"Equity Gas" means Gas that is produced from a Dedicated Lease and is owned and
marketed by, or on behalf of, Producers. Equity Gas shall also include any lessor's royalty Gas that is not taken
"in-kind" by lessor and which is marketed by, or on behalf of, Producers. Equity Gas shall exclude the following:

(i) Gas consumed by a Producer in the development and operation of Dedicated
Leases, including, but not limited to, the following operations: drilling; deepening;
reworking of wells; compression; Gas lift; treating; separation; operationally
integrated power generation; maintenance of facilities; and consumed as fuel in such
operations.

(ii) Gas provided by a Producer to another operator or producer in the general
vicinity of such Producer's operations to be used by such operators or producers for
purposes similar to those set forth in (i) above; provided, however, if Gas furnished
by Producer is used for such purposes, Producer shall keep Processor whole from an
economic standpoint for any volumes that are so used.

(iii) Gas used by a Producer as makeup or non-consent Gas to or for the benefit of
third parties as may be required under joint operating, Gas balancing or other similar
agreements and produced from wells covered by such agreements or to settle Gas
imbalance claims with other mineral and/or leasehold interest owners.

(iv) Gas used by a Producer to make payment of royalty and/or overriding royalty in
kind if required in the Dedicated Leases or instruments pursuant to which such
royalties and overriding royalties were created, excluding any overriding royalties
held by Affiliates of Producer.

(v) Gas which is actually used by pipelines for fuel to transport lease production
and/or is otherwise flared, lost or unaccounted for prior to delivery to a Plant.

(vi) Gas which is precluded from being produced or Processed due to governmental
intervention, regulations, laws or judicial or administrative orders.