Document:

Exhibit 10.1

 

Execution Version

 

AMENDED AND RESTATED

 

OMNIBUS AGREEMENT

 

among

 

EQT CORPORATION,

 

EQM MIDSTREAM PARTNERS, LP

 

and

 

EQM MIDSTREAM SERVICES, LLC

 

 

AMENDED AND RESTATED OMNIBUS AGREEMENT

 

This AMENDED AND RESTATED OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, November 13, 2018, among EQT Corporation, a Pennsylvania corporation (“EQT”), EQM Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), and EQM Midstream Services, LLC, a Delaware limited liability company (the “General Partner”).  The above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”

 

R E C I T A L S:

 

1.                                      The Parties previously entered into that certain Omnibus Agreement, effective July 2, 2012 (as amended by Amendment No. 1 to Omnibus Agreement, dated March 17, 2015, the “Original Agreement”), governing certain indemnification, reimbursement and licensing matters among them;

 

2.                                      Pursuant to Section 6.4 of the Original Agreement, EQT has delivered to the Partnership and the General Partner a notice regarding EQT’s election to terminate the Original Agreement, other than Section 5.3, Article II and Article III thereof, in connection with a Change of Control (as defined in the Original Agreement) related to the proposed spin-off of Equitrans Midstream Corporation (the “Spin-Off”) by EQT; and

 

3.                                      In connection with the Spin-Off, the Parties desire to enter into this Agreement in order to amend and restate the Original Agreement as more fully described herein.

 

In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE I
 Definitions

 

1.1                               Definitions.  As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.

 

“Applicable Maintenance Capital Expenditures” is defined in Section 3.2.

 

“Cause” is defined in the Partnership Agreement.

 

“Closing Date” means July 2, 2012.

 

“Common Units” is defined in the Partnership Agreement.

 

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“Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Closing Date, among the General Partner, the Partnership, EQT and certain other EQT Entities, together with the additional conveyance documents and instruments contemplated or referenced thereunder.

 

“control,” “is controlled by” or “is under common control with” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract, or otherwise.

 

“Covered Environmental Losses” means any and all Losses (including, without limitation, the costs and expenses associated with any Environmental Activity or of any environmental or toxic tort pre-trial, trial or appellate legal or litigation work) related to or arising out of or in connection with:

 

(a)                                 any violation or correction of a violation of any Environmental Law related to the Partnership Assets; and

 

(b)                                 any event, circumstance, action, omission, condition or matter that has an adverse impact on the environment and is associated with or arising from the ownership or operation of the Partnership Assets (including, without limitation, the presence of Hazardous Substances at, on, under, about or migrating from the Partnership Assets or the exposure to or Release of Hazardous Substances arising out of the operation of Partnership Assets, including at non-Partnership Asset locations).

 

“Environmental Activity” means any investigation, study, assessment, evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective action, remediation (whether active or passive), natural attenuation, restoration, bioremediation, response, repair, cleanup or abatement that is required or necessary under any Environmental Law, including, without limitation, the establishment of institutional or engineering controls and the performance of or participation in a supplemental environmental project in partial or whole mitigation of a fine or penalty.

 

“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, ordinances, judgments, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law relating to (a) pollution or protection of the environment or natural resources, (b) any Release or threatened Release of, or any exposure of any Person or property to, any Hazardous Substance and (c) the generation, manufacture, processing, distribution, use, treatment, storage, transport or handling of any Hazardous Substance, including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil Pollution Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act and other environmental conservation and protection laws, each as amended through and existing on the Closing Date.

 

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“Environmental Permits” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any applicable Environmental Law.

 

“EQT Entities” means EQT and any Person controlled, directly or indirectly, by EQT other than the General Partner or a member of the Partnership Group; and “EQT Entity” means any of the EQT Entities.

 

“Equitrans” means Equitrans, L.P., a Pennsylvania limited partnership.

 

“Hazardous Substance” means (a) any substance that is designated, defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous substance as such term is defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (b) petroleum, petroleum products, natural gas, crude oil, gasoline, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other petroleum hydrocarbons, whether refined or unrefined, and (c) radioactive materials, asbestos, whether in a friable or a non-friable condition, and polychlorinated biphenyls.

 

“Indemnified Party” means either one or more members of the Partnership Group or one or more EQT Entities, as the case may be, each in its capacity as a party entitled to indemnification in accordance with Article II hereof.

 

“Indemnifying Party” means either one or more members of the Partnership Group or EQT, as the case may be, each in its capacity as a party from whom indemnification may be required in accordance with Article II hereof.

 

“Limited Partner” is defined in the Partnership Agreement.

 

“Losses” means all losses, damages, liabilities, injuries, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses of any and every kind or character (including, without limitation, court costs and reasonable attorneys’ and experts’ fees).

 

“Ongoing Maintenance Capital Expenditures” means Maintenance Capital Expenditures (as defined in the Partnership Agreement) incurred by the Partnership Group with respect to the Partnership Assets during any applicable period other than those incurred pursuant to the initiatives set forth on Schedule A attached hereto (the “Pre-Funded Capital Expenditures Initiatives”) for which the Partnership Group has allocated proceeds of its initial public offering for the funding thereof, as further described in the Partnership’s Registration Statement on Form S-1 (No. 333-179487) (the “Allocated Proceeds”); provided, however, that for purposes of Section 3.2, in the event that the aggregate Maintenance Capital Expenditures incurred with respect to the Partnership Assets pursuant to the Pre-Funded Capital Expenditures Initiatives exceeds the amount of the Allocated Proceeds, such excess Maintenance Capital Expenditures shall be considered “Ongoing Maintenance Capital Expenditures.”

 

“Original Agreement” is defined in the recitals to this Agreement.

 

3

 

“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the Closing Date, as such agreement was in effect on the Closing Date, to which reference is hereby made for all purposes of this Agreement.

 

“Partnership Assets” means the assets conveyed, contributed or otherwise transferred, directly or indirectly (including through the transfer of equity interests), or intended to be conveyed, contributed or otherwise transferred, to the Partnership Group pursuant to the Contribution Agreement, including, without limitation, gathering pipelines, transportation pipelines, natural gas storage assets, offices and related equipment and real estate.

 

“Partnership Group” means the Partnership and its Subsidiaries treated as a single consolidated entity.

 

“Party” and “Parties” are defined in the introduction to this Agreement.

 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

“Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing into the environment.

 

“Retained Assets” means the assets and investments owned by Equitrans as of the Closing Date that were not conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement; provided, however, that any Retained Asset shall cease to be a Retained Asset upon its conveyance, contribution or transfer to the Partnership Group after July 2, 2012.

 

“Spin-Off” is defined in the recitals to this Agreement.

 

“Subsidiary” means, with respect to any Person, (a) a corporation of which no more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests in such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

 

4

 

ARTICLE II
 Indemnification

 

2.1                               Additional Indemnification. Subject to the provisions of Sections 2.3 and 2.4, EQT shall indemnify, defend and hold harmless the Partnership Group from and against any Losses suffered or incurred by the Partnership Group and related to or arising out of or in connection with:

 

(a)                                 any event or condition associated with the Retained Assets, whether occurring before, on or after the Closing Date;

 

(b)                                 any federal, state or local income tax liabilities attributable to the ownership or operation of the Partnership Assets prior to the Closing Date, including (i) any income tax liabilities of EQT that may result from the consummation of the formation transactions for the Partnership Group and (ii) any income tax liabilities arising under Treasury Regulation Section 1.1502-6 and any similar provision of applicable state, local or foreign law, or by contract, as successor, transferee or otherwise, and which income tax liability is attributable to having been a member of any consolidated, combined or unitary group prior to the Closing Date;

 

(c)                                  any claims related to Equitrans’ previous ownership of the Big Sandy Pipeline, including specifically claims arising under the Big Sandy Purchase Agreement and those related to the current dispute with Prater Branch Resources, LLC pursuant to the letter agreement dated September, 2007 between Equitrans and Big Branch Holdings Company, which was assigned to Prater Branch Resources; and

 

(d)                                 any amounts due to any member of the Partnership Group by a third party that has not paid such amounts in reliance on a contractual provision that provides that such third party may offset amounts due to any member of the Partnership Group against amounts owed by an EQT Entity to such third party.

 

2.2                               Indemnification by the Partnership Group.  Subject to the provisions of Sections 2.3 and 2.4, the Partnership Group shall indemnify, defend and hold harmless the EQT Entities from and against any Losses (including Covered Environmental Losses) suffered or incurred by the EQT Entities and related to or arising out of or in connection with:

 

(a)                                 the ownership or operation of the Partnership Assets after the Closing Date, except to the extent that any member of the Partnership Group is entitled to indemnification hereunder or unless such indemnification would not be permitted under the Partnership Agreement; and

 

(b)                                 any amounts due to any of the EQT Entities by a third party that has not paid such amounts due in reliance on a contractual provision that provides that such third party may offset amounts due to any of the EQT Entities against amounts owed by a member of the Partnership Group to such third party.

 

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2.3                               Limitations Regarding Indemnification.

 

(a)                                 The indemnification obligation set forth in Section 2.1(b) shall terminate on the 60th day after the termination of any applicable statute of limitations; provided, however, that any such indemnification obligation with respect to a Loss shall survive the time at which it would otherwise expire pursuant to this Section 2.3(a) if notice of such Loss is properly given to EQT prior to such time.  The indemnification obligations set forth in Sections 2.1(a), 2.1(c),  2.1(d) and 2.2 shall survive indefinitely.

 

(b)                                 In no event shall EQT be obligated to the Partnership Group under Section 2.1(b) or 2.1(c) for any Losses or income tax liabilities to the extent (i) such Losses or liabilities were reserved for in the Partnership Group’s financial statements as of December 31, 2011, (ii) any insurance proceeds are realized by the Partnership Group, such correlative benefit to be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim, (iii) any amounts are recovered by the Partnership Group from third persons, or (iv) any amounts may be recovered from customers under the Partnership Group’s tariff filed with the Federal Energy Regulatory Commission (the “FERC”) as determined by the Partnership.

 

2.4                               Indemnification Procedures.

 

(a)                                 The Indemnified Party agrees that promptly after it becomes aware of facts giving rise to a claim for indemnification under this Article II, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim; provided, however, that the Indemnified Party shall not submit claims more frequently than once a calendar quarter (or twice in the case of the calendar quarter in which the applicable indemnity coverage under this Agreement expires) unless such Indemnified Party believes in good faith that such a delay in notice to the Indemnifying Party would cause actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim.  Notwithstanding anything in this Article II to the contrary, a delay by the Indemnified Party in notifying the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article II, except to the extent that such failure shall have caused actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim.

 

(b)                                 The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article II, including, without limitation, the selection of counsel, the determination of whether to appeal any decision of any court and the settlement of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such matter or issues, as the case may be, and does not include any admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party.

 

(c)                                  The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect to all aspects of the defense of any claims covered by the indemnification under this Article II, including, without limitation, the prompt furnishing to the Indemnifying 

 

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Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense and the making available to the Indemnifying Party, at no cost to the Indemnifying Party, of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use commercially reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records and other information furnished by the Indemnified Party pursuant to this Section 2.4.  In no event shall the obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article II; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense.  The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

 

(d)                                 The date on which the Indemnifying Party receives notification of a claim for indemnification shall determine whether such claim is timely made.

 

(e)                                  NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S INDEMNIFICATION OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL OR SIMILAR DAMAGES OR LOST PROFITS SUFFERED BY ANY OTHER PARTY ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT.

 

ARTICLE III
  Reimbursements

 

3.1                               Plugging and Abandonment.  EQT shall reimburse the Partnership for any and all plugging and abandonment expenditures and other expenditures, including but not limited to condemnation proceedings and well reworks, that are reasonably necessary, in the good faith judgment of the Partnership, to protect its storage assets owned on the Closing Date, relating to the wells identified as EQT wells on Schedule B hereto and up to $1.2 million per fiscal year for such expenditures relating to the wells identified as third party wells on Schedule C hereto.

 

3.2                               Bare Steel Replacement.  If Applicable Maintenance Capital Expenditures (as defined below) exceed $17.2 million in any year, then EQT shall reimburse the Partnership for the lesser of (a) the amount of bare steel replacement capital expenditures during such year that were reasonably necessary, in the good faith judgment of the Partnership, and (b) the amount by which such Applicable Maintenance Capital Expenditures exceeds $17.2 million.  As used herein, “Applicable Maintenance Capital Expenditures” shall mean the sum of (i) Ongoing Maintenance Capital Expenditures incurred during the applicable period, less (ii) any plugging and abandonment expenditures and other expenditures incurred by the Partnership Group during the applicable period for which the Partnership Group has been reimbursed pursuant to Section 3.1 hereof, less (iii) any amounts recovered from customers during the applicable period under 

 

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the Partnership Group’s tariff filed with the FERC that are associated with the Partnership Assets, as determined by the Partnership.  The aggregate reimbursement obligation of EQT under this Section 3.2 shall not exceed $31.5 million.

 

3.3                               Limitations Regarding Reimbursement.

 

(a)                                 The reimbursement obligations set forth in Sections 3.1 and 3.2 shall terminate on the tenth anniversary of the Closing Date.

 

(b)                                 In no event shall EQT be obligated to the Partnership Group under Sections 3.1 or 3.2 for any reimbursement to the extent (i) such Losses or liabilities were reserved for in the Partnership Group’s financial statements as of December 31, 2011, (ii) any insurance proceeds are realized by the Partnership Group, such correlative benefit to be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim, or (iii) any amounts are recovered by the Partnership Group from third persons in respect of such obligations.

 

(c)                                  The Partnership shall take all commercially reasonable actions to mitigate and reduce the amounts subject to reimbursement by EQT pursuant to Sections 3.1 or 3.2.

 

3.4                               Additional Provisions Related to Reimbursement Obligation.  With respect to EQT’s obligation to reimburse the Partnership for bare steel replacement in accordance with Section 3.2:

 

(a)                                 Ongoing Maintenance Capital Expenditures for assets owned by the Partnership Group on the Closing Date will be tracked separately from any new builds or acquired assets.

 

(b)                                 All bare steel replacement capital expenditures for the period from January 1, 2012 through the Closing Date shall be excluded from the calculation of the reimbursement set forth in Section 3.2(a) (but not the calculation of the Applicable Maintenance Capital Expenditures) for the year ending December 31, 2012.

 

(c)                                  All bare steel replacement capital expenditures for the period from the date which is the tenth anniversary of the Closing Date through December 31, 2022 shall be excluded from the calculation of the reimbursement set forth in Section 3.2(a) (but not the calculation of the Applicable Maintenance Capital Expenditures) for the year ending December 31, 2022.

 

3.5                               Reimbursement Procedures.  The Partnership may request reimbursement pursuant to Sections 3.1 or 3.2 on a quarterly basis based on actual expenditures to date and projections for the applicable period; provided, however, that the final determination of reimbursable amounts under each of Sections 3.1 and 3.2 shall be made at the end of each fiscal year promptly after audited financial statements for the Partnership are available.  If, based upon such audited financial statements and subject to Section 3.3(b), it is determined that the Partnership received a reimbursement in excess of the amount to which it was entitled pursuant to Sections 3.1 and 3.2, EQT shall be entitled, at its option, to either a credit for such amount in the following year or a refund.

 

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ARTICLE IV
  Miscellaneous

 

4.1                               Choice of Law; Submission to Jurisdiction.  This Agreement shall be subject to and governed by the laws of the Commonwealth of Pennsylvania, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. Each Party hereby submits to the jurisdiction of the state and federal courts in the Commonwealth of Pennsylvania and to venue in the state and federal courts in Allegheny County, Pennsylvania.

 

4.2                               Notice.  All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Person to be notified, postage-paid, and registered or certified with return receipt requested or by delivering such notice in person, by overnight delivery service or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 4.2.

 

If to the EQT Entities:

 

EQT Corporation

625 Liberty, Suite 1700

Pittsburgh, Pennsylvania 15222

Attn:  General Counsel

 

If to the Partnership Group:

 

EQM Midstream Partners, LP

c/o EQM Midstream Services, LLC, its General Partner

625 Liberty Avenue, Suite 2000

Pittsburgh, Pennsylvania  15222

Attn: General Counsel

 

4.3                               Entire Agreement.  This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

 

4.4                               Termination of Agreement.  Notwithstanding any other provision of this Agreement, if the General Partner is removed as general partner of the Partnership under circumstances where (a) Cause does not exist and the Common Units held by the General Partner and its Affiliates are not voted in favor of such removal, or (b) Cause exists, then this Agreement, other than the provisions set forth in Section 4.11, Article II and Article III, may at any time thereafter be terminated by EQT by written notice to the other Parties.

 

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4.5                               Amendment or Modification.  This Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto.  Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.

 

4.6                               Assignment.  No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties hereto; provided, however, that the Partnership may make a collateral assignment of this Agreement solely to secure working capital financing for the Partnership.

 

4.7                               Counterparts.  This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission or in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

 

4.8                               Severability.  If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

 

4.9                               Further Assurances.  In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

 

4.10                        Rights of Limited Partners.  The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement.

 

4.11                        Use of Name and Marks.  Section 5.3 of the Original Agreement shall survive the termination of the Original Agreement in accordance with its terms and shall apply to this Agreement, mutatis mutandis.

 

[ Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing Date.

 

	
 
    	
EQT   CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Robert J. McNally
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Robert J. McNally
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EQM   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
EQM Midstream Services, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kirk Oliver
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Kirk Oliver
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EQM   MIDSTREAM SERVICES, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kirk Oliver
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
Kirk Oliver
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
Senior Vice President and Chief Financial Officer
    

 

[Signature page to Amended and Restated Omnibus Agreement (EQM)]

 

 

Schedule A

 

Pre-Funded Capital Expenditures Initiatives

 

·                  System segmentation and isolation: Install remote valve operation and pressure monitoring mechanisms on the Partnership’s transmission and storage systems.

 

·                  Valve pit remediation: Program to move valve operators above ground level and to apply coating and corrosion protection to certain equipment.

 

 

Schedule B

 

EQT Wells

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
3700300713
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700390054
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700300714
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700300715
    	
 
    	
Bunola
    	
 
    	
PA
    
	
4709100158
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100162
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100163
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100176
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100153
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100015
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100085
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
3712500688
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712500691
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712500670
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712500667
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712500668
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3705901368
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705901369
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705901095
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705901094
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705901097
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705901096
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
4710300254
    	
 
    	
Mobley
    	
 
    	
WV
    

 

1

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
4710300717
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300798
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300802
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300834
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300841
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300865
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300875
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300885
    	
 
    	
Mobley
    	
 
    	
WV
    
	
3712500701
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901113
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901112
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901056
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901105
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901054
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901058
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901059
    	
 
    	
Pratt
    	
 
    	
PA
    
	
4704100136
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704101714
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704103693
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4701730099
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771545
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570673
    	
 
    	
Shirley
    	
 
    	
WV
    
	
3705901075
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705901090
    	
 
    	
Swarts
    	
 
    	
PA
    

 

2

 

Schedule C

 

Third Party Wells

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
3700320012
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700300446
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700300787
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700300886
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700301113
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3700321991
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3712501861
    	
 
    	
Bunola
    	
 
    	
PA
    
	
3712501991
    	
 
    	
Bunola
    	
 
    	
PA
    
	
4709100145
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100106
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100396
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100399
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100995
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709100996
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709145003
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
4709145004
    	
 
    	
Comet/Maple Lake
    	
 
    	
WV
    
	
3700300956
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3700300957
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712501751
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712501752
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3700321606
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3700321608
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712500850
    	
 
    	
Finleyville
    	
 
    	
PA
    

 

1

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
3712502026
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3712502101
    	
 
    	
Finleyville
    	
 
    	
PA
    
	
3705990172
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705990188
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705990000
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
3705990001
    	
 
    	
Hunters Cave
    	
 
    	
PA
    
	
4704901016
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704970052
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704970113
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704970212
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704970252
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704972287
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704972289
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704972291
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4704972323
    	
 
    	
Logansport/Hayes
    	
 
    	
WV
    
	
4710300033
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300283
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300377
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710300976
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301667
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301766
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301767
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301768
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301769
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301785
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301796
    	
 
    	
Mobley
    	
 
    	
WV
    

 

2

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
4710301886
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710301962
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710372014
    	
 
    	
Mobley
    	
 
    	
WV
    
	
4710372052
    	
 
    	
Mobley
    	
 
    	
WV
    
	
3705901206
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901241
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901244
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901245
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901701
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901702
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901714
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901793
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901860
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901938
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901939
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901965
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705901966
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902121
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902122
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902123
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902124
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902125
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902126
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902128
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705902129
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705923586
    	
 
    	
Pratt
    	
 
    	
PA
    

 

3

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
3705923665
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705924134
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705924135
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3705990159
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3712501355
    	
 
    	
Pratt
    	
 
    	
PA
    
	
3712501904
    	
 
    	
Pratt
    	
 
    	
PA
    
	
4704101371
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704102941
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704103402
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704104051
    	
 
    	
Rhodes/Skin Creek
    	
 
    	
WV
    
	
4704104138
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704104616
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704104687
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704104718
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704104971
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704170057
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4704170426
    	
 
    	
Rhodes
    	
 
    	
WV
    
	
4701700607
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701701009
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701704219
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701770355
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701770943
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771544
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771549
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771550
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771551
    	
 
    	
Shirley
    	
 
    	
WV
    

 

4

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
4701771552
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771553
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771554
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4701771555
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709500008
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709501308
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709501445
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709501540
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709501544
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709521562
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709521623
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709521624
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709521684
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570040
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570139
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570214
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570499
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4709570501
    	
 
    	
Shirley
    	
 
    	
WV
    
	
4704104018
    	
 
    	
Skin Creek
    	
 
    	
WV
    
	
4704104008
    	
 
    	
Skin Creek
    	
 
    	
WV
    
	
4704104025
    	
 
    	
Skin Creek
    	
 
    	
WV
    
	
3705900634
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705990151
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705990167
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705990171
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705990174
    	
 
    	
Swarts
    	
 
    	
PA
    

 

5

 

	
API #
    	
 
    	
Field
    	
 
    	
State
    
	
3705990175
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3705990178
    	
 
    	
Swarts
    	
 
    	
PA
    
	
3700321658
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321623
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321755
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321574
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321615
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321674
    	
 
    	
Tepe
    	
 
    	
PA
    
	
3700321802
    	
 
    	
Tepe
    	
 
    	
PA
    

 

6Exhibit 10.2

 

Execution Version

 

SECOND AMENDED AND RESTATED OMNIBUS AGREEMENT

 

among

 

EQT CORPORATION,

 

EQT RE, LLC,

 

RM PARTNERS LP,

 

EQM MIDSTREAM MANAGEMENT LLC

 

and

 

EQM POSEIDON MIDSTREAM LLC

 

This SECOND AMENDED AND RESTATED OMNIBUS AGREEMENT (“Agreement”) is entered into on, and effective as of, November 13, 2018, among EQT Corporation, a Pennsylvania corporation (“EQT”), EQT RE, LLC, a Delaware limited liability company (“EQT RE”), RM Partners LP (formerly known as Rice Midstream Partners LP), a Delaware limited partnership (the “Partnership”), EQM Midstream Management LLC (formerly known as Rice Midstream Management LLC, a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), and EQM Poseidon Midstream LLC (formerly known as Rice Poseidon Midstream LLC), a Delaware limited liability company (“EPM”). The above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”

 

R E C I T A L S:

 

1.                                      Rice Energy Inc. (“Rice”), Rice Midstream Holdings LLC (“RMH”), the Partnership, the General Partner and EPM entered into that certain Omnibus Agreement, effective as of December 22, 2014 (the “Original Agreement”), in order to evidence their understanding with respect to certain indemnification obligations, general and administrative services to be performed for and on behalf of the Partnership Group (as defined herein) and the Partnership’s reimbursement obligations related thereto, the granting of a license from Rice to the Partnership and the Partnership’s right of first offer with respect to certain assets.

 

2.                                      On November 13, 2017, (a) a wholly owned corporate Subsidiary of EQT was merged with and into Rice, with Rice surviving (the “Surviving Corporation”) as an indirect, wholly owned Subsidiary of EQT and (b) immediately thereafter, the Surviving Corporation merged with and into EQT RE, with EQT RE surviving as an indirect wholly owned subsidiary of EQT (together, the “Mergers”).

 

3.                                      In connection with the Mergers, the Parties amended and restated the Original Agreement (the “Restated Agreement”) in its entirety to reflect the effects of the Mergers and to make certain other changes.

 

 

4.                                      On July 23, 2018, EQM Midstream Partners, LP (formerly known as EQT Midstream Partners, LP) (“EQM”) completed the acquisition of the Partnership and the General Partner, with each of the Partnership and the General Partner surviving as wholly-owned Subsidiaries of EQM.

 

5.                                      Pursuant to Section 6.6 of the Restated Agreement, EQT and EQT RE have delivered to the Partnership and the General Partner a notice regarding their election to terminate the Restated Agreement, other than Section 4.3, Article II and Article VI thereof, in connection with a Change of Control (as defined in the Restated Agreement) related to the proposed spin-off of Equitrans Midstream Corporation (the “Spin-Off”) by EQT.

 

6.                                      In connection with the Spin-Off, the Parties desire to enter into this Agreement in order to amend and restate the Restated Agreement as more fully described herein.

 

In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows:

 

ARTICLE I
 Definitions

 

1.1                               Definitions. As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question.

 

“Closing Date” means December 22, 2014.

 

“Confidential Information” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data, specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided, however, that Confidential Information does not include information that a receiving Party can show (A) has been published or has otherwise become available to the general public as part of the public domain without breach of this Agreement or a duty of confidence, (B) has been furnished or made known to the receiving Party without any obligation to keep it confidential by a third party under circumstances which are not known to the receiving Party to involve a breach

 

2

 

of the third party’s obligations to a Party or (C) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.

 

“Contribution Agreement” means that certain Contribution Agreement, dated as of the Closing Date, among the General Partner, the Partnership, Rice and certain other EQT Entities, together with the additional conveyance documents and instruments contemplated or referenced thereunder.

 

“control,” “is controlled by” or “is under common control with” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract, or otherwise.

 

“Covered Environmental Losses” means any and all Losses (including, without limitation, the costs and expenses associated with any Environmental Activity or of any environmental or toxic tort pre-trial, trial or appellate legal, litigation or arbitration work) related to or arising out of or in connection with:

 

(a)                                 any violation or correction of a violation of any Environmental Law related to the ownership or operation of the Partnership Assets; and

 

(b)                                 any event, circumstance, action, omission, condition or matter that has an adverse impact on the environment and is associated with or arising from the ownership or operation of the Partnership Assets (including, without limitation, the presence of Hazardous Substances at, on, under, about or migrating to or from the Partnership Assets or the exposure to, or disposal or Release of, Hazardous Substances arising out of the operation of Partnership Assets, including at non-Partnership Asset locations).

 

“Environmental Activity” means any investigation, study, assessment, evaluation, sampling, testing, monitoring, containment, removal, disposal, closure, corrective action, remediation (whether active or passive), risk-based closure activities, natural attenuation, restoration, bioremediation, response, repair, cleanup or abatement that is required or necessary under any Environmental Law, including, without limitation, the cost and expense of preparing and implementing any closure, remedial, corrective action, or other plans required or necessary under any Environmental Law, the establishment of institutional or engineering controls and the performance of or participation in a supplemental environmental project in partial or whole mitigation of a fine or penalty.

 

“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, ordinances, judgments, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law relating to (a) pollution or protection of the environment, natural resources or workplace health or safety, (b) any Release or threatened Release of, or any exposure of any Person or property to, any Hazardous Substance and (c) the generation, manufacture, processing, distribution, use, recycling, treatment, storage, transport, handling or disposal of any Hazardous Substance, including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act, the Superfund Amendments Reauthorization Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Federal Water Pollution Control Act, the Toxic Substances Control Act, the Oil Pollution

 

3

 

Act, the Safe Drinking Water Act, the Hazardous Materials Transportation Act, the Emergency Planning and Community Right-to-Know Act, the Pipeline Safety Improvement Act, the Endangered Species Act, the National Environmental Policy Act, the Occupational Safety and Health Act and other environmental conservation and protection laws, and the regulations promulgated pursuant thereto, and any state or local counterparts, each as amended through and existing on the Closing Date.

 

“Environmental Permits” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any applicable Environmental Law.

 

“EPM” is defined in the preamble.

 

“EQT” is defined in the preamble.

 

“EQT Entities” means EQT and any Person controlled, directly or indirectly, by EQT, other than the General Partner or any Partnership Group Member; and “EQT Entity” means any of the EQT Entities.

 

“EQT RE” is defined in the preamble.

 

“General Partner” is defined in the preamble.

 

“Hazardous Substance” means (a) any substance that is designated, defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous substance as such term is defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, (b) petroleum, petroleum products and fractions or byproducts thereof, natural gas, crude oil, gasoline, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and other petroleum hydrocarbons, whether refined or unrefined, and (c) radioactive materials, asbestos containing materials, radon and polychlorinated biphenyls.

 

“Indemnified Party” means either one or more members of the Partnership Group or one or more EQT Entities, as the case may be, each in its capacity as a party entitled to indemnification in accordance with Article II hereof.

 

“Indemnifying Party” means either one or more members of the Partnership Group or EQT, as the case may be, each in its capacity as a party from whom indemnification may be required in accordance with Article II hereof.

 

“Initial Term” is defined in Section 3.5.

 

“Limited Partner” is defined in the Partnership Agreement.

 

“Losses” means all losses, damages, liabilities, injuries, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses of any and every kind or character (including, without limitation, court costs and reasonable attorneys’ and experts’ fees).

 

4

 

“Mediation Notice” is defined in Section 3.2(b).

 

“Mergers” is defined in the recitals.

 

“Original Agreement” is defined in the recitals.

 

“Partnership” is defined in the preamble.

 

“Partnership Agreement” means the Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the Closing Date, as such agreement was in effect on the Closing Date, to which reference is hereby made for all purposes of this Agreement.

 

“Partnership Assets” means the assets conveyed, contributed or otherwise transferred, directly or indirectly (including through the transfer of equity interests), or intended to be conveyed, contributed or otherwise transferred, to the Partnership Group pursuant to the Contribution Agreement, including, without limitation, gathering pipelines, offices and related equipment and real estate and fresh water distribution systems.

 

“Partnership Group” means the Partnership and its Subsidiaries treated as a single consolidated entity.

 

“Partnership Group Member” means any member of the Partnership Group.

 

“Party” and “Parties” are defined in the preamble.

 

“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.

 

“Release” means any depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping or disposing into the environment.

 

“Representatives” is defined in Section 3.1(a).

 

“Restated Agreement” is defined in the recitals.

 

“Retained Assets” means the assets and investments owned by the EQT Entities as of the Closing Date that were not conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement; provided, however, that any Retained Asset shall cease to be a Retained Asset upon its conveyance, contribution or transfer to the Partnership Group.

 

“Rice” is defined in the recitals.

 

“RMH” is defined in the recitals.

 

“Spin-Off” is defined in the recitals.

 

5

 

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof, or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person.

 

“Surviving Corporation” is defined in the recitals.

 

ARTICLE II
 Indemnification

 

2.1                               Additional Indemnification. Subject to the provisions of Sections 2.3 and 2.4, EQT RE shall indemnify, defend and hold harmless the Partnership Group from and against any Losses suffered or incurred by the Partnership Group and related to or arising out of or in connection with:

 

(a)                                 any event or condition associated with the Retained Assets, whether occurring before, on or after the Closing Date; and

 

(b)                                 any federal, state or local income tax liabilities attributable to the ownership or operation of the Partnership Assets prior to the Closing Date, including (i) any income tax liabilities of Rice that resulted from the consummation of the formation transactions for the Partnership Group and (ii) any income tax liabilities arising under Treasury Regulation Section 1.1502-6 and any similar provision of applicable state, local or foreign law, or by contract, as successor, transferee or otherwise, and which income tax liability is attributable to having been a member of any consolidated, combined or unitary group prior to the Closing Date.

 

2.2                               Indemnification by the Partnership Group. Subject to the provisions of Sections 2.3 and 2.4, the Partnership Group shall indemnify, defend and hold harmless the EQT Entities from and against any Losses (including Covered Environmental Losses) suffered or incurred by the EQT Entities and related to or arising out of or in connection with the ownership or operation of the Partnership Assets after the Closing Date, except to the extent that any member of the Partnership Group is entitled to indemnification hereunder or unless such indemnification would not be permitted under the Partnership Agreement.

 

2.3                               Limitations Regarding Indemnification.

 

(a)                                 The indemnification obligation set forth in Section 2.2(b) shall terminate on the 30th day after the termination of any applicable statute of limitations; provided, however, that any such indemnification obligation with respect to a Loss shall survive the time at which it would

 

6

 

otherwise expire pursuant to this Section 2.3(a) if notice of such Loss is properly given to EQT RE prior to such time. The indemnification obligations set forth in Sections 2.2(a) and 2.3 shall survive indefinitely.

 

(b)                                 In no event shall EQT RE be obligated to the Partnership Group under Section 2.2 for any Losses or income tax liabilities to the extent (i) any insurance proceeds are realized by the Partnership Group, such correlative benefit to be net of any incremental insurance premium that becomes due and payable by the Partnership Group as a result of such claim or (ii) any amounts are recovered by the Partnership Group from third persons.

 

2.4                               Indemnification Procedures.

 

(a)                                 The Indemnified Party agrees that promptly after it becomes aware of facts giving rise to a claim for indemnification under this Article II, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim; provided, however, that the Indemnified Party shall not submit claims more frequently than once a calendar quarter (or twice in the case of the calendar quarter in which the applicable indemnity coverage under this Agreement expires) unless such Indemnified Party believes in good faith that such a delay in notice to the Indemnifying Party would cause actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim. Notwithstanding anything in this Article II to the contrary, a delay by the Indemnified Party in notifying the Indemnifying Party shall not relieve the Indemnifying Party of its obligations under this Article II, except to the extent that such failure shall have caused actual prejudice to the Indemnifying Party’s ability to defend against the applicable claim.

 

(b)                                 The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article II, including, without limitation, the selection of counsel, the determination of whether to appeal any decision of any court and the settlement of any such matter or any issues relating thereto; provided, however, that no such settlement shall be entered into without the consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such matter or issues, as the case may be, and does not include any admission of fault, culpability or a failure to act, by or on behalf of such Indemnified Party.

 

(c)                                  The Indemnified Party agrees to cooperate fully with the Indemnifying Party with respect to all aspects of the defense of any claims covered by the indemnification under this Article II, including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense and the making available to the Indemnifying Party, at no cost to the Indemnifying Party, of any employees of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use commercially reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records and other information furnished by the Indemnified Party pursuant to this Section 2.4. In no event shall the

 

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obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of any claims covered by the indemnification set forth in this Article II; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as to the status of any such defense, but the Indemnifying Party shall have the right to retain sole control over such defense.

 

(d)                                 The date on which the Indemnifying Party receives notification of a claim for indemnification shall determine whether such claim is timely made.

 

(e)                                  NOTWITHSTANDING ANY PROVISION OF THIS AGREEMENT, IN NO EVENT WILL ANY PARTY BE LIABLE TO ANY OTHER PARTY OR INDEMNIFIED PARTY WITH RESPECT TO ANY CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT FOR ANY LOST OR PROSPECTIVE PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT LOSSES OR DAMAGES FROM ITS PERFORMANCE UNDER THIS AGREEMENT OR FOR ANY FAILURE OR PERFORMANCE HEREUNDER OR RELATED HERETO, WHETHER ARISING OUT OF BREACH OF CONTRACT, NEGLIGENCE, TORT, STRICT LIABILITY, OR OTHERWISE, EXCEPT FOR ANY SUCH DAMAGES RECOVERED BY ANY THIRD PARTY AGAINST ANY PARTY IN RESPECT OF WHICH SUCH PARTY WOULD OTHERWISE BE ENTITLED TO INDEMNIFICATION PURSUANT TO THIS ARTICLE II, PROVIDED THAT NO PARTY WILL BE ENTITLED TO INDEMNIFICATION FOR ANY DAMAGES THAT ARE CONTRARY TO APPLICABLE LAW.

 

ARTICLE III
 Miscellaneous

 

3.1                               Confidentiality.

 

(a)                                 From and after the Closing Date, each of the Parties shall hold, and shall cause their respective Subsidiaries and Affiliates and its and their directors, officers, employees, agents, consultants, advisors, and other representatives (collectively, “Representatives”) to hold all Confidential Information of the other Parties in strict confidence, with at least the same degree of care that applies to such Party’s own confidential and proprietary information and shall not use such Confidential Information except as reasonably necessary for the conduct of its business and shall not release or disclose such Confidential Information to any other Person, except its Representatives or except as required by applicable law. Each Party shall be responsible for any breach of this section by any of its Representatives.

 

(b)                                 If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a governmental authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate

 

8

 

protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable governmental authority. If the receiving Party is legally compelled to disclose such Confidential Information or if the providing Party does not promptly respond as contemplated by this section, the receiving Party may disclose that portion of Confidential Information covered by the notice or demand.

 

(c)                                  Each Party acknowledges that (i) the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 3.1 and (ii) EQT would not have an adequate remedy at law for the breach of any one or more of the covenants of the Partnership Group contained in Article III, and agrees that, in the event of such breach, the disclosing Party or EQT, respectively, may, in addition to the other remedies that may be available to it, apply to a court for an injunction to prevent any further breaches and to enforce specifically the terms and provisions of this Agreement. Notwithstanding any other section hereof, to the extent permitted by applicable law, the provisions of this Section 3.1 and Article III shall survive the expiration or termination of this Agreement.

 

3.2                               Choice of Law; Mediation; Submission to Jurisdiction.

 

(a)                                 This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS SITTING IN THE STATE OF DELAWARE, AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTY OF THE NAME AND ADDRESS OF SUCH AGENT.

 

(b)                                 If the Parties cannot resolve any dispute or claim arising under this Agreement, then no earlier than 10 days nor more than 60 days following written notice to the other Parties, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “Mediation Notice”) to the other Parties to the dispute or claim. In connection with any mediation pursuant to this Section 3.2, the mediator shall be jointly appointed by the Parties to the dispute or claim and the mediation shall be conducted in Pittsburgh, Pennsylvania unless otherwise agreed to by the Parties to the dispute or claim. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties to the dispute or claim. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties to the dispute or claim, shall govern any mediation pursuant to this section. In the mediation, each Party to the dispute or claim shall be represented by one or more senior representatives who shall have authority to resolve any disputes. If a dispute or claim has not been

 

9

 

resolved within 30 days after the receipt of the Mediation Notice by a Party, then any Party to the dispute or claim may refer the resolution of the dispute or claim to litigation.

 

(c)                                  Subject to Section 3.2(b), each Party agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Delaware and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that, to the fullest extent permitted by law, service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 3.3. The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Delaware for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.

 

3.3                               Notice. All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and must be given by depositing same in the United States mail, addressed to the Person to be notified, postage-paid, and registered or certified with return receipt requested or by delivering such notice in person, by overnight delivery service or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 3.3.

 

If to the EQT Entities:

 

EQT Corporation

EQT Plaza

625 Liberty Avenue, Suite 1700

Pittsburgh, PA 15222

Attention: General Counsel

 

with a copy (which will not constitute notice) to:

 

Baker Botts L.L.P.

30 Rockefeller Plaza

New York, NY 10112

Attention: Michael L. Bengtson

Facsimile: (212) 259-2504

 

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If to the Partnership Group:

 

RM Partners LP

c/o EQM Midstream Management LLC, its General Partner

625 Liberty Avenue, Suite 2000

Pittsburgh, PA 15222

Attention: General Counsel

 

with a copy (which will not constitute notice) to:

 

Baker Botts L.L.P.

30 Rockefeller Plaza

New York, NY 10112

Attention: Michael L. Bengtson

Facsimile: (212) 259-2504

 

3.4                               Entire Agreement. This Agreement, together with the Partnership Agreement, constitute the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.

 

3.5                               Term. The initial term of this Agreement will be for a period of ten years, commencing on the Closing Date and ending on the tenth anniversary of the Closing Date (“Initial Term”). At the conclusion of the Initial Term, this Agreement will automatically extend from year-to-year, unless terminated by the Partnership or the General Partner with at least 90 days’ notice prior to the end of such term, as extended.

 

3.6                               Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties hereto. Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.

 

3.7                               Assignment. No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties hereto.

 

3.8                               Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document. All counterparts shall be construed together and shall constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission or in portable document format (.pdf) shall be effective as delivery of a manually executed counterpart hereof.

 

3.9                               Severability. If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.

 

3.10                        Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or

 

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appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.

 

3.11                        Rights of Limited Partners. The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement.

 

3.12                        Use of Name and Marks.  Section 4.3 of the Restated Agreement shall survive the termination of the Original Agreement in accordance with its terms and shall apply to this Agreement, mutatis mutandis.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the date first set forth above.

 

 

	
 
    	
EQT CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert J. McNally
    
	
 
    	
Name:
    	
Robert   J. McNally
    
	
 
    	
Title:
    	
Senior   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
EQT RE, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   David E. Schlosser, Jr.
    
	
 
    	
Name:
    	
David   E. Schlosser, Jr.
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
EQM MIDSTREAM MANAGEMENT LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Karam
    
	
 
    	
Name:
    	
Thomas   F. Karam
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
RM PARTNERS LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
EQM   Midstream Management LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Karam
    
	
 
    	
Name:
    	
Thomas   F. Karam
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
EQM POSEIDON MIDSTREAM LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Thomas F. Karam
    
	
 
    	
Name:
    	
Thomas   F. Karam
    
	
 
    	
Title:
    	
President
    

 

[Signature Page to Second Amended and Restated Omnibus Agreement (RMP)]

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