Take In-Kind Residue Gas
(Midstream Energy)

Summary

This take in-kind residue gas (midstream energy) clause gives a gas producer the option to either receive payment for its residue gas, or to take the same from a processor in-kind, via a gas transfer. This clause can also be found in a gas processing agreement. This clause contains practical guidance and drafting notes. The gas processing agreement template is an agreement between the producer and processing parties for natural gas and natural gas liquids processing. The agreement has provisions for definitions, dedication and services, delivery points and pressure, gas quality, measurement, fees, fuel, and consideration, price and allocations, residue gas redelivery procedures, plant products redelivery procedures, payments, audit rights, force majeure, indemnification, title, royalty and taxes, notice and payment instructions, dispute resolution, term, miscellaneous, and exhibits including dedicated area, delivery points and redelivery points, fees and FL&U, gas quality specifications, take in-kind terms, allocation methodologies, form of memorandum of agreement, form of memorandum of release, form of transferee agreement, and form of joinder agreement. This clause can be found in the Gas Processing Agreement template.