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Exhibit 10.1




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TABLE OF CONTENTS
 ARTICLE 1.  DEFINITIONS
    
    
    21.1.
    
    Words and Terms
    
    
    2ARTICLE 2.  CERTAIN OBLIGATIONS OF THE PARTIES
    
    
    52.1.
    
    Commitments of the Parties
    
    
    52.2.
    
    Bypass; Suspension of Processing
    
    
    52.3.
    
    Hydrocarbon Dew Point Control
    
    
    52.4.
    
    Termination of KMTP Conditioning and Blending Fees
    
    
    62.5.
    
    Entitlement to Products; Replacement of PTR.
    
    
    62.6.
    
    Copano Contract Gas
    
    
    6ARTICLE 3.  ALLOCATION OF INLET GAS
    
    
    63.1.
    
    KMTP Information
    
    
    63.2.
    
    KMTP Gas Calculations
    
    
    7ARTICLE 4.  DETERMINATION OF THE PROCESSING MARGIN
    
    
    7ARTICLE 5.  PAYMENTS
    
    
    85.1.
    
    Payments by Copano
    
    
    85.2.
    
    Payments by KMTP
    
    
    85.3.
    
    Processing Payment - PCL Gas
    
    
    8ARTICLE 6.  PRESSURES
    
    
    96.1.
    
    Delivery Pressure
    
    
    96.2.
    
    Pressure Drop
    
    
    9ARTICLE 7.  CONTENT TESTS
    
    
    97.1.
    
    Sampling
    
    
    97.2.
    
    Notices of Tests
    
    
    97.3.
    
    Btu Content
    
    
    9ARTICLE 8.  PRODUCT AND PTR ALLOCATION
    
    
    108.1.
    
    Procedures for Allocating Products and PTR
    
    
    10ARTICLE 9.  RESIDUE GAS REDELIVERY
    
    
    109.1.
    
    Residue Gas Allocation to KMTP Gas
    
    
    109.2.
    
    Transfer of Custody and Responsibility for Residue Gas
    
    
    109.3.
    
    Residue Gas Volumes
    
    
    10ARTICLE 10.  MAKE-UP OF PTR
    
    
    1010.1.
    
    Obligation
    
    
    1010.2.
    
    PTR Make-up Gas Balancing
    
    
    1010.3.
    
    Notice of Volumes
    
    
    11




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ARTICLE 11.  MEASUREMENT
    
    
    1111.1.
    
    Assumed Atmospheric Pressure
    
    
    1111.2.
    
    Unit of Volume
    
    
    1111.3.
    
    Adjustment for Supercompressibility
    
    
    1211.4.
    
    Determination of Heating Value
    
    
    1211.5.
    
    Determination of Flowing Temperature
    
    
    1211.6.
    
    Determination of Specific Gravity
    
    
    13ARTICLE 12.  MEASURING EQUIPMENT AND TESTING
    
    
    1312.1.
    
    Equipment
    
    
    1312.2.
    
    Calibration and Tests of Meters
    
    
    1412.3.
    
    Access to Meters and Records
    
    
    1412.4.
    
    Correction of Metering Errors
    
    
    1512.5.
    
    Failure of Meters
    
    
    1512.6.
    
    Check Measuring Equipment
    
    
    1512.7.
    
    New Measurement Techniques
    
    
    1512.8.
    
    Liquid Measurement
    
    
    16ARTICLE 13.  QUALITY
    
    
    1613.1.
    
    Gas Quality Specifications
    
    
    1613.2.
    
    Testing
    
    
    1713.3.
    
    Failure to Meet Quality Specifications
    
    
    18ARTICLE 14.  ACCOUNTING
    
    
    1814.1.
    
    Statements
    
    
    1814.2.
    
    Payments
    
    
    1814.3.
    
    Auditing
    
    
    1814.4.
    
    Failure to Pay
    
    
    18ARTICLE 15.  FORCE MAJEURE
    
    
    1915.1.
    
    Definition
    
    
    1915.2.
    
    Strikes and Lockouts
    
    
    2015.3.
    
    Plant Loss
    
    
    20ARTICLE 16.  TAXES
    
    
    2016.1.
    
    Taxes
    
    
    20ARTICLE 17.  LIABILITY; TITLE AND WARRANTIES
    
    
    2017.1.
    
    Transfer of Custody of and Responsibility For Gas
    
    
    2017.2.
    
    Title to Products
    
    
    2117.3.
    
    Title to PTR
    
    
    2117.4.
    
    Liability
    
    
    2117.5.
    
    Warranties
    
    
    21ARTICLE 18.  SUCCESSORS AND ASSIGNS
    
    
    2118.1.
    
    Binding of Terms
    
    
    2118.2.
    
    Conditions
    
    
    2118.3.
    
    Pledged Rights
    
    
    21ARTICLE 19.  NOTICES
    
    
    2219.1.
    
    Addresses
    
    
    22
 ii




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ARTICLE 20.  TERM
    
    
    2320.1.
    
    Term
    
    
    23ARTICLE 21.  MISCELLANEOUS
    
    
    2321.1.
    
    Upstream Processing
    
    
    2321.2.
    
    Indemnity
    
    
    2421.3.
    
    Waiver
    
    
    2421.4.
    
    Performance
    
    
    2421.5.
    
    Drafting
    
    
    2421.6.
    
    Headings
    
    
    2521.7.
    
    Third Party Beneficiaries
    
    
    2521.8.
    
    Prior Contract
    
    
    25
 iii




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W I T N E S S E T H:
 WHEREAS,
 WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS,
 WHEREAS,
 WHEREAS




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WHEREAS
 NOW, THEREFORE,
 DEFINITIONS
 Words and Terms
           2




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3




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),
  
  Inside F.E.R.C.s Gas Market Report Inside F.E.R.C.s Gas Market Report
 4




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CERTAIN OBLIGATIONS OF THE PARTIES
 Commitments of the Parties
   Bypass; Suspension of Processing
  Hydrocarbon Dew Point Control.
  5




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Termination of KMTP Conditioning and Blending Fees
  Entitlement to Products; Replacement of PTR
  Copano Contract Gas
  ALLOCATION OF INLET GAS
 KMTP Information
  6




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KMTP Gas Calculations
           7




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PAYMENTS
 Payments by Copano
  KMTP Gas Mcf X (Processing Margin  $** per Gallon) X Recovered GPM of KMTP Gas X
**%
  Payments by KMTP
  (A) KMTP Gas Mcf X ($** per Gallon  Processing Margin) X Recovered GPM of KMTP
Gas;
 or
 (B) $** per Mcf X KMTP Gas Mcf.
 Processing Payment  PCL Gas
   8




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PRESSURES
 Delivery Pressure
  Pressure Drop
  CONTENT TESTS
 Sampling
  Notices of Tests
  Btu Content
  9




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PRODUCT AND PTR ALLOCATION
 Procedures for Allocating Products and PTR
  RESIDUE GAS REDELIVERY
 Residue Gas Allocation to KMTP Gas
  Transfer of Custody and Responsibility for Residue Gas
  Residue Gas Volumes
  MAKE-UP OF PTR
 Obligation
  PTR Make-up Gas Balancing
  10




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Notice of Volumes
  MEASUREMENT
 Assumed Atmospheric Pressure
  Unit of Volume
  11




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Adjustment for Supercompressibility
  Determination of Heating Value
  Determination of Flowing Temperature
  12




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Determination of Specific Gravity
  MEASURING EQUIPMENT AND TESTING
 Equipment
   13




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Calibration and Tests of Meters
  Access to Meters and Records
  14




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Correction of Metering Errors
  Failure of Meters
      Check Measuring Equipment
  New Measurement Techniques
  15




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Liquid Measurement
  QUALITY
 Gas Quality Specifications
 PTR
    16




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2
 2
 2
     Testing
  17




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Failure to Meet Quality Specifications
  ACCOUNTING
 Statements
  Payments
 th
 Auditing
  Failure to Pay
  18




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FORCE MAJEURE
 Definition
  19




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Strikes and Lockouts
  Plant Loss
  TAXES
 Taxes
   Transfer of Custody of and Responsibility For Gas
  20




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Title to Products
  Title to PTR
  Liability
  Warranties
 , to indemnify COPANO against all suits, actions, debts,
accounts, damages, costs (including attorneys fees), losses and expenses arising from or out of
any adverse legal claims of any and all persons with respect to such processing rights to indemnify KMTP against all suits, actions, debts, accounts,
damages, costs (including attorneys fees), losses and expenses arising from or out of any adverse
legal claims of any and all persons with respect to such right to process and/or title.
 SUCCESSORS AND ASSIGNS
 Binding of Terms
  Conditions
  Pledged Rights
  21




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NOTICES
 Addresses
    
 (713)369-9395
 ,
 22




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Term
  MISCELLANEOUS
 Upstream Processing
  23




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Indemnity
  Waiver
  Performance
  Drafting
  24




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Headings
  Third Party Beneficiaries
  Prior Contract
    IN WITNESS WHEREOF, date
 
 
 25




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26




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EXHIBIT B
                   Kinder Morgan Texas Pipeline, L.P.
    
    
    
    COPANO PROCESSING, L.P.This ____ day of , 200__
    
    
    
    This ____ day of , 200__By:
    
    
    
    
    
    By:




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EXHIBIT C
  Determination of Plant Products
  Determination of PTR
  (i)
    
    The quantity of the KMTP Gas, stated in MMBtus, that is
consumed as Plant fuel, flare and vent in the processing of the KMTP Gas during
a given Month shall be determined by multiplying the total quantity of MMBtus
consumed as Plant Fuel, flare and vent in Plant operations during such Month by
a fraction, the numerator of which is the total quantity of KMTP Gas in MMBtu
and the denominator of which is the total quantity in MMBtu of Gas from all
sources delivered to the Plant for processing; and(ii)
    
    Shrinkage shall be calculated each Month by multiplying the
number of gallons of each component recovered and allocated to the KMTP Gas by
the Btu equivalent of each such component as set forth in the GPA Technical
Standards Publication No. 2145-96, as revised from time to time and as adjusted
to sixty degrees Fahrenheit (60°) and 14.73 psia pressure base; the aggregate
Btus of all such components shall constitute the shrinkage hereunder.




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Determination of Residue Gas
  2




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PRODUCER
    
    KMTP
    
    
    
    
    
    Ship Channel Index
    
    **PLANT
    
    HOUSTON CENTRALACTUAL PROD. PRICESRECOVERY
    
    RECOVERED
    
    LIQUID VOLUME
    
    LIQUID PRICE
    
    COMPOSITE PRICE
    
    COMPONENT
    
    COMPOSITE
    
    LESS DEDUCTIONSCOMPONENT
    
    
    
    GPM
    
    %
    
    GPM
    
    %
    
    $/GAL
    
    $/GAL
    
    Btu/GAL
    
    Btu/GAL
    
    $/GALEthane
    
    
    
    **
    
    **
    
    =(C13*D13)/100
    
    =E13/E$21
    
    =L13
    
    =F13*G13
    
    66369
    
    =F13*I13
    
    **Propane
    
    
    
    **
    
    **
    
    =(C14*D14)/100
    
    =E14/E$21
    
    =L14
    
    =F14*G14
    
    91599
    
    =F14*I14
    
    **I-Butane
    
    
    
    **
    
    **
    
    =(C15*D15)/100
    
    =E15/E$21
    
    =L15
    
    =F15*G15
    
    99652
    
    =F15*I15
    
    **n-Butane
    
    
    
    **
    
    **
    
    =(C16*D16)/100
    
    =E16/E$21
    
    =L16
    
    =F16*G16
    
    103724
    
    =F16*I16
    
    **I-Pentane
    
    
    
    **
    
    **
    
    =(C17*D17)/100
    
    =E17/E$21
    
    =L17
    
    =F17*G17
    
    109584
    
    =F17*I17
    
    **n-Pentane
    
    
    
    **
    
    **
    
    =(C18*D18)/100
    
    =E18/E$21
    
    =L18
    
    =F18*G18
    
    110946
    
    =F18*I18
    
    **Hexanes+
    
    
    
    **
    
    **
    
    =(C19*D19)/100
    
    =E19/E$21
    
    =L19
    
    =F19*G19
    
    121000
    
    =F19*I19
    
    **TOTALS
    
    
    
    =SUM(C13:C20)
    
    
    
    =SUM(E13:E20)
    
    =SUM(F13:F20)
    
    
    
    =SUM(H13:H20)
    
    
    
    =SUM(J13:J20)KMTP GAS (Btu/cf)
    
    
    
    
    
    **GAS SALES VALUE($/MMBtu)
    
    
    
    
    
    **SHRINKAGE VALUE($/Gal)
    
    
    
    
    

=(J21/1000000)*D25FRAC MARGIN($/Gal)
    
    
    
    
    
    =H21-D27FUEL CONSUMPTION(MMBtu/Gal)
    
    
    
    
    
    ** * D23/1000)/E21FUEL COST($/Gal)
    
    
    
    
    
    =D31*D25PROCESSING MARGIN($/Gal)
    
    
    
    
    
    =D29-D33




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PRODUCER
    
    KMTP
    
    
    
    
    
    Ship Channel Index
    
    **PLANT
    
    HOUSTON CENTRALACTUAL PROD. PRICESRECOVERY
    
    RECOVERED
    
    LIQUID VOLUME
    
    LIQUID PRICE
    
    COMPOSITE PRICE
    
    COMPONENT
    
    COMPOSITE
    
    LESS DEDUCTIONSCOMPONENT
    
    
    
    GPM
    
    %
    
    GPM
    
    %
    
    $/GAL
    
    $/GAL
    
    Btu/GAL
    
    Btu/GAL
    
    $/GALEthane
    
    
    
    **
    
    **
    
    **
    
    0.50638
    
    **
    
    0.27344
    
    66,369
    
    33,608
    
    **Propane
    
    
    
    **
    
    **
    
    **
    
    0.23328
    
    **
    
    0.21462
    
    91,599
    
    21,368
    
    **I-Butane
    
    
    
    **
    
    **
    
    **
    
    0.06757
    
    **
    
    0.08446
    
    99,652
    
    6,733
    
    **n-Butane
    
    
    
    **
    
    **
    
    **
    
    0.06201
    
    **
    
    0.07318
    
    103,724
    
    6,432
    
    **I-Pentane
    
    
    
    **
    
    **
    
    **
    
    0.03236
    
    **
    
    0.04951
    
    109,584
    
    3,546
    
    **n-Pentane
    
    
    
    **
    
    **
    
    **
    
    0.01656
    
    **
    
    0.02533
    
    110,946
    
    1,837
    
    **Hexanes+
    
    
    
    **
    
    **
    
    **
    
    0.08184
    
    **
    
    0.12521
    
    121,000
    
    9,903
    
    **TOTALS
    
    
    
    **
    
    
    
    **
    
    1.00000
    
    
    
    0.84576
    
    
    
    83,428KMTP GAS (Btu/cf)
    
    
    
    
    
    **GAS SALES VALUE($/MMBtu)
    
    
    
    
    
    **SHRINKAGE VALUE($/Gal)
    
    
    
    
    
    **FRAC MARGIN($/Gal)
    
    
    
    
    
    **FUEL CONSUMPTION(MMBtu/Gal)
    
    
    
    
    
    **FUEL COST($/Gal)
    
    
    
    
    
    **PROCESSING MARGIN($/Gal)
    
    
    
    
    
    $0.0900