COMMITMENT FOR THE APPLICABLE YEAR, THEN THE
QUANTITY THAT IS GREATER THAN THE ANNUAL VOLUME COMMITMENT (THE "EXCESS
VOLUME"), SHALL ROLLOVER TO THE FOLLOWING YEAR AND BE COUNTED TOWARDS THAT
YEAR'S ANNUAL VOLUME COMMITMENT, IF ANY.
4.3
GATHERING FEE ADJUSTMENTS. WHEN OWNER HAS
DELIVERED THE AGGREGATE ANNUAL VOLUME COMMITMENT OR THE ANNUAL TRUE-UP FOR 2008
HAS BEEN RECEIVED BY GATHERER, WHICHEVER OCCURS FIRST, THEN OWNER'S GATHERING
FEE SHALL BE REDUCED TO $0.284/MCF. THIS REDUCED GATHERING FEE SHALL BE ADJUSTED
ON AN ANNUAL BASIS BEGINNING 2010 IN PROPORTION TO THE PERCENTAGE CHANGE, FROM
THE PRECEDING YEAR, IN THE PRODUCER PRICE INDEX ("PPI") FOR FINISHED GOODS, AS
PUBLISHED BY THE U.S. BUREAU OF LABOR STATISTICS; PROVIDED, HOWEVER, THE ANNUAL
ADJUSTMENT SHALL NEVER EXCEED TEN PERCENT
4
(10%). THE ADJUSTMENT OF THE GATHERING FEE SHALL BE MADE EFFECTIVE UPON EACH
ANNIVERSARY OF THE EFFECTIVE DATE AND SHALL REFLECT THE PERCENTAGE CHANGE IN THE
PPI AS IT EXISTED FOR THE IMMEDIATELY PRECEDING JANUARY FROM THE PPI FOR THE
SECOND IMMEDIATELY PRECEDING JANUARY.
4.4
ALTERNATIVE POWER/FUEL SOURCE FEE. IN THE
EVENT ANY OF OWNER'S GAS FLOWS THROUGH A FIELD COMPRESSION FACILITY OR
FACILITIES POWERED BY ELECTRICAL POWER, OR ANY FUEL OR POWER SOURCE OTHER THAN
GAS BEING DELIVERED INTO THE GATHERING FACILITIES ("ALTERNATE POWER SOURCE"),
OWNER SHALL PAY GATHERER ITS PROPORTIONATE SHARE OF THE ACTUAL EXPENSE INCURRED
BY GATHERER FOR SUCH ALTERNATE POWER SOURCE. SUCH COSTS SHALL BE ALLOCATED TO
EACH DELIVERY POINT SERVED BY SUCH COMPRESSION FACILITY BY MULTIPLYING THE TOTAL
ALTERNATE POWER SOURCE COST OF EACH COMPRESSION FACILITY FOR THE MONTH BY A
FRACTION, THE NUMERATOR OF WHICH SHALL BE THE VOLUME OF OWNER'S GAS FLOWING
THROUGH THE FACILITY ATTRIBUTABLE TO THE PARTICULAR DELIVERY POINT AND THE
DENOMINATOR OF WHICH SHALL BE THE TOTAL VOLUME OF GAS FLOWING THROUGH ALL SUCH
COMPRESSION FACILITIES. GATHERER SHALL CHARGE OWNER, ON A MONTHLY BASIS, THE
RESULTANT PRODUCT.
4.5
FACILITIES FEE FOR QUALITY MONITORING AND
OTHER FACILITIES. IF ADDITIONAL QUALITY MONITORING EQUIPMENT OR OTHER FACILITIES
ARE REQUIRED TO BE INSTALLED, OWNER AGREES TO PAY ITS PRO-RATA SHARE OF
GATHERER'S ACTUAL COSTS THEREOF.
4.6
TREATING AND OTHER FEES. IF TREATING OF THE
GAS OR OTHER ACTIVITIES REQUIRING CAPITAL EXPENDITURES ARE REQUIRED, OWNER AND
GATHERER SHALL NEGOTIATE A MUTUALLY AGREEABLE FEE. IF THE PARTIES FAIL TO AGREE
ON A FEE WITHIN THIRTY (30) DAYS OF COMPLETION OF SUCH CAPITAL EXPENDITURES,
THEN GATHERER WILL BE ENTITLED TO INVOICE OWNER FOR 100% OF THE GATHERER'S
ACTUAL CAPITAL COSTS ASSOCIATED WITH SUCH TREATING OR OTHER ACTIVITIES, AND
OWNER SHALL PAY ITS PRO RATA SHARE OF SUCH COSTS.
ARTICLE V
NOTICES/INVOICES
EXCEPT AS MAY BE OTHERWISE PROVIDED, ANY NOTICE, REQUEST, DEMAND, STATEMENT OR
BILL PROVIDED FOR IN THIS AGREEMENT OR ANY NOTICE WHICH A PARTY MAY DESIRE TO
GIVE THE OTHER SHALL BE IN WRITING FAXED, E-MAILED OR OTHERWISE DELIVERED,
AS THE CASE MAY BE, AS FOLLOWS:
GATHERER:
Notices:
OWNER:
Notices:
PRB Gas Transportation, Inc.
1875 Lawrence Street, Suite 450,
Denver, CO 80202
Phone: 303-308-1330
Fax:
303-308-1590
Storm Cat Energy (USA) Operating