Shipper is “no longer shipping” on the
Gathering System, as described in Item 13(C)(2) below. Line Fill furnished by a
Shipper may be withdrawn from the Gathering System only pursuant to the terms of
this Item 13(C). (1) If Shipper intends to discontinue shipments on the
Gathering System for the foreseeable future, Shipper shall provide written
notification to Gatherer that it intends to discontinue shipments on the
Gathering System. Gatherer will then provide written notice to Shipper as
provided for in Item 13(C)(3). (2) A Shipper that makes no shipments on the
Gathering System over a continuous six (6)-month period shall be deemed to be
“no longer shipping.” When Gatherer identifies that a Shipper is “no longer
shipping,” Gatherer will provide written notice to Shipper that it is considered
to be “no longer shipping” on the Gathering System as provided for in Item
13(C)(3). (3) Gatherer will issue written notice (the “Notification”) to Shipper
that according to the Gatherer’s books, Gatherer is holding a certain volume of
Crude Oil on its books in Shipper’s name. Shipper will be advised in such letter
that Shipper will have thirty (30) days effective with the date of the
Notification to provide written direction regarding the disposal of Shipper’s
Crude Oil. If at the end of this thirty (30)-day period, Gatherer has received
no written direction, Gatherer will assume title to the Crude Oil being held on
its books in Shipper’s name, free and clear of any and all liens, claims or
encumbrances, and Shipper expressly agrees and consents to transfer title to
Gatherer as set forth herein. (i) If Gatherer has been contacted by Shipper
within thirty (30) days of the Notification described in Item 13(C)(3), Gatherer
will grant Shipper an additional thirty (30) days without charge to facilitate
the disposal of Shipper’s inventory Crude Oil. If at the end of this 60-day
period, Shipper has not disposed of this Crude Oil, 14

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[exhibit1029llex10k201912073.jpg]
[COGA – EXECUTION] Gatherer retains the right to charge a liquidated damage fee
of $0.10 per Barrel, per month, retroactive to the date of the Notification,
plus any other fees as allowed in accordance with this tariff; such fees will be
required to be paid before the Crude Oil will be released. In addition, if
Shipper has not disposed of such Crude Oil within sixty (60) days from the date
of Notification, Gatherer will assume title to such Crude Oil free and clear of
any and all liens, claims or encumbrances, and Shipper expressly agrees and
consents to transfer title to Gatherer as set forth herein. If Shipper provides
a written request to Gatherer after title to Crude Oil has been assumed by
Gatherer but before Gatherer has otherwise disposed of Crude Oil, Gatherer
agrees to transfer title back to Shipper for a fee of $5.00 per Barrel. Such
fees will be required to be paid before the Crude Oil will be released. Upon
transfer of title back to Shipper, Shipper will then be responsible for
disposing of Crude Oil within thirty (30) days therefrom. Failure of Shipper to
dispose of said Crude Oil within thirty (30) days of the transfer of title back
to Shipper will result in title being vested back in Gatherer without recourse.
(4) Gatherer’s return of Line Fill is contingent upon Shipper’s inventory
balances and all outstanding amounts due having been reconciled between Shipper
and Gatherer and Shipper having paid in full any amounts owed to Gatherer
following such reconciliation. Gatherer shall have a reasonable period of time
to complete administrative and operational requirements incident to Shipper’s
withdrawal of Line Fill. (5) Subpart (C) of this Item 13 shall not apply to a
Priority Shipper during the term of such Priority Shipper’s COGA. However,
following the expiration of a Priority Shipper’s COGA, such Priority Shipper’s
Line Fill shall be returned to Priority Shipper pursuant to the provisions set
forth in subpart (C) of this Item 13. 14. TITLE A. Gatherer may require of
Shipper satisfactory evidence of its perfected and unencumbered title (other
than Shipper’s Permitted Liens) of any Crude Oil Tendered for shipment on the
Gathering System. Gatherer shall have the right to reject any Crude Oil, when
Tendered for transportation, that constitutes Encumbered Crude Oil (as defined
below). B. At the time of Nomination, Shipper shall inform Gatherer if any Crude
Oil Nominated and/or to be Tendered to Gatherer for transportation (i) may be
involved in litigation, (ii) may be subject to a title dispute, or (iii) may be
encumbered by a lien or charge of any kind at the time of delivery of such Crude
Oil to Gatherer at a Receipt Point (other than any Shipper’s Permitted Liens and
the lien created hereunder in favor of Gatherer) (“Encumbered Crude Oil”). In
the event Gatherer receives such Shipper notice of Encumbered Crude Oil or 15

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[exhibit1029llex10k201912074.jpg]
[COGA – EXECUTION] otherwise learns that Shipper has or will Nominate or Tender
Encumbered Crude Oil, Gatherer, in its reasonable discretion, may require
Shipper to provide one or more of the following: (i) satisfactory evidence of
its perfected and unencumbered title, (ii) satisfactory indemnity bond to
protect Gatherer against any and all loss, (iii) pre-payment of transportation
charges, or (iv) subordination agreement from the applicable lienholder.
Gatherer also has the right to refuse any shipment of Encumbered Crude Oil. C.
By Nominating Crude Oil, Shipper warrants and guarantees that Shipper has good
title (or right to ship or control) thereto and agrees to hold Gatherer harmless
for any and all loss, cost, liability, damage and/or expense resulting from
failure of title (or right to ship or control) thereto; provided that acceptance
for transportation shall not be deemed a representation by Gatherer as to title
(or right to ship or control). Shipper shall not cause or permit any lien,
security interest or other form of burden to be filed or created with respect to
Crude Oil in Gatherer’s possession, except for any Shipper’s Permitted Liens and
the lien created hereunder in favor of Gatherer. 15. RATES APPLICABLE Crude Oil
accepted for transportation shall be subject to the rates and charges in effect
on the date of receipt by Gatherer that are applicable to Shipper’s shipments,
irrespective of the date of the Nomination. The applicable rates are set forth
in Section II herein. 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. In the event Gatherer refuses to accept
Barrels of Crude Oil Tendered by a Priority Shipper for transportation under
this tariff or a COGA because such Shipper has been (i) in violation of this
tariff, or (ii) in material breach of a COGA at the time the Barrels are
Tendered to Gatherer, then no reduction shall be made to a deficiency payment
if, as a result of such refusal, such Priority Shipper fails to ship its Monthly
Committed Volume for such month. 16. RATES APPLICABLE FROM INTERMEDIATE POINTS
Shipments accepted for transportation from or to any point on the Gathering
System not named in this tariff, but which is intermediate to a point where
rates are published, will be assessed the rate in effect from or to the next
more distant point published in this tariff. Continuous use of intermediate
point rate application under this Item 16 for more than thirty (30) days
requires establishment of a rate for the transportation service. 17. PAYMENT OF
CHARGES A. Gatherer will invoice Shipper for transportation rates, fees, and
charges, and any other amounts accruing on Crude Oil transported by Gatherer
within twenty (20) days of the end of each month. Gatherer shall calculate and
assess any payments 16

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[exhibit1029llex10k201912075.jpg]
[COGA – EXECUTION] Shipper owes to Gatherer under a COGA, including but not
limited to any deficiency payments, in accordance with the provisions of the
COGA. B. All payments are due by the later of (i) the twenty-fifth (25th) day of
the month in which the invoice is received or (ii) fifteen (15) days from the
date of Shipper’s receipt of the invoice. Invoices falling due on a weekend or
holiday need not be paid until the following regular workday and no interest
shall accrue under Item 17(C) until after such regular workday. If Shipper, in
good faith, disputes the amount of any such invoice or any part thereof, Shipper
shall pay such amount as it concedes to be correct. If Shipper disputes the
amount due, it must provide supporting documentation to support the amount
disputed within ten (10) days of the date of Shipper’s receipt of such invoice.
C. If any undisputed charge remains unpaid after the due date, then interest
shall accrue at a per annum rate of interest equal to the lower of (i) the Prime
Rate plus five percent (5%) or (ii) the maximum legal rate. “Prime Rate” means
the prime rate on corporate loans at large U.S. money center commercial banks as
set forth in the Wall Street Journal “Money Rates” table under the heading
“Prime Rate,” or any successor thereto, on the first date of publication for the
month in which payment is due. D. In addition, in the event Shipper fails to pay
any undisputed charges owed to Gatherer, whether under this tariff, a COGA, or
any other agreement, when due, Gatherer shall have the right, until such
payments, including interest thereon, are paid in full, to: (i) refuse to
provide Shipper access to the Gathering System or provide services pursuant to
this tariff, including delivery of any of Shipper’s Crude Oil in Gatherer’s
possession to Shipper, (ii) offset the current and future amounts owed by
Shipper under this tariff or a COGA against any amounts Gatherer owes to Shipper
or against any of Shipper’s Crude Oil in the Gathering System, and (iii)
exercise any other rights and remedies granted under this tariff or existing
under Applicable Law. E. Gatherer shall have a lien on all Crude Oil delivered
to and in the possession of Gatherer to secure the payment of any and all
charges and fees owed to Gatherer by Shipper, whether under this tariff, a COGA
if applicable, or any other agreement, including but not limited to,
transportation fees, deficiency payments, penalties, interest and late payment
charges. Such lien shall extend to all Crude Oil in Gatherer’s possession
beginning with Shipper’s first receipt of transportation or other services from
Gatherer. Shipper agrees to execute such additional documents as may be
reasonably necessary to perfect or evidence such lien. If a bill of lading is
required under Applicable Law for such a lien to arise, acceptance of the
Nomination will be deemed to be the bill of lading for all Crude Oil subject to
such Nomination. The lien provided herein shall be in addition to any lien or
security interest provided by this tariff or Applicable Law. F. If Shipper fails
to pay any undisputed charges owed to Gatherer by the due date, Gatherer will
notify Shipper of the failure, and if Shipper has not remedied the failure
within ten (10) days following receipt of notice from Gatherer, in addition 17

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[exhibit1029llex10k201912076.jpg]
[COGA – EXECUTION] to any other remedies under this tariff or under Applicable
Law, Gatherer shall have the right, either directly or through an agent, to sell
any Crude Oil of such Shipper in Gatherer’s custody, including Shipper’s Line
Fill, at public auction, on any day not a legal holiday, not less than
forty-eight (48) hours after publication of notice of such sale in a daily
newspaper of general circulation published in the town, city, or general area
where the sale is to be held, stating the time and place of sale and the
quantity and location of the Crude Oil to be sold. At said sale, Gatherer shall
have the right to bid, and, if it is the highest bidder, to become the
purchaser. The proceeds of any sale shall be applied in the following order: (i)
to the reasonable expenses of holding, preparing for sale, selling, and
transporting the Crude Oil and to the extent allowed by Applicable Law
reasonable attorneys’ fees and legal expenses incurred by Gatherer; and (ii) to
the satisfaction of Shipper’s indebtedness including interest herein provided
from the date payment is due. The balance of the proceeds of the sale remaining,
if any, shall be paid to Shipper or, if there is a dispute or claim as to
entitlement, held for whoever may be lawfully entitled thereto. Gatherer will
have a claim for and against Shipper with respect to any deficiency arising from
the debt due to Gatherer from Shipper and the proceeds of any sale after
reduction as set forth above. 18. FINANCIAL ASSURANCES A. Thirty (30) days prior
to making its first Nomination, each prospective Shipper shall provide
information to Gatherer that will allow Gatherer to determine the prospective
Shipper’s ability to pay any financial obligations that could arise from the
transportation of the prospective Shipper’s Crude Oil under the terms of this
tariff. The type of information Gatherer may request from a prospective Shipper
includes, but is not limited to, most recent year-end financials, Form 10-K
reports or other filings with regulatory agencies, and bank references. 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. B. 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. As adequate
assurance, Gatherer may require Shipper to provide one of the following (at
Gatherer’s election): (i) cash (in U.S. dollars), as collateral held for
security, (ii) a Guarantee (as defined below), (iii) a prepayment, and/or (iv)
an irrevocable standby letter of credit issued by a Qualified Institution, with
the amount of such security to be the amount estimated in good faith for the
next sixty (60) days of performance hereunder. For purposes of this Item 18(B),
a “Guarantee” means a guarantee of the payment obligations of Shipper which is
provided by Shipper’s credit support 18

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[exhibit1029llex10k201912077.jpg]
[COGA – EXECUTION] provider in favor of Gatherer with such form of guarantee
being acceptable to Gatherer in its reasonable discretion. C. In the event a
prospective Shipper fails to comply with any obligation in Item 18(A) or a
Shipper fails to comply with any obligation in Item 18(B), Gatherer shall not be
obligated to provide such prospective Shipper with access to the Gathering
System or to provide transportation services pursuant to this tariff or a COGA,
as applicable, until such requirement is fully met. 19. CHARGE FOR FUND
COMPENSATION In addition to all other charges to Shipper accruing on Crude Oil
accepted for transportation and subject to any provision in a COGA, a per Barrel
charge will be assessed and collected by Gatherer in the amount of any tax, fee,
or other charge levied against Gatherer in connection with such Crude Oil by any
Governmental Authority for the purpose of creating a fund for the prevention,
containment, clean up, and/or removal of spills and/or the reimbursement of
Persons sustaining a loss therefrom or any program where Gatherer is acting as a
collecting agent. Such charge will be included in the appropriate tariff filed
with the Federal Energy Regulatory Commission. 20. LIABILITY OF SHIPPER As a
condition to Gatherer’s acceptance of Crude Oil for transportation on the
Gathering System, each Shipper agrees to protect and indemnify Gatherer against
claims or actions for injury and/or death of any and all Persons whomever and
for damage to property of or any other loss sustained by Gatherer, Shipper,
Consignor, Consignee and/or any third party, resulting from or arising out of
(i) any breach of or failure to adhere to any provision of Gatherer’s tariff(s)
or a COGA (if applicable) by such Shipper or any of its Consignors, Consignees,
or any of their agents, employees or representatives and (ii) the negligent
act(s) or failure(s) to act of such Shipper or any of its Consignors, Consignees
or any of their agents, employees or representatives in connection with delivery
or receipt of Crude Oil, except to the extent such claims or actions are due to
the breach by Gatherer of this tariff or a COGA (if applicable), or negligence
or willful misconduct of Gatherer. 21. LIABILITY OF GATHERER A. Gatherer, while
in possession of Crude Oil herein described, shall not be liable for, and
Shipper hereby waives any claims against Gatherer for, any loss thereof, damage
thereto, or delay caused by Force Majeure, the act of Shipper itself, a
Governmental Authority, the nature of the goods, or resulting from any other
causes, unless such loss, damage, or delay is due to the breach by Gatherer of
this tariff or a COGA (if applicable), or negligence or willful misconduct of
Gatherer. Gatherer agrees to protect and indemnify Shipper against any claims,
losses or damages arising from any breach, negligence or willful misconduct by
Gatherer. Gatherer shall not be liable for, and Shipper hereby waives any claims
against Gatherer for, any loss or damage to Crude Oil prior to the delivery of
Crude Oil to Gatherer at the Receipt Points and after delivery of Crude Oil at
the Delivery Points. 19

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[exhibit1029llex10k201912078.jpg]
[COGA – EXECUTION] B. In case of loss or damage of any Crude Oil from any such
causes that are not due to the breach, negligence or willful misconduct of
Gatherer, after it has been received for transportation at the Receipt Point and
before the same has been delivered to Shipper at the Delivery Point, such loss
will be charged proportionately to each Shipper in the ratio that its Crude Oil,
or portion thereof, received and undelivered at the time the loss occurs, bears
to the total of all Crude Oil then in the custody of Gatherer for transportation
via the lines or other facilities in which the loss occurs. Gatherer will be
obligated to deliver only that portion of such Crude Oil remaining after
deducting Shipper’s portion of such loss determined as aforesaid. In the
aforementioned instance, transportation charges will be assessed only on the
quantity delivered. C. Gatherer will not be liable for discoloration,
contamination, or deterioration of the Crude Oil transported hereunder unless
and to the extent such discoloration, contamination, or deterioration of Crude
Oil transported results from the breach, negligence or willful misconduct of
Gatherer. D. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS TARIFF, IN NO
EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES, ANY
SUCCESSORS IN INTEREST OR ANY BENEFICIARY OR ASSIGNEE OF A COGA FOR ANY
CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, INCLUDING,
WITHOUT LIMITATION, ANY LOST PROFITS OR REVENUES THAT CONSTITUTE SUCH DAMAGES,
THAT ARISE OUT OF OR RELATE TO THIS TARIFF OR ANY BREACH HEREOF; PROVIDED,
HOWEVER, THE FOREGOING SHALL NOT BE CONSTRUED AS LIMITING AN OBLIGATION OF A
PARTY HEREUNDER TO INDEMNIFY, DEFEND AND HOLD HARMLESS PERSONS ENTITLED TO
INDEMNIFICATION HEREUNDER AGAINST CLAIMS ASSERTED BY UNAFFILIATED THIRD PARTIES,
INCLUDING, BUT NOT LIMITED TO, THIRD PARTY CLAIMS FOR SPECIAL, INDIRECT,
CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES. E. Gatherer operates under this
tariff solely as a common carrier and not as an owner, manufacturer, or seller
of the Crude Oil transported or stored hereunder, and Gatherer expressly
disclaims any liability for any express or implied warranty for Crude Oil
transported hereunder including any warranties of merchantability or fitness for
intended use. 22. CLAIMS, SUITS, AND TIME FOR FILING As a condition precedent to
recovery by Shipper against Gatherer for loss, damage, or delay in receipt or
delivery of Shipper’s Crude Oil for which Gatherer may be responsible, Shipper’s
claim must be filed in writing with Gatherer within nine (9) months after
delivery of the affected Crude Oil, or in case of Gatherer’s failure to make
delivery of Shipper’s Crude Oil, then within nine (9) months after a reasonable
time for delivery has elapsed; and suits shall be instituted against Gatherer
only within two (2) years and one (1) day from the day when notice in writing is
given by Gatherer to Shipper that Gatherer has disallowed the claim or any part
or parts thereof 20

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[exhibit1029llex10k201912079.jpg]
[COGA – EXECUTION] specified in the notice. Where claims are not filed or suits
are not instituted by Shipper on such claims in accordance with the foregoing
provisions, such claims will not be paid and Gatherer will not be liable.
Nothing in this Item 22 shall limit Shipper’s right to receive indemnification
with respect to any loss, claim or damage for which Gatherer is obligated to
indemnify Shipper, other than claims by Shipper or its Affiliates for loss,
damage or delay in receipt or delivery of Shipper’s Crude Oil by Gatherer,
regardless of when such loss, claim or damage arose. 23. CONNECTIONS Subject to
any provision contained in a Priority Shipper’s COGA, including any provision
requiring the connection of Receipt Points, connections to the Gathering System
will only be considered if made by formal written application to Gatherer in
accordance with Gatherer’s connection policy. All connections will be subject to
design requirements necessary to protect the safety, security, integrity and
efficient operation of the Gathering System in accordance with generally
accepted industry standards and Gatherer’s connection policies. Acceptance of
any application for connection will be within the sole discretion of Gatherer
and will be subject to compliance with Governmental Authorities and industry
regulations. 24. GATHERER DISCRETION Gatherer will operate the Gathering System
and implement the rules and regulations contained in this tariff, including
those provisions providing for Gatherer’s discretion, in a manner that is not
unduly discriminatory or unduly preferential 25. LOSS ALLOWANCE Except as
otherwise set forth in Section II of this tariff, Gatherer shall deduct the
actual losses of Crude Oil on a pro rata basis to cover losses inherent in the
transportation of Crude Oil on the Gathering System, provided that such loss
allowance shall not exceed (i) two-tenths of one percent (0.20%) of the volumes
of Shipper’s Crude Oil received into the Gathering System, with respect to
Shipper’s Crude Oil having an API Gravity of 49.9 degrees or less, or (ii)
four-tenths of one percent (0.40%) of the volumes of Shipper’s Crude Oil
received in the Gathering System, with respect to Shipper’s Crude Oil having an
API Gravity of 49.9 degrees to 60 degrees (Gatherer will not accept for
transportation Crude Oil with API Gravity above 60 degrees). The volumes
delivered to Shipper or its designee from Gatherer’s facilities shall be net of
such deduction. 21

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[exhibit1029llex10k201912080.jpg]
[COGA – EXECUTION] SECTION II RATES TABLE 1 COMMITTED RATES APPLICABLE TO
PRIORITY SHIPPERS1 AND UNCOMMITTED RATES Rates in Dollars per Barrel Volume 10
Year Term 12 Year Term Uncommitted Tier Origin Destination (Barrels/Day)
Priority Rate2 Priority Rate3 Rate4 >25,000 1 Tank >20,000 and 2 Batteries <=
25,000 located in Winkler Interconnect at County, 10,000 and 3 Texas, Pipeline,
<= 20,000 Loving [Winkler] County, County, Texas Texas and >=2,000 and 4 Lea
County, <= 10,000 New Mexico 5 < 2,000 Truck Interconnect at Station(s)
Pipeline, [Winkler] County, Texas 22

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[exhibit1029llex10k201912081.jpg]
[COGA – EXECUTION] TABLE 2 COMMITTED RATES APPLICABLE TO PRIORITY SHIPPERS WITH
ACREAGE DEDICATION OF AT LEAST 2,000 ACRES AND UNCOMMITTED RATES Rates in
Dollars per Barrel 12 Year Term 5,9, Uncommitted Tier Origin Destination
Priority Rate 6, 9, 10 10 Rate [ ] Tank Batteries located in Winkler
Interconnect at County, 1 Texas, Pipeline, $0.75 $0.74 Loving [Winkler] County,
County, Texas Texas and Lea County, New Mexico [ ] Interconnect at Truck 1
Station(s) Pipeline, [Winkler] County, Texas 23

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[exhibit1029llex10k201912082.jpg]
[COGA – EXECUTION] TABLE 3 COMMITTED RATES APPLICABLE TO PRIORITY SHIPPERS WITH
ACREAGE DEDICATION OF AT LEAST 2,000 ACRES AND UNCOMMITTED RATES Rates in
Dollars per Barrel Volume 10 Year Term Uncommitted Tier Origin7 Destination
(Barrels/Day) Priority Rate8 Rate6 1 [ ] Tank Interconnect at >20,000 $1.18
$1.17 Batteries >10,000 and $0.98 2 $0.97 located in <= 20,000 Pipeline, Eddy
and Lea [Winkler] <=10,000 $0.78 3 Counties, $0.77 County, Texas New Mexico [ ]
Interconnect at Truck Station(s) Pipeline, [Winkler] County, Texas Effective as
of 9:00 a.m., Central Clock Time, on the first January 1st that occurs two years
after the Commencement Date, and each January 1st occurring thereafter, the
Priority Rates and Uncommitted Rates noted above shall be adjusted upwards or
downwards following FERC’s indexing adjustment, as set out in 18 CFR § 342.3,
including future amendments or modifications thereof, provided, however, that
such indexing adjustment shall not result in an increase or decrease in the
Priority Rates and/or Uncommitted Rates that exceeds two percent (2%) or a
decrease in the Priority Rates and/or Uncommitted Rates that would result in a
rate less than the rates set out in Gatherer’s initial FERC tariff, F.E.R.C. No.
1.0.0. In the event that Gatherer is unable to make a tariff filing pursuant to
18 CFR § 342.4(c) to adjust the Uncommitted Rates, then Gatherer will make a
tariff filing to adjust the Uncommitted Rates effective as of the subsequent
July 1 pursuant to 18 CFR § 342.3. However, if the FERC indexing adjustment is
eliminated, Gatherer may increase or decrease the Priority Rates and Uncommitted
Rates to reflect any positive changes or negative changes in the Producer Price
Index for Finished Goods, on a year-over-year basis, subject to the above-noted
increase and decrease limitations. TRUCK UNLOAD CHARGE Shipments unloaded from
tank truck facilities into the Gathering System at Receipt Points are subject to
a charge of 7.25 cents ($0.0725) per Barrel, except as otherwise provided in a
COGA. 24

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[exhibit1029llex10k201912083.jpg]
[COGA – EXECUTION] Notes Applicable to Tables 1, 2 and 3 1. Priority Shippers
that have committed to deliver a specified volume of Crude Oil to the Gathering
System. 2. In order to qualify for this 10 Year Term Committed Rate, a Priority
Shipper must have entered into a COGA with a minimum term of 10 years and a
commitment to deliver a specified volume of Crude Oil on the Gathering System of
at least [2,000] Barrels per day. 3. 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 a commitment to deliver a specified volume of Crude Oil on
the Gathering System of at least [2,000] Barrels per day. 4. An Uncommitted
Shipper’s Uncommitted Rate will be based on the volume of Crude Oil it ships
each month on the Gathering System, which shall then determine the volume tier
applicable to such Uncommitted Shipper. 5. 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, Loving County, Texas
and/or Lea County, New Mexico. 6. In order to qualify for the Uncommitted Rate
based on an acreage dedication, an Uncommitted Shipper must have an effective
dedication agreement with Gatherer pursuant to which such Uncommitted Shipper
has agreed to deliver crude petroleum produced from the dedicated acreage for
transportation on the Gathering System. 7. In lieu of the provisions stated in
Item 25 of the tariff, the following will apply for Crude Oil Tendered at these
Receipt Points: . The volumes delivered to Shipper from Gatherer’s facilities
shall be net of such deduction. 8. In order to qualify for this 10 Year Term
Committed Rate, a Priority Shipper must have entered into a COGA with a minimum
term of 10 years and made an acreage dedication covering at least [2,000] acres
of lands located in Winkler County, Texas, Loving County, Texas and/or Lea
County, New Mexico. 9. If the Commencement Date does not occur by , 201 (the
“Project Deadline”), then upon the Commencement Date, Gatherer shall temporarily
reduce this Priority Rate to $0.375 per Barrel and this Uncommitted Rate to
$0.370 per Barrel for only a period of time equal to the amount of days from the
Project Deadline until the Commencement Date (“Delay Period”); provided,
however, on the first day after the expiration of the period of time after the
Commencement Date equal to the Delay Period, such Priority Rate and Uncommitted
Rate will be increased to such rates, respectively, set out in Table 2. By way
of example, if the Delay Period is equal to thirty (30) days, then such Priority
Rate and Uncommitted Rate will be $0.375 per Barrel and $0.370 per Barrel,
respectively, for only the first 30 days after the Commencement Date and on the
31st day after the Commencement Period, the Priority Rate and Uncommitted Rate
shall be as set out in Table 2. Notwithstanding anything herein to the contrary,
if the Project Deadline is delayed due to a properly noticed event of Force
Majeure, then the Project Deadline shall be extended for each day of any such
delay. 10. If Gatherer fails or is unable to connect an additional Receipt Point
as requested by a Priority Shipper as provided for in the applicable COGA by the
date that is thirty (30) days beyond the applicable Target RP In-Service Date
(as such term is defined in the 25

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[exhibit1029llex10k201912084.jpg]
[COGA – EXECUTION] applicable COGA) for any reason other than Force Majeure,
then, for each day of unexcused delay until Gatherer connects such additional
Receipt Point beyond the Target RP In-Service Date, Gatherer shall temporarily
reduce this Priority Rate to $0.375 per Barrel and this Uncommitted Rate to
$0.370 per Barrel for Shipper’s Crude Oil delivered to such additional Receipt
Point for only a period of time equal to the amount of days from the deadline
set forth in the COGA until the date such additional Receipt Point is connected;
provided, however, on the first day after the expiration of such period of time,
the Priority Rate and Uncommitted Rate will be increased to such rates,
respectively, set out in Table 2. By means of example, if Gatherer connects a
requested Receipt Point fifty (50) days after the Target In-Service Date for
such additional Receipt Point, and such delay is not due to an event of Force
Majeure, then the reduction in the Priority Rate and Uncommitted Rate described
in the preceding sentence would apply to such Priority Shipper’s Crude Oil
received at such additional Receipt Point for the first twenty (20) days after
such additional Receipt Point is connected. 26

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[exhibit1029llex10k201912085.jpg]
EXHIBIT G PRIOR DEDICATIONS NONE.

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