Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 1 TO CREDIT AGREEMENT

     THIS AMENDMENT NO. 1 TO CREDIT AGREEMENT (this “Amendment”) is entered into as of July
13, 2011 by and among WEATHERFORD INTERNATIONAL LTD., a Bermuda exempted company (“WIL”),
WEATHERFORD INTERNATIONAL LTD., a Swiss joint stock corporation (“WIL-Switzerland”),
WEATHERFORD LIQUIDITY MANAGEMENT HUNGARY LIMITED LIABILITY COMPANY, a Hungarian limited liability
company (“HOC”), WEATHERFORD CAPITAL MANAGEMENT SERVICES LIMITED LIABILITY COMPANY, a
Hungarian limited liability company (“WCMS” and, together with WIL, WIL-Switzerland and
HOC, the “Obligor Parties”), WEATHERFORD INTERNATIONAL, INC., a Delaware corporation
(“WII” and, together with the Obligor Parties, the “Obligors”), the Lenders listed
on the signature pages attached hereto, JPMORGAN CHASE BANK, N.A., as administrative agent for the
Lenders (the “Administrative Agent”), and the Issuing Banks.

RECITALS:

     WHEREAS, reference is made to that certain Credit Agreement dated as of October 15, 2010 by
and among the Obligor Parties, the lenders named therein, the Administrative Agent, the Issuing
Banks and certain other parties named therein (as heretofore amended, restated, supplemented or
otherwise modified, the “Credit Agreement”);

     WHEREAS, the Borrowers desire to increase the Aggregate Commitments from $1,750,000,000 to
$2,250,000,000 and, in order to effect such increase, the Borrowers have requested that (i) the
Lenders identified on Annex I attached hereto as Increasing Lenders (the “Increasing
Lenders”) and the Lenders identified on Annex I attached hereto as Additional Lenders
(the “Additional Lenders”) provide a Commitment Increase (the “Specified Commitment
Increase”) pursuant to Section 2.15 of the Credit Agreement and (ii) the Administrative Agent
and the Issuing Banks consent to the Specified Commitment Increase and the joinder of the
Additional Lenders as parties to the Credit Agreement;

     WHEREAS, the Administrative Agent and the Issuing Banks are willing to consent to the
Specified Commitment Increase and the joinder of the Additional Lenders as parties to the Credit
Agreement;

     WHEREAS, in connection with the Specified Commitment Increase, the Lenders identified on
Annex II attached hereto (the “Departing Lenders”) have requested that their
Commitments be terminated, and the Borrowers are willing to consent to such termination;

     WHEREAS, the Borrowers have requested that the Lenders agree to amend certain provisions of
the Credit Agreement, and the Lenders have agreed to amend the Credit Agreement as hereinafter set
forth;

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

     Section 1. Defined Terms. Capitalized terms used but not otherwise defined herein
shall have the meanings assigned to them in the Credit Agreement.

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     Section 2. Amendments to Credit Agreement.

     (a) The reference to “WELLS FARGO SECURITIES, LLC” in the introductory paragraph of the Credit
Agreement is hereby deleted and replaced in its entirety with “WELLS FARGO BANK, NATIONAL
ASSOCIATION”.

     (b) The definition of “Indebtedness” in Section 1.01 of the Credit Agreement is hereby amended
by inserting the parenthetical “(including, for the avoidance of doubt, any Subsidiary or other
Affiliate of such Person or any third party that is not affiliated with such Person)” immediately
after the phrase “the Indebtedness of any other Person” in clause (d) thereof.

     (c) The definition of “Lenders” in Section 1.01 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

     “Lenders” means the Persons listed in Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Assumption or a Commitment Increase Agreement, other than any such Person that
ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the
context otherwise requires, the term “Lenders” includes the Swingline Lenders.

     (d) The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

     “Maturity Date” means July 13, 2016, and for any Lender agreeing to
extend the Maturity Date pursuant to Section 2.18, July 13 in each year
thereafter to which the Maturity Date has been extended, but in no event later than
July 13, 2018.

     (e) The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby
amended by deleting the pricing grid therein and replacing it in its entirety with the following:

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	Index Debt Ratings	 	Facility	 	 	LIBOR	 	 	ABR	 
	(S&P/Moody’s):	 	Fee Rate	 	 	Margin	 	 	Margin	 
	Performance Level I

A/A2 or above
	 	 	0.125	%	 	 	0.750	%	 	 	0	%
	Performance Level II

A-/A3
	 	 	0.150	%	 	 	0.850	%	 	 	0	%
	Performance Level III

BBB+/Baa1
	 	 	0.175	%	 	 	0.950	%	 	 	0	%
	Performance Level IV

BBB/Baa2
	 	 	0.225	%	 	 	1.025	%	 	 	0.025	%
	Performance Level V

BBB-/Baa3
	 	 	0.275	%	 	 	1.475	%	 	 	0.475	%
	Performance Level VI

Below BBB-/Baa3
	 	 	0.325	%	 	 	1.925	%	 	 	0.925	%

     Section 3. Commitment Increase.

     (a) Each Increasing Lender hereby agrees to increase the amount of its Commitment under the
Credit Agreement by the amount shown as its “Commitment Increase” on Annex I attached
hereto.

     (b) Each Additional Lender is hereby joined as a Lender under the Credit Agreement, and each
Additional Lender hereby extends to the Borrowers, subject to and on the terms and conditions set
forth in the Credit Agreement (as amended hereby), a Commitment in the amount shown as its
“Commitment Increase” on Annex I attached hereto, and agrees to perform in accordance with
the terms thereof all of the obligations which by the terms of the Credit Agreement and the other
Loan Documents are required to be performed by it as a Lender thereunder.

     (c) Each of the Increasing Lenders and the Additional Lenders acknowledges and agrees that the
respective Commitments of such Lender and the other Lenders under the Credit Agreement are several
and not joint commitments and obligations of the Lenders. Each of the Increasing Lenders and the
Additional Lenders further acknowledges and agrees that, after giving effect to the Commitment
Increase as provided in this Agreement, its Commitment as a Lender shall be as set forth on
Annex III attached hereto, which shall automatically amend and restate Schedule
2.01 to the Credit Agreement pursuant to the terms of Section 2.15(g) of the Credit Agreement.

     (d) To the extent there are any Letters of Credit outstanding on the Amendment Effective Date,
upon the effectiveness of the Specified Commitment Increase and the

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Commitment Termination (as defined below), the amount of the unfunded participations held by
each Lender in each Letter of Credit then outstanding shall be adjusted such that, after giving
effect to such adjustments, each Lender shall hold unfunded participations in each such Letter of
Credit in the proportion its Commitment bears to the Aggregate Commitments after giving effect to
the Specified Commitment Increase and the Commitment Termination.

     (e) Subject to satisfaction of the conditions precedent set forth in Section 5 hereof, the
Administrative Agent and each of the Issuing Banks hereby irrevocably consents to the Specified
Commitment Increase.

     Section 4. Termination of Commitments.

     (a) Each of the Obligors, the Administrative Agent, the Departing Lenders, the Increasing
Lenders and the Additional Lenders acknowledges and agrees that, contemporaneously with the
effectiveness of the Specified Commitment Increase on the Amendment Effective Date, each Departing
Lender’s Commitment shall be terminated (collectively, the “Commitment Termination”).

     (b) Upon the effectiveness of the Commitment Termination, each Departing Lender shall no
longer be a Lender under the Credit Agreement.

     Section 5. Amendment Effective Date; Conditions Precedent. This Amendment, the
Specified Commitment Increase and the Commitment Termination shall become effective on the date
(the “Amendment Effective Date”; for purposes of Section 2.15 of the Credit Agreement, the
Amendment Effective Date shall be the Commitment Increase Effective Date with respect to the
Specified Commitment Increase provided for herein) on which the following conditions have been
satisfied:

     (a) The Administrative Agent shall have received the following, all in form and substance
reasonably satisfactory to the Administrative Agent:

     (i) a counterpart of this Amendment executed by the Obligors, the Lenders, the
Administrative Agent and the Issuing Banks;

     (ii) a Notice of Commitment Increase with respect to the Specified Commitment Increase
delivered by the Borrowers to the Administrative Agent at least five (5) Business Days prior
to the Amendment Effective Date;

     (iii) Revolving Credit Notes executed by the Borrowers and payable to each Lender
requesting (at least one Business Day prior to the Amendment Effective Date) a Revolving
Credit Note, duly completed and executed by the Borrowers and dated the Amendment Effective
Date;

     (iv) a certificate of a Responsible Officer of WIL-Switzerland, dated the Amendment
Effective Date, certifying that (A) the representations and warranties set forth in Article
VI of the Credit Agreement and in the other Loan Documents are true and correct in all
material respects as of, and as if such representations and warranties were made on, the
Amendment Effective Date (unless such representation and warranty

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expressly relates to an earlier date, in which case such representation and warranty
shall continue to be true and correct as of such earlier date) and (B) no Default or Event
of Default has occurred and is continuing on the Amendment Effective Date;

     (v) a certificate of the secretary or an assistant secretary of each Obligor, dated the
Amendment Effective Date and certifying (A) true and complete copies of the memorandum of
association and bye-laws or the certificate of incorporation and bylaws or other
organizational documents, each as amended and in effect, of such Obligor and the resolutions
adopted by the Board of Directors of such Obligor (I) authorizing the execution, delivery
and performance by such Obligor of this Amendment and, in the case of a Borrower, the
borrowing of Loans by such Borrower under the Credit Agreement, as amended by this
Amendment, and (II) authorizing officers of such Obligor to execute and deliver this
Amendment and any related documents, and (B) the absence of any proceedings for the
dissolution, liquidation or winding up of such Obligor;

     (vi) (A) a certificate of the secretary or an assistant secretary of each of WIL,
WIL-Switzerland and WII, dated the Amendment Effective Date and certifying the incumbency
and specimen signatures of the officers of such Obligor executing any documents on its
behalf, and (B) notarized specimens of signature of the officers of each of HOC and WCMS
executing any documents on its behalf;

     (vii) favorable, signed opinions addressed to the Administrative Agent and the Lenders
dated the Amendment Effective Date from (A) Fulbright & Jaworski L.L.P., special United
States counsel to the Obligors, (B) Conyers Dill & Pearman Limited, special Bermuda counsel
to WIL, (C) Baker & McKenzie, special Swiss counsel to WIL-Switzerland, (D) Szakaly Law
Firm, special Hungarian counsel to HOC and WCMS, and (E) with respect to any other Borrower,
counsel for such Borrower reasonably acceptable to the Administrative Agent, each given upon
the express instruction of the applicable Obligor; and

     (viii) to the extent available, copies of the memorandum of association, articles or
certificates of incorporation or other similar organizational documents of each Obligor
certified as of a recent date prior to the Amendment Effective Date by the appropriate
Governmental Authority and certificates of appropriate public officials as to the existence,
good standing and qualification to do business as a foreign corporation, of each Obligor in
each jurisdiction in which the ownership of its properties or the conduct of its business
requires such qualification and where the failure to so qualify would, individually or
collectively, have a Material Adverse Effect;

     (b) If, on the Amendment Effective Date, any Eurocurrency Loans have been funded, then the
Borrowers shall have paid any breakage fees or costs or other amounts owing under the Credit
Agreement in connection with the breakage or reallocation of such outstanding Eurocurrency Loans in
accordance with Section 2.13 of the Credit Agreement; and

     (c) The Borrowers shall have paid (i) to the Administrative Agent, the Lead Arrangers and the
Lenders, as applicable, all fees and other amounts agreed upon by such parties to be paid on or
prior to the Amendment Effective Date, and (ii) to the extent invoiced at or

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before 10:00 a.m., New York City time, on the Amendment Effective Date, all out-of pocket
expenses required to be reimbursed or paid by the Borrowers pursuant to Section 11.03 of the Credit
Agreement or any other Loan Document.

     Section 6. Representations and Warranties. To induce the other parties hereto to
enter into this Amendment, each of the Obligor Parties represents and warrants that, after giving
effect to each of the amendments and waivers set forth in this Amendment:

     (a) the representations and warranties set forth in Article VI of the Credit Agreement and in
the other Loan Documents are true and correct in all material respects as of, and as if such
representations and warranties were made on, the Amendment Effective Date (unless such
representation and warranty expressly relates to an earlier date, in which case such representation
and warranty shall continue to be true and correct as of such earlier date);

     (b) no Default or Event of Default has occurred and is continuing on the Amendment Effective
Date; and

     (c) this Amendment constitutes the legal, valid and binding obligation of each of the Obligor
Parties, enforceable against each of the Obligor Parties in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the
enforcement of creditors’ rights generally or by equitable principles of general applicability.

     Section 7. Confirmation of Loan Documents. Except as expressly contemplated hereby,
the terms, provisions, conditions and covenants of the Credit Agreement, as amended by this
Amendment, and the other Loan Documents remain in full force and effect and are hereby ratified and
confirmed, and the execution, delivery and performance of this Amendment shall not, except as
expressly set forth in this Amendment, operate as a waiver of, consent to or amendment of any term,
provision, condition or covenant thereof. Without limiting the generality of the foregoing, except
pursuant hereto or as expressly contemplated or amended hereby, nothing contained herein shall be
deemed (a) to constitute a waiver of compliance or consent to noncompliance by any Obligor Party
with respect to any term, provision, condition or covenant of the Credit Agreement or any other
Loan Document; (b) to prejudice any right or remedy that the Administrative Agent or any Lender may
now have or may have in the future under or in connection with the Credit Agreement or any other
Loan Document; or (c) to constitute a waiver of compliance or consent to noncompliance by any
Obligor Party with respect to the terms, provisions, conditions and covenants of the Credit
Agreement and the other Loan Documents made the subject hereof. Each Obligor Party represents and
acknowledges that it has no claims, counterclaims, offsets, credits or defenses to the Loan
Documents or the performance of its obligations thereunder.

     Section 8. Ratification. Each Guarantor hereby ratifies and confirms its obligations
under the Guaranty Agreement and hereby represents and acknowledges that it has no claims,
counterclaims, offsets, credits or defenses to the Loan Documents or the performance of its
obligations thereunder. Furthermore, each Guarantor agrees that nothing contained in this
Amendment shall adversely affect any right or remedy of the Administrative Agent or the Lenders
under the Guaranty Agreement or any of the other Loan Documents to which it is a

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party. Each Guarantor agrees that all references in the Guaranty Agreement to the “Guaranteed
Obligations” shall include, without limitation, all of the obligations of the Borrowers to the
Administrative Agent and the Lenders under the Credit Agreement, as amended by this Amendment.
Finally, each Guarantor hereby represents and warrants that the execution and delivery of this
Amendment and the other documents executed in connection herewith shall in no way change or modify
its obligations as a guarantor, debtor, pledgor, assignor, obligor and/or grantor under the
Guaranty Agreement and the other Loan Documents to which it is a party and shall not constitute a
waiver by the Administrative Agent or the Lenders of any of their rights against any Guarantor.

     Section 9. Effect of Amendment. From and after the Amendment Effective Date hereof,
each reference in the Credit Agreement to “this Agreement”, “hereof”, or “hereunder” or words of
like import, and all references to the Credit Agreement in any and all agreements, instruments,
documents, notes, certificates, guaranties and other writings of every kind and nature shall be
deemed to mean the Credit Agreement as modified by this Amendment. This Amendment shall constitute
a Loan Document for all purposes of the Credit Agreement and the other Loan Documents.

     Section 10. Costs and Expenses. Pursuant to the terms of Section 11.03 of the Credit
Agreement, the Borrowers agree to pay all reasonable and documented out-of-pocket expenses incurred
by the Administrative Agent and its Affiliates in connection with the preparation, execution and
enforcement of this Amendment.

     Section 11. Choice of Law. This Amendment and all other documents executed in
connection herewith and the rights and obligations of the parties hereto and thereto, shall be
construed in accordance with and governed by the law of the State of New York.

     Section 12. Submission to Jurisdiction; Consent to Service of Process.

     (a) Each Obligor Party hereby irrevocably and unconditionally submits, for itself and its
property, to the non-exclusive jurisdiction of the United States District Court for the Southern
District of New York (or the state courts sitting in the Borough of Manhattan in the event the
Southern District of New York lacks subject matter jurisdiction), and any appellate court from any
thereof, in any suit, action or proceeding arising out of or relating to this Amendment or any
other Loan Document, or for recognition or enforcement of any judgment, and each of the parties
hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in such New York State court or, to the extent permitted
by law, in such Federal court. Each of the parties hereto agrees that a final, non-appealable
judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Amendment or any other Loan Document shall affect any right that the Administrative Agent, any
Issuing Bank or any Lender may otherwise have to bring any suit, action or proceeding relating to
this Amendment or any other Loan Document against any Obligor or its properties in the courts of
any jurisdiction.

     (b) Each Obligor Party hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to

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the laying of venue of any suit, action or proceeding arising out of or relating to this
Amendment or any other Loan Document in any court referred to in paragraph (a) of this Section.
Each Obligor Party hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any such court.

     (c) Each party to this Amendment irrevocably consents to service of process in the manner
provided for notices in Section 11.02 of the Credit Agreement other than by facsimile. Nothing in
this Amendment or any other Loan Document will affect the right of any party to this Amendment or
any other Loan Document to serve process in any other manner permitted by law. Notwithstanding any
other provision of this Amendment, each foreign Obligor Party hereby irrevocably designates C T
Corporation System, 111 8th Avenue, New York, New York 10011, as the designee, appointee and agent
of such Obligor Party to receive, for and on behalf of such Obligor Party, service of process in
the State of New York in any suit, action or proceeding arising out of or relating to this
Amendment or any other Loan Document.

     (d) Each Obligor Party agrees that any suit, action or proceeding brought by any Obligor Party
or any of their respective Subsidiaries relating to this Amendment or any other Loan Document
against the Administrative Agent, any Issuing Bank, any Lender or any of their respective
Affiliates shall be brought exclusively in the United States District Court for the Southern
District of New York (or the state courts sitting in the Borough of Manhattan in the event the
Southern District of New York lacks subject matter jurisdiction), and any appellate court from any
thereof, unless no such court shall accept jurisdiction.

     (e) The Administrative Agent, each Issuing Bank and each Lender hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of the United
States District Court for the Southern District of New York (or the state courts sitting in the
Borough of Manhattan in the event the Southern District of New York lacks subject matter
jurisdiction), and any appellate court from any thereof, in any suit, action or proceeding arising
out of or relating to this Amendment or any other Loan Document, or for recognition or enforcement
of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be heard and determined in such New York
State court or, to the extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final, non-appealable judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided
by law.

     (f) The Administrative Agent, each Issuing Bank and each Lender hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Amendment or any other Loan Document in any court referred to in
paragraph (e) of this Section. Each of the Administrative Agent, each Issuing Bank and each Lender
hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

     (g) To the extent that any Obligor Party has or hereafter may acquire any immunity from
jurisdiction of any court or from set-off or any legal process (whether through service or

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notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise)
with respect to itself or its property, such Obligor Party hereby irrevocably waives such immunity
in respect of its obligations under the Loan Documents.

     Section 13. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE OTHER LOAN
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY (WHETHER BASED ON CONTRACT, TORT OR
ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

     Section 14. Counterparts; Integration; Effectiveness. This Amendment may be executed
in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Amendment, the Notes, the other Loan Documents and any separate letter agreements with respect
to fees payable to the Administrative Agent constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. This Amendment shall
become effective on the Amendment Effective Date, and thereafter shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page to this Amendment by facsimile transmission or electronic
transmission (in .pdf form) shall be effective for all purposes as delivery of a manually executed
counterpart of this Amendment.

[Remainder of page intentionally left blank; signature pages follow.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	WIL:

WEATHERFORD INTERNATIONAL LTD.,

a Bermuda exempted company

 	 
	 	By:  	/s/ Janet Duncan
 	 
	 	 	Name:  	Janet Duncan 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	HOC:

WEATHERFORD LIQUIDITY MANAGEMENT 

HUNGARY LIMITED LIABILITY COMPANY,

a Hungarian limited liability company

 	 
	 	By:  	/s/ William Gray Fulton
 	 
	 	 	Name:  	William Gray Fulton 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                /s/ Brian Moncur
 	 
	 	 	Name:  	Brian Moncur 	 
	 	 	Title:  	Managing Director 	 
	 
	 	WCMS:

WEATHERFORD CAPITAL MANAGEMENT 

SERVICES LIMITED LIABILITY COMPANY,

a Hungarian limited liability company

 	 
	 	By:  	/s/ William Gray Fulton
 	 
	 	 	Name:  	William Gray Fulton 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                /s/ Brian Moncur
 	 
	 	 	Name:  	Brian Moncur 	 
	 	 	Title:  	Managing Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	WIL-SWITZERLAND: 

WEATHERFORD INTERNATIONAL LTD.,

a Swiss joint stock corporation

 	 
	 	By:  	/s/ Janet M. Duncan
 	 
	 	 	Name:  	Janet M. Duncan 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 
	 	WII:

WEATHERFORD INTERNATIONAL, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Janet M. Duncan
 	 
	 	 	Name:  	Janet M. Duncan 	 
	 	 	Title:  	Vice President and Treasurer 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT: 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and an Issuing Bank

 	 
	 	By:  	/s/ Helen A. Carr
 	 
	 	 	Name:  	Helen A. Carr 	 
	 	 	Title:  	Managing Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	INCREASING LENDERS: 

JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ Helen A. Carr
 	 
	 	 	Name:  	Helen A. Carr 	 
	 	 	Title:  	Managing Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK AG NEW YORK BRANCH, 

as a Lender and an Issuing Bank

 	 
	 	By:  	/s/ Lawrence Williamson
 	 
	 	 	Name:  	Lawrence Williamson 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                       /s/ Edward D. Herko
 	 
	 	 	Name:  	Edward D. Herko 	 
	 	 	Title:  	Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	CREDIT AGRICOLE CORPORATE AND 

INVESTMENT BANK,

as a Lender and an Issuing Bank 

 	 
	 	By:  	/s/ Page Dillehunt
 	 
	 	 	Name:  	Page Dillehunt 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                       /s/ Michael Willis
 	 
	 	 	Name:  	Michael Willis 	 
	 	 	Title:  	Managing Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A. 

 	 
	 	By:  	/s/ Sherrese Clarke
 	 
	 	 	Name:  	Sherrese Clarke 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC 

 	 
	 	By:  	
/s/ Vanessa A. Kurbatskiy
 	 
	 	 	Name:  	Vanessa A. Kurbatskiy 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	DNB NOR BANK ASA 

 	 
	 	By:  	/s/ Kristie Li
 	 
	 	 	Name:  	Kristie Li 	 
	 	 	Title:  	Vice President 	 
	 	 	 
	 	By:  	                       /s/ Pal Boger
 	 
	 	 	Name:  	Pal Boger 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS BANK USA 

 	 
	 	By:  	/s/ Mark Walton
 	 
	 	 	Name:  	Mark Walton 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

 	 
	 	By:  	/s/ William S. Rogers
 	 
	 	 	Name:  	William S. Rogers 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	THE ROYAL BANK OF SCOTLAND plc, 

as a Lender and an Issuing Bank

 	 
	 	By:  	/s/ Brian D. Williams
 	 
	 	 	Name:  	Brian D. Williams 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE 

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 	 	 
	 	By:  	                       /s/ Joselin Fernandes
 	 
	 	 	Name:  	Joselin Fernandes 	 
	 	 	Title:  	Associate Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, NATIONAL 

ASSOCIATION,

as a Lender and an Issuing Bank

 	 
	 	By:  	/s/ Donald W. Herrick, Jr.
 	 
	 	 	Name:  	Donald W. Herrick, Jr. 	 
	 	 	Title:  	Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	NORDEA BANK NORGE ASA 

 	 
	 	By:  	/s/ Tom C. Kuhnle
 	 
	 	 	Name:  	Tom C. Kuhnle 	 
	 	 	Title:  	Senior Vice President 	 
	 	 	 
	 	By:  	                           /s/ Renathe H. Nesseth
 	 
	 	 	Name:  	Renathe H. Nesseth 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA 

 	 
	 	By:  	                           /s/ Jay T. Sartain
 	 
	 	 	Name:  	Jay T. Sartain 	 
	 	 	Title:  	Authorized Signatory 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	STANDARD CHARTERED BANK 

 	 
	 	By:  	
/s/ James P. Hughes
 	 
	 	 	Name:  	James P. Hughes 	 
	 	 	Title:  	Director 	 
	 	 	 
	 	By:  	                           /s/ Robert K. Reddington
 	 
	 	 	Name:  	Robert K. Reddington 	 
	 	 	Title:  	Credit Documentation Manager 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	UNICREDIT BANK AG, NEW YORK BRANCH 

 	 
	 	By:  	/s/ Thomas Dusch
 	 
	 	 	Name:  	Thomas Dusch 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                           /s/ Annett Guderian
 	 
	 	 	Name:  	Annett Guderian 	 
	 	 	Title:  	Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	CITIBANK, N.A. 

 	 
	 	By:  	/s/ John Miller
 	 
	 	 	Name:  	John Miller 	 
	 	 	Title:  	Attorney-in-Fact 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	SUNTRUST BANK 

 	 
	 	By:  	/s/ Gregory C. Magnuson
 	 
	 	 	Name:  	Gregory C. Magnuson 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	ADDITIONAL LENDERS: 

HSBC BANK USA, N.A.

 	 
	 	By:  	/s/ John Robinson
 	 
	 	 	Name:  	John Robinson 	 
	 	 	Title:  	Managing Director, Co-Head Resources &

Energy Group — Americas Global Banking 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	BANCO BILBAO VIZCAYA ARGENTARIA, 

S.A.- NEW YORK BRANCH

 	 
	 	By:  	/s/ Michael Oka
 	 
	 	 	Name:  	Michael Oka 	 
	 	 	Title:  	Executive Director 	 
	 	 	 
	 	By:  	/s/
Nietzsche Rodricks
 	 
	 	 	Name:  	Nietzsche Rodricks 	 
	 	 	Title:  	Senior Banker 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	DEPARTING LENDERS: 

BNP PARIBAS

 	 
	 	By:  	/s/ Chris Lyons
 	 
	 	 	Name:  	Chris Lyons 	 
	 	 	Title:  	Managing Director 	 
	 	 	 
	 	By:  	                       /s/ Andrew Ostrov
 	 
	 	 	Name:  	Andrew Ostrov 	 
	 	 	Title:  	Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	THE BANK OF NOVA SCOTIA 

 	 
	 	By:  	/s/ John Frazell
 	 
	 	 	Name:  	John Frazell 	 
	 	 	Title:  	Director 	 

Signature Page to Amendment No. 1 to Credit Agreement

 

 

	 	 	 	 	 
	 	BANK HAPOALIM B.M. 

 	 
	 	By:  	/s/ Charles McLaughlin
 	 
	 	 	Name:  	Charles McLaughlin 	 
	 	 	Title:  	Senior Vice President 	 
	 	 	 
	 	By:  	                       /s/ James P. Surless
 	 
	 	 	Name:  	James P. Surless 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 1 to Credit Agreementexv10w9

Exhibit 10.9

GAS PROCESSING AGREEMENT

by and between

AMERICAN MIDSTREAM (LOUISIANA INTRASTATE), LLC (“Plant Supplier”)

and

ENTERPRISE GAS PROCESSING, LLC, (“Processor”).

TOCA GAS PROCESSING PLANT

ST. BERNARD PARISH, LOUISIANA

 

Effective Date: June 1, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I — DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II — EXHIBITS
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III — CAPACITY OF PLANT
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IV — DELIVERY AND REDELIVERY OF PLANT SUPPLIER’S GAS
	 	 	7	 
	 
	 	 	 	 
	ARTICLE V — ALLOCATION OF PRODUCTS
	 	 	9	 
	 
	 	 	 	 
	ARTICLE VI — CONSIDERATION DUE PLANT SUPPLIER
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VII — PLANT VOLUME REDUCTION AND BYPASSED GAS
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VIII — TERM
	 	 	15	 
	 
	 	 	 	 
	ARTICLE IX — PAYMENT OF ROYALTY AND TAXES
	 	 	15	 
	 
	 	 	 	 
	ARTICLE X — QUALITY
	 	 	16	 
	 
	 	 	 	 
	ARTICLE XI — BILLING AND PAYMENTS
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XII — TITLE AND WARRANTY OF TITLE
	 	 	17	 
	 
	 	 	 	 
	ARTICLE XIII — LIABILITY OF THE PARTIES
	 	 	18	 
	 
	 	 	 	 
	ARTICLE XIV — LAWS, REGULATIONS AND FORCE MAJEURE
	 	 	19	 
	 
	 	 	 	 
	ARTICLE XV — NOTICES AND PAYMENT
	 	 	21	 
	 
	 	 	 	 
	ARTICLE XVI — INDEMNIFICATION
	 	 	22	 
	 
	 	 	 	 
	ARTICLE XVII — MISCELLANEOUS
	 	 	22	 

 

 

GAS PROCESSING AGREEMENT

TOCA GAS PROCESSING PLANT

ST. BERNARD PARISH, LOUISIANA

     THIS GAS PROCESSING AGREEMENT (the “Agreement”), is made and entered into this 1st day
of June, 2011 (the “Effective Date”), by and between AMERICAN MIDSTREAM (LOUISIANA
INTRASTATE), LLC (“Plant Supplier”) and ENTERPRISE GAS PROCESSING, LLC,
(“Processor”).

R E C I T A L S

     A. WHEREAS, Processor has constructed the Toca Gas Processing Plant on a tract of land in
Sections 54 and 55, T-14-S, R-4-E, St. Bernard Parish, Louisiana (herein called the “Toca
Plant” or “Plant”), and operates said Plant for the purpose of extracting Liquid
Hydrocarbons, as hereinafter defined, from certain gas delivered to the Plant from Southern Natural
Gas Company (“Southern”); and

     B. WHEREAS, the Toca Plant Owners have heretofore individually entered into an agreement with
Enterprise Products Operating LLC, by and through its predecessor in interest, Shell Oil Company,
as Owner of the Norco Fractionation Plant, entitled “Hydrocarbon Fractionation Agreement” (herein
called “Fractionation Agreement”), whereby the Toca Plant Operator will deliver for the
account of Plant Owners Raw Make, as hereinafter defined, recovered at the Toca Plant to
Fractionator for transportation to the Norco Fractionation Plant and for fractionation into
commercial Products; and

     C. WHEREAS, Plant Supplier owns or holds either the primary or secondary gas processing rights
to gas delivered to the Field Delivery Point(s) listed on Exhibit E, attached hereto and
incorporated herein by reference, and has the right to extract or have extracted the Liquid
Hydrocarbons from such gas, which gas will be transported through Southern’s Lines to the Plant for
Plant Supplier’s account; and

     D. WHEREAS, Processor and Plant Supplier desire hereby to provide the terms and conditions
under which such gas will be delivered from Southern’s Lines to the Plant pursuant to the
Transportation Agreement, as hereinafter defined, for processing for Plant Supplier’s account and
the Liquid Hydrocarbons in such gas will be sold to Processor at the Plant Delivery Point for a
consideration to Plant Supplier consisting of a share of Products, all as hereinafter more fully
set forth.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
herein provided, the parties hereto agree as follows:

ARTICLE I — DEFINITIONS

	1.1	 	Definitions. The following definitions of terms shall apply for all purposes
of this Agreement, including the preambles and exhibits, unless the context otherwise clearly
requires otherwise.

1

 

	 	1.1.1	 	“American Midstream Gas” shall mean 100% of the gas that flows on the
Gloria Pipeline, whether or not Plant Supplier has the right to process such gas, less (i)
any gas which is used
or consumed by Plant Supplier or an affiliate of Plant Supplier as compressor fuel or
lost or unaccounted-for gas, including, but not limited to, gas lost in pipeline
blowdown for repairs or tie-ins, cleaning, purging, and in pipeline scrubber
operations; (ii) any gas which is sold by Plant Supplier or an affiliate of Plant
Supplier for drilling purposes, gas lift, and other routine and normal uses; (iii)
gas used for fuel in the Chevron refinery; iv) gas used for fuel in the Alliance
refinery but only in the event the Lafitte Pipeline cannot supply Gas to Alliance due
to force majeure; and (iv) any gas lost in the normal operation of Southern’s Lines
downstream of the Plant Delivery Point. If gas transported on the Gloria Pipeline is
used for fuel at a refinery, the gas shall not be processed. American Midstream Gas
may als be referred to herein as Plant Supplier Gas
	 
	 	1.1.2	 	The term “Gas” or “gas” shall mean all vaporized hydrocarbons and
vaporized concomitant materials, whether produced with oil or from gas or gas condensate
wells.
	 
	 	1.1.3	 	A “cubic foot of gas” shall mean the volume of gas contained in one
cubic foot of space at a standard pressure base and a standard temperature base. The
standard pressure base shall be 15.025 pounds per square inch absolute, and the standard
temperature base shall be 60 degrees Fahrenheit (60° F). Whenever the conditions of
pressure and temperature differ from the above standard, conversion of the volume from
these conditions to the standard conditions shall be made in accordance with the Ideal Gas
Laws, corrected for deviation by the methods set forth in the American Gas Association
Measurement Committee Report No. 3 dated April 1955, as said report may be amended from
time to time. The terms “MCF” and “MMCF” shall mean, respectively, 1,000
cubic feet of gas and 1,000,000 cubic feet of gas.
	 
	 	1.1.4	 	“Applicable Laws” shall mean any applicable common law and any statute,
ordinance, code, law, rule, regulation, order, judgment, decree, requirement, or procedure
enacted, adopted, promulgated, applied, or followed by any Governmental Authority at any
time during the Term of this Agreement.
	 
	 	1.1.5	 	“Bypassed Gas” shall mean gas which has been delivered to Plant Owners
at the Plant Delivery Point, but which has been returned to Southern at the Plant
Redelivery Point without having been processed.
	 
	 	1.1.6	 	“Claims” means claims, damages, losses, and liabilities including,
without limitation, contractually-assumed liabilities, liens, fines, court or arbiter
awards, negotiated settlements, and Claims brought by an injured person’s spouse, heirs,
or survivors, and all costs and expenses related to all of the above including, without
limitation, reasonable attorneys’ fees.
	 
	 	1.1.7	 	“Committed Gas” shall mean the gas produced or controlled by a Plant
Owner which has been committed to and made available for processing in the Toca Plant by
virtue of such Plant
Owner’s ownership of capacity in the Plant under the provisions of the Construction
and Operating Agreement.

2

 

	 	1.1.8	 	“Construction and Operating Agreement” shall mean that certain
agreement entitled “Agreement for the Construction and Operation of the Toca Gas
Processing Plant, St. Bernard Parish, Louisiana,” entered into effective as of July 1,
1970 by Plant Owners to provide for the construction, ownership, and operation of the Toca
Plant.
	 
	 	1.1.9	 	“FERC” shall mean the Federal Energy Regulatory Commission.
	 
	 	1.1.10	 	“Field Delivery Point” shall mean any point at which gas being
transported in Southern’s Lines and subject to processing in the Plant is initially
measured for the purpose of delivery for sale or for transportation identified on
Exhibit E hereto.
	 
	 	1.1.11	 	“Fractionator” shall mean Enterprise Products Operating LLC in its
capacity as owner and operator of the Norco Fractionation Plant and related pipelines and
facilities.
	 
	 	1.1.12	 	“Fractionation Expense” shall mean the fractionation expense
calculated per the terms and conditions of Exhibit C.
	 
	 	1.1.13	 	“Gallon” shall mean a standard U.S. liquid gallon of 231 cubic inches
when said liquid has a temperature of 60 degrees Fahrenheit (60° F) and is at a pressure
sufficient for liquification.
	 
	 	1.1.14	 	“Gloria Pipeline” shall mean the pipeline as shown on the attached
Exhibit F. The Gloria Pipeline includes the pipeline colored in red on Exhibit F
titled Gloria System and the pipeline colored in green on Exhibit F titled Gloria
Discharge to Toca.
	 
	 	1.1.15	 	“Governmental Authority” shall mean the United States and any tribal,
state, county, city, or other federal, state, or local agency, court, agency, commission,
governing body, or instrumentality.
	 
	 	1.1.16	 	“Gross Receipts” shall mean the monthly revenue calculated from the
value of the individual Products (expressed in cents per gallon) multiplied by the volume
of the Products allocated to the Plant Supplier. The value of each individual Product
shall be based on the pricing basis set forth under Exhibit D, as such pricing
basis may change from time to time.
	 
	 	1.1.17	 	“Inert Constituents” shall mean non-hydrocarbon constituents contained
in gas, including, without limitation, carbon dioxide, water vapor, ozone, nitrous oxide,
and mercury but, for the avoidance of doubt, expressly excluding Liquid Hydrocarbons.
	 
	 	1.1.18	 	“Lafitte Pipeline” shall mean the pipeline colored in blue as shown on
the attached Exhibit F.
	 
	 	1.1.19	 	“Liquid Hydrocarbons,” sometimes herein used to refer to liquefiable
hydrocarbons present in the gas stream and sometimes herein used to refer to hydrocarbons
in a liquid state after
extraction by the Plant from the gas stream, shall in either case mean natural
gasoline (iso-pentanes plus heavier hydrocarbons), butanes, propane, and ethane.

3

 

	 	1.1.20	 	“Net Proceeds” shall mean the Gross Receipts obtained from the sale of
the share of Products to which Plant Supplier is entitled under this Agreement when Plant
Operator under the terms of this Agreement is authorized to make such sale, less the
following costs and expenses: (a) Taxes imposed by any taxing authority having or
asserting jurisdiction over the production, sale, or use of the Products and which tax
Processor is obligated to pay; (b) actual tank car expense if the Product is shipped in
tank cars, and rail transportation or other rail carrier costs if incurred by Processor;
(c) actual other transportation costs if incurred by Processor; and (d) the Fractionation
Expense.
	 
	 	1.1.21	 	“Plant Delivery Point” shall mean the point on Southern’s Lines at
which gas is delivered by Southern to Plant Owners for processing in the Plant.
	 
	 	1.1.22	 	“Plant Operator” shall mean Enterprise Products Operating LLC or any
successor to Enterprise Products Operating LLC selected by Toca Plant Owners to operate
the Plant.
	 
	 	1.1.23	 	“Plant Redelivery Point” shall mean the point on the Southern’s Lines
at which Residue Gas is returned by Plant Owners to Southern.
	 
	 	1.1.24	 	“Plant Supplier Gas” shall mean that portion of the American Midstream
Gas that Plant Supplier has title to and/or the right to process.
	 
	 	1.1.25	 	“Products” shall mean the commercial products fractionated from the
Raw Make by Fractionator at the Norco Fractionation Plant pursuant to the terms of the
Fractionation Agreement, including, but not limited to, natural gasoline, butanes,
propane, and ethane (including such methane allowable in commercial ethane), and shall
include any Liquid Hydrocarbons recovered by the inlet scrubber at the Plant for which the
preferred disposition is at the Plant rather than being combined with the Raw Make.
	 
	 	1.1.26	 	“Psia” shall mean pounds per square inch atmosphere.
	 
	 	1.1.27	 	“Psig” shall mean per square inch gauge.
	 
	 	1.1.28	 	“Raw Make” shall mean the combined stream of Liquid Hydrocarbons and
concomitant materials recovered from gas processed in the Plant and shall include any
liquefied hydrocarbons recovered by the Plant inlet scrubber if combined with the Raw
Make.
	 
	 	1.1.29	 	“Residue Gas” shall mean the stream of gas returned to Southern at the
Plant Redelivery Point after the gas received from Southern has been processed in the
Plant for the recovery of Liquid Hydrocarbons and shall include any Bypassed Gas
commingled with such processed gas.

4

 

	 	1.1.30	 	“Southern’s Lines” shall mean that portion of Southern’s gas pipeline
system upstream of the Plant Delivery Point, plus any present or future extensions or
loops thereof, which is transporting unprocessed gas for processing at the Plant site.
	 
	 	1.1.31	 	“Taxes” shall mean any and all current or future taxes, fees, levies,
charges, assessments, or other impositions, including excise, sales, use, severance,
gathering, processing, fuel use, or other similar taxes levied, charged, imposed,
assessed, or collected by any Governmental Authority.
	 
	 	1.1.32	 	“Third Party Supplier” shall mean any Plant Supplier, including Plant
Supplier hereunder, whose gas is being transported through Southern’s Lines and who has
entered into a Gas Processing Agreement or a Products Purchase Agreement with Plant
Operator to have gas processed in the Plant. Such term shall also apply to a Plant Owner
with respect to Committed Gas made available by it for processing in the Plant in excess
of 125 percent of such Owner’s capacity in the Plant, which excess, as provided in the
Construction and Operating Agreement, is considered to be under a Products Purchase
Agreement.
	 
	 	1.1.33	 	“Toca Plant Owners” or “Plant Owners” shall mean the parties
who own the Toca Plant, whether presently or in the future.
	 
	 	1.1.34	 	“Transportation Agreement” shall mean the applicable agreement in
place from time to time between Southern and Plant Supplier which covers the
transportation of the gas to the Plant to be processed hereunder.

	1.2	 	Interpretation. Other terms defined herein shall have the meaning ascribed
to them. The singular of a defined term shall include the plural thereof. The use of “or”
shall include “and” unless the context clearly indicates a contrary interpretation.

ARTICLE II — EXHIBITS

	2.1	 	Exhibits. The following exhibits are attached to and made a part of this
Agreement:

	 	2.1.1	 	Exhibit A, which is an example calculation illustrating the procedure
for allocating Products to Plant Owners and Third Party Suppliers.
	 
	 	2.1.2	 	Exhibit B, which is an example calculation illustrating the procedure
for calculating and allocating Plant Volume Reduction.
	 
	 	2.1.3	 	Exhibit C, which is description of the procedure for calculating the
Fractionation Expense.
	 
	 	2.1.4	 	Exhibit D, which lists the Product prices.

5

 

	 	2.1.5	 	Exhibit E, which lists the Field Delivery Point(s) to be used for the
delivery of American Midstream Gas to Southern’s Lines.
	 
	 	2.1.6	 	Exhibit F, which is a diagram of the Gloria Pipeline and the Lafitte
Pipeline.
	 
	 	2.1.7	 	Exhibit G, which is a procedure for sub-allocating MCF volume and GPM
between Plant Supplier Gas and American Midstream Gas.

ARTICLE III —  CAPACITY OF PLANT

	3.1	 	Determined Plant Capacity. The gas handling capacity of the Toca Plant at
the design recovery levels is currently deemed to be 1030.0 MMCF/D. The Toca Plant is
designed to extract approximately 50 percent of the ethane and over 90 percent of the propane,
together with essentially all of the butanes and heavier liquefiable hydrocarbons contained in
the gas at a gas flow rate of 1030 MMCF/D at a delivery pressure of 800 psia and with a Plant
pressure loss not to exceed 35 psig.
	 
	3.2	 	Capacity Not Warranted. Plant Supplier hereby specifically recognizes that
the foregoing representations regarding the processing capacity of the Toca Plant are merely
advisory and do not constitute a warranty by or obligation of Processor as to capacity. Plant
Supplier further recognizes that the foregoing Plant gas handling capacity and liquid recovery
levels may change from time to time as the result of operating experience or performance tests
or alterations made to the Plant by Plant Owners.
	 
	3.3	 	Processor’s Capacity Rights. Processor has the right to and will be
utilizing a portion of its capacity rights in the Toca Plant in order to process Plant
Supplier’s gas. Processor’s capacity rights are determined pursuant to the Toca Plant
Construction and Operating Agreement and the Fractionation Agreement. Processor will utilize
its capacity in the Toca Plant to have Plant Supplier’s gas processed pursuant to the terms
and conditions of this Agreement.
	 
	3.4	 	Processor’s Right to Utilize Other Plants. Processor shall have the right to
deliver Plant Supplier’s gas for processing to another processing plant (“Alternate
Processing Plant”) to decrease operating cost of processing Plant Supplier’s gas; provided
that:

	 	3.4.1	 	Processor shall provide Plant Supplier at least sixty (60) days advance notice
of its intent to process Plant Supplier’s gas at an Alternate Processing Plant;
	 
	 	3.4.2	 	Delivery of Plant Supplier’s gas to an Alternate Processing Plant shall be at
no additional cost or expense to Plant Supplier; Processor shall be responsible for any
costs and expenses associated therewith; and the consideration due Plant Supplier shall be
no less than it would have been were the gas processed at the Toca Plant;

6

 

	 	3.4.3	 	The liquid recovery levels of the Alternate Processing Plant shall be equal to
or better than the liquid recovery levels at the Toca Plant and the gas handling capacity
of Processor in the Alternate Processing Plant is sufficient to process gas tendered by
Plant Supplier.

ARTICLE IV- DELIVERY AND REDELIVERY OF PLANT SUPPLIER’S GAS

	4.1	 	Gas to Be Delivered by Plant Supplier. Plant Supplier shall deliver all
American Midstream Gas and Liquid Hydrocarbons contained in the American Midstream Gas to the
Plant for Processing. The sub-allocation for MCF and GPM between the Plant Supplier Gas and
American Midstream Gas shall be determined pursuant to the procedure illustrated in
Exhibit G. The rights granted herein by Plant Supplier to Processor are exclusive,
and Liquid Hydrocarbons shall not have been stripped in the field or elsewhere prior to
delivery at the Toca Plant other than by usual field separation methods which may include
adiabatic expansion utilizing the natural pressures available from the wells, but shall
exclude facilities designed to recover Liquid Hydrocarbons including but not limited to solid
bed absorption, lean oil absorption, turbo-expander, or mechanical refrigeration principles.
In no event shall Processor be liable to Plant Supplier if Southern fails for any reason to
deliver Plant Supplier’s gas to the Plant for processing as above provided.
	 
	4.2	 	Delivery of Lafitte Gas. Plant Supplier shall have the right but not the
obligation to deliver gas from the Lafitte Pipeline to the Gloria Pipeline to the Plant for
Processing. Plant Supplier shall also have the right to construct a processing plant at the
Alliance refinery to Process gas from the Lafitte Pipeline, as shown on Exhibit F
hereto (“Alliance Processing Plant”), and may process gas which is delivered into the
Lafitte System other than American Midstream Gas from the Gloria Pipeline for the recovery of
Liquefiable Hydrocarbons and Inert Compounds at such processing plant subject to the following
conditions:

	 	4.2.1	 	The gas which is processed at the Lafitte Processing Plant shall be
attributable to gas which is delivered from the Lafitte Pipeline or received from the
Alliance refinery and shall not include deliveries of Gas from the Gloria Pipeline;
	 
	 	4.2.2	 	Notwithstanding any provision of this Agreement to the contrary, in the event
that Plant Supplier processes gas at the Alliance Processing Plant attributable to the Gas
deliveries from the Grand Isle Gathering System currently owned by Energy XXI (or any
successor thereto), upon notice to Plant Supplier, may request a renegotiation of this
Agreement. In such event, both parties shall negotiate in good faith to reach agreement.
If, after sixty (60) days of the receipt of such notice by Plant Supplier, the parties are
unable to reach a mutually acceptable agreement, upon not less than thirty (30) days prior
notice to Plant Supplier, Processor may terminate this Agreement.

7

 

	4.3	 	When Plant Supplier’s Gas is to be Bypassed.

	 	4.3.1	 	During periods when the Plant is completely or partially shut down because of
mechanical failure, force majeure, or necessary maintenance or repairs, or if the Plant
lacks sufficient capacity to handle all gas available for processing from Southern’s
Lines, Plant Supplier’s gas shall be processed on a pro-rata basis along with the gas
tendered by all other Third Party Suppliers to the extent that, but only to the extent
that, processing capacity is available. Gas not processed by Processor for Plant Supplier
as a direct result of such shutdowns or due to failure of Southern’s Lines to deliver
Plant Supplier’s gas to the Plant shall be deemed Bypassed Gas.
	 
	 	4.3.2	 	For each day during a month when a portion of Plant Supplier’s gas is Bypassed
Gas, the quantity of Plant Supplier’s Bypassed Gas shall be calculated by Processor based
on the ratio of the quantity of gas made available by Plant Supplier on such day bears to
the total quantity of gas made available by all Third Party Suppliers on such day;
provided that, if any continuous period of complete shutdown of the Plant shall equal or
exceed twelve (12) hours duration, the time of each such shutdown [determined to the
nearest increment of six (6) hours] and the measured (or estimated, in the absence of
measurement) volumes of gas bypassed during such determined period of shutdown shall be
excluded in determining the average volume of Third Party Suppliers gas considered to have
been bypassed during the affected month for purposes hereof.

	4.4	 	Redelivery of Plant Supplier’s Gas to Southern. After processing Plant
Supplier’s gas delivered hereunder to the Plant, Processor shall redeliver the Residue Gas to
Southern; provided that, if the Residue Gas is not delivered to Southern immediately
downstream of the Toca Plant, the redelivery to Southern shall not adversely affect Plant
Supplier’s rights and obligations regarding the redelivery of its gas; and provided further,
that any additional costs and expenses reasonably incurred by Plant Supplier associated with
the redelivery of Plant Suppliers Residue gas other than immediately downstream of the Toca
Plant shall be borne by Processor. The Residue Gas prior to being commingled with any
Bypassed Gas shall have a total or gross heating value of not less than one thousand (1,000)
BTU’s per cubic foot (gross heating value saturated with water vapor) and shall otherwise
comply with the quality specifications enumerated in Southern’s Tariff, provided that the
combined gas stream delivered by Southern at the Plant Delivery Point meets such
specifications.
	 
	4.5	 	Production Estimates. No later than the Effective Date and thereafter no
later than five (5) days prior to the start of each month, Plant Supplier shall provide
Processor with a gas composition analyses and monthly volume forecast, i.e., monthly wellhead
production estimates, daily pipeline nomination volumes, or other Field Delivery Point
information for each Field Delivery Point (expressed in MCF per day).

8

 

ARTICLE V —  ALLOCATION OF PRODUCTS

	5.1	 	General. Products fractionated from the Raw Make recovered from gas
processed in the Plant shall be allocated to the source of each Plant Owner’s Committed Gas
and each Third Party Supplier’s gas in accordance with the procedure set forth in the
following sections of this Article V, which procedure is illustrated by the example
calculation set forth in Exhibit A hereto. As shown on said Exhibit A,
separate calculations shall be made for each Product. For the purposes of such allocations,
Plant Supplier under this Agreement shall be allocated Products on the same basis as Products
are allocated to Plant Owners. Processor will respond promptly to inquiries from Plant
Supplier regarding daily operating rates and daily production rates at the Plant.
	 
	5.2	 	Basic Allocation Data. The volumes of gas which shall be credited as having
been processed for the account of Plant Supplier in the Plant shall be the sum of all volumes
of gas delivered to Southern’s Lines at the various Field Delivery Points less the volumes
deducted pursuant to Section 5.5 hereof. Representative determinations for Liquid
Hydrocarbons content of the gas shall be made of the gas streams at each Field Delivery Point
by Plant Operator quarterly or more often, if found necessary, by chromatographic analysis or
by some other acceptable method for testing gas for Liquid Hydrocarbons content. Plant
Operator shall give Plant Supplier reasonable advance notice of tests to determine Liquid
Hydrocarbons content of the gas at the Field Delivery Points for Plant Supplier’s account so
that Plant Supplier may witness such tests if desired. Plant Supplier agrees that the gas
streams made available for these tests shall be representative of the streams normally
delivered at the Field Delivery Points for Plant Supplier’s account and will be at as near
typical delivery conditions and volumes as possible at the time. Either Plant Operator or
Plant Supplier may request a retest if dissatisfied with the results of a particular test. If
the request for a retest is made by Plant Supplier and the Liquid Hydrocarbons content of the
previous test is confirmed within ten percent (10%), the expense of the retest shall be borne
by Plant Supplier.
	 
	5.3	 	Allocation of Products to the Respective Field Delivery Points. Such
aforesaid volumes of gas which are credited as having been processed and the theoretical
Liquid Hydrocarbons content of such gas at the respective Field Delivery Points shall be used
as the basis for allocating each Product fractionated from the Raw Make to such Field Delivery
Points by the method illustrated in Exhibit A. Such method contemplates that the
volume of theoretical Liquid Hydrocarbons (separately for each Product) for each such Field
Delivery Point will be calculated by multiplying the volume of gas credited as having been
processed from such Field Delivery Point by the theoretical Liquid Hydrocarbons content
(separately as to each Product) at each such Field Delivery Point. The total of each such
Product fractionated from the Raw Make will, in turn, be allocated to such respective Field
Delivery Points in the ratio that the volume of theoretical Product calculated for each Field
Delivery Point bears to the sum of the volumes of such theoretical Product calculated for all
such Field Delivery Points. Any Liquid
Hydrocarbons recovered by the Plant inlet scrubber for which the preferred disposition is at
the Plant rather than being combined with the Raw Make, shall be allocated to the Field
Delivery Points in the same proportions as natural gasoline Product is allocated.

9

 

	5.4	 	Field Volume Statements and Sub-Allocations at Field Delivery Points. As
soon as practicable, but no later than the twentieth (20th) day of each month, Plant Supplier
shall furnish, or cause to be furnished, to Plant Operator a gas purchase statement by
Southern or such other statement as Plant Operator may reasonably require, to show the volume
of gas delivered during the preceding month from each of the Field Delivery Points for Plant
Supplier’s account. Additionally, by the twentieth (20th) day of each such month, but only
when gas owned by more than one Plant Supplier (including for Plant Supplier’s account) has
been delivered through a single Field Delivery Point, Plant Supplier, if so situated, shall
furnish or cause the operator of the Field Delivery Point to furnish to Plant Operator written
instructions on sub-allocating the gas delivered through said Field Delivery Point and
Products attributable thereto for such preceding month. Plant Operator shall be entitled to
rely on the information thus furnished or caused to be furnished in sub-allocating the
Products recovered and allocated to the particular Field Delivery Point.
	 
	5.5	 	Pipeline Uses and Losses. From the quantities of gas measured at the
respective Field Delivery Points as provided above, there shall be deducted any gas which may
be lost, used, or sold by Southern at any place on Southern’s Lines between such Field
Delivery Points and the Plant Delivery Point, as more specifically set forth in Section
4.1 above. The volumes of such gas and the nature of each disposition, as reported by
Southern to Plant Operator, shall be subtracted by Plant Operator from the quantities of gas
measured at the Field Delivery Points. In making settlements hereunder, Plant Operator shall
be entitled to rely upon the accuracy of such information as reported to it by Southern, but
Plant Operator shall footnote settlement data supplied to the affected Plant Suppliers, noting
the allocable amount of gas lost, used, or sold by Southern. It is understood that the
aforesaid volumes of gas lost, used, or sold by Southern at any place on Southern’s Lines
shall be allocated to all Field Delivery Points serving Southern’s Lines (including the Field
Delivery Point serving the Lines from which gas will be processed in plants other than the
Toca Plant) in the ratio which the volume of gas measured at each such Field Delivery Point
during the applicable month bears to the total volume of gas measured at all Field Delivery
Points serving Southern’s Lines during the applicable month.
	 
	5.6	 	Product Allocation Statements. By the end of the month in which the
information referred to in the preceding two sections is received, Plant Operator shall
furnish a statement to all Plant Owners and Third Party Suppliers accounting for the volume of
gas delivered from each Field Delivery Point for the preceding month together with the amount
of each individual Product allocated to said gas.

10

 

	5.7	 	Measurement of Field Volumes. All gas delivered at a Field Delivery Point
shall be measured by a suitable orifice meter or meters of standard make furnished, installed,
operated, and kept in repair by the owners of the equipment at the point where delivery is
made to Southern’s Lines which shall be the same meter or meters used under the provisions of
each Plant Owner’s or Third Party Supplier’s individual gas purchase contract with Southern.
The volumes measured by said meter or meters shall be used for purposes of settlement under
this Agreement. The computation of all gas volumes measured by orifice meters shall be based
on the latest orifice factors published by the American Gas Association corrected to a base
pressure of 15.025 psia and at a base temperature of sixty degrees Fahrenheit (60° F), and the
measurement procedures, technical requirements, and standards for all such meters shall be as
set out in each Owner’s or Plant Supplier’s gas transportation contract. Plant Supplier
agrees that the Plant Operator shall have the right to witness all tests of the meters and
other equipment employed to measure volumes of gas delivered to Southern, and upon request,
Plant Supplier shall give Plant Operator reasonable advance notice of all such tests.

ARTICLE VI —  CONSIDERATION DUE PLANT SUPPLIER

	6.1	 	Plant Supplier’s Consideration for Plant Supplier Gas. Subject to Sections 6.2, and
6.3 hereof, during any calendar month:

	 	6.1.1	 	If the total deliveries of American Midstream Gas to the Plant is greater than
or equal to an average daily volume of 40,000 MCF per day during such month, as full
settlement hereunder, Plant Supplier shall receive eighty-eight percent (88%) of the Net
Proceeds attributable to Plant Supplier Gas for such month, as allocated to Plant
Supplier’s Gas under Article V hereof. Processor shall be entitled to twelve
percent (12%) of the Net Proceeds attributable to Plant Supplier Gas for such month
(“Processor’s Proceeds”).
	 
	 	6.1.2	 	If the total deliveries of American Midstream Gas to the Plant for is less than
an average daily volume of 40,000 MCF per day during such month, as full settlement
hereunder, Plant Supplier shall receive eighty-four percent (84%) of the Net Proceeds
attributable to Plant Supplier Gas for such month, as allocated to Plant Supplier’s Gas
under Article V hereof. Processor shall be entitled to sixteen percent (16%) of
the Net Proceeds attributable to Plant Supplier Gas for such month.

	6.2	 	Minimum Processor’s Proceeds. Notwithstanding the foregoing, in no event
shall the value of the Processor’s Proceeds be less than the Minimum Plant Value. The
“Minimum Plant Value” shall be the Processor’s Minimum Fee of $0.12 per MCF (as
adjusted in accordance with Section 6.3) multiplied by the MCF of Plant Supplier Gas
processed at the Plant. If Processor’s Proceeds is less than the Minimum
Plant Value, Plant Supplier shall pay Processor the difference between Processor’s Proceeds
and the Minimum Plant Value.

11

 

	6.3	 	Processor’s Minimum Fee. Processor’s minimum fee (“Minimum Fee”) (in
$/MCF) shall be re-determined and shall be adjusted on an annual basis each April 1 in
accordance with the following formula; provided however, the Minimum Fee shall not be less
than $0.12/MCF.
	 
	 	 	     Processor’s Minimum Fee ($/MCF) = $0.12/MCF * (GDP2 / GDP1), where:
	 
	 	 	     “GDP2” = United Sates Bureau of Economic Analysis GDP Implicit Price Deflator
(Bureau of Economic Analysis Table 1.1.9) for the previous year; and
	 
	 	 	     “GDP1” = The average of the GDP Implicit Price Deflator for the calendar year 2010.

ARTICLE VII —  PLANT VOLUME REDUCTION AND BYPASSED GAS

	7.1	 	General. A reduction in gas volumes, herein called “Plant Volume
Reduction,” will occur between the quantity of gas delivered by Southern for processing in
the Plant and the volume of Residue Gas returned to Southern because of (a) extraction of Raw
Make, herein called the “Shrinkage Portion,” and (b) Plant fuel used, flared gas, or
other uses or losses incident to or occasioned by processing.
	 
	7.2	 	Calculation of Plant Volume Reduction. The Plant Volume Reduction for the
entire Plant shall be accounted for on a monthly basis and shall be calculated as follows:

	 	7.2.1	 	Shrinkage Portion. The vapor volume equivalent of each liquid
component of the Raw Make shall be determined by multiplying the liquid volume of such
component by the applicable vapor equivalent factor set forth in the schedule below to
derive the Shrinkage Portion. The total Shrinkage Portion of the Plant Volume Reduction
will be equal to the sum of all such conversion computations made for each component of
the Raw Make. Until revised by Plant Owners and Southern, the vapor equivalent factors
set forth in the schedule below shall be used for all such conversion calculations taken
from Gas Processors Association (“GPA”) Publication 2145-09:

	 	 	 	 	 	 	 	 	 
	 	 	VAPOR EQUIVALENT	 	HEAT EQUIVALENT
	COMPONENTS	 	FACTOR (CF/GAL)	 	FACTOR (MMBTU/GAL)
	Carbon Dioxide

	 	 	57.8528	 	 	 	0.000000	 
	Methane

	 	 	57.8431	 	 	 	0.059729	 
	Ethane

	 	 	36.6672	 	 	 	0.066338	 
	Propane

	 	 	35.5942	 	 	 	0.091563	 
	Iso-Butane

	 	 	29.9662	 	 	 	0.099629	 
	N-Butane

	 	 	31.1047	 	 	 	0.103740	 
	Iso-Pentane

	 	 	26.8137	 	 	 	0.109679	 
	N-Pentane

	 	 	27.0524	 	 	 	0.110869	 
	Hexane

	 	 	23.8466	 	 	 	0.115952	 
	Heptanes Plus*
	 	 	 	 	 	 	 	 

 

			
	*	 	The gas/liquid ratio for heptanes plus shall be determined from time to time as may
be necessary to be representative of such components.

12

 

	 	7.2.1.1	 	Vapor Equivalent factors are in cubic feet per gallon on the Ideal Gas Basis
corrected from 14.696 psia to 15.025 psia. Such factors shall be modified from
time to time to conform with any amendment or revision of the above table
adopted by the GPA. Heat Equivalent factors are in MMBTU per Gallon. Such
factors shall be modified from time to time to conform with any amendment or
revision of the above table adopted by the GPA.
	 
	 	7.2.1.2	 	The total shrinkage portion of the Plant Volume Reduction will be determined
from measurement by positive displacement liquid meter and monthly composite
sampling and analysis of the Raw Make.

	 	7.2.2	 	Determination of Losses. Plant fuel, flared gas, and other uses or
losses incident to processing: The volume of gas which is attributable to such uses or
losses shall be as determined by the measurement with meters of each such use occurring in
the Plant as may be necessary to determine accurately the total volume of gas so used,
such meters to be installed and operated as mutually agreed by Plant Owners and Southern.
	 
	 	7.2.3	 	Plant Volume Reduction Determination. All Plant Volume Reduction
attributable to any other Plant use, loss, or operation shall be determined by a method
mutually agreeable to Plant Owners and Southern. From time to time, Plant Owners and
Southern may agree on some other method of determining Plant Volume Reduction in order to
remove any inequities which may be found to exist, and any such other method adopted shall
be applicable to this Agreement.

	7.3	 	Sharing of Plant Volume Reduction Among Plant Owners and Third Party
Suppliers. That portion of Plant Volume Reduction resulting from Plant fuel shall be the
volume measured by orifice meters. The metered fuel volume shall be allocated to the
respective Field Delivery Points of Plant Owners and Third Party Suppliers on the following
basis: One-half (1/2) in the same ratio that the sum of the gallons of propane and heavier
Products (calculated separately for each Product) allocated to each Field Delivery Point bears
to the sum of the gallons of propane and heavier Products (calculated separately for each
Product) allocated to all Field Delivery Points, and one-half (1/2) in the ratio that the
volume of gas processed from each such Field Delivery Point bears to the total volume of gas
processed in the Plant.. That portion of the Plant Volume Reduction remaining, after
subtracting the metered fuel volume, shall be allocated to the respective Field Delivery
Points of Plant Owners and
Third Party Suppliers in the same ratio that the sum of the vapor equivalent of all Products
(calculated separately for each Product) allocated to each Field Delivery Point bears to the
sum of the vapor equivalent of all Products (calculated separately for each Product)
allocated to all Field Delivery Points to the Plant.

13

 

	7.4	 	Accounting to Southern for Plant Volume Reduction. Plant Supplier shall bear
and shall account to Southern for the full amount of Plant Volume Reduction allocated to the
gas credited as having been processed from the Field Delivery Points for Plant Supplier’s
account monthly on such basis as may be provided in the applicable contract between Plant
Supplier and Southern, it being expressly understood that Plant Owners have no responsibility
for any portion of such Plant Volume Reduction allocated pursuant hereto to the Field Delivery
Points for Plant Supplier’s account. Plant Operator shall, by the end of the month in which
it receives the accounting data required to be furnished by Plant Supplier under Section
5.5 and such additional accounting data as may be required from Plant Owners, other
Suppliers and Southern, furnish Plant Supplier and other interested parties a statement
setting forth:

	 	7.4.1	 	The total quantity of Plant Volume Reduction; and
	 
	 	7.4.2	 	Each Plant Owner’s and Third Party Supplier’s proportionate share of the total
Plant Volume Reduction; and
	 
	 	7.4.3	 	An allocation of the Plant Volume Reduction applicable to each Field Delivery
Point serving the Plant, and a sub-allocation as to gas which is owned by more than one
Plant Supplier (including for Plant Supplier’s account) to show the amount of Plant Volume
Reduction attributable to each Owner of the gas delivered at such Field Delivery Point.
	 
	 	 	 	The results set forth in such statement each month shall constitute the quantity of
Plant Volume Reduction to be allocated to each Plant Owner and Third Party Supplier
for the preceding month, and Southern may rely on such statements in effecting
settlement with Plant Supplier for Plant Supplier’s share of Plant V olume Reduction.
Plant Operator shall furnish the foregoing parties with an allocation statement based
on estimated Plant Volume Reduction covering the first month of Plant operation.
Plant Operator’s statement shall also report the volume of gas bypassed at the Plant
during the preceding month and allocation thereof to Plant Owners and Third Party
Suppliers, including Plant Supplier.

	7.5	 	Determination of Bypassed Gas. In conformity with the requirements agreed
upon by Plant Owners and Southern, Plant Owners have installed and shall operate , maintain,
and repair an orifice meter on the Plant bypass line for the purpose of measuring gas bypassed
as herein provided.
	 
	7.6	 	Sample Calculation of Plant Volume Reduction Allocation Procedure. The
procedure for calculating and allocating Plant Volume Reduction in accordance with the
provisions of this Article VII is illustrated by Exhibit B hereto.

14

 

ARTICLE VIII —  TERM

	8.1	 	Term. Subject to the terms of this Agreement, particularly the terms of
Sections 4.2.2 hereof and Sections 8.2 and 8.3below, this Agreement
shall be in full force and effect for a primary seven-year term of June 1, 2011 through May
31, 2018 and will continue from year to year thereafter unless and until terminated by either
Party, having given at least ninety (90) days prior written notice to the other Party to
terminate at the end of the current term.
	 
	8.2	 	Permanent Plant Shutdown. Processor shall have the right, to be exercised in
its reasonable sole discretion, to permanently shut down the Plant. In the event Processor
elects to permanently shut down the Plant, Processor shall provide Plant Supplier written
notice at least ninety (90) days prior to such permanent Plant shut down, and this Agreement
shall terminate ninety (90) days following Plant Supplier’s receipt of such written notice.
	 
	8.3	 	Periods when Processor not Processing Plant Supplier’s Gas. Notwithstanding
any other provision of this Agreement to the contrary, if, at any time and from time to time,
Processor, (i) for any reason, is unable or unwilling to process at least seventy-five percent
(75%) of the gas that Plant Supplier’s tenders at the Field Delivery Point and (ii) such
inability or unwillingness on the part of Processor extends for more than forty-five (45) days
during any consecutive one-hundred twenty (120) day period, Plant Supplier shall have the
right to have its gas processed by another party; provided, however, that if Processor’s
inability to process Plant Supplier’s gas is the result of a Force Majeure situation involving
the Toca Plant, then Plant Supplier’s right to have its gas processed by another party shall
cease on the first day of the month that Processor is able to process all of the gas tendered
by Plant Supplier at the Field Delivery Point.

ARTICLE IX —  PAYMENT OF ROYALTY AND TAXES

	9.1	 	Royalty and Other Burdens on Production. Plant Supplier shall be solely
responsible for accounting to or paying to the lessors, royalty owners, and the owners, if
any, of oil payments, overriding royalties, or other interests in production under the lease
or leases in the field or fields covered hereunder for their share, if any, of the Products or
the proceeds derived therefrom attributable to the gas processed for Plant Supplier’s account
hereunder. Processor shall not be liable for the payment of any monies due hereunder to the
lessors, royalty owners, and the owners, if any, of oil payments or overriding royalties under
the lease or leases in the field or fields covered hereunder.

15

 

	9.2	 	Severance and Other Taxes. Processor shall not be liable for any severance,
gathering, or equivalent Taxes due on the production, severance, and handling of the gas
delivered by Plant Supplier for processing hereunder and the severance or similar Taxes due on
Plant Supplier’s share of products hereunder where the same are taken in kind. Plant Supplier
shall pay or cause to be paid any and all Taxes or obligations due on the sale, use,
production, severance, processing, transportation, or handling of Plant Supplier’s Gas and
condensate delivered to Processor hereunder or on Residue Gas, Products, or Raw Make extracted
therefrom (or the proceeds attributable thereto, as the case may be), except for any Taxes
assessed on the disposition of Processor’s share of such Residue Gas, Products, or Raw Make,
if any, extracted from Plant Supplier’s Gas or condensate.

ARTICLE X —  QUALITY

	10.1	 	Gas Quality Specifications. Plant Supplier’s Gas delivered into Southern’s
Line shall conform to the gas quality specifications (“Quality Specifications”)
contained in the then-current FERC Gas Tariff applicable to Southern’s Lines, with the
exception of any specification related to (i) liquefiable hydrocarbon content, (ii) BTU
content, and (iii) hydrocarbon dew point. Plant Supplier’s Gas shall be natural gas that was
produced only from a gas reservoir from a well. Any waiver of a Quality Specification by
Processor must be in writing and no receipt of gas that does not conform to the Quality
Specifications (“Off-Spec Gas”) by Processor shall act as a waiver of the applicable
Quality Specifications with respect to any future deliveries of gas, other than the gas
specified in Processor’s written waiver. Plant Supplier shall use commercially reasonable
efforts to remedy the quality of such Off-Spec Gas in a timely manner and Plant Supplier shall
inform Processor timely of the disposition of such Off-Spec Gas.
	 
	10.2	 	Off-Specification Notification. If Plant Supplier becomes aware that Plant
Supplier’s gas fails to conform to the Quality Specifications, Plant Supplier, as soon as
reasonably possible after becoming aware of such failure, shall give written or verbal notice
to Processor of the Off-Spec Gas and the manner in which such Off-Spec Gas does not conform to
the Quality Specifications; provided, however, if verbal notice is initially given, then Plant
Supplier shall, as soon as reasonably possible, deliver to Processor written notice specifying
the manner in which such Off-Spec Gas does not conform to the Quality Specifications (in
either case, such written notice being herein called (the “Written Off-Spec Notice”).
If Processor becomes aware that Off-Spec Gas is being delivered by Plant Supplier hereunder
before receiving such written or verbal notice from Plant Supplier, Processor shall, as soon
as reasonable after becoming aware thereof, give written or verbal notice to Plant Supplier of
the Off-Spec Gas and the manner in which such Off-Spec Gas does not conform to the Quality
Specifications; provided, however, if verbal notice is initially given, then Processor shall,
as soon as reasonably possible, deliver to Plant Supplier a Written Off-Spec Notice.

16

 

	10.3	 	Remedies for Off-Spec Gas.

	 	10.3.1	 	Suspension of Receipt of Off-Spec Gas. Processor shall have the right
to suspend receipt of Off-Spec Gas; provided, however, that Processor’s failure to suspend
receipt of Off-Spec Gas after having had reasonable opportunity to suspend receipt shall
constitute acceptance of such Off-Spec Gas as received and be a waiver of the Gas Quality
Specifications (but only with respect to matters set forth in the notice delivered by
Plant Supplier to Processor pursuant to Section 10.2 above) for the Off-Spec Gas
so accepted; provided, however, Processor’s receipt of such Off-Spec Gas shall not
obligate Processor to accept subsequent Off-Spec Gas from Plant Supplier.
	 
	 	10.3.2	 	Waiver of Claims. If, after a reasonable response period, Processor
continues to accept Off-Spec Gas, Processor waives its claims against Plant Supplier for
damages caused by Off-Spec Gas (but only with respect to those damages caused by the
manner in which such Off-Spec Gas does not conform to the Gas Quality Specifications as
expressly set forth in the applicable Written Off-Spec Notice delivered pursuant to
Section 10.2 above).
	 
	 	10.3.3	 	Indemnity. Plant Supplier hereby agrees to indemnify, defend, and
hold harmless Processor from and against all Claims arising out of, resulting from, or
caused by Off-Spec Gas, except to the extent waived by Processor pursuant to Section
10.3.2.

ARTICLE XI — BILLING AND PAYMENTS

	11.1	 	Statements. On or before the last day of each month, Processor shall render
to Plant Supplier a detailed statement for the preceding month setting forth the calculation
of the net amount due hereunder to Plant Supplier or Processor, as the case may be.
	 
	11.2	 	Payment of Statements. Plant Supplier or Processor, as the case may be,
shall make payment to the other party by wire transfer on or before the twenty-fifth (25th)
day of the month following the month in which such statement is rendered for all sums payable
pursuant to such statement.
	 
	11.3	 	Statement Errors. In the event an error is discovered in the amount shown
to be due on statement rendered by Processor hereunder, such error shall be adjusted without
interest or penalty as promptly as reasonably practicable. All statements rendered hereunder
shall be deemed to be final and not subject to audit two (2) years after the date on which the
statement is rendered.
	 
	11.4	 	Reservation of Rights. Each party reserves to itself all rights, setoffs,
counterclaims, and other defenses which it is or may be entitled to arising from the
Agreement.

ARTICLE XII — TITLE AND WARRANTY OF TITLE

	12.1	 	Conveyance of Rights to Processor. Plant Supplier does hereby grant,
bargain, sell, transfer, convey, and assign to Processor, its successors and assigns, (i) all
Plant Products contained in Plant Supplier’s Gas delivered hereunder that are recovered and
removed by Processor and (ii) the right to consume Plant Supplier’s gas as Plant fuel,
shrinkage, use, loss, or operation.

17

 

	12.2	 	Title to Plant Products. Title to Plant Products recovered from Plant
Supplier’s gas hereunder shall pass to Processor when the same are removed from the gas
streams or become identifiable Plant Products.
	 
	12.3	 	Title to Plant Supplier’s Gas. Except for Plant Products, title to Plant
Supplier’s gas and all constituents thereof shall remain in Plant Supplier at all times.
	 
	12.4	 	Title Warranty. Plant Supplier represents and warrants to Processor that
(i) Plant Supplier has title to or has the right to process Plant Supplier’s gas delivered
hereunder for extraction of Plant Products, (ii) such Plant Products are free and clear of any
and all liens, encumbrances and adverse claims, and (iii) Plant Supplier has the right, power,
title, and authority to enter into this Agreement and to bargain, grant, sell, transfer, and
convey to Processor, its successors and assigns, the rights, titles, benefits, and interests
created and assigned hereby, free and clear of any and liens, encumbrances and adverse claims.
	 
	12.5	 	Proceeds of Production. Plant Supplier agrees to make (i) payment of all
royalties, overriding royalties, production payments, and all other payments for interests
attributable to Plant Supplier Plant Products due to any Person under any leases or other
documents in accordance with the terms thereof and (ii) settlements with all other Persons
having any interest attributable to Plant Supplier Plant Products.
	 
	12.6	 	Indemnification. Plant Supplier agrees to indemnify and hold Processor
harmless from any and all Claims incurred in connection with, or in any manner whatsoever
relating to (i) processing rights to the Plant Supplier’s gas and title to the Plant Products
recovered and removed therefrom, (ii) any breach of the representations and warranties made by
Plant Supplier pursuant to Section 12.1 above, (iii) payment for Plant Supplier’s gas,
royalties, overriding royalties, production payments, and all other payments for interests
attributable to Plant Supplier Plant Products or Plant Supplier Residue Gas hereunder due to
any Person or (iv) settlements with any other Persons having any interest attributable to
Plant Supplier Plant Products.

ARTICLE XIII — LIABILITY OF THE PARTIES

	13.1	 	Control and Possession of Gas. As between Plant Supplier and Processor,
Plant Supplier shall be deemed in control and possession of the gas delivered for processing
hereunder and responsible for any damage or injury caused thereby until such gas shall have
been delivered at the Point of Delivery. As between Plant Supplier and Processor, Processor
shall be deemed in control and possession of the gas delivered for processing hereunder and
responsible for any damage or injury caused thereby until such gas shall have been delivered
to Plant Supplier or its designee at the Point of Redelivery.

18

 

	13.2	 	Waiver of Certain Damages. NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS
AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY, ANY SUCCESSORS IN
INTEREST OR ANY BENEFICIARY OR ASSIGNEE OF THIS AGREEMENT FOR ANY CONSEQUENTIAL, INCIDENTAL,
INDIRECT, SPECIAL, OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR ANY BREACH HEREOF.
THIS SECTION 13.2 SHALL APPLY NOTWITHSTANDING THE SOLE, JOINT, OR CONCURRENT
NEGLIGENCE, FAULT, OR RESPONSIBILITY OF THE PARTY WHOSE LIABILITY IS WAIVED BY THIS PROVISION,
OR ANY OTHER EVENT OR CONDITION, WHETHER ANTICIPATED OR UNANTICIPATED, AND REGARDLESS OF
WHETHER PRE-EXISTING PRIOR TO THE DATE OF THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING AND
SUBJECT TO SECTION 10.3.3 HEREIN, LOSSES, DAMAGES AND COSTS INCURRED BY PROCESSOR IN
CONNECTION WITH OR CAUSED BY INERT CONSTITUENTS AND/OR OFF-SPEC GAS, OR THE VENTING, DISPOSING
AND/OR HANDLING THEREOF, SHALL BE CONSIDERED DIRECT DAMAGES AND NOT CONSEQUENTIAL, INCIDENTAL,
INDIRECT, SPECIAL, OR PUNITIVE DAMAGES.

ARTICLE XIV —  LAWS, REGULATIONS AND FORCE MAJEURE

	14.1	 	Agreement Subject to Laws. This Agreement shall be subject to all
Applicable Laws of any Governmental Authorities.
	 
	14.2	 	Force Majeure and Suspension of Obligations.

	 	14.2.1	 	Suspension of Obligations. If either Plant Supplier or Processor is
rendered unable, wholly or in part, by reason of Force Majeure, from carrying out its
obligations under this Agreement (other than the obligation to make payment of amounts due
hereunder), then upon said party’s giving written notice and reasonably full particulars
of such Force Majeure to the other party, which shall be done as soon as practicable after
the occurrence of the cause relied on, the obligations of the party giving such notice, so
far as they are affected by such Force Majeure, shall be suspended during the continuance
of any inability so caused, but for no longer period, and such cause shall be remedied
with all reasonable dispatch.
	 
	 	14.2.2	 	Definition of Force Majeure. The term “Force Majeure” shall
mean acts of God, acts of Governmental Authorities or any agencies thereof, compliance
with Applicable Laws of any Governmental Authority or any office, department, agency, or
instrumentality thereof, 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 or lines of pipes,
freezing of wells or lines of pipes, requisitions, directives, diversions, embargoes,
priorities, or expropriations of government or governmental

19

 

	 	 	 	authorities, legal or de facto, whether purporting to act under some constitution, decree, law, or otherwise,
failure of pipelines or other carriers to transport or furnish facilities for
transportation, failure of third parties to fractionate or furnish facilities for
fractionation, rules and regulations with regard to transportation by common carriers,
failures, disruptions, or breakdowns of machinery or of facilities for production,
fractionation, manufacture, transportation, distribution, processing, or consumption
(including, but not by way of limitation, the Plant and downstream fractionation
facilities), allocation , or curtailment by third parties of downstream capacity, the
necessity for making repairs, alterations, enlargements, or connections to, or performing
maintenance on, machinery or facilities of production, fractionation, manufacture,
transportation, distribution, processing, or consumption (including, but not by way of
limitation, the Plant and downstream fractionation facilities), inability to secure
rights-of-way, transportation embargoes or failures or delays in transportation or poor
road conditions, partial or entire failure of gas or natural gas liquids supply or
downstream pipeline or fractionation market constraints, and, without limitation by
enumeration, any other cause or causes, whether of the kind herein enumerated or
otherwise, not reasonably within the control of the party claiming suspension, which, by
the exercise of due diligence, such party shall not have been able to avoid.
	 
	 	14.2.3	 	Strikes. The settlement of strikes or lockouts shall be entirely
within the discretion of the party having the difficulty. The requirement that any Force
Majeure shall be remedied with all reasonable dispatch shall not require the settlement of
strikes or lockouts by acceding to the demands of the opposing party, when such is deemed
inadvisable in the discretion of the party having the difficulty.
	 
	 	14.2.4	 	Interruption of Operations. Either party may, without liability to
the other party, 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. The party interrupting
operations shall give the other party advance written notice, except in case of
emergency, of its intention to interrupt operations and of the estimated time
thereof.

20

 

ARTICLE XV —  NOTICES AND PAYMENT

	15.1	 	Notices. All notices, settlement instructions, payments, and demands
required or provided for herein shall be in writing and shall be considered as duly delivered
when delivered by courier, facsimile, or mailed by prepaid mail, addressed to the party to
whom such notice is given as follows:

	 	 	 

	PLANT SUPPLIER:

Notices:

	 	American Midstream, LP

Attn: Contract Administration

8300 FM 1960 West, Suite 225

Houston TX 77070

Phone: (281) 955-4815

Fax: (281) 955-4855

Email: mgonzales@americanmidstream.com
	 
	 	 
	Plant Statements:

	 	American Midstream, LP

Attn: Manager, Accounting

8300 FM 1960 West, Suite 225

Houston TX 77070

Phone: (281) 955-4709

Fax: (281) 955-4855

Email: PMcnamara@americanmidstream.com
	 
	 	 
	Payment: Payments (Wire):

	 	Comerica Bank

ABA # 111000753

Acct # 1881319493

For credit to: American Midstream, LLC

Federal Tax ID: 27-0855925
	 
	 	 
	PROCESSOR:      Notices:
	 	 
	If by mail or facsimile:

	 	Enterprise Gas Processing, LLC

Attn: GOM Gas Processing Contract Administration

P.O. Box 4324

Houston, Texas 77210-4324

Telephone: (713) 381-1539

Facsimile: (713) 381-4365
	 
	 	 
	If by courier:

	 	Enterprise Gas Processing, LLC

Attn: GOM Gas Processing Contract Administration

1100 Louisiana, Suite 1500

Houston, Texas 77002

Telephone: (713) 381-1539
	 
	 	 
	If by electronic mail:

	 	GOMgasprocessing@eprod.com

or to such other address as either party shall designate by like written notice to the other
party. Routine communications, including statements, computations , and allocations, may be
transmitted by ordinary mail or electronic mail.

21

 

ARTICLE XVI — INDEMNIFICATION

	16.1	 	Indemnification. Processor and Plant Supplier shall indemnify, defend, and
hold the other harmless from claims, demands, and causes of action of every type and character
arising out of the performance of this Agreement which are asserted against the indemnitee by
any person (including, without limitation, Processor’s and Plant Supplier’s employees) for
personal injury, death, or loss of or damage to property where such injury, death, or loss of
or damage to property is due to the sole negligence or sole willful misconduct of the
indemnitor. Where personal injury, death, or loss of or damage to property is the result of
joint negligence of Processor and Plant Supplier, the indemnitor’s duty of indemnification
shall be in the same proportion that the indemnitor’s negligent
acts or omissions contributed
thereto. If Processor or Plant Supplier is strictly liable under law, the indemnitor’s duty
of indemnification shall be in the same proportion that the indemnitor’s negligent acts or
omissions contributed to the personal injury, illness, death, or losses of or damage to
property for which the indemnitor is strictly liable.

ARTICLE XVII —  MISCELLANEOUS

	17.1	 	Plant Supplier’s Inert Constituents.

	 	17.1.1	 	Plant Supplier shall retain title to, and risk and responsibility for, all
Inert Constituents in the gas delivered by Plant Supplier under this Agreement
(collectively, whether removed from the gas or not, “Plant Supplier’s Inert
Constituents”), including but not limited to, carbon dioxide (CO2). To the extent
that Processor removes Plant Supplier’s Inert Constituents from such gas and Plant
Supplier has not made arrangements to utilize, market, or dispose of Plant Supplier’s
Inert Constituents, Processor may, but is not required to, dispose of Plant Supplier’s
Inert Constituents by venting or other methods If (i) venting Plant Supplier’s Inert
Constituents is ever prohibited or disallowed for any reason or is deemed by Processor to
be uneconomic, or (ii) additional costs are required to vent, dispose of, or handle Plant
Supplier’s Inert Constituents due to new rules, regulations, or other laws, then Plant
Supplier shall promptly (i) make alternate arrangements to utilize, market, or dispose of
Plant Supplier’s Inert Constituents at Plant Supplier’s sole cost and expense, (ii) notify
Processor in writing and in reasonable detail of such alternate arrangements, and (iii)
reimburse Processor for any costs incurred by Processor for delivering Plant Supplier’s
Inert Constituents for such utilization, marketing or disposal. If Plant Supplier fails
to comply with Plant Supplier’s obligations under the immediately preceding sentence,
Processor shall have the right, but not the obligation, without further notice to Plant
Supplier, to make arrangements for utilization, marketing or disposal of some or all of
Plant Supplier’s Inert Constituents for Plant Supplier’s account and at Plant Supplier’s
sole cost and expense; and Plant Supplier shall promptly indemnify, protect, and reimburse
Processor upon demand for any Claims, liabilities, losses,
costs, and expenses incurred by Processor in connection with such arrangements by
Processor.
	 
	 	17.1.2	 	If any Taxes are ever imposed on Plant Supplier’s Inert Constituents or the
utilization, marketing, or disposal thereof, Plant Supplier shall promptly pay such Taxes.
If such Taxes must be paid by Processor, Plant Supplier shall promptly reimburse
Processor for any and all such Taxes paid by Processor with respect to any or all of Plant
Supplier’s Inert Constituents. If Processor is required by Applicable Law to pay such
Taxes on any or all of Plant Supplier’s Inert Constituents and it is unlawful for Plant
Supplier to make such reimbursement to Processor for such Taxes, Plant Supplier and
Processor shall promptly and in good faith

22

 

	 	 	 	negotiate and execute an amendment to this
Agreement which restores to Processor the same economic bargain as would have resulted if
Plant Supplier, rather than Processor, had paid all Taxes on Plant Supplier’s Inert
Constituents; and if Plant Supplier is unable or unwilling to promptly enter into such an
amendment reasonably acceptable to Processor, Processor shall have the option, exercisable
in Processor’s sole discretion, to terminate this Agreement by written notice to Plant
Supplier.

	17.2	 	Access to Plant Supplier’s Premises. Processor shall have the right of
access insofar as Plant Supplier has the right to grant such access to the Field Delivery
Points for all purposes necessary for the fulfillment of this Agreement; provided, however,
that Processor shall provide Plant Supplier with reasonable advance notice prior to Processor
accessing any of Plant Supplier’s Field Delivery Points.
	 
	17.3	 	Separate Agreement. If the gas which is subject to processing hereunder is
delivered from more than one Field Delivery Point, this Agreement shall be considered a
separate agreement as to each such Field Delivery Point and a separate accounting shall be
made hereunder for the gas received from each such Point.
	 
	17.4	 	Inspection of Records.

	 	17.4.1	 	Audit. Each party hereto shall have the right at all reasonable times
during normal business hours of the other party to examine the books, records, charts,
meters, measuring equipment, and other pertinent matters or data of the other party
relating to this Agreement.
	 
	 	17.4.2	 	Witnessing Tests. Each party hereto shall have the right to witness
the tests of the other party to the extent necessary to verify the accuracy of any such.
	 
	 	17.4.3	 	Errors. If any such examination shall reveal, or if either party
shall otherwise discover, any error or inaccuracy in its own or the other party’s
statements, payments, calculations, or determinations, then proper adjustment and
correction thereof shall be made as promptly as
practicable thereafter; provided, that no adjustment of any statement, billing, or
payment shall be made after the lapse of two (2) years from the rendition thereof.

	17.5	 	Headings and Subheadings. Except when comprising a part of a sentence, the
headings and subheadings used in this instrument are provided for reference purposes only and
shall not be construed to interpret or amend any part of the text hereof.
	 
	17.6	 	Successors and Assigns Bound. This Agreement shall extend to and be binding
upon the parties hereto, their respective successors and assigns, and shall follow and run
with the title to the leases in the field or fields covered hereby, and the rights of either
party may be assigned or conveyed in whole or in part, but all such assignments and
conveyances shall be subject to this Agreement. No transfer or succession to the interest of
any party herein shall affect or bind the non-transferring party until the non-transferring
party shall have been furnished at its address given above with the original recorded
instrument or a certified copy of the recorded instrument under which the transfer or
succession takes place.

23

 

	17.7	 	Conflicts. To the extent of any conflict between any portion of the written
text of this Agreement or any Exhibit and any of the examples contained in this Agreement or
any Exhibit hereto, the examples shall control.
	 
	17.8	 	Media or Press Releases. No party shall issue a media or press release
regarding the matters which are the subject of this Agreement unless such party has obtained
the prior written consent of the other parties, except where such release is deemed in good
faith by the releasing party to be required by Applicable Laws or applicable rules or
regulations any stock exchange. However, any party that fails to object to a media or press
release within seventy-two (72) hours following proper notice of the proposed media or press
release will be deemed to have consented to such media or press release. The parties shall
use reasonable efforts to unanimously agree upon the timing and content of releases to the
news media concerning operations covered by this Agreement. However, in the event the parties
cannot unanimously agree upon either the timing or content of the news release within
seventy-two (72) hours of receipt of such proposed news release, then any party shall be
allowed to issue its own release without the approval of the other parties.
	 
	17.9	 	Governing Law. This Agreement is entered into in the State of Texas and
shall be governed, interpreted and construed in accordance with the laws of the State of Texas
without regard to the conflicts of laws provisions thereof.
	 
	17.10	 	Venue. Exclusive venue for any suit, action , or proceeding brought by
either party in connection with this Agreement or arising out of the terms or conditions
hereof shall be in Harris County, Texas. The
parties hereby irrevocably and unconditionally waive, to the fullest extent they may legally
and effectively do so, any objection 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 the state and federal courts situated in the City of
Houston, Harris County, Texas.
	 
	17.11	 	Dispute Resolution and Negotiation. Prior to submitting any dispute for
resolution by a court, a party shall provide written notice to the other of the occurrence of
such dispute. If the parties have failed to resolve the dispute within fifteen (15) business
days after such notice was given, the parties shall seek to resolve the dispute by negotiation
between senior management personnel of each party. Such personnel shall endeavor to meet and
attempt to amicably resolve the dispute. If the parties are unable to resolve the dispute for
any reason within thirty (30) business days after the original notice of dispute was given,
then either party shall be entitled to pursue any remedies available at law or in equity;
provided, however, this Section 17.10 shall not limit a party’s right to initiate
litigation prior to the expiration of the time periods set forth in this Section 17.10
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.).

24

 

	17.12	 	Confidentiality.

	 	17.12.1	 	Obligations of Parties. 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.
	 
	 	17.12.2	 	Permitted Disclosures. Notwithstanding Section 17.11.1 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 17.11; (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 Plant Supplier’s Gas delivered hereunder,
provided such co-working interest owner or royalty owner agrees in writing to be bound by
the terms of this Section 17.11.
	 
	 	17.12.3	 	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 17.11.2(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.
	 
	 	17.12.4	 	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
17.11.

25

 

	 	17.12.5	 	Survival. The provisions of this Section 17.11 shall survive
any expiration or termination of this Agreement for a period of one (1) year.

	17.13	 	Waiver. Failure of either party at any time to require performance by the
other of any provision of this Agreement shall in no way affect the right of the parties
thereafter to enforce the same. Nor shall any waiver by either party of any breach of any
provision hereof be taken or held to be a waiver of any succeeding breach of such provision or
as a waiver of this provision itself.
	 
	17.14	 	Third-Party Beneficiaries. The Agreement is for the benefit of the
respective parties and nothing herein or in such Agreement is intended to benefit any third
party and no such third party shall have any rights, remedies, or claims hereunder or
thereunder, except as actually expressed hereunder or thereunder.
	 
	17.15	 	Reservation of Rights. Each party reserves to itself all rights, setoffs,
counterclaims, and other defenses which it is or may be entitled to arising from the
Agreement.
	 
	17.16	 	Entire Agreement; Amendments. The Agreement contains the entire agreement
with respect to the subject matter hereof and supersedes all prior agreements between the
parties. No representations, understandings, or commitments, either written, or oral, which
are alleged to be applicable to this Agreement will have any force or effect except
modifications or amendments to this Agreement which are agreed to in writing by Processor and
Plant Supplier.
	 
	17.17	 	Severability. If any provision of this Agreement is held invalid or
unenforceable, such invalidity or unenforceability shall not affect in any way the validity or
enforceability of any other provision of this Agreement. In the event any provision is held
invalid or unenforceable, the parties shall attempt to agree on a valid or enforceable
provision that will be a reasonable substitute for such provision, in light of the tenor of
this Agreement and, on so agreeing, shall incorporate such substitute provision in this
Agreement. If no such agreement is reached between the parties, the invalid or unenforceable
provision shall be deemed automatically stricken, but only to the extent necessary to make
the affected terms and conditions valid and enforceable.
	 
	17.18	 	Construction. Each party has had the benefit of advice of counsel with
respect to the subject matter of this Agreement. The provisions of this Agreement shall be
construed fairly and reasonably and not more strictly against one party than the other.

26

 

     IN WITNESS WHEREOF, this agreement is executed by the parties hereto on the date first above
written.

	 	 	 	 	 	 	 	 	 

	PLANT SUPPLIER:	 	 	 	PROCESSOR:
	AMERICAN MIDSTREAM	 	 	 	ENTERPRISE GAS PROCESSING, LLC
	(LOUISIANA INTRASTATE), LLC	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brian Bierbach
	 	 	 	By:
	 	/s/ Thomas M. Zulim
	 

	 	 
	 	 	 	 	 	 
	 

	 	Brian Bierbach
	 	 	 	 	 	Thomas M. Zulim
	 

	 	President & CEO
	 	 	 	 	 	Senior Vice President

27

 

EXHIBIT “C”

TO

GAS PROCESSING AGREEMENT

TOCA GAS PROCESSING PLANT

ST. BERNARD PARISH, LOUISIANA

FRACTIONATION FEE

Beginning on the effective date of this Agreement, and on the first day of each month thereafter
with respect to fuel gas, the Fractionation Fee shall be calculated based on the following formula
(expressed in cents/Gallon):

 

     

 

     With respect to the formula above, the following definition shall apply:

     W = The settlement price in dollars per MMBtu, for the Henry Hub index (“Index”), as published
in Inside F.E.R.C.’s Gas Market Report (“IFERC”), in effect for the month in which the Gas is being
processed (e.g. IFERC price published on/near last day of February for March gas flows).

     Notwithstanding anything to the contrary herein, in no event shall the adjustments permitted
by the formula appearing above in this Agreement reduce the Fractionation Fee below 5.00 cents
($0.050) per gallon (the “Fractionation Fee Floor”). In the event that the computation of the
Fractionation Fee, as herein provided, results in an amount that is less than the 5.00 cents
($0.050) per gallon, then the Parties acknowledge and agree that the Fractionation Fee shall be
5.00 cents ($0.050) per gallon. In the event that anything in this Agreement conflicts or otherwise
restricts the application of the Fractionation Fee Floor, the Fractionation Fee Floor shall fully
apply and control.

28

 

EXHIBIT “D”

GAS PROCESSING AGREEMENT

TOCA GAS PROCESSING PLANT

ST. BERNARD PARISH, LOUISIANA

PRODUCT INDEX BASES

	 	 	 
	Product	 	Pricing Basis
	 
	 	 
	Ethane

	 	OPIS monthly average (of daily high and low) price for
Napoleonville ethane, less $0.005/gallon.
	Propane

	 	OPIS monthly average (of daily high and low) price for
Napoleonville propane, less $0.0125/gallon.
	Isobutane

	 	OPIS monthly average (of daily high and low) price for
Napoleonville isobutane, less $0.005/gallon.
	Normal Butane

	 	OPIS monthly average (of daily high and low) price for
Napoleonville normal butane, less $0.0125/gallon.
	Natural Gasoline

	 	OPIS monthly average (of daily high and low) price for
Napoleonville natural gasoline, less $0.005/gallon.

     NOTE: The above basis pricing reflects the Toca gas plant’s existing agreement for sale by
the plant of natural gas liquids fob the Norco Fractionator Plant. The pricing basis herein may
change from time-to-time, and upon notification of such change to Plant Supplier, the new pricing
basis will become effective for the month following the month of such notification.

29

 

EXHIBIT “E”

TO

GAS PROCESSING AGREEMENT

TOCA GAS PROCESSING PLANT

ST. BERNARD PARISH, LOUISIANA

SOUTHERN FIELD DELIVERY POINT

	 	 	 
	Southern Delivery Point	 	Southern Meter Number
	 
	 	 
	Creole Receiving Station
	 	039500

30

 

EXHIBIT “F” —  MAP OF PLANT SUPPLIER’S PIPELINES

31

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