Does anyone know what a Gathering and Processing Memorandum is ? I don’t know why this would need to be filed ? Attached a photo
I think the implication is that the agreement is unlikely to be set aside by a bankruptcy court.
Similar memorandums are filed often. Any successor in interest to oil company is now on notice that this agreement exists and the assignee will be bound by all the terms. Often operators are paid for essentially selling the right to gather gas under all the leases it holds in an area and agree to a high per mcf charge to be paid for gathering, transportation and processing so that the other side is guaranteed a good return on capital. Under many leases the costs are charged to the royalty owners who did not get any of the up-front payment. Curious as to why you blocked out name of parties as this is a public record and open to all to see.
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Not an attorney- My experience is that a memorandum is filed to put on the record that an agreement exists, without revealing the terms of the agreement. Operators contract with pipeline companies to convey gas to market. The leases on the land from which the gas is produced create a covenant that is tied to the land.
My earlier post is still awaiting approval. The one now posted may be out of context until the first is approved.
Thank you for the responses. I appreciate them. - I blocked it out because I wasn’t sure exactly what the form was.
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