Document:

exv10w12

Exhibit 10.12

Base Contract for Sale and Purchase of Natural Gas

This Base Contract is entered into as of the following date June 1, 2010.

The parties to this Base Contract are the following:

	 	 	 	 	 	 	 
	PARTY A	 	 	 	 
	ExxonMobil Gas & Power Marketing Company	 	 	 	PARTY B
	(a division of Exxon Mobil Corporation)	 	PARTY
NAME	 	MID
LOUISIANA GAS TRANSMISSION, LLC
	CORP-EMB-3573M	 	 	 	8300 FM 1960 West, Suite 225, Houston, TX 77070
	800
Bell Street

	 	 	 	ADDRESS	 	 
	Houston,
TX 77002
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	www.exxonmobil.com	 	BUSINESS WEBSITE	 	www.americanmidstream.com
	 
	 	 	 	 	 	 
	 

	 	 	 	CONTRACT NUMBER	 	 
	 
	 	 	 	 	 	 
	00-121-3214

	 	 	 	D-U-N-S® NUMBER	 	 
	 
	 	 	 	 	 	 
	þ
US FEDERAL: 13-5409005	 	 	 	þ US FEDERAL: 84-1074614
	o OTHER:

	 	 	 	TAX ID NUMBERS
	 	o OTHER:
	 
	 	 	 	 	 	 
	New Jersey

	 	 	 	JURISDICTION OF

ORGANIZATION
	 	Delaware
	 
	 	 	 	 	 	 
	þ Corporation

	 	o LLC
	 	 	 	o Corporation
            
þ LLC
	o Limited Partnership

	 	o Partnership
	 	COMPANY TYPE
	 	o Limited Partnership

 o Partnership
	o LLP

	 	o Other:     
                      
	 	 	 	o LLP
                   
     o Other:
	 
	 	 	 	 	 	 
	 	 	 	 	GUARANTOR
	 	 
	 	 	 	 	(IF APPLICABLE)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	CONTACT
INFORMATION
	 	 
	CORP-EMB-3562, P.O.
Box 2180,
Houston, TX 77252-2180	 	 	 	MID LOUISIANA GAS TRANSMISSION LLC
	ATTN: Gas Marketing Manager (West & Central U.S.) or	 	§     COMMERCIAL	 	ATTN: MARK HUGHES
	Gas
Marketing Manager (Gulf Coast and East U.S.)
	 	 	 	TEL#: 281-955-4817    FAX#: 281-955-4855
	TEL#: (713) 656-8354    FAX#: (713) 656-9276	 	 	 	EMAIL: mhughes@americanmidstream.com
	EMAIL:                                         	 	 	 	 
	 
	 	 	 	 	 	 
	CORP-EMB-3562, P.O.
Box 2180, Houston, TX 77252-2180	 	 	 	MID LOUISIANA GAS TRANSMISSION, LLC
	ATTN: Gas Control	 	§     SCHEDULING	 	ATTN: JESSE KLANKE
	TEL#: (713) 656-1168 or 1-800-473-9966 FAX#: (713) 656-4144	 	 	 	TEL#: 281-955-4812    FAX#: 713-589-7965
	EMAIL:                                         	 	 	 	EMAIL: jklanke@americanmidstream.com
	 
	 	 	 	 	 	 
	CORP-EMB-3573M, P.O. Box 2180, Houston, TX 77252-2180	 	 	 	MID LOUISIANA GAS TRANSMISSION, LLC
	ATTN: Contract
Administration, Natural Gas - Americas	 	§     CONTRACT AND
LEGAL NOTICES	 	ATTN: MARY ANN GONZALES
	TEL#: (713) 656-8354    FAX#: (713) 656-9276	 	 	 	TEL#: 281-955-4815    FAX#: 281-955-4855
	EMAIL:                                         	 	 	 	EMAIL: mgonzales@americanmidstream.com
	 
	 	 	 	 	 	 
	CORP-EMB-3771, 800 Bell Street, Houston, TX 77002	 	§
    CREDIT	 	MID LOUISIANA GAS TRANSMISSION, LLC
	ATTN: Credit Manager	 	 	 	ATTN: SANDRA FLOWER
	TEL#: (713) 656-8049 FAX#: (713) 656-3557	 	 	 	TEL#: 720-457-6042    FAX#: 720-457-6040
	EMAIL:                                         	 	 	 	EMAIL: sflower@americanmidstream.com
	 
	 	 	 	 	 	 
	CORP-EMB-3573M, P.O. Box 2180, Houston, TX 77252-2180	 	 	 	MID LOUISIANA GAS TRANSMISSION, LLC
	ATTN: Contract
Administrator - Confirmations	 	§    TRANSACTION CONFIRMATIONS	 	ATTN: JESSE KLANKE
	TEL#: (713) 656-7854 FAX#: (713) 656-2727	 		 	TEL#: 281-955-4812    FAX#: 713-589-7965
	EMAIL:                                         	 	 	 	EMAIL: jklanke@americanmidstream.com
	 
	 	 	 	 	 	 
	 	 	 	 	ACCOUNTING
INFORMATION
	 	 
	 
	 	 	 	 	 	 
	CORP-BH4-9065D,
Exxon Mobil Corporation, 

P.O. Box 4721, Houston, TX 77210-4721	 	§    INVOICES	 	MID LOUISIANA GAS TRANSMISSION, LLC
	ATTN: Upstream Controller’s Gas Marketing	 	§    PAYMENTS	 	ATTN: PETER MCNAMARA
	TEL#: (713) 680-5721 FAX#: (713) 680-6909	 	§    SETTLEMENTS	 	TEL#: 281-955-4809    FAX#: 281-955-4855
	EMAIL:                                         	 	 	 	EMAIL: pmcnamara@americanmidstream.com
	 
	 	 	 	 	 	 
	BANK: Citibank. N.A., New York. New York	 	 	 	 
	ABA: 0210-0008-9          ACCT: 30439217	 	WIRE TRANSFER	 	BANK: COMERICA BANK
	OTHER DETAILS: For
Credit To: Exxon Mobil Corporation Gas Marketing 
Remittance Account
	 	NUMBERS	 	ABA: 111000753          ACCT: 1881319493
		 	(IF APPLICABLE)	 	OTHER DETAILS: Beneficiary Acct - American Midstream, LLC
	 
	 	 	 	 	 	 
	BANK: Not Applicable	 	ACH NUMBERS	 	BANK: Not Applicable
	ABA:                               ACCT:                     	 	(IF APPLICABLE)	 	ABA:                               ACCT:                     
	OTHER DETAILS:
                                          	 	 	 	OTHER DETAILS:                                           
	ATTN: Not Applicable	 	 	 	ATTN: Not Applicable
	ADDRESS:                                                   	 	CHECKS	 	ADDRESS:                                                     
	 

	 	 	 	(IF APPLICABLE)	 	 
	 
	 	 	 	 	 	 
	ATTN: Manager Americas Gas Marketing	 	VERIFICATION OF	 	ATTN: Sandra Flower – VP, Finance & Controller
	ADDRESS:
CORP-EMB-3573M, P.O. Box 2180

Houston. TX 77252-2180	 	CHANGE IN
BANKING	 	ADDRESS: 1614
15th
Street, Suite 300, Denver, CO 80202

TEL#: 720-457-6042 FAX#: 720-457-6040
	TEL#: (713)
656-8354 FAX#: (713) 656-9276	 	INSTRUCTIONS

(IF APPLICABLE)	 

			
	 	 	 
	Copyright © 2006 North American Energy Standards Board, Inc.
	 	NAESB Standard 6.3.1
	All Rights Reserved
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

Base Contract for Sale and Purchase of Natural Gas

(Continued)

This Base Contract incorporates by reference for all purposes the General Terms and
Conditions for Sale and Purchase of Natural Gas published by the North American Energy
Standards Board. The parties hereby agree to the following provisions offered in said
General Terms and Conditions. In the event the parties fail to check a box, the specified
default provision shall apply. Select the appropriate box(es) from each section:

	 	 	 	 	 	 	 	 	 	 	 

	Section 1.2

	 	o
	 	Oral (default)
	 	Section 10.2
	 	þ
	 	No Additional Events of Default (default)
	Transaction

	 	OR
	 	 	 	Additional	 	 	 	 
	Procedure

	 	þ
	 	Written
	 	Events of
Default
	 	o
	 	Indebtedness Cross Default
	 
	 	 	 	 	 	 	 	 	 	 
	Section 2.7

	 	þ
	 	2 Business Days after receipt (default)
	 	 	 	 	 	o Party A:                     
	Confirm Deadline

	 	OR
	 	 	 	 	 	 	 	
	 

	 	o
	 	      Business Days after receipt
	 	 	 		 	o Party B:                     
	 
	 

	 	 	 	 	 	 	 	o
	 	Transactional Cross Default
	Section 2.8

	 	o
	 	Seller (default)	 	 	 	 	 	Specified Transactions:
	Confirming Party

	 	OR
	 	 	 	 	 	 	 	 

	 

	 	o
	 	Buyer
	 	 	 	 	 	 

	 

	 	þ
	 	ExxonMobil Gas & Power Marketing Company

(a division of Exxon Mobil Corporation)
	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 	 	 
	Section 3.2

	 	o
	 	Cover Standard (default)
	 	Section 10.3.1
	 	þ
	 	Early Termination Damages Apply (default)
	Performance

	 	OR
	 	 	 	Early	 	 	 	 
	Obligation

	 	þ
	 	Spot Price Standard
	 	Termination
	 	OR	 	 
	 

	 	 	 	 	 	Damages	 	 	 	 
	 

	 	 	 	 	 	 	 	o
	 	Early Termination Damages Do Not Apply
	 
	 	 	 	 	 	 	 	 	 	 
	Note: The following Spot Price Publication applies to both of the immediately preceding.	 	Section 10.3.2
	 	þ	 	Other Agreement Setoffs Apply (default)
	

	 	
	 	
	 	 Other
	 	 	 	
	                                                       
	Section 2.31

	 	[*]
	 	Gas Daily Midpoint (default)
	 	 Agreement
	 	 	 	þ     Bilateral (default)
	                                                        
	Spot Price

	 	OR
	 	 	 	Setoffs
	 	 	 	
	                                                       
	Publication

	 	[*]
	 	 
	 	 	 		 	o     Triangular
	                                                        
	 

	 	 	 	 	 	 	 	OR	 	
	 
	 	 	 	 	 	 	 	o
	 	Other Agreement Setoffs Do Not Apply
	Section 6

	 	þ
	 	Buyer Pays At and After Delivery Point (default)	 	 	 	 	 	 
	Taxes

	 	OR	 	 	 	 	 	 	 	 
	 

	 	o
	 	Seller Pays Before and At Delivery Point	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Section 7.2

	 	þ
	 	25th Day of Month following Month of delivery
	 	Section 15.5
	 	 	 	Texas
	Payment Date

	 	 	 	(default)
	 	Choice Of Law	 	 	 	 
	 

	 	OR	 	 	 	 	 	 	 	 
	 

	 	o
	 	Day of Month following Month of delivery	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Section 7.2

	 	þ
	 	Wire transfer (default)
	 	Section 15.10
	 	þ
	 	Confidentiality applies (default)
	Method of Payment

	 	o
	 	Automated Clearinghouse Credit (ACH)
	 	Confidentiality
	 	OR	 	 
	 

	 	o
	 	Check
	 	 	 	o
	 	Confidentiality does not apply
	 
	 	 	 	 	 	 	 	 	 	 
	Section 7.7

	 	o
	 	Netting applies (default)	 	 	 	 	 	 
	Netting

	 	OR	 	 	 	 	 	 	 	 
	 

	 	þ
	 	Netting does not apply	 	 	 	 	 	 
	 
	þ Special Provisions Number of sheets attached: 3	 	 	 	 	 	 
	o
Addendum(s):
 

IN WITNESS WHEREOF, the parties hereto have executed this Base Contract in duplicate.

	 	 	 	 	 	 	 	 	 

	 

	 	ExxonMobil Gas & Power Marketing Company

(a division of Exxon Mobil Corporation)
	 	PARTY NAME
	 	 	 	MID LOUISIANA GAS
TRANSMISSION, LLC
	 
	 	 	 	 	 	 	 	 
		By:

	/s/
Diaco Aviki
	 	SIGNATURE
	 	
	By:	/s/ Marty Patterson
	 

	 	 
	 	 	 	 	 	 
	 

	 	Diaco Aviki 5/13/10
	 	PRINTED NAME
	 	 	 	MARTY PATTERSON
	 

	 	Gas Marketing Manager (Gulf Coast & East U.S.)
	 	TITLE
	 	 	 	SR. VICE PRESIDENT

					
	 	 	 	 	 
	Copyright © 2006 North American Energy Standards Board, Inc.
	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved
	 	Page 3 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

General Terms and Conditions 

Base Contract for
Sale and Purchase of Natural Gas

 SECTION 1. PURPOSE AND PROCEDURES

1.1. These General Terms and Conditions are intended to facilitate purchase and sale
transactions of Gas on a Firm or
Interruptible basis. “Buyer” refers to the party receiving Gas and “Seller” refers to the party
delivering Gas. The entire agreement
between the parties shall be the Contract as defined in Section 2.9.

The parties have selected either the “Oral Transaction Procedure” or the “Written Transaction
Procedure” as indicated on
the Base Contract.

Oral Transaction Procedure:

1.2. The parties will use the following Transaction Confirmation procedure. Any Gas purchase and
sale transaction may be
effectuated in an EDI transmission or telephone conversation with the offer and acceptance
constituting the agreement of the
parties. The parties shall be legally bound from the time they so agree to transaction terms and
may each rely thereon. Any such
transaction shall be considered a “writing” and to have been “signed”. Notwithstanding the
foregoing sentence, the parties agree
that Confirming Party shall, and the other party may, confirm a telephonic transaction by
sending the other party a Transaction
Confirmation by facsimile, EDI or mutually agreeable electronic means within three Business Days
of a transaction covered by this
Section 1.2 (Oral Transaction Procedure) provided that the failure to send a Transaction
Confirmation shall not invalidate the oral
agreement of the parties. Confirming Party adopts its confirming letterhead, or the like, as
its signature on any Transaction
Confirmation as the identification and authentication of Confirming Party. If the Transaction
Confirmation contains any provisions
other than those relating to the commercial terms of the transaction (i.e., price, quantity,
performance obligation, delivery point,
period of delivery and/or transportation conditions), which modify or supplement the Base
Contract or General Terms and
Conditions of this Contract (e.g., arbitration or additional representations and warranties),
such provisions shall not be deemed to
be accepted pursuant to Section 1.3 but must be expressly agreed to by both parties; provided
that the foregoing shall not
invalidate any transaction agreed to by the parties.

Written Transaction Procedure:

1.2. The parties will use the following Transaction Confirmation procedure. Should the parties
come to an agreement regarding
a Gas purchase and sale transaction for a particular Delivery Period, the Confirming Party
shall, and the other party may, record
that agreement on a Transaction Confirmation and communicate such Transaction Confirmation by
facsimile, EDI or mutually
agreeable electronic means, to the other party by the close of the Business Day following the
date of agreement. The parties
acknowledge that their agreement will not be binding until the exchange of nonconflicting
Transaction Confirmations or the
passage of the Confirm Deadline without objection from the receiving party, as provided in
Section 1.3.

1.3. If a sending party’s Transaction Confirmation is materially different from the receiving
party’s understanding of the agreement
referred to in Section 1.2, such receiving party shall notify the sending party via facsimile,
EDI or mutually agreeable electronic means by
the Confirm Deadline, unless such receiving party has previously sent a Transaction Confirmation
to the sending party. The failure of the
receiving party to so notify the sending party in writing by the Confirm Deadline constitutes
the receiving party’s agreement to the terms of
the transaction described in the sending party’s Transaction Confirmation. If there are any
material differences between timely sent
Transaction Confirmations governing the same transaction, then neither Transaction Confirmation
shall be binding until or unless such
differences are resolved including the use of any evidence that clearly resolves the differences
in the Transaction Confirmations. In the
event of a conflict among the terms of (i) a binding Transaction Confirmation pursuant to
Section 1.2, (ii) the oral agreement of the parties
which may be evidenced by a recorded conversation, where the parties have selected the Oral
Transaction Procedure of the Base
Contract, (iii) the Base Contract, and (iv) these General Terms and Conditions, the terms of the
documents shall govern in the priority
listed in this sentence.

1.4. The parties agree that each party may electronically record all telephone conversations
with respect to this Contract between
their respective employees, without any special or further notice to the other party. Each party
shall obtain any necessary consent of its
agents and employees to such recording. Where the parties have selected the Oral Transaction
Procedure in Section 1.2 of the
Base Contract, the parties agree not to contest the validity or enforceability of telephonic
recordings entered into in accordance with the
requirements of this Base Contract.

 SECTION 2. DEFINITIONS

The terms set forth below shall have the meaning ascribed to them below. Other terms are also
defined elsewhere in the Contract and shall have the meanings ascribed to them herein.

2.1. “Additional Event of Default” shall mean Transactional Cross Default or Indebtedness Cross
Default, each as and if
selected by the parties pursuant to the Base Contract.

2.2. “Affiliate” shall mean, in relation to any person, any entity controlled, directly or
indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under common control
with the person. For this purpose, “control” of any
entity or person means ownership of at least 50 percent of the voting power of the entity or
person.

	 	 	 	 	 

	Copyright © 2006 North American Energy Standards Board, Inc.

	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved

	 	Page 4 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

2.3. “Alternative Damages” shall mean such damages, expressed in dollars or dollars per MMBtu, as
the parties shall agree upon in
the Transaction Confirmation, in the event either Seller or Buyer fails to perform a Firm
obligation to deliver Gas in the case of Seller or to
receive Gas in the case of Buyer.

2.4. “Base Contract” shall mean a contract executed by the parties that incorporates these General
Terms and Conditions by
reference; that specifies the agreed selections of provisions contained herein; and that sets
forth other information required herein and any
Special Provisions and addendum(s) as identified on page one.

2.5. “British thermal unit” or “Btu” shall mean the International BTU, which is also called the
Btu (IT).

2.6. “Business Day(s)” shall mean Monday through Friday, excluding Federal Banking Holidays for
transactions in the U.S.

2.7. “Confirm Deadline” shall mean 5:00 p.m. in the receiving party’s time zone on the second
Business Day following the

Day a Transaction Confirmation is received or, if applicable, on the Business Day agreed to by the
parties in the Base Contract;
provided, if the Transaction Confirmation is time stamped after 5:00 p.m. in the receiving party’s
time zone, it shall be deemed
received at the opening of the next Business Day.

2.8. “Confirming Party” shall mean the party designated in the Base Contract to prepare and
forward Transaction Confirmations to the
other party.

2.9. “Contract” shall mean the legally-binding relationship established by (i) the Base Contract,
(ii) any and all binding
Transaction Confirmations and (iii) where the parties have selected the Oral Transaction Procedure
in Section 1.2 of the Base
Contract, any and all transactions that the parties have entered into through an EDI transmission
or by telephone, but that have not
been confirmed in a binding Transaction Confirmation, all of which shall form a single integrated
agreement between the parties.

2.10. “Contract Price” shall mean the amount expressed in U.S. Dollars per MMBtu to be paid by
Buyer to Seller for the
purchase of Gas as agreed to by the parties in a transaction.

2.11. “Contract Quantity” shall mean the quantity of Gas to be delivered and taken as agreed to by
the parties in a
transaction.

2.12. “Cover Standard”, as referred to in Section 3.2, shall mean that if there is an unexcused
failure to take or deliver any
quantity of Gas pursuant to this Contract, then the performing party shall use commercially
reasonable efforts to (i) if Buyer is the
performing party, obtain Gas, (or an alternate fuel if elected by Buyer and replacement Gas is not
available), or (ii) if Seller is the
performing party, sell Gas, in either case, at a price reasonable for the delivery or production
area, as applicable, consistent with:
the amount of notice provided by the nonperforming party; the immediacy of the Buyer’s Gas
consumption needs or Seller’s Gas
sales requirements, as applicable; the quantities involved; and the anticipated length of failure
by the nonperforming party.

2.13. “Credit Support Obligation(s)” shall mean any obligation(s) to provide or establish credit
support for, or on behalf of, a
party to this Contract such as cash, an irrevocable standby letter of credit, a margin agreement, a
prepayment, a security interest in
an asset, guaranty, or other good and sufficient security of a continuing nature.

2.14. “Day” shall mean a period of 24 consecutive hours, coextensive with a “day” as defined by the
Receiving Transporter in
a particular transaction.

2.15. “Delivery Period” shall be the period during which deliveries are to be made as agreed to by
the parties in a transaction.

2.16. “Delivery Point(s)” shall mean such point(s) as are agreed to by the parties in a
transaction.

2.17. “EDI” shall mean an electronic data interchange pursuant to an agreement entered into by the
parties, specifically
relating to the communication of Transaction Confirmations under this Contract.

2.18. “EFP” shall mean the purchase, sale or exchange of natural Gas as the “physical” side of an
exchange for physical
transaction involving gas futures contracts. EFP shall incorporate the meaning and remedies of
“Firm”, provided that a party’s
excuse for nonperformance of its obligations to deliver or receive Gas will be governed by the
rules of the relevant futures
exchange regulated under the Commodity Exchange Act.

2.19. “Firm” shall mean that either party may interrupt its performance without liability only to
the extent that such
performance is prevented for reasons of Force Majeure; provided, however, that during Force Majeure
interruptions, the party
invoking Force Majeure may be responsible for any Imbalance Charges as set forth in Section 4.3
related to its interruption after
the nomination is made to the Transporter and until the change in deliveries and/or receipts is
confirmed by the Transporter.

2.20. “Gas” shall mean any mixture of hydrocarbons and noncombustible gases in a gaseous state
consisting primarily of
methane.

2.21. “Guarantor” shall mean any entity that has provided a guaranty of the obligations of a party
hereunder.

2.22. “Imbalance Charges” shall mean any fees, penalties, costs or charges (in cash or in kind)
assessed by a Transporter for
failure to satisfy the Transporter’s balance and/or nomination requirements.

2.23. “Indebtedness Cross Default” shall mean if selected on the Base Contract by the parties with
respect to a party, that it
or its Guarantor, if any, experiences a default, or similar condition or event however therein
defined, under one or more
agreements or instruments, individually or collectively, relating to indebtedness (such
indebtedness to include any obligation
whether present or future, contingent or otherwise, as principal or surety or otherwise) for the
payment or repayment of borrowed
money in an aggregate amount greater than the threshold specified in the Base Contract with respect
to such party or its
Guarantor, if any, which results in such indebtedness becoming immediately due and payable.

	 	 	 	 	 

	Copyright © 2006 North American Energy Standards Board, Inc.

	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved

	 	Page 5 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

2.24. “Interruptible” shall mean that either party may interrupt its performance at any time for
any reason, whether or not
caused by an event of Force Majeure, with no liability, except such interrupting party may be
responsible for any Imbalance
Charges as set forth in Section 4.3 related to its interruption after the nomination is made to the
Transporter and until the change in
deliveries and/or receipts is confirmed by Transporter.

2.25. “MMBtu” shall mean one million British thermal units, which is equivalent to one dekatherm.

2.26. “Month” shall mean the period beginning on the first Day of the calendar month and ending
immediately prior to the
commencement of the first Day of the  next calendar month.

2.27. “Payment Date” shall mean a date, as indicated on the Base Contract, on or before which
payment is due Seller for Gas
received by Buyer in the previous Month.

2.28. “Receiving Transporter” shall mean the Transporter receiving Gas at a Delivery Point, or
absent such receiving
Transporter, the Transporter delivering Gas at a Delivery Point.

2.29. “Scheduled Gas” shall mean the quantity of Gas confirmed by Transporter(s) for movement,
transportation or
management.

2.30. “Specified Transaction(s)” shall mean any other transaction or agreement between the parties
for the purchase, sale or
exchange of physical Gas, and any other transaction or agreement identified as a Specified
Transaction under the Base Contract.

2.31.
“Spot Price” as referred to in Section 3.2 shall mean the price listed in the publication
indicated on the Base Contract,
under the listing applicable to the geographic location closest in proximity to the Delivery
Point(s) for the relevant Day; provided, if
there is no single price published for such location for such Day, but there is published a range
of prices, then the Spot Price shall
be the average of such high and low prices. If no price or range of prices is published for such
Day, then the Spot Price shall be
the average of the following: (i) the price (determined as stated above) for the first Day for
which a price or range of prices is
published that next precedes the relevant Day; and (ii) the price (determined as stated above) for
the first Day for which a price or
range of prices is published that next follows the relevant Day.

2.32. “Transaction Confirmation” shall mean a document, similar to the form of Exhibit A, setting
forth the terms of a
transaction formed pursuant to Section 1 for a particular Delivery Period.

2.33. “Transactional Cross Default” shall mean if selected on the Base Contract by the parties with
respect to a party, that it
shall be in default, however therein defined, under any Specified Transaction.

2.34. “Termination Option” shall mean the option of either party to terminate a transaction in the
event that the other party fails to
perform a Firm obligation to deliver Gas in the case of Seller or to receive Gas in the case of
Buyer for a designated number of days during a
period as specified on the applicable Transaction Confirmation.

2.35. “Transporter(s)” shall mean all Gas gathering or pipeline companies, or local distribution
companies, acting in the capacity of a
transporter, transporting Gas for Seller or Buyer upstream or downstream, respectively, of the
Delivery Point pursuant to a particular
transaction.

SECTION
 3. PERFORMANCE OBLIGATION

3.1. Seller agrees to sell and deliver, and Buyer agrees to receive and purchase, the Contract
Quantity for a particular transaction in
accordance with the terms of the Contract. Sales and purchases will be on a Firm or Interruptible
basis, as agreed to by the parties in a
transaction.

The parties have selected either the “Cover Standard” or the “Spot Price Standard” as indicated
on the Base Contract.

Cover
Standard:

3.2. The sole and exclusive remedy of the parties in the event of a breach of a Firm obligation to
deliver or receive Gas shall
be recovery of the following: (i) in the event of a breach by Seller on any Day(s), payment by
Seller to Buyer in an amount equal to
the positive difference, if any, between the purchase price paid by Buyer utilizing the Cover
Standard and the Contract Price,
adjusted for commercially reasonable differences in transportation costs to or from the Delivery
Point(s), multiplied by the
difference between the Contract Quantity and the quantity actually delivered by Seller for such
Day(s) excluding any quantity for
which no replacement is available; or (ii) in the event of a breach by Buyer on any Day(s), payment
by Buyer to Seller in the
amount equal to the positive difference, if any, between the Contract Price and the price received
by Seller utilizing the Cover
Standard for the resale of such Gas, adjusted for commercially reasonable differences in
transportation costs to or from the
Delivery Point(s), multiplied by the difference between the Contract Quantity and the quantity
actually taken by Buyer for such
Day(s) excluding any quantity for which no sale is available; and (iii) in the event that Buyer has
used commercially reasonable
efforts to replace the Gas or Seller has used commercially reasonable efforts to sell the Gas to a
third party, and no such
replacement or sale is available for all or any portion of the Contract Quantity of Gas, then in
addition to (i) or (ii) above, as
applicable, the sole and exclusive remedy of the performing party with respect to the Gas not
replaced or sold shall be an amount
equal to any unfavorable difference between the Contract Price and the Spot Price, adjusted for
such transportation to the
applicable Delivery Point, multiplied by the quantity of such Gas not replaced or sold. Imbalance
Charges shall not be recovered
under this Section 3.2, but Seller and/or Buyer shall be responsible for Imbalance Charges, if any,
as provided in Section 4.3. The
amount of such unfavorable difference shall be payable five Business Days after presentation of the
performing party’s invoice,
which shall set forth the basis upon which such amount was calculated.

	 	 	 	 	 

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Spot Price Standard:

3.2. The sole and exclusive remedy of the parties in the event of a breach of a Firm obligation to
deliver or receive Gas shall be
recovery of the following: (i) in the event of a breach by Seller on any Day(s), payment by Seller
to Buyer in an amount equal to the
difference between the Contract Quantity and the actual quantity delivered by Seller and received
by Buyer for such Day(s),
multiplied by the positive difference, if any, obtained by subtracting the Contract Price from the
Spot Price; or (ii) in the event of a
breach by Buyer on any Day(s), payment by Buyer to Seller in an amount equal to the difference
between the Contract Quantity
and the actual quantity delivered by Seller and received by Buyer for such Day(s), multiplied by
the positive difference, if any,
obtained by subtracting the applicable Spot Price from the Contract
Price. Imbalance Charges shall
not be recovered under this
Section 3.2, but Seller and/or Buyer shall be responsible for Imbalance Charges, if any, as
provided in Section 4.3. The amount of
such unfavorable difference shall be payable five Business Days after presentation of the
performing party’s invoice, which shall
set forth the basis upon which such amount was calculated.

3.3. Notwithstanding Section 3.2, the parties may agree to Alternative Damages in a Transaction
Confirmation executed in
writing by both parties.

3.4. In addition to Sections 3.2 and 3.3, the parties may provide for a Termination Option in a
Transaction Confirmation
executed in writing by both parties. The Transaction Confirmation containing the Termination
Option will designate the length of
nonperformance triggering the Termination Option and the procedures for exercise thereof, how
damages for nonperformance will
be compensated, and how liquidation costs will be calculated.

SECTION 4. TRANSPORTATION, NOMINATIONS, AND IMBALANCES

4.1. Seller shall have the sole responsibility for transporting the Gas to the Delivery Point(s).
Buyer shall have the sole responsibility
for transporting the Gas from the Delivery Point(s).

4.2. The parties shall coordinate their nomination activities, giving sufficient time to meet the
deadlines of the affected Transporter(s).
Each party shall give the other party timely prior Notice, sufficient to meet the requirements of
all Transporter(s) involved in the transaction, of
the quantities of Gas to be delivered and purchased each Day. Should either party become aware
that actual deliveries at the Delivery
Point(s) are greater or lesser than the Scheduled Gas, such party shall promptly notify the other
party.

4.3. The parties shall use commercially reasonable efforts to avoid imposition of any Imbalance
Charges. If Buyer or Seller receives
an invoice from a Transporter that includes Imbalance Charges, the parties shall determine the
validity as well as the cause of such
Imbalance Charges. If the Imbalance Charges were incurred as a result of Buyer’s receipt of
quantities of Gas greater than or less than the
Scheduled Gas, then Buyer shall pay for such Imbalance Charges or reimburse Seller for such
Imbalance Charges paid by Seller. If the
Imbalance Charges were incurred as a result of Seller’s delivery of quantities of Gas greater than
or less than the Scheduled Gas, then Seller
shall pay for such Imbalance Charges or reimburse Buyer for such Imbalance Charges paid by Buyer.

SECTION

 5.  QUALITY AND MEASUREMENT

All Gas delivered by Seller shall meet the pressure, quality and heat content requirements of the
Receiving Transporter. The unit of quantity measurement for purposes of this Contract shall be
one MMBtu dry. Measurement of Gas quantities hereunder shall be in accordance with the
established procedures of the Receiving Transporter.

SECTION 6. TAXES

The parties have selected either “Buyer Pays At and After Delivery Point” or “Seller Pays Before
and At Delivery Point” as
indicated on the Base Contract.

Buyer
Pays At and After Delivery Point:

Seller shall pay or cause to be paid all taxes, fees, levies, penalties, licenses or charges
imposed by any government authority (“Taxes”)
on or with respect to the Gas prior to the Delivery Point(s). Buyer shall pay or cause to be paid
all Taxes on or with respect to the Gas at
the Delivery Point(s) and all Taxes after the Delivery Point(s). If a party is required to remit
or pay Taxes that are the other party’s
responsibility hereunder, the party responsible for such Taxes shall promptly reimburse the other
party for such Taxes. Any party entitled
to an exemption from any such Taxes or charges shall furnish the other party any necessary
documentation thereof.

Seller Pays Before and At Delivery Point:

Seller shall pay or cause to be paid all taxes, fees, levies, penalties, licenses or charges
imposed by any government authority (“Taxes”)
on or with respect to the Gas prior to the Delivery Point(s) and all Taxes at the Delivery
Point(s). Buyer shall pay or cause to be paid all
Taxes on or with respect to the Gas after the Delivery Point(s). If a party is required to remit
or pay Taxes that are the other party’s
responsibility hereunder, the party responsible for such Taxes shall promptly reimburse the other
party for such Taxes. Any party entitled
to an exemption from any such Taxes or charges shall furnish the other party any necessary
documentation thereof.

SECTION 7. BILLING, PAYMENT, AND AUDIT

7.1. Seller shall invoice Buyer for Gas delivered and received in the preceding Month and for any
other applicable charges, providing
supporting documentation acceptable in industry practice to support the amount charged. If the
actual quantity delivered is not known by the billing date, billing will be prepared based on the
quantity of Scheduled Gas. The invoiced quantity will then be adjusted to the actual quantity on
the following Month’s billing or as soon thereafter as actual delivery information is available.

	 	 	 	 	 

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	 	 	 	NAESB Standard 6.3.1
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7.2. Buyer shall remit the amount due under Section 7.1 in the manner specified in the Base
Contract, in immediately available funds,
on or before the later of the Payment Date or 10 Days after receipt of the invoice by Buyer;
provided that if the Payment Date is not a
Business Day, payment is due on the next Business Day following that date. In the event any
payments are due Buyer hereunder, payment
to Buyer shall be made in accordance with this Section 7.2.

7.3. In the event payments become due pursuant to Sections 3.2 or 3.3, the performing party may
submit an invoice to the
nonperforming party for an accelerated payment setting forth the basis upon which the invoiced
amount was calculated. Payment
from the nonperforming party will be due five Business Days after receipt of invoice.

7.4. If the invoiced party, in good faith, disputes the amount of any such invoice or any part
thereof, such invoiced party will pay such
amount as it concedes to be correct; provided, however, if the invoiced party disputes the amount
due, it must provide supporting
documentation acceptable in industry practice to support the amount paid or disputed without undue
delay. In the event the parties are
unable to resolve such dispute, either party may pursue any remedy available at law or in equity to
enforce its rights pursuant to this Section.

7.5. If the invoiced party fails to remit the full amount payable when due, interest on the unpaid
portion shall accrue from the date due
until the date of payment at a rate equal to the lower of (i) the then-effective prime rate of
interest published under “Money Rates” by The Wall
Street Journal, plus two percent per annum; or (ii) the maximum applicable lawful interest rate.

7.6. A party shall have the right, at its own expense, upon reasonable Notice and at reasonable
times, to examine and audit and to
obtain copies of the relevant portion of the books, records, and telephone recordings of the other
party only to the extent reasonably
necessary to verify the accuracy of any statement, charge, payment, or computation made under the
Contract. This right to examine, audit,
and to obtain copies shall not be available with respect to proprietary information not directly
relevant to transactions under this Contract. All
invoices and billings shall be conclusively presumed final and accurate and all associated claims
for under- or overpayments shall be deemed
waived unless such invoices or billings are objected to in writing, with adequate explanation
and/or documentation, within two years after the
Month of Gas delivery. All retroactive adjustments under Section 7 shall be paid in full by the
party owing payment within 30 Days of Notice
and substantiation of such inaccuracy.

7.7. Unless the parties have elected on the Base Contract not to make this Section 7.7 applicable
to this Contract, the parties
shall net all undisputed amounts due and owing, and/or past due, arising under the Contract such
that the party owing the greater
amount shall make a single payment of the net amount to the other party in accordance with Section
7; provided that no payment
required to be made pursuant to the terms of any Credit Support Obligation or pursuant to Section
7.3 shall be subject to netting
under this Section. If the parties have executed a separate netting agreement, the terms and
conditions therein shall prevail to the
extent inconsistent herewith.

SECTION 8. TITLE, WARRANTY, AND INDEMNITY

8.1. Unless otherwise specifically agreed, title to the Gas shall pass from Seller to Buyer at the
Delivery Point(s). Seller shall
have responsibility for and assume any liability with respect to the Gas prior to its delivery to
Buyer at the specified Delivery
Point(s). Buyer shall have responsibility for and assume any liability with respect to said Gas
after its delivery to Buyer at the
Delivery Point(s).

8.2. Seller warrants that it will have the right to convey and will transfer good and merchantable
title to all Gas sold
hereunder and delivered by it to Buyer, free and clear of all liens, encumbrances, and claims.
EXCEPT AS PROVIDED IN THIS
SECTION 8.2 AND IN SECTION 15.8, ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY
OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE, ARE DISCLAIMED.

8.3. Seller agrees to indemnify Buyer and save it harmless from all losses, liabilities or claims
including reasonable
attorneys’ fees and costs of court (“Claims”), from any and all persons, arising from or out of
claims of title, personal injury
(including death) or property damage from said Gas or other charges thereon which attach before
title passes to Buyer. Buyer
agrees to indemnify Seller and save it harmless from all Claims, from any and all persons, arising
from or out of claims regarding payment,
personal injury (including death) or property damage from said Gas or other charges thereon which
attach after title passes to Buyer.

8.4. The parties agree that the delivery of and the transfer of title to all Gas under this
Contract shall take place within the
Customs Territory of the United States (as defined in general note 2 of the Harmonized Tariff
Schedule of the United States 19
U.S.C. §1202, General Notes, 

page 3); provided, however, that in the event Seller took title to
the Gas outside the Customs
Territory of the United States, Seller represents and warrants that it is the importer of record
for all Gas entered and delivered into
the United States, and shall be responsible for entry and entry summary filings as well as the
payment of duties, taxes and fees, if
any, and all applicable record keeping requirements.

8.5. Notwithstanding the other provisions of this Section 8, as between Seller and Buyer, Seller
will be liable for all Claims to the extent
that such arise from the failure of Gas delivered by Seller to meet the quality requirements of
Section 5.

SECTION 9. NOTICES

9.1. All Transaction Confirmations, invoices, payment instructions, and other communications made
pursuant to the Base
Contract (“Notices”) shall be made to the addresses specified in writing by the respective parties
from time to time.

9.2. All Notices required hereunder shall be in writing and may be sent by facsimile or mutually
acceptable electronic means,
a nationally recognized overnight courier service, first class mail or hand delivered.

9.3. Notice shall be given when received on a Business Day by the addressee. In the absence of
proof of the actual receipt
date, the following presumptions will apply. Notices sent by facsimile shall be deemed to have
been received upon the sending
party’s receipt of its facsimile machine’s confirmation of successful transmission. If the day on
which such facsimile is received is

	 	 	 	 	 

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not a Business Day or is after five p.m. on a Business Day, then such facsimile shall be deemed
to have been received on the next following Business Day. Notice by overnight mail or courier
shall be deemed to have been received on the next Business Day after it was sent or such earlier
time as is confirmed by the receiving party. Notice via first class mail shall be considered
delivered five Business Days after mailing.

9.4. The party receiving a commercially acceptable Notice of change in payment instructions or
other payment information shall
not be obligated to implement such change until ten Business Days after receipt of such Notice.

 SECTION 10. FINANCIAL RESPONSIBILITY 

10.1. If either party (“X”) has reasonable grounds for insecurity regarding the performance of any
obligation under this Contract
(whether or not then due) by the other party (“Y”) (including, without limitation, the occurrence
of a material change in the
creditworthiness of Y or its Guarantor, if applicable), X may demand Adequate Assurance of
Performance. “Adequate Assurance
of Performance” shall mean sufficient security in the form, amount, for a term, and from an issuer,
all as reasonably acceptable to
X, including, but not limited to cash, a standby irrevocable letter of credit, a prepayment, a
security interest in an asset or guaranty.
Y hereby grants to X a continuing first priority security interest in, lien on, and right of setoff
against all Adequate Assurance of
Performance in the form of cash transferred by Y to X pursuant to this Section 10.1. Upon the
return by X to Y of such Adequate
Assurance of Performance, the security interest and lien granted hereunder on that Adequate
Assurance of Performance shall be
released automatically and, to the extent possible, without any further action by either party.

10.2. In the event (each an “Event of Default”) either party (the “Defaulting Party”) or its
Guarantor shall: (i) make an
assignment or any general arrangement for the benefit of creditors; (ii) file a petition or
otherwise commence, authorize, or
acquiesce in the commencement of a proceeding or case under any bankruptcy or similar law for the
protection of creditors or have
such petition filed or proceeding commenced against it; (iii) otherwise become bankrupt or
insolvent (however evidenced); (iv) be
unable to pay its debts as they fall due; (v) have a receiver, provisional liquidator, conservator,
custodian, trustee or other similar
official appointed with respect to it or substantially all of its assets; (vi) fail to perform any
obligation to the other party with respect
to any Credit Support Obligations relating to the Contract; (vii) fail to give Adequate Assurance
of Performance under Section 10.1
within 48 hours but at least one Business Day of a written request by the other party; (viii) not
have paid any amount due the other
party hereunder on or before the second Business Day following written Notice that such payment is
due; or ix) be the affected
party with respect to any Additional Event of Default; then the other party (the “Non-Defaulting
Party”) shall have the right, at its
sole election, to immediately withhold and/or suspend deliveries or payments upon Notice and/or to
terminate and liquidate the
transactions under the Contract, in the manner provided in Section 10.3, in addition to any and all
other remedies available
hereunder.

10.3. If an Event of Default has occurred and is continuing, the Non-Defaulting Party shall have
the right, by Notice to the
Defaulting Party, to designate a Day, no earlier than the Day such Notice is given and no later
than 20 Days after such Notice is
given, as an early termination date (the “Early Termination Date”) for the liquidation and
termination pursuant to Section 10.3.1 of
all transactions under the Contract, each a “Terminated Transaction”. On the Early Termination
Date, all transactions will
terminate, other than those transactions, if any, that may not be liquidated and terminated under
applicable law (“Excluded
Transactions”), which Excluded Transactions must be liquidated and terminated as soon thereafter as
is legally permissible, and
upon termination shall be a Terminated Transaction and be valued consistent with Section 10.3.1
below. With respect to each
Excluded Transaction, its actual termination date shall be the Early Termination Date for
purposes of 

Section
10.3.1.

The parties have selected either “Early Termination Damages Apply” or “Early Termination Damages
Do Not Apply” as
indicated on the Base Contract.

Early Termination Damages Apply:

     10.3.1. As of the Early Termination Date, the Non-Defaulting Party shall determine, in good
faith and in a commercially reasonable manner, (i) the amount owed (whether or not then due) by
each party with respect to all Gas delivered and received between the parties under Terminated
Transactions and Excluded Transactions on and before the Early Termination Date and all other
applicable charges relating to such deliveries and receipts (including without limitation any
amounts owed under Section 3.2), for which payment has not yet been made by the party that owes
such payment under this Contract and (ii) the Market Value, as defined below, of each Terminated
Transaction. The Non-Defaulting Party shall (x) liquidate and accelerate each Terminated
Transaction at its Market Value, so that each amount equal to the difference between such Market
Value and the Contract Value, as defined below, of such Terminated
Transaction(s) shall be due to
the Buyer under the Terminated Transaction(s) if such Market Value exceeds the Contract Value and
to the Seller if the opposite is the case; and (y) where appropriate, discount each amount then
due under clause (x) above to present value in a commercially reasonable manner as of the Early
Termination Date (to take account of the period between the date of liquidation and the date on
which such amount would have otherwise been due pursuant to the relevant Terminated
Transactions).

For purposes of this Section 10.3.1, “Contract Value” means the amount of Gas remaining to be
delivered or purchased under a transaction multiplied by the Contract Price, and “Market Value”
means the amount of Gas remaining to be delivered or purchased under a transaction multiplied by
the market price for a similar transaction at the Delivery Point determined by the Non-Defaulting
Party in a commercially reasonable manner. To ascertain the Market Value, the Non-Defaulting
Party may consider, among other valuations, any or all of the settlement prices of NYMEX Gas
futures contracts, quotations from leading dealers in energy swap contracts or physical gas
trading markets, similar sales or purchases and any other bona fide third-party offers, all
adjusted for the length of the term and differences in transportation costs. A party shall not be
required to enter into a replacement transaction(s) in order to determine the Market Value. Any
extension(s) of the term of a transaction to which parties are not bound as of the Early
Termination Date (including but not limited to “evergreen provisions”) shall not be
considered in determining Contract Values and

	 	 	 	 	 

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Market Values. For the avoidance of doubt, any option pursuant to which one party has the right to
extend the term of a
transaction shall be considered in determining Contract Values and Market Values. The rate of
interest used in calculating net
present value shall be determined by the Non-Defaulting Party in a commercially reasonable
manner.

	Early Termination Damages Do Not Apply:

     10.3.1. As of the Early Termination Date, the Non-Defaulting Party shall determine, in good
faith and in a commercially
reasonable manner, the amount owed (whether or not then due) by each party with respect to all
Gas delivered and received
between the parties under Terminated Transactions and Excluded Transactions on and before the
Early Termination Date and all
other applicable charges relating to such deliveries and receipts (including without
limitation any amounts owed under Section 3.2),
for which payment has not yet been made by the party that owes such payment under this
Contract.

The parties have selected either “Other Agreement Setoffs Apply” or “Other Agreement Setoffs Do
Not Apply” as
indicated on the Base Contract.

Other Agreement Setoffs Apply:

Bilateral Setoff Option:

     10.3.2. The Non-Defaulting Party shall net or aggregate, as appropriate, any and all amounts
owing between the parties
under Section 10.3.1, so that all such amounts are netted or aggregated to a single liquidated
amount payable by one party to the
other (the “Net Settlement Amount”). At its sole option and without prior Notice to the
Defaulting Party, the Non-Defaulting Party is
hereby authorized to setoff any Net Settlement Amount against (i) any margin or other
collateral held by a party in connection with
any Credit Support Obligation relating to the Contract; and (ii) any amount(s) (including any
excess cash margin or excess cash
collateral) owed or held by the party that is entitled to the Net Settlement Amount under any
other agreement or arrangement
between the parties.

Triangular Setoff Option:

     10.3.2. The Non-Defaulting Party shall net or aggregate, as appropriate, any and all amounts
owing between the parties
under Section 10.3.1, so that all such amounts are netted or aggregated to a single
liquidated amount payable by one party to the
other (the “Net Settlement Amount”). At its sole option, and without prior Notice to the
Defaulting Party, the Non-Defaulting Party is
hereby authorized to setoff (i) any Net Settlement Amount against any margin or other
collateral held by a party in connection with
any Credit Support Obligation relating to the Contract; (ii) any Net Settlement Amount
against any 

amount(s) (including any excess
cash margin or excess cash collateral) owed by or to a party under any other agreement or
arrangement between the parties; (iii)
any Net Settlement Amount owed to the Non-Defaulting Party against any amount(s) (including
any excess cash margin or excess
cash collateral) owed by the Non-Defaulting Party or its Affiliates to the Defaulting Party
under any other agreement or
arrangement; (iv) any Net Settlement Amount owed to the Defaulting Party against any
amount(s) (including any excess cash
margin or excess cash collateral) owed by the Defaulting Party to the Non-Defaulting Party or
its Affiliates under any other
agreement or arrangement; and/or (v) any Net Settlement Amount owed to the Defaulting Party
against any amount(s) (including
any excess cash margin or excess cash collateral) owed by the Defaulting Party or its
Affiliates to the Non-Defaulting Party under
any other agreement or arrangement.

Other Agreement Setoffs Do Not Apply:

     10.3.2. The Non-Defaulting Party shall net or aggregate, as appropriate, any and all amounts
owing between the parties
under Section 10.3.1, so that all such amounts are netted or aggregated to a single liquidated
amount payable by one party to the
other (the “Net Settlement Amount”). At its sole option and without prior Notice to the
Defaulting Party, the Non-Defaulting Party
may setoff any Net Settlement Amount against any margin or other collateral held by a party in
connection with any Credit Support
Obligation relating to the Contract.

     10.3.3. If any obligation that is to be included in any netting, aggregation or setoff
pursuant to Section 10.3.2 is
unascertained, the Non-Defaulting Party may in good faith estimate that obligation and net,
aggregate or setoff, as applicable, in
respect of the estimate, subject to the Non-Defaulting Party accounting to the Defaulting
Party when the obligation is ascertained.
Any amount not then due which is included in any netting, aggregation or setoff pursuant to
Section 10.3.2 shall be discounted to
net present value in a commercially reasonable manner determined by the Non-Defaulting Party.

10.4. As soon as practicable after a liquidation, Notice shall be given by the Non-Defaulting Party
to the Defaulting Party of
the Net Settlement Amount, and whether the Net Settlement Amount is due to or due from the
Non-Defaulting Party. The Notice
shall include a written statement explaining in reasonable detail the calculation of the Net
Settlement Amount, provided that failure
to give such Notice shall not affect the validity or enforceability of the liquidation or give rise
to any claim by the Defaulting Party
against the Non-Defaulting Party. The Net Settlement Amount as well as any setoffs applied against
such amount pursuant to
Section 10.3.2, shall be paid by the close of business on the second Business Day following such
Notice, which date shall not be
earlier than the Early Termination Date. Interest on any unpaid portion of the Net Settlement
Amount as adjusted by setoffs, shall accrue
from the date due until the date of payment at a rate equal to the lower of (i) the then-effective
prime rate of interest published under “Money
Rates” by The Wall Street Journal, plus two percent per annum; or (ii) the maximum applicable
lawful interest rate.

10.5. The parties agree that the transactions hereunder constitute a “forward contract” within the
meaning of the United
States Bankruptcy Code and that Buyer and Seller are each “forward contract merchants” within the
meaning of the United States
Bankruptcy Code.

10.6. The Non-Defaulting Party’s remedies under this Section 10 are the sole and exclusive remedies
of the Non-Defaulting
Party with respect to the occurrence of any Early Termination Date. Each party reserves to
itself all other rights, setoffs,
counterclaims and other defenses that it is or may be entitled to arising from the Contract.

	 	 	 	 	 

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10.7. With respect to this Section 10, if the parties have executed a separate netting
agreement with close-out netting provisions, the terms and conditions therein shall prevail to the
extent inconsistent herewith.

SECTION 11. FORCE MAJEURE

11.1.
Except with regard to a party’s obligation to make payment(s) due under Section 7, Section
10.4, and Imbalance Charges
under Section 4, neither party shall be liable to the other for failure to perform a Firm
obligation, to the extent such failure was caused by
Force Majeure. The term “Force Majeure” as employed herein means any cause not reasonably within
the control of the party claiming
suspension, as further defined in Section 11.2.

11.2. Force Majeure shall include, but not be limited to, the following: (i) physical events such
as acts of God, landslides,
lightning, earthquakes, fires, storms or storm warnings, such as hurricanes, which result in
evacuation of the affected area, floods,
washouts, explosions, breakage or accident or necessity of repairs to machinery or equipment or
lines of pipe; (ii) weather related
events affecting an entire geographic region, such as low temperatures which cause freezing or
failure of wells or lines of pipe;
(iii) interruption and/or curtailment of Firm transportation and/or storage by Transporters; (iv)
acts of others such as strikes,
lockouts or other industrial disturbances, riots, sabotage, insurrections or wars, or acts of
terror; and (v) governmental actions such
as necessity for compliance with any court order, law, statute, ordinance, regulation, or policy
having the effect of law promulgated
by a governmental authority having jurisdiction. Seller and Buyer shall make reasonable efforts to
avoid the adverse impacts of a
Force Majeure and to resolve the event or occurrence once it has occurred in order to resume
performance.

11.3. Neither party shall be entitled to the benefit of the provisions of Force Majeure to the
extent performance is affected by
any or all of the following circumstances: (i) the curtailment of interruptible or secondary Firm
transportation unless primary, in-path,
Firm transportation is also curtailed; (ii) the party claiming excuse failed to remedy the
condition and to resume the performance of
such covenants or obligations with reasonable dispatch; or (iii) economic hardship, to include,
without limitation, Seller’s ability to sell
Gas at a higher or more advantageous price than the Contract Price, Buyer’s ability to purchase Gas
at a lower or more advantageous
price than the Contract Price, or a regulatory agency disallowing, in whole or in part, the pass
through of costs resulting from this
Contract; (iv) the loss of Buyer’s market(s) or Buyer’s inability to use or resell Gas purchased
hereunder, except, in either case, as
provided in Section 11.2; or (v) the loss or failure of Seller’s gas supply or depletion of
reserves, except, in either case, as provided in
Section 11.2. The party claiming Force Majeure shall not be excused from its responsibility for
Imbalance Charges.

11.4. Notwithstanding anything to the contrary herein, the parties agree that the settlement of
strikes, lockouts or other
industrial disturbances shall be within the sole discretion of the party experiencing such
disturbance.

11.5. The party whose performance is prevented by Force Majeure must provide Notice to the other
party. Initial Notice may
be given orally; however, written Notice with reasonably full particulars of the event or
occurrence is required as soon as reasonably
possible. Upon providing written Notice of Force Majeure to the other party, the affected party
will be relieved of its obligation, from the
onset of the Force Majeure event, to make or accept delivery of Gas, as applicable, to the extent
and for the duration of Force Majeure,
and neither party shall be deemed to have failed in such obligations to the other during such
occurrence or event.

11.6. Notwithstanding Sections 11.2 and 11.3, the parties may agree to alternative Force Majeure
provisions in a Transaction
Confirmation executed in writing by both parties.

SECTION 12. TERM

This Contract may be terminated on 30 Day’s written Notice, but shall remain in effect until the
expiration of the latest Delivery Period of any transaction(s). The rights of either party pursuant
to Section 7.6, Section 10, Section 13, the obligations to make payment hereunder, and the
obligation of either party to indemnify the other, pursuant hereto shall survive the termination
of the Base Contract or any transaction.

SECTION 13. LIMITATIONS

FOR BREACH OF ANY PROVISION FOR WHICH AN EXPRESS REMEDY OR MEASURE OF DAMAGES IS PROVIDED, SUCH
EXPRESS REMEDY OR MEASURE OF DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY. A PARTY’S LIABILITY
HEREUNDER SHALL BE LIMITED AS SET FORTH IN SUCH PROVISION, AND ALL OTHER REMEDIES OR DAMAGES AT
LAW OR IN EQUITY ARE WAIVED. IF NO REMEDY OR MEASURE OF DAMAGES IS EXPRESSLY PROVIDED HEREIN OR IN
A TRANSACTION, A PARTY’S LIABILITY SHALL BE LIMITED TO DIRECT ACTUAL DAMAGES ONLY. SUCH DIRECT
ACTUAL DAMAGES SHALL BE THE SOLE AND EXCLUSIVE REMEDY, AND ALL OTHER REMEDIES OR DAMAGES AT LAW OR
IN EQUITY ARE WAIVED. UNLESS EXPRESSLY HEREIN PROVIDED, NEITHER PARTY SHALL BE LIABLE FOR
CONSEQUENTIAL, INCIDENTAL, PUNITIVE, EXEMPLARY OR INDIRECT DAMAGES, LOST PROFITS OR OTHER BUSINESS
INTERRUPTION DAMAGES, BY STATUTE, IN TORT OR CONTRACT, UNDER ANY INDEMNITY PROVISION OR OTHERWISE.
IT IS THE INTENT OF THE PARTIES THAT THE LIMITATIONS HEREIN IMPOSED ON REMEDIES AND THE MEASURE OF
DAMAGES BE WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED THERETO, INCLUDING THE NEGLIGENCE OF ANY
PARTY, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE. TO THE EXTENT
ANY DAMAGES REQUIRED TO BE PAID HEREUNDER ARE LIQUIDATED, THE PARTIES ACKNOWLEDGE THAT THE DAMAGES
ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE, OR OTHERWISE OBTAINING AN ADEQUATE REMEDY IS
INCONVENIENT AND THE DAMAGES CALCULATED HEREUNDER CONSTITUTE A REASONABLE APPROXIMATION OF THE
HARM OR LOSS.

	 	 	 	 	 

	Copyright © 2006 North American Energy Standards Board, Inc.

	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved

	 	Page 11 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

SECTION 14. MARKET DISRUPTION

If a Market Disruption Event has occurred then the parties shall negotiate in good faith to
agree on a replacement price for the Floating Price (or on a method for determining a replacement
price for the Floating Price) for the affected Day, and if the parties have not so agreed on or
before the second Business Day following the affected Day then the replacement price for the
Floating Price shall be determined within the next two following Business Days with each party
obtaining, in good faith and from non-affiliated market participants in the relevant market, two
quotes for prices of Gas for the affected Day of a similar quality and quantity in the geographical
location closest in proximity to the Delivery Point and averaging the four quotes. If either party
fails to provide two quotes then the average of the other party’s two quotes shall determine the
replacement price for the Floating Price. “Floating Price” means the price or a factor of the price
agreed to in the transaction as being based upon a specified index. “Market Disruption Event”
means, with respect to an index specified for a transaction, any of the following events: (a) the
failure of the index to announce or publish information necessary for determining the Floating
Price; (b) the failure of trading to commence or the permanent discontinuation or material
suspension of trading on the exchange or market acting as the index; (c) the temporary or permanent
discontinuance or unavailability of the index; (d) the temporary or permanent closing of any
exchange acting as the index; or (e) both parties agree that a material change in the formula for
or the method of determining the Floating Price has occurred. For the purposes of the calculation
of a replacement price for the Floating Price, all numbers shall be rounded to three decimal
places. If the fourth decimal number is five or greater, then the third decimal number shall be
increased by one and if the fourth decimal number is less than five, then the third decimal number
shall remain unchanged.

SECTION 15. MISCELLANEOUS

15.1. This Contract shall be binding upon and inure to the benefit of the successors, assigns,
personal representatives, and heirs of the respective parties hereto, and the covenants,
conditions, rights and obligations of this Contract shall run for the full term of this Contract.
No assignment of this Contract, in whole or in part, will be made without the prior written consent
of the non-assigning party (and shall not relieve the assigning party from liability hereunder),
which consent will not be unreasonably withheld or delayed; provided, either party may (i)
transfer, sell, pledge, encumber, or assign this Contract or the accounts, revenues, or proceeds
hereof in connection with any financing or other financial arrangements, or (ii) transfer its
interest to any parent or Affiliate by assignment, merger or otherwise without the prior approval
of the other party. Upon any such assignment, transfer and assumption, the transferor shall remain
principally liable for and shall not be relieved of or discharged from any obligations hereunder.

15.2. If any provision in this Contract is determined to be invalid, void or unenforceable by any
court having jurisdiction, such determination shall not invalidate, void, or make unenforceable any
other provision, agreement or covenant of this Contract.

15.3. No waiver of any breach of this Contract shall be held to be a waiver of any other or
subsequent breach.

15.4. This Contract sets forth all understandings between the parties respecting each transaction
subject hereto, and any prior contracts, understandings and representations, whether oral or
written, relating to such transactions are merged into and superseded by this Contract and any
effective transaction(s). This Contract may be amended only by a writing executed by both parties.

15.5. The interpretation and performance of this Contract shall be governed by the laws of the
jurisdiction as indicated on the Base Contract, excluding, however, any conflict of laws rule which
would apply the law of another jurisdiction.

15.6. This Contract and all provisions herein will be subject to all applicable and valid statutes,
rules, orders and regulations of any governmental authority having jurisdiction over the parties,
their facilities, or Gas supply, this Contract or transaction or any provisions thereof.

15.7. There is no third party beneficiary to this Contract.

15.8. Each party to this Contract represents and warrants that it has full and complete authority
to enter into and perform this Contract. Each person who executes this Contract on behalf of either
party represents and warrants that it has full and complete authority to do so and that such party
will be bound thereby.

15.9. The headings and subheadings contained in this Contract are used solely for convenience and
do not constitute a part of this Contract between the parties and shall not be used to construe or
interpret the provisions of this Contract.

15.10. Unless the parties have elected on the Base Contract not to make this Section 15.10
applicable to this Contract, neither party shall disclose directly or indirectly without the prior
written consent of the other party the terms of any transaction to a third party (other than the
employees, lenders, royalty owners, counsel, accountants and other agents of the party, or
prospective purchasers of all or substantially all of a party’s assets or of any rights under this
Contract, provided such persons shall have agreed to keep such terms confidential) except (i) in
order to comply with any applicable law, order, regulation, or exchange rule, (ii) to the extent
necessary for the enforcement of this Contract, (iii) to the extent necessary to implement any
transaction, (iv) to the extent necessary to comply with a regulatory agency’s reporting
requirements including but not limited to gas cost recovery proceedings; or (v) to the extent such
information is delivered to such third party for the sole purpose of calculating a published index.
Each party shall notify the other party of any proceeding of which it is aware which may result
in disclosure of the terms of any transaction (other than as permitted hereunder) and use
reasonable efforts to prevent or limit the disclosure. The existence of this Contract is not
subject to this confidentiality obligation. Subject to Section 13, the parties shall be entitled to
all remedies available at law or in equity to enforce, or seek relief in connection with this
confidentiality obligation. The terms of any transaction hereunder shall be kept confidential by
the parties hereto for one year from the expiration of the transaction.

In the event that disclosure is required by a governmental body or applicable law, the party
subject to such requirement may disclose the material terms of this Contract to the extent so
required, but shall promptly notify the other party, prior to disclosure,

	 	 	 	 	 

	Copyright © 2006 North American Energy Standards Board, Inc.

	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved

	 	Page 12 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

and shall cooperate (consistent with the disclosing party’s legal obligations) with the other
party’s efforts to obtain protective orders or similar restraints with respect to such disclosure
at the expense of the other party.

15.11. The parties may agree to dispute resolution procedures in Special Provisions attached to the
Base Contract or in a Transaction Confirmation executed in writing by both parties

15.12. Any original executed Base Contract, Transaction Confirmation or other related document may
be digitally copied, photocopied, or stored on computer tapes and disks (the “Imaged Agreement”).
The Imaged Agreement, if introduced as evidence on paper, the Transaction Confirmation, if
introduced as evidence in automated facsimile form, the recording, if introduced as evidence in its
original form, and all computer records of the foregoing, if introduced as evidence in printed
format, in any judicial, arbitration, mediation or administrative
proceedings will be admissible as
between the parties to the same extent and under the same conditions as other business records
originated and maintained in documentary form. Neither Party shall object to the admissibility of
the recording, the Transaction Confirmation, or the Imaged Agreement on the basis that such were
not originated or maintained in documentary form. However, nothing herein shall be construed as a
waiver of any other objection to the admissibility of such evidence.

DISCLAIMER: The purposes of this Contract are to facilitate trade, avoid misunderstandings and
make more definite the terms of contracts of purchase and sale of natural gas. Further, NAESB does
not mandate the  use of this Contract by any party. NAESB DISCLAIMS AND EXCLUDES, AND ANY USER OF
THIS CONTRACT ACKNOWLEDGES AND AGREES TO NAESB’S DISCLAIMER OF, ANY AND ALL WARRANTIES, CONDITIONS
OR REPRESENTATIONS, EXPRESS OR IMPLIED, ORAL OR WRITTEN, WITH RESPECT TO THIS CONTRACT OR ANY PART
THEREOF, INCLUDING ANY AND ALL IMPLIED WARRANTIES OR CONDITIONS OF TITLE, NON-INFRINGEMENT,
MERCHANTABILITY, OR FITNESS OR SUITABILITY FOR ANY PARTICULAR PURPOSE (WHETHER OR NOT NAESB KNOWS,
HAS REASON TO KNOW, HAS BEEN ADVISED, OR IS OTHERWISE IN FACT AWARE OF ANY SUCH PURPOSE), WHETHER
ALLEGED TO ARISE BY LAW, BY REASON OF CUSTOM OR USAGE IN THE TRADE,
OR BY

COURSE OF DEALING, EACH USER OF THIS CONTRACT ALSO AGREES THAT UNDER
NO CIRCUMSTANCES WILL NAESB BE LIABLE FOR ANY
DIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF ANY
USE OF THIS CONTRACT.

	 	 	 	 	 

	Copyright © 2006 North American Energy Standards Board, Inc.

	 	 	 	NAESB Standard 6.3.1
	All Rights Reserved

	 	Page 13 of 14
	 	September 5, 2006

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

TRANSACTION CONFIRMATION

FOR IMMEDIATE DELIVERY

EXHIBIT A

	 	 	 

	

	 	Date:
                                        ,                                    
     

Transaction Confirmation #:
                                        

This Transaction Confirmation is subject to the Base Contract between Seller and Buyer dated
                      . The
terms of this Transaction Confirmation are binding unless disputed in writing within 2
Business Days of receipt unless otherwise specified in the Base Contract.

	 	 	 

	SELLER:

	 	BUYER:
	 
	 	 
	 

	 	 
 
	 
	 	 
	 
 

	 	 
 
	Attn:
 

	 	Attn:
 

	 
	 	 
	Phone:  

	 	Phone:
 

	 
	 	 
	Fax:
 

	 	Fax:
 

	 
	 	 
	Base
Contract No.
 

	 	Base Contract No.
 

	 
	 	 
	Transporter:
 

	 	Transporter:
 

	 
	 	 
	Transporter
Contract Number:
 

	 	Transporter Contract Number:
 

Contract
Price: $             /MMBtu or                     

Delivery Period: Begin:
                                         ,
                    
   
End:
                    
,                    

	Performance Obligation and Contract Quantity: (Select One)

	 	 	 	 	 	 	 

	Firm
(Fixed Quantity):

	 	Firm (Variable Quantity):
	 	Firm (Formula-Based
Quantity):
	 	Interruptible:
	                    MMBtus/day

	 	                     MMBtus/dav Minimum
	 	(specify formula)
	 	Up to                      MMBtus/dav
	o  EFP

	 	                     MMBtus/dav Maximum
	 	 
 	 	 
	 

	 	subject to Section 4.2. at
	 	                    MMBtus/dav	 	 
	 

	 	election of
o  Buyer or o Seller	 	 	 	 

Delivery
Point(s):
                                         
                   

(If a pooling point is used, list a specific geographic and pipeline location):

Special Conditions:

	 	 	 	 	 	 	 

	Seller: 

	 	 	Buyer:	 	 
	 

	 	 

	 	 	 	 

	 
	 	 	 	 	 	 
	By:  

	 	By: 

	 
	 	 	 	 	 	 
	Title:
 

	 	Title:
 

	 
	 	 	 	 	 	 
	Date:
 

	 	Date:
 

 
	 	 	 	 	 

	

	 	 	 	 
	 

	 	Page 14 of 14
	 	 

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.exv10w13

Exhibit 10.13

GAS PROCESSING AGREEMENT

THIS GAS PROCESSING AGREEMENT (“Agreement”) is made and entered into July 14, 2010
(“Effective Date”), by and between AMERICAN MIDSTREAM (MISSISSIPPI), LLC, having an office at 1614
15TH Street, Suite 300, Denver, CO 80202 (“Processor”) and VENTURE OIL & GAS, INC., having an office
at 222 Milbranch Road, Hattiesburg, MS 39402 (“Producer”) (also hereinafter each referred to as
“Party” or collectively as “Parties”).

WITNESSETH:

WHEREAS, Producer desires to deliver to Processor all Gas from the Dedicated Properties
described in Exhibit A, attached hereto and by reference made a part hereof, that Producer owns or
controls and desires that Processor gather, compress, treat, process and condition the Gas; and

WHEREAS, Processor desires to gather, compress, treat and condition Producer’s Gas produced from
the Dedicated Properties.

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained
and expressed herein, Producer and Processor do hereby covenant and agree as follows:

ARTICLE I 
DEFINITIONS

	1.1	 	Acid Gas means the actual volume of
H2S
and C02 contained in Producer’s Gas.
	 
	1.2	 	AGA means the American Gas Association.
	 
	1.3	 	Applicable Laws means all valid and enforceable laws, statutes, ordinances, codes,
rules, regulations, orders, judgments, decrees, requirements, or procedures
enacted, adopted, promulgated, applied, or followed by any local, state, or federal
government agency now or hereafter having any administrative, executive, judicial,
legislative, regulatory, or taxing authority or jurisdiction of any nature,
	 
	1.4	 	Btu means one (1) British Thermal Unit and, where appropriate means the plural
thereof. One (1) Btu is defined as the amount of heat required to raise the temperature of one
(1) pound avoirdupois of pure water one degree Fahrenheit (1° F), from a starting point of
fifty-eight and five-tenths degrees Fahrenheit (58.5° F), under a base pressure of 15.025
psia.
	 
	1.5	 	Btu/Gallon liquid Ratio Factor means the number of Btu contained in one (1) gallon
of any component of the Liquefiable Hydrocarbons measured at sixty degrees Fahrenheit (60° F).
The numerical values of such ratio for each component will be the numerical value shown in
the Standard Table of Physical Constants of Paraffin Hydrocarbons and other components as
published in the GPA publication 2145-77, as amended from time to time. The numerical values
of each component are currently as follows:

	 	 	 

	Component
	 	BTU/Gallon          liquid
	Ethane
	 	65,998
	Propane
	 	91,065
	ISO-Butane
	 	99,022
	N-Butane
	 	102,989
	ISO-Pentane
	 	108,790
	N-Pentane
	 	110,102
	Hexane Plus
	 	116,598

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

1

 

	1.6	 	Cubic Foot or Standard Cubic Foot means the quantity of Gas that would
occupy one cubic foot of space when such Gas is at a base temperature of 60° F and a base
pressure of 15.025 psia.
	 
	1.7	 	Curtail or Curtailment will refer to periods of time when Processor is accepting less
volumes of Gas than Producer tenders for gathering at the Receipt Point for operational
reasons or as a result of Force Majeure.
	 
	1.8	 	Day means a period of twenty-four (24) consecutive hours beginning at 9:00 a.m. Central
Time.
	 
	1.9	 	Delivery Points means the points that interconnect with third party pipelines at the
tailgate of the Processor Plant.
	 
	1.10	 	Effective Date means the date of this Agreement.
	 
	1.11	 	Fees shall include all actual costs, expenses, assessments or any other fees incurred
by Processor in connection with marketing of a particular product and all taxes applicable
thereto for any and all services provided by Processor on behalf of Producer hereunder, as
well as any third party fees reasonably incurred by the affiliated third party in connection
with transporting, fractionating and marketing of such product.
	 
	1.12	 	Force Majeure means periods of inability of either Party to perform as set forth in
Article XXI of
this Agreement.
	 
	1.13	 	Gas means the natural gas covered by this Agreement, including all processable
substances contained in the natural gas in their natural state.
	 
	1.14	 	Gathering Fuel means the MMBtu of Gas used or consumed in the operation of the
Gathering System and appurtenant compression and/or dehydration facilities, and lost and
unaccounted for Gas that will be allocated to Producer’s Gas gathered hereunder.
	 
	1.15	 	Gathering System means an integrated set of facilities, including any facilities used
directly or indirectly for compression and/or dehydration, used for gathering Producer’s Gas
and other third party Gas from one or more receipt points to the Processor Plant.
	 
	1.16	 	Gross Heating Value means the total Btu content for a Standard Cubic Foot of Gas on a
dry basis as determined by calculation from a compositional analysis using physical properties
of gases at 15.025 psia and 60° F, as prescribed by the AGA.
	 
	1.17	 	Liquefiable Hydrocarbons means all hydrocarbons or any mixture thereof that Processor
may condense from or absorb from or separate out of the Gas that is delivered to and processed
at the Processor Plant.
	 
	1.18	 	Mcf means one thousand (1,000) Standard Cubic Feet of Gas.
	 
	1.19	 	MMBtu means one million (1,000,000) BTU and equates to one dekatherm.
	 
	1.20	 	Month means a calendar Month.
	 
	1.21	 	Persons means any natural persons, corporation, partnership, joint
venture, association, cooperative, or other entity.
	 
	1.22	 	Psia means pipeline pressure expressed in pounds per square inch absolute.
	 
	1.23	 	Project means a new eight inch (8”) gathering pipeline and appurtenant equipment and
facilities to be built from a location near the southern end of Producer’s Winchester Wells in
Township 7 North, Range 6 West, Wayne County, Mississippi to a to-be-constructed
interconnection with Processor’s Bazor Ridge Gathering System located in Township 8 North,
Range 6 West in Wayne County, Mississippi.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

2

 

	1.24	 	Processor Plant means Processor or its designee’s facilities utilized to
compress, treat condition and/or process the Gas gathered hereunder.
	 
	1.25	 	PPI means the index reported by the United States Department of Labor covering
intermediate materials, supplies, and components.
	 
	1.26	 	Receipt Points means each Well or wellhead (each a Receipt Point) at which Processor
will receive Gas for gathering hereunder, as identified on Exhibit A, as Processor and
Producer may agree from time to time to amend.
	 
	1.27	 	Residue Gas means the gas measured by Processor or its designee at the Delivery Point
remaining after” accounting for (a) the actual shrinkage due to the extraction of Liquefiable
Hydrocarbons; (b) fuel required for compression, operations, and incidental losses at the
Processor Plant; and (c) Acid Gas removal.
	 
	1.28	 	Standard Base Conditions means a temperature of 60° F and a pressure of 15.025 psia.
	 
	1.29	 	Thermally Equivalent means an equal number of Btu.
	 
	1.30	 	Treat or Treating means the treating and conditioning of Gas at the Processor Plant,
including the removal of Acid Gas.
	 
	1.31	 	Well means Producer’s working interest in the well or wells located on the Dedicated
Properties and any interest now or hereafter owned or controlled by Producer in such wells or
future wells during the term of this Agreement; provided the wells dedicated to this Agreement
do not include properties dedicated to any agreement in effect between Producer and a third
party as of June 1, 2007.
	 
	1.32	 	Year means a period of twelve (12) consecutive months.
	 
	1.33	 	Terms which are defined elsewhere in this Agreement:

	 	 	 

	Adjusted Gas Volume

	 	Section 6.1
	Capacity Rights

	 	Section 5.3
	Dedicated Properties

	 	Section 2.1
	Due Date

	 	Section 11.1
	EFM

	 	Section 16.5
	Event of Default

	 	Section 22.1
	Facilities

	 	Section 6.1
	Facility Fee

	 	Section 8.3
	Frac Fee

	 	Section 8.5
	GPM

	 	Section 6.1
	Gross Theoretical Btu Content

	 	Section 6.3
	Imaged Agreement

	 	Section 23.6
	Minimum Production

	 	Section 8.6
	Net Gallons of Liquefiable Hydrocarbons, by Component

	 	Section 6.2
	Net Gallons of Liquefiable Hydrocarbons, by Component Percentage

	 	Section 6.2
	Net Residue Gas Percentage

	 	Section 6.3

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

3

 

	 	 	 

	Net Theoretical Btu of Residue Gas

	 	Section 6.3
	Periodic Test

	 	Section 15.5
	Plant

	 	Section 20.1
	Primary Term

	 	Section 3.1
	Processing Tax

	 	Section 12.1
	Renewal Term

	 	Section 3.1
	Statement Date

	 	Section 11.1
	Taxes

	 	Section 12.1
	Temporary Release

	 	Section 4.2
	Treating Fee

	 	Section 8.1
	Uneconomic

	 	Section 20.1
	Winchester Gathering Line

	 	Section 20.2

ARTICLE II

COMMITMENT

	2.1	 	Subject to the provisions of this Agreement, Producer commits and dedicates to the
performance of this Agreement and agrees to deliver to Processor at the Receipt Points all Gas
produced during the term of this Agreement from the interest owned or controlled by Producer
as of the Effective Date in the Wells or any future wells, units and leases included in the
Dedicated Properties described on Exhibit A and shown on Exhibit A-1, that is not dedicated to
any other agreement in effect between Producer and a third party as of June 1, 2007 (herein
referred to as the “Dedicated Properties”).
	 
	2.2	 	Subject to the terms of this Agreement, Producer hereby assigns exclusively to Processor all
rights and obligations to gather, treat, process, condition and purchase all of the Gas
produced from the Dedicated Properties.
	 
	2.3	 	The Gas to be delivered to Processor will not be processed through any type of equipment for
Liquefiable Hydrocarbons recovery by Producer or by any other party prior to delivery to
Processor other than through a conventional mechanical oil-gas separator operating at ambient
temperature and of the type generally acceptable in the gas industry.
	 
	2.4	 	Subject to Section 2.3, Producer hereby expressly reserves unto itself, and to its successor
and assigns the following rights and privileges enumerated below:

	 	(a)	 	the right to use Gas as Producer may, in its sole determination, need or require
for fuel or drilling on its leases;
	 
	 	(b)	 	the right to drill new wells, to repair or rework old wells, to renew or extend
wholly or in part any lease covered by this Agreement, and to abandon any well or
surrender, release or terminate any lease not deemed by Producer to be capable of
producing Gas in commercial quantities;
	 
	 	(c)	 	the right to utilize Gas produced for injection or recycling to increase recovery
of condensate and prevent waste;
	 
	 	(d)	 	the right to retain oil and condensate separated from Producer’s Gas prior to the
Receipt Points; and

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

4

 

	 	(e)	 	the right to pool or unitize all or any portion of the Well with other lands and
leases in which event this Agreement will cover Producer’s interest in the pool or unit
attributable to the Well.

	2.5	 	Producer agrees to deliver Gas to Processor under the applicable rules, regulations, and
orders of regulatory bodies having jurisdiction over the services contemplated by this
Agreement.

ARTICLE III

TERM

	3.1	 	Term. The term of this Agreement is five (5) years (“Primary Term”) from the
first Day of the Month following the Effective Date and continuing thereafter for successive
three (3) year renewal terms (each a “Renewal Term”) at either Party’s election. Either Party
shall exercise its option to extend the term of this Agreement by giving at least thirty (30)
days written notice to the other Party prior to the end of the Primary Term or any Renewal
Term, as applicable; however, Producer will be released from the Agreement and the Agreement
deemed terminated by Producer providing sixty (60) days prior written notice to Processor
requesting termination of the Agreement if reserves attributable to the Dedicated Properties
are not capable of producing in commercial quantities prior to the end of the Primary Term or
Renewal Term, as applicable.

ARTICLE IV

QUANTITY

	4.1	 	Uniform Rate of Flow. The Parties hereto recognize the desirability of
maintaining a uniform rate of flow of Gas to the Gathering System, and Producer agrees to
regulate its producing schedule so that Gas will be delivered to the Gathering System from the
Wells at as uniform a rate of flow as is practicable.
	 
	4.2	 	Curtailment. If Gas from a Well is Curtailed by Processor, then Processor will take
all Gas at the Curtailed Well on a prorated basis with all other Gas from other affected
receipt points. In the event Processor has Curtailed Producer’s Gas for thirty (30)
consecutive days, Producer will have the right to temporarily commit and sell to another party
the Gas from those Wells that Processor has Curtailed (“Temporary Release”). To the extent
that Processor has capacity to do so without impacting its obligation to take all other Gas
from other affected receipt points on a prorated basis, during such Temporary Release Producer
will have the right to use the Winchester Gathering System for delivery of Curtailed Gas to
another party, subject to Producer paying actual expenses associated therewith. Such
Temporary Release will expire if, and when, on the first Day of the Month after which
Processor has provided notice to Producer that Processor has remedied the Curtailment of
Producer’s Gas. Provided, however, that in the event that Processor has curtailed Gas from
any Wells for a period exceeding ninety (90) consecutive Days, Producer shall have the
unilateral right to terminate this Agreement upon prior written notice to Processor, after
which termination Producer shall have no further liability or responsibility whatsoever under
this Agreement.

ARTICLE V

FACILITIES

	5.1	 	Production Facilities. At Producer’s sole risk, cost, and expense Producer
shall own, operate, maintain, repair, and, if necessary, replace the pipeline and facilities
necessary to deliver Producer’s Gas to Processor at the Receipt Point. Producer will be
responsible for and will discharge and pay any and all assessments and Taxes applicable
thereto.
	 
	5.2	 	Metering Facilities. Processor will install, own, operate, and maintain metering
facilities to measure gas at the Receipt Points. The metering facilities and the Receipt
Points applicable to Gas from each Well will be at or near the current Receipt Point.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

5

 

	5.3	 	Producer’s Capacity Right. Upon completion of the Project and subject to
Applicable Laws, Processor will make available up to 11,000 Mcf per day of capacity in the
Project and gathering system, including without limitation, the Winchester Gathering Line
(“Capacity Right”). Processor may, but shall not be obligated to, provide capacity in excess
of 11,000 Mcf per Day to Producer. If and to the extent that, at any time and from time to
time, Producer is not utilizing all of its Capacity Right in the Project, Processor shall
have the right to utilize such unused Capacity Right to provide gathering service for third
parties; provided that, upon seven (7) Days prior notice by Producer to Processor, Processor
shall make such unused capacity, up to the Capacity Right, available to Producer.

ARTICLE VI

ALLOCATION OF PRODUCTS

	6.1	 	Adjusted Gas Volume. Gas volumes measured at each Receipt Point utilizing
compression or dehydration facilities (“Facilities”) will be reduced by such Receipt Point’s
pro-rata share of the total Fuel consumed in operating said Facilities by multiplying the
total volume of Gas measured at the discharge of such Facilities by a fraction, the numerator
of which is the Gas volume measured at the particular Receipt Point and the denominator of
which is the Gas volume measured at all points of receipt utilizing such Facilities. The
product so determined will be deemed to be the “Adjusted Gas Volume” attributable to
such Receipt Point.
	 
	6.2	 	Allocation of Liquefiable Hydrocarbons. The allocation of gallons of Liquefiable
Hydrocarbons attributable to each Receipt Point, and of proceeds attributable thereto, will be
determined as follows.

	 	(f)	 	A particular Receipt Point’s Adjusted Gas Volume will be multiplied by its
Liquefiable Hydrocarbons, by component, as reflected by the analysis conducted under
Section 15.5, expressed in gallons per thousand cubic feet (“GPM”), in order to arrive at
the total theoretical gallons of Liquefiable Hydrocarbons, by component, contained at
such Receipt Point.
	 
	 	(g)	 	The total gallons actually saved and sold of Liquefiable Hydrocarbons, by
component, attributable to all Gas gathered in the Gathering System and delivered to the
Processor Plant will be multiplied by a fraction, the numerator of which is the
theoretical gallons of Liquefiable Hydrocarbons, by component, attributable to a
particular Receipt Point and the denominator of which is the total theoretical gallons of
Liquefiable Hydrocarbons, by component, attributable to all points of receipt on the
Gathering System. The resultant gallons represented by said product will be deemed
attributable to the Adjusted Gas Volume measured at a particular Receipt Point (“Net
Gallons of Liquefiable Hydrocarbons, by Component”). The Net Gallons of Liquefiable
Hydrocarbons, by Component attributable to a particular Receipt Point will then be
multiplied by the applicable percentage based on the tiered schedule below to determine
the “Net Gallons of Liquefiable Hydrocarbons, by Component Percentage”:

	 	 	 	 
	Average MMBtu/Day  
	 	 	Percentage
	<500

	 	 	[*]
	501 to 1,000

	 	 	[*]
	1,001 to 1,500

	 	 	[*]
	1,501 to 2,000

	 	 	[*]
	2,001 to 2,500

	 	 	[*]
	>2,500

	 	 	[*]

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

6

 

	6.3	 	Allocation of Residue Gas. The allocation of Residue Gas attributable to
each Receipt Point and of proceeds attributable thereto will be determined as follows:
	 
	6.4	 	(a) Net Theoretical Btu of Residue Gas. A particular Receipt Point’s Adjusted Gas
Volume will be multiplied by its Btu content to arrive at the “Gross Theoretical Btu
Content” attributable to such Receipt Point. The Gross Theoretical Btu Content
attributable to such Receipt Point will then be reduced by deducting therefrom the total Btu
contained in the Liquefiable Hydrocarbons allocated to such Receipt Point pursuant to Section
6.2 above. The number of Btu to be so deducted from the Adjusted Gas Volume for such Receipt
Point will be determined by converting the gallons of Liquefiable Hydrocarbons so allocated to
such Receipt Point to their respective equivalents in Btu by multiplying the individual
component gallons allocated to such Receipt Point by the Btu/Gallon Liquid Ratio Factor as set
forth in Section 1.5 hereof. The resultant difference in Btu will be considered the “Net
Theoretical Btu of Residue Gas” attributable to such Receipt Point.
	 
	6.5	 	(b) Net Residue Gas. The total Btu of Residue Gas actually saved and sold
attributable to all the Gas gathered in the Gathering System and delivered to the Processor
Plant (actual Btu) will be multiplied by a fraction, the numerator of which is the Net
Theoretical Btu of Residue Gas attributable to a particular Receipt Point derived from
calculations pursuant to paragraph 6.3(a) immediately above, and the denominator of which is
the total Net Theoretical Btu of Residue Gas attributable to all points of receipt for which
such calculations were made. The resultant Btu shall be the Net Residue Gas. The Net Residue
Gas shall be multiplied by the applicable percentage below to determine the “Net Residue
Gas Percentage”:

	 	 	 

	Average MMBtu/Day
	 	Percentage
	<500
	 	[*]
	501 to 1,000
	 	[*]
	1,001 to 1,500
	 	[*]
	1,501 to 2,000
	 	[*]
	2,001 to 2,500
	 	[*]
	>2,500
	 	[*]

ARTICLE VII

PRICE

	7.1	 	Sale of Gas and Hydrocarbons. As full and complete consideration for the Gas and
all its components delivered to Processor by Producer each Month, the Net Residue Gas
Percentage and Net Gallons of Liquefiable Hydrocarbons, by Component Percentage will be sold
at such time and place and pursuant to such terms and conditions as Processor elects, acting
in good faith as a prudent operator. The price Producer receives for such proceeds will be
the same price Processor has sold the same for, and if there is a material change in the price
associated with this Section 7.1 that is in effect on the Effective Date, Processor will
notify Producer of such change. Processor will market Producer’s Gas based on applicable
published indices reflecting a given Month’s price and will not lock Producer’s Gas into a
fixed price for longer than one (1) Month unless Producer agrees with Processor in writing.
	 
	7.2	 	Net Residue Gas Percentage Price. The price per MMBtu Processor will pay to Producer
for the Net Residue Gas Percentage as determined under Section 6.3 will be the price received
for the Net Residue Gas Percentage less any Fees.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

7

 

	7.3	 	Net Gallons of Liquefiable Hydrocarbons, by Component Percentage Price. The
price for the Net Gallons of Liquefiable Hydrocarbons, by Component Percentage to be paid by
Processor to Producer attributable to Producer’s Gas will be the gallons attributable to
each Receipt Point as calculated under Section 6.2 times the price received for the
Liquefiable Hydrocarbons, by component, saved and sold hereunder, less any Fees.

ARTICLE VIII

FEES

	8.1	 	Treating Fee. The Treating Fee will be an amount per Mcf of Gas delivered
hereunder at each Receipt Point equal to the result of the following formula:

	 	 	 	[*](A-B) = the Treating Fee, where

	 	 	A = The molecular percentage of Acid Gas contained in Producer’s Gas delivered hereunder
(rounded to the nearest percent, “0.5” will be rounded up.)
	 
	 	 	B = Three (3) molecular percent; however, if Producer’s Gas delivered hereunder contains
less than three (3) molecular percent of Acid Gas (after being rounded as described
above), then Producer will not be charged a Treating Fee.
	 
	 	 	An example of the calculation of the above Treating Fee, for illustration purposes only,
follows:
	 
	                                                       
	 	 	Assume the molecular percent of Acid Gas contained in Producer’s Gas is 8.4%. The Treating
Fee applicable to such Gas is calculated by deducting 3% from the percent of Acid Gas in
Producer’s Gas, with 0.5% or greater being rounded up, and less than 0.5% being rounded
down. Therefore, the Treating Fee applicable to Producer’s Gas would be [*] * (8 - 3)
= $[*]/Mcf.
	                                                        
	 
	8.2	 	The Treating Fee as described above will be adjusted annually beginning on January 1, 2012,
pursuant to changes reflected in the PPI as it existed on January 1, 2010 as the basis for
such adjustment; provided, however, any price and/or Fee provided for herein that is to be
adjusted pursuant to adjustments reflected by the PPI will not decrease below the immediately
preceding stated price then in effect. In the event that the PPI is discontinued or modified,
another index most similar to the PPI will thereafter be used in lieu thereof.
	 
	                                                       
	8.3	 	Facility Fee. In consideration of Processor constructing the Project and beginning on
the Day that Processor notifies Producer that Processor is able to gather Producer’s Gas
through the Project, Processor will charge Producer an additional [*] per
Mcf of Gas delivered hereunder at each Receipt Point (“Facility Fee”) until, as more fully
described in Exhibit C hereto, the total amount of the Facility Fee payments made by Producer
equal fifty percent (50%) of the total cost of the Project.
	                                                        
	 
	8.4	 	Compression. Where any field compression facility through which Gas attributable to
Producer’s flow is being powered by electrical power or other fuel (not including Producer’s
Gas delivered to Processor at the Receipt Point), Processor will charge Producer with
Producer’s share of the power or fuel costs necessary to operate such compression facility.
Such cost will be allocated to the Gas of a particular Receipt Point flowing through such
compression facility by multiplying the total power or fuel cost of such field compression
facility for a Month by a fraction, the numerator of which is the Adjusted Gas Volume measured
at a particular Receipt Point and the denominator of which is the total Adjusted Gas Volumes
attributable to the Gas of all points of receipt flowing through such compression facility
during such Month. The product thereby determined will be deemed to be the share of the
costs attributable to the Gas of a particular Receipt Point and will be deducted from the
proceeds due Producer hereunder.
	 
	8.5	 	Fractionation Fee. In the event Processor elects to install its own fractionator and
charge Producer a fee (“Frac Fee”), such Frac Fee will not exceed the then existing Fee
incurred by Processor from

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

8

 

	 	 	a third party. If there is a material change in the Fee that is in effect on the
Effective Date, Processor will notify Producer of such change.
	 
	8.6	 	Maintenance of Facilities. Processor agrees to maintain its facilities for any
Receipt Point for so long as the actual deliveries of Gas measured from such Receipt Point are
at least one hundred MMBtu per day (100 MMBtud) (“Minimum Production”) averaged over any
Month. If the actual deliveries measured for such Receipt Point should total less than the
Minimum Production in any Month, if requested by Producer, Processor may, in its sole
discretion, maintain its facilities and Producer will pay Processor, as an additional fee,
three hundred dollars ($300.00) for each Month to maintain such Receipt Point.

ARTICLE IX

PAYMENTS AND NOTICES

	9.1	 	Addresses and Notices. Either Party may give notices to the other Party by first
class mail postage prepaid, by overnight delivery service, or by facsimile with receipt
confirmed at the addresses stated on Exhibit B or other addresses furnished by a Party by
written notice.
	 
	9.2	 	Facsimile. Facsimile copies of all notices and correspondence hereunder, including
signatures thereon, will constitute original copies thereof and will be as binding on the
Parties hereto as the original. The sending Party will, within five (5) working days of the
date of any facsimile transmission, send to the receiving Party an original of any notice or
correspondence transmitted by facsimile.

ARTICLE X

QUALITY

	10.1	 	Gas delivered hereunder at the Receipt Points will meet the following quality
specifications:

	 	(h)	 	be commercially free of grease, dust, gum, gum-forming constituents, and other
foreign substances, and other solid and/or liquid matter that can be removed with
dehydrators and ordinary field separators;
	 
	 	(i)	 	contain not more than two percent (2%) by volume of carbon dioxide;
	 
	 	(j)	 	contain not more than three percent (3%) by volume of nitrogen;
	 
	 	(k)	 	contain not more than ten parts per million (10 ppm) by volume of oxygen;
	 
	 	(l)	 	contain not more than five percent (5%) by volume total non-hydrocarbon gases;
	 
	 	(m)	 	contain a gross heating value of not less than one thousand (1,000) Btu per
cubic foot of Gas on a saturated basis;
	 
	 	(n)	 	have a temperature of not more than one hundred twenty degrees Fahrenheit (120° F);
and
	 
	 	(o)	 	contain not more than seven (7) pounds of water vapor per one thousand (1,000)
Mcf.

	10.2	 	In the event the Gas delivered hereunder should fail to meet any of the quality
specifications stated in Section 10.1, Processor may, in addition to any other remedy
available at law or in equity, have the right to refuse to accept such Gas for so long as
Producer is unable to deliver Gas conforming to such quality specifications.

ARTICLE XI

STATEMENTS AND PAYMENT

	11.1	 	Statements and Payments. On or before the twenty-fifth (25th) day (“Statement
Day”) of each Month, Processor will provide to Producer a statement showing the amount due
Producer in accordance with the terms hereof. Processor will make payment to Producer within
fifteen (15)

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

9

 

	 	 	days from the Statement Day (“Due Date”) by check or wire transfer to the address
stated in Exhibit B of this Agreement.
	 
	11.2	 	Failure to Pay Amounts Due. If Processor fails to remit the full amount payable by
Processor when due, interest on the unpaid portion will accrue from the Due Date until paid at
a rate equal to the lower of (i) the then-effective Prime Rate of interest published under
“Money Rates” by The Wall Street Journal plus two percent (2%) from the Due Date until the
date of payment; or (ii) the maximum applicable lawful interest rate. If any undisputed amount
remains unpaid for sixty (60) or more days after the Due Date, Producer will have the right,
in addition to all of its other remedies at law or in equity, to suspend or discontinue Gas
deliveries to Processor hereunder until such amount is paid in full with interest. Producer
may notify Processor, in writing, after such sixty (60) day period, and Processor will have
ninety (90) days from the date of notice to remedy such nonpayment. If any undisputed amount
remains unpaid for ninety (90) or more days after Producer notifies Processor in writing of
such nonpayment, Producer, in addition to all its other remedies at law or in equity, shall
have the right to terminate this Agreement upon written notice to Processor.
	 
	11.3	 	Examination of Records. Each Party shall have the right, at its own expense, upon
reasonable notice and at reasonable times, to examine the books and records of the other Party
only to the extent reasonably necessary to verify the accuracy of any statement, charge,
payment, or computation made under this Agreement. This examination right shall not be
available with respect to proprietary information not directly relevant to transactions under
this Agreement. Regardless of any mistake by the Parties or any subsequent change in
Applicable Law, any claim by either Party of error as to any statement will be waived unless
written notice of the claim is given to the other Party within two (2) years and one (1) day
following the Statement Day for that statement. All retroactive adjustments will be paid in
full by the Party owing payment within thirty (30) days of notice and substantiation of such
inaccuracy.
	 
	11.4	 	Financial Responsibility. If reasonable grounds for insecurity arise as to the
creditworthiness or financial responsibility of either Party at any time during which this
Agreement is in effect, the other Party may require reasonable security before service is
provided or Gas sales are made. In the event either Party (i) makes an assignment or any
general arrangement for the benefit of creditors; (ii) materially default in the payment
(other than amounts in good faith dispute) or performance of any obligation to the other Party
under this Agreement; (iii) files a petition or otherwise commences, authorizes, or acquiesces
in the commencement of a proceeding or cause under any bankruptcy or similar law for the
protection of creditors or have such petition filed or proceeding commenced against it; (iv)
fails to give adequate security for or assurance of its ability to perform its further
obligations this Agreement within forty-eight (48) business hours of a reasonable request by
the other Party, then the other Party shall have the right to suspend or withhold services or
sales of Gas upon twenty-four (24) hours notice, in addition to all other remedies available
hereunder or pursuant to law.
	 
	11.5	 	Monthly Reports. Processor will furnish to Producer monthly reports substantially in
the form and providing the information as set forth in Exhibit D.

ARTICLE XII

TAXES

	12.1	 	Producer will bear and pay all severance, production and other taxes, fees, levies,
penalties, licenses or charges imposed by any government authority (“Taxes”) on or with
respect to the Gas and the handling thereof prior to delivery to Processor at the Receipt
Points. It is understood and agreed that any tax in the nature of a processing tax, or any
tax (collectively defined as “Processing Tax”) on Producer’s Gas and Liquefiable
Hydrocarbons resulting from the gathering, sale or processing of Producer’s Gas or the sale
of Liquefiable Hydrocarbons extracted therefrom, and any

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

10

 

	 	 	Processing Tax now or hereafter levied, assessed or collected on Liquefiable Hydrocarbons
extracted, saved and sold from the Gas, will be borne by Producer. If a Party is required to
remit or pay Taxes or Processing Tax that are the other Party’s responsibility hereunder, the
Party responsible for such Taxes or Processing Tax will promptly reimburse the other Party
for such Taxes or Processing Tax. A Party entitled to an exemption from any such Taxes,
Processing Tax or charges will furnish necessary documentation thereof to the other Party,
and indemnify, release and hold such other Party harmless from such Tax or Processing Tax.
	 
	12.2	 	Greenhouse Gasses. With regard to Producer’s Gas, in the event that Processor incurs
any costs or expenses including the assessment of any Taxes as the result of any Applicable
Law to pay for, trade for, or otherwise minimize or mitigate greenhouse gasses (including, but
not limited to CO2 and methane, but excluding H2S) attributable to or as
a result of any activity of or by Processor hereunder, including, but not limited to the sale
or other disposition of the Producer’s Gas, Producer shall reimburse Processor for the cost
thereof.

ARTICLE XIII

EASEMENT/RIGHTS-OF-WAY

	13.1	 	Rights-of-Way. To the maximum extent that it may lawfully do so, Producer hereby
assigns and grants or subsequently assigns and grants to Processor an easement and
right-of-way upon all lands covered by the Wells and the leases upon which the Wells are
located, for the purpose of installing, using, maintaining, servicing, inspecting, repairing,
operating, replacing, disconnecting and removing Processor’s Pipeline, meters and other
equipment used or useful in the performance of this Agreement. Any property of Processor
placed in or upon the leases on which the Wells are located will remain the personal property
of Processor and may be disconnected and removed by Processor. Producer will, at its expense,
maintain and provide all such easements, rights-of-way, lease roads and other access
facilities upon the leases as may reasonably be deemed necessary by Processor for its
performance of this Agreement. Processor will fully protect, indemnify, defend and hold
harmless Producer from any and all claims, losses, damages, suits, causes of action
liabilities, including, without limitation, liability for environmental damage to the leases,
and related court costs and attorney’s fees arising out of or incident to Processor’s
operations on and use of the easement and right-of-way hereunder granted. Unless Producer
otherwise requests in writing, Processor will remove Processor’s Pipeline, meters and other
equipment used or useful in the performance of this Agreement from the leases on which the
Wells are located within one (1) year following termination of this Agreement, and Processor
will restore said leases to as close to or as near to its original condition as reasonably
practicable at Processor’s sole cost.

ARTICLE XIV

INDEMNITY

	14.1	 	Title: Possession and Responsibility. Title, possession, control, and risk of loss
of all Gas and all constituent components contained therein delivered by Producer to
Processor will remain with Producer prior to the Receipt Points. After receipt by Processor
at the Receipt Points, possession, control, and risk of loss of all Gas and all constituent
components contained therein will pass to Processor at the Receipt Point. The Party having
possession and control of the Gas at any time, regardless of title, will be responsible for
any related damage or injury caused by the Gas while in its possession and control, except
for any damage or injury caused by the other Party’s negligence or intentional wrongdoing.
Each Party hereto will fully protect, indemnify, defend, and hold harmless the other Party
from any and all claims, losses, damages, demands, suits, causes of action and liabilities,
including environmental liability, (including, without limitation, court costs and attorneys’
fees) arising while the Gas is in its possession and control, except to the extent such
claims, losses, damages, demands, suits, causes of action and liabilities arise or are caused
by the other Party’s negligence or fault, whether imposed by statute, rule or regulation.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

11

 

ARTICLE XV

MEASUREMENT AND TESTING

	15.1	 	Heating Value. For all purposes under this Agreement (including without limitation
pricing and payment) the heating value of and the number of Btu contained in the Gas delivered
hereunder will be measured in terms of, the gross number of Btu’s that would be contained in
the volume of such Gas (measured in accordance with this Article) when saturated with water
vapor and at Standard Base Conditions. The Btu contained in hydrogen sulfide or other
non-hydrocarbon components will be excluded in any calculation of the number of Btu’s
contained in Gas under this Agreement.
	 
	15.2	 	Standard Unit of Volume. For all purposes under this Agreement, volume will be
measured in terms of, cubic feet of Gas at Standard Base Conditions. The temperature
recorded during each day, the factor as determined in the latest test for specific gravity,
and the correction for deviations from Boyle’s Law as determined in the latest test will be
used to make proper computations of volume under this Agreement.
	 
	 	 	Measuring and Testing Equipment and Procedures. Processor will, at its expense,
perform, or cause to be performed, all measurement and testing of Gas under this Agreement,
including measurement at each Receipt Point:

	 	(p)	 	of volumes by continuous use of an orifice meter and computations made in
accordance with the latest version accepted by Processor of the Gas Measurement
Committee Report No. 3 of the AGA;
	 
	 	(q)	 	of Gas heating value by periodic testing of Gas samples by calorimeter,
chromatography or other means commonly used in the gas industry;
	 
	 	(r)	 	of specific gravity to the nearest one thousandth (1/1000) by periodic testing
of Gas;
	 
	 	(s)	 	of temperature by continuous use of a recording thermometer;
	 
	 	(t)	 	of deviations from Boyle’s Law;
	 
	 	(u)	 	of carbon dioxide, hydrogen sulfide and water content of the Gas by periodic
tests using apparatus and methods approved by the AGA, the Gas Processing Association
and the American Petroleum Institute or agreed upon by the Parties. Measuring and
testing equipment of standard manufacture will be provided, maintained and periodically
tested by reasonable means and methods at Processor’s expense; and
	 
	 	(v)	 	for the effect of supercompressibility.

	15.4	 	For all measurement and tests, the average atmospheric (barometric) pressure will be assumed
to be the Assumed Atmospheric Pressure for Measurement and Tests. All charts used, if any,
will be integrated within the accuracy prescribed by the manufacturer of the equipment
producing the chart.
	 
	15.5	 	Periodic Sampling and Analysis. Processor will obtain at least once every six (6)
months a sample and analysis of the Gas at each Receipt Point on the Gathering System
(“Periodic Test”). Processor will make available a copy of such analysis to Producer. The
results of each Periodic Test will, subject to the provisions of Section 15.3, be effective
and used for all purposes under this Agreement no later than the first day of the Month
following the Month in which the Periodic Test is conducted until the next similar Periodic
Test is conducted. Producer shall have the right to observe all Periodic Tests, and
Processor will give Producer at least three (3) days advance notice of the time and nature of
each Periodic Test. If, after such notice, Producer fails to have a representative present,
the Periodic Test will proceed and its results are used until the next similar test. If
Producer requests the sample and analysis to be taken more frequently than once every six (6)
months, Processor will comply with Producer’s request, provided, however, that Producer will

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

12

 

	 	 	reimburse Processor for all cost and expense of the more frequent sample and analysis at each
Receipt Point.
	 
	15.6	 	EFM Installation. Processor may install and operate electronic flow measurement
(“EFM”) rather than use a mechanical chart and integration. The EFM will be of standard
manufacture and programmed with the applicable factors and will be used in determining the
volume of Gas delivered through the orifice meter on a real time basis. Calibration
equipment and procedures used will be in accordance with the then current API Chapter 21
“Measurement Standards for Electronic Metering.”
	 
	15.7	 	Check Measurement. Producer may install and operate check-measuring equipment that
does not interfere with Processor’s measurement and testing. Processor and Producer shall
each have the right to inspect the equipment of the other, and the charts and other
measurement and testing data of the other, at all times during business hours; but the
reading, calibration and adjustment of any equipment and changing of charts shall be done only
by the Party owning the equipment. Each Party will preserve all original test data, charts,
and other similar records for a period of at least two (2) years.
	 
	15.8	 	Correction of Inaccuracies. If at any time any measuring or testing equipment is
found to be malfunctioning, it will be adjusted at once to read accurately, within the limits
prescribed by the manufacturer. If such malfunction is reasonably estimated to have
resulted in inaccuracy exceeding two percent (2%) in the measurement of Gas at a Receipt Point
during the period since the last preceding test, the Parties will (i) estimate the quantity of
Gas actually delivered at such Receipt Point during that period using the data recorded by
check-measuring equipment, if installed and accurately registering during the period; or (ii)
if such check-measurement data is not available, by correcting the original measurement error
by the percentage error found in the measuring and testing equipment; or (iii) if such
check-measuring data is unavailable and correction for percentage error is not feasible, by
estimating deliveries based upon deliveries under similar conditions during a period when the
measuring and testing equipment was functioning properly. If the period of actual equipment
malfunction is not definitely known or agreed upon by the Parties, it will be deemed to be the
lesser of (a) forty-five (45) days or (b) one half of the elapsed time since the last
preceding test. Such estimate will then be deemed the quantity of Gas actually delivered for
all purposes under this Agreement.
	 
	15.9	 	No corrections will be made for measurement or testing inaccuracies of two percent (2%) or
less.

ARTICLE XVI

WARRANTY AND REPRESENTATIONS

	16.1	 	Title. Producer hereby warrants title to or right to deliver and sell the Gas
delivered hereunder, that Producer has good and lawful right to sell the same, and that
Producer will transfer to Processor good title to all Gas sold and delivered by Producer to
Processor hereunder free and clear of any and all liens, encumbrances, charges, and claims of
every kind including without limitation claims by lessors for royalties or other monies owed
under an oil and gas lease. Producer agrees to protect, indemnify, defend, and hold harmless
Processor from any and all claims, losses, damages, suits, causes of action, and liabilities
(including court costs and attorney’s fees) arising from or out of adverse claims of any and
all Persons to said Gas or to payments therefore or to royalties, overriding royalties,
taxes, license fees, or other charges applicable. If Processor has or receives notice that
Producer’s title to the Gas hereunder is in dispute, then, upon notifying Producer of such,
Processor reserves the right to suspend payment or acceptance of such Gas until such time
that the Parties have resolved the dispute of title or until such time that Producer has
provided Processor with a surety reasonably acceptable to Processor protecting Producer from
such title dispute.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

13

 

	16.2	 	Parties. Each Party represents and warrants to each other that on and as of the
Effective Date:

	 	(w)	 	It is duly formed and validly existing and in good standing under the laws of
its state of formation, with power and authority to carry on the business in which it
is engaged and to perform its respective obligations under this Agreement; and
	 
	 	(x)	 	This Agreement is valid, binding and enforceable against it in accordance with
its terms, except as affected by bankruptcy, moratorium, insolvency and other laws
generally affecting creditor’s rights and general principles of equity (whether applied
in a proceeding in a court of law or equity).

ARTICLE XVII

NO INTERSTATE REGULATION

	17.1	 	Producer represents that Processor’s receipt of Gas under this Agreement will not subject
Processor, its facilities, or the Gas to regulation by the Federal Energy Regulatory
Commission (or its successor) of Processor’s rates, charges, or terms of service under the
Natural Gas Act, as amended, the Natural Gas Policy Act, as amended, or any other similar
federal legislation.

ARTICLE XVIII

ACCURATE INFORMATION

	18.1	 	To the best of either Party’s knowledge, none of the information provided to the other Party
in connection with this Agreement contains any untrue statement of a material fact or omits
any material fact necessary to make such information not misleading.

ARTICLE XIX

ASSIGNMENT

	19.1	 	Assignment. This Agreement will be binding upon the permitted successors and
assignors of the Parties hereto. Neither Party will assign this Agreement in whole or in part
without the written consent of the other Party, which consent will not be unreasonably
withheld; provided, however, that either Party may assign its interest hereunder to any
affiliate without the prior written consent of the other Party, but no such assignment to any
affiliate will relieve the assigning Party of any of its obligations or liabilities, whether
accrued, or unaccred, hereunder. Any transfer or assignment in violation of this Article XIX
will be void.

ARTICLE XX

UNECONOMIC

	20.1	 	Processor may cease processing and terminate this Agreement and thereby be discharged of any
and all liability hereunder, less and except the payment of monies theretofore accrued and not
yet paid to Producer, upon sixty (60) days written notice to Producer after, in Processor’s
sole reasonable opinion, processing of Producer’s Gas and other third party Gas at the
Processor Plant becomes uneconomic, or if any other cause beyond Processor’s control will
render the operation of the Processor Plant uneconomic, in Processor’s sole opinion, for a
period of not less six (6) consecutive Months. As used herein, the term “uneconomic” shall
mean that Processor Plant operating expenses exceed Processor Plant processing revenues and
that projected expenses over the next ensuing six (6) Months are reasonably expected to exceed
projected revenues. Processor shall provide written documentation of the respective six (6)
Months’ actual and projected revenue shortfall at the time it provides the aforementioned
sixty (60) day written notice to Producer.
	 
	20.2	 	In the event that Processor has shut down the Processor Plant and (i) the Processor Plant
remains shut down for six (6) consecutive Months and (ii) the reserves are not depleted from
the Dedicated Properties, at no cost, Processor shall, if requested by Producer, transfer its
title to Producer for the four inch (4”) pipeline lateral shown on Exhibit E and all easements
associated therewith in the North and South Winchester Field areas constructed pursuant to
that certain Gas Processing

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

14

 

	 	 	Agreement by and between Enbridge Processing (Mississippi) L.L.C. and Petrohawk Energy Corp.,
as amended (“Winchester Gathering Line”); provided that, from the time that Processor shuts
down the Processor Plant and the time when Processor transfers its title to the Winchester
Gathering Line, Producer will have the right to utilize the Winchester Gathering Line;
provided that Producer shall only be charged Processor’s actual expenses associated with the
Winchester Gathering Line during this interim period. Producer may request and Processor
agrees to use good faith efforts to provide gathering service on Processor’s other gathering
lines provided that the Parties mutually agree upon gathering terms and fees for such
service.

ARTICLE XXI

FORCE MAJEURE

	21.1	 	Except for obligations to make payments hereunder, neither Party hereto will be liable, for
any failure to perform its obligations under this Agreement when such failure results from any
of the following (“Force Majeure”): acts of God; strikes, lockouts or industrial disputes or
disturbances; civil disturbances; arrests and restraint from rulers of people; interruptions
by government or court orders; present and future orders of any governmental authority having
jurisdiction; acts of the public enemy; wars; riots; blockades; insurrection^; inability to
secure labor or inability to secure materials, including inability to secure materials by
reason of allocations promulgated by governmental authorities; epidemics; landslides;
lightning; earthquakes; fire; storm; floods; washouts; explosions; actual or potential
environmental hazards; breakage, accident, repairs or alterations to lines of pipe or other
equipment; freezing of wells or pipelines; failure of electronic or telephonic equipment;
failure of third party transportation; failure of third party transportation; inability to
obtain easements or rights-of-way; or any other cause, whether of the kind herein enumerated
or otherwise, not reasonably within the control of the Party claiming Force Majeure; provided,
that any such cause will, so far as possible, be remedied with all reasonable dispatch. The
failure of a well or wells will not be a cause of Force Majeure in this Agreement. The
settlement of strikes, lockouts or industrial disputes or disturbances will be entirely within
the discretion of the Party having the difficulty, and the requirement that any Force Majeure
cause will be remedied with all reasonable dispatch will not require the settlement of
strikes, lockouts or industrial disputes or disturbances by acceding to any demands when such
course is inadvisable in the discretion of the Party having the difficulty.
	 
	21.2	 	Upon the occurrence of any of the Force Majeure events described in this Section 21.1 herein,
the Party claiming Force Majeure will notify the other Party promptly in writing of such event
and, to the extent possible, inform the other Party of the expected duration of the Force
Majeure event.

ARTICLE XXII

DEFAULT AND REMEDIES

	22.1	 	The occurrence of one or more of the following by a Party shall constitute an event of
default as to the Party (an “Event of Default”):

(a) Make an assignment or any general arrangement for the benefit of creditors; file a
petition or otherwise commence, authorize, or acquiesce in the commencement of a proceeding
or case under any bankruptcy or similar law for the protection of creditors or have such
petition filed or proceeding commenced against it; otherwise become bankrupt or
insolvent (however evidenced); be unable to pay its debts as they fall due; have a
receiver, provisional liquidator, conservator, custodian, trustee or other similar official
appointed with respect to it or substantially all of its assets; or

(b) The failure to make any payment to any other Party as and when due hereunder where such
failure continues for twenty (20) days after written notice by the other Party of failure to
make such payment; or

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

15

 

(c) The material breach of any other representation, warranty, covenant, agreement,
obligation, duty or provision of this Agreement, where such breach continues for twenty
(20) days after the breaching Party’s receipt of written notice thereof from any other
Party; provided, however, that if the matter which is the subject of the breach cannot by
its nature with due diligence be remedied by such Party within said twenty (20) day period,
and such Party shall have prepared a plan for remedying such failure that is reasonably
acceptable to the other Party and such Party is proceeding with diligence to implement such
plan, such twenty (20) day period shall be extended by such additional time period as may
be reasonably required to implement such plan, and, provided further, however, that the
remedying of such potential default shall not affect any right provided hereunder of the
other Party to terminate this Agreement if other Events of Default should occur before such
potential default has been remedied.

	22.2	 	Remedies upon an Event of Default. Upon the occurrence of an Event of Default and
the expiration of any applicable cure or grace period provided herein, the non-defaulting
party may exercise or seek any remedy it may have at law and/or in equity or as provided for
in this Agreement, and/or the non-defaulting Party may terminate this Agreement,

ARTICLE XXIII

CONFIDENTIALITY

	23.1	 	Each Party agrees that it will maintain in strict confidence the terms of this Agreement,
and that it will not cause or permit the disclosure to any third party without the express
written consent of the other Party. However, disclosure is permitted to the extent the
information has already become public through no act or omission on the part of either Party,
or a Party is required to disclose by an order or regulation of a court or agency having
jurisdiction over the subject matter. If either Party becomes aware of a judicial or
administrative proceeding that has resulted or may result in such an order requiring
disclosure, it will notify the other Party immediately. These confidentiality obligations
terminate one (1) year after termination of this Agreement. Each Party agrees that monetary
damages would not adequately compensate the other party for a breach of this Article.
Therefore, each Party agrees that the other Party shall be entitled, in addition to any other
rights it may otherwise have at law or equity, to seek injunctive relief against any breach
or threatened breach of this Article.

ARTICLE XXIV

MISCELLANEOUS

	24.1	 	Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY SET FORTH IN
THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY UNDER THIS
AGREEMENT, WHETHER IN WARRANTY, CONTRACT, OR TORT (INCLUDING, WITHOUT LIMITATION,
NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, SPECIAL, OR PUNTTTVE DAMAGES WITHOUT REGARD TO THE CAUSE OR CAUSES RELATED
THERETO, INCLUDING, WITHOUT LIMITATION THE NEGLIGENCE OF ANY PARTY, WHETHER SUCH NEGLIGENCE
BE SOLE, JOINT OR CONCURRENT, OR ACTIVE OR PASSIVE.
	 
	24.2	 	Governing Law. THIS AGREEMENT AND EACH TRANSACTION AND THE RIGHTS AND DUTIES OF THE
PARTIES ARISING OUT OF THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED, IN ACCORDANCE WITH
THE LAWS’ OF THE STATE OF TEXAS, INCLUDING, WITHOUT LIMITATION, THE UNIFORM COMMERCIAL CODE
AS IN EFFECT IN THE STATE OF TEXAS, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, WITHOUT
REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

16

 

	24.3	 	Applicable Laws. This Agreement shall be subject to Applicable Laws and is
subject to receipt of such authorizations from any governmental entity as may be required for
the service contemplated herein.
	 
	24.4	 	Survival. The representations and warranties of the Parties herein, the
indemnification provisions, the confidentiality provisions, and payment obligations set
forth herein shall survive any termination of this Agreement.
	 
	24.5	 	There are no third party beneficiaries to this Agreement.
	 
	24.6	 	Any original executed Agreement or other related document may be digitally copied,
photocopied, or stored on computer tapes and disks (the “Imaged Agreement”). The Imaged
Agreement, if introduced as evidence-on paper, and all computer records of the foregoing, if
introduced as evidence in printed format in any judicial, arbitration, mediation, or
administrative proceedings will be admissible as between the Parties to the same extent and
under the same conditions as other business records originated and maintained in documentary
form. Neither Party shall object to the admissibility of the Imaged Agreement on the basis
that such were not originated or maintained in documentary form. However, nothing herein shall
be construed as a waiver of any other objection to the admissibility of such evidence.
	 
	24.7	 	This Agreement is a final, complete, and exclusive statement of the agreement between the
Parties with respect to the subject matter of this Agreement, and it may be amended only in
writing executed by both Parties.
	 
	24.8	 	Each Party to this Agreement represents and warrants that it has full and complete
authority to enter into and perform this Agreement. Each person who executes this Agreement
on behalf of either Party represents and warrants that it has full and complete authority to
do so and that such Party will be bound thereby.
	 
	24.9	 	Waiver. No waiver of any default under this Agreement will constitute a waiver of
any other default, whether of like or different character.
	 
	24.10	 	Construction and Interpretation. Each Party participated extensively in the
drafting and review of this Agreement and any rule of construction to the effect that an
ambiguity be construed against the drafting Party will not apply. The singular will include
the plural, and the plural will include the singular.
	 
	24.11	 	Entire Agreement. This Agreement is a final, complete, and exclusive statement of
the agreement between the Parties with respect to the subject matter of this Agreement, and it
may be amended only in writing executed by all Parties.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

17

 

ARTICLE XXV

COUNTERPART EXECUTION

	25.1	 	Execution. This Agreement may be executed in multiple counterparts, each
of which will constitute an original and all of which will constitute the same Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the day and year first
written above.

	 	 	 	 	 	 	 	 	 	 	 

	AMERICAN MIDSTREAM (MISSISSIPPI) LLC	 	VENTURE OIL & GAS, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Brian Bierbach
	 	 	 	By	 	/s/ Jarvis Hensley	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 

	 	Brian Bierbach
	 	 	 	Printed	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	President and CEO
	 	 	 	Name:
	 	Jarvis Hensley	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:
	 	VP-Operations	 	 

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

18

 

EXHIBIT E

This Exhibit E is for all purposes attached to and made a part of that certain Gas
Processing Agreement (“Agreement”) dated July 14, 2010 by and between American Midstream
(MISSISSIPPI), LLC (“Processor”) and Venture Oil and Gas, Inc. (“Producer”).

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

E-1

 

EXHIBIT A

This Exhibit A is for all purposes attached to and made a part of that certain Gas
Processing Agreement (“Agreement”) dated July 14, 2010 by and between American Midstream
(MISSISSIPPI), LLC (“Processor”) and Venture Oil & Gas, Inc. (“Producer”).

DEDICATED PROPERTIES

The following lands in Wayne County, Mississippi:

Section 33, Township 9 North, Range 6 West

Section 4, Township 8 North, Range 6 West

Section 9, Township 8 North, Range 6 West

Section 16, Township 8 North, Range 6 West

Section 21, Township 8 North, Range 6 West

Receipt Points are at each Well prior to entering the Winchester Gathering System.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

A-1

 

Exhibit A-1

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

A-2

 

EXHIBIT B

This Exhibit B is for all purposes attached to and made a part of that certain Gas Processing
Agreement (“Agreement”) dated July 14, 2010 by and between American Midstream (MISSISSIPPI), LLC
(“Processor”) and Venture Oil & Gas, Inc. (“Producer”).

ADDRESSES OF THE PARTIES

PROCESSOR:

Notices/Correspondence:

American Midstream (Mississippi), LLC

1614 15th St, Suite 300

Denver, CO 80202

Attention: Contract Administration

Phone:   720-457-6060

FAX:     720-457-6040

For
Accounting & Statements:

American Midstream (Mississippi), LLC

8300 FM 1960, Suite 225

Houston, TX 77077

Attention: American Midstream

                 Gas Accounting

Phone:   281-955-4800

Fax:       281-955-4855

For
Payments by Wire:

Bank:      Comerica Bank

Address:   910 Louisiana, Suite 410

Houston, TX 77210

ABA Number: 111000753

Account Number:    1881319493

Other: Beneficiary:

American Midstream, LLC

Federal Tax ID:      27-0855925

PRODUCER:

Notices/Correspondence:

Venture Oil & Gas, Inc.

207 South 13th Avenue

Laurel, MS 39440

Attention: Mr. Jay Fenton, President

Phone:   601-428-7725; ext. 105

Fax:       601-428-7738

For
Accounting & Statements:

Venture Oil & Gas, Inc.

207 South 13th Avenue

Laurel, MS 39440

Attention: Ms. Marths Watts

Phone:   601-428-7725; ext. 109

Fax:       601-428-7738

For Payments by Wire:

Bank: MS. Natl. Bankers Bank

Address: Ridgeland, MS

C/O Bank of Jones County

ABA Number: 065306192 for credit to Bank of

Jones County

Routing Number: 0065306079 for further credit

to Venture’s Account Number 120012182

Federal Tax ID: 64-0770344

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

B-1

 

EXHIBIT C

This Exhibit C is is for all purposes attached to and made a part of that certain Gas Processing
Agreement (“Agreement”) dated July 14, 2010 by and between American Midstream (MISSISSIPPI), LLC
(“Processor”) and Venture Oil & Gas, Inc. (“Producer”).

PROJECT PAYOUT METHODOLOGY

After Processor has completed the Project and determined the total Project cost, Processor will
advise Processor of the final Project cost together with an explanation of such costs and expenses.

The Project costs will include all costs of Processor to build the Project, including, but not
limited to:

Material and Equipment

  Pipe 8" steel .219 X42 ERW

  Pipe 8" steel .432 X42 ERW

  Valves — 8" ANSI 600 

  ESD Valves — 8" ANSI 600

  Fittings

  Miscellaneous

  Chemical Pump & Accessories

Construction Cost

  Base Laying -8"

  Wetlands Bore

  Road Bore

  River Bore

  Site Preparation

  Station Installation

  Hydrostatic Test

  Survey & Mapping

  Inspection & Supervision

  Welding Inspection (x-ray)

  Engineering

  Environmental Clearance

  Painting

  Reseed ROW

  Trucking

Land & Right-of-way

  Right-of-way Payments

  Damages

  Surface Sites — 50' x 50'

Taxes

Agents Fee and Expenses

Outside Legal

	25.2	 	For a period of one (1) year after Processor advises Producer regarding the total
Project cost, Producer, at its sole cost and expense, shall have the right to audit
Processor’s books and accounts relative to all or any portion of the Project cost.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

C-1

 

The Facility Fee will remain in effect until the total of all Facility Fee payments made by
Producer to Processor equals fifty percent (50%) of either the total Project cost provided to
Producer by Processor or the total Project cost agreed to by Processor and Producer upon the
conclusion of Producer’s audit of Processor’s books and accounts provided for in this Exhibit C.

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

C-2

 

EXHIBIT D

This Exhibit D is for all purposes attached to and made a part of that certain Gas
Processing Agreement (“Agreement”) dated July 14, 2010 by and between American Midstream
(MISSISSIPPI), LLC (“Processor”) and Venture Oil & Gas, Inc. (“Producer”).

[*]

[*] Certain information in this document has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

D-1

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