Exhibit 10.32
OMNIBUS TERMINATION AGREEMENT
T his Omnibus Termination Agreement (this
“Agreement”), is
made and entered into this 16th day of November, 2007 (“
Effective Date ”), by and among Equitable
Production Company (“ Equitable ”),
MarkWest Energy Appalachia, L.L.C. (“
MEA ”) and MarkWest Hydrocarbon, Inc.
(“ MHI ”) ( with MEA and MHI together
referred to herein as “ MarkWest ”).
Equitable, MEA and MHI are each
sometimes referred to herein, individually, as a “
Party ”, and, collectively, as the “
Parties ”.
RECITALS:
WHEREAS, Equitable and MEA, and their
affiliates, have rearranged certain aspects of their ongoing
natural gas gathering, processing, transportation, fractionation
and sales business arrangements related to their facilities in
Kentucky, and have entered into new agreements (or amended certain
existing agreements) to facilitate those changes, which agreements
are listed in Exhibit A to this Agreement
(“ New Contracts ”);
WHEREAS, under the new business arrangements
among the Parties and their affiliates, certain existing agreements between the
Parties will be replaced and/or are no longer needed;
and
WHEREAS, the New Contracts
provide, concurrent with execution thereof, or the new business
arrangements between the parties contemplate, for the termination
of those certain existing agreements between the Parties and/or
their affiliates, as described below:
1)
Gas Processing Agreement
(Maytown), dated May 28, 1999, as amended by instruments dated
March 26, 2002 and September 23, 2004 (as amended, the
“ Maytown Agreement ”);
2)
Equipment Lease Agreement,
dated May 28, 1999 (“ Equipment Lease
”);
3)
Pipeline Lease Agreement,
dated May 28, 1999 (“ Pipeline Lease ”);
and
4)
Lease Agreement, dated
May 21, 2002 (“ Ground Lease
”).
5)
Guaranty from MHI., to
Equitable Production Company, dated March 26, 2002.
(collectively,
together with all amendments or supplements thereto, the “
Terminated Contracts ”);
NOW, THEREFORE, in consideration of the
premises and of the mutual promises, representations, warranties,
covenants, conditions and agreements contained herein, and for
other valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the Parties agree, on behalf of themselves
and of their affiliates, as follows:
ARTICLE 2
TERMINATION OF AGREEMENTS
Section 2.1
Termination
.
Effective upon the
Effective Date, Equitable and MarkWest hereby agree that subject to
their execution of the New Contracts and to Section 2.3 below,
the Terminated Agreements are hereby terminated and shall, as of
the Effective Date, be of no further force or effect. Each of
Equitable and MarkWest waives any applicable termination notice
requirements, and shall execute and place such amendments of record
as are necessary to effectuate said termination.
Section 2.2
No Cross
Default .
Equitable
and MarkWest expressly
agree that the termination of the Terminated Contracts, including,
without limitation, the termination of the Maytown Agreement and
Pipeline Lease, shall not act as or be construed as an event of
default or cross termination as set forth in any other agreement
among Equitable and MarkWest or their affiliates.
Section 2.3
Audit
Rights .
The Parties agree that certain limited audit rights with
respect to the Terminated Agreements shall survive the termination
thereof solely to the extent provided in that certain New Contract
captioned as the Settlement and Release Agreement.
ARTICLE 3
TRANSFER OF POSSESSION AND RELEASE
Section 3.1
Transfer of Possession of Maytown
Plant and Pipeline.
As of the Effective Date,
MarkWest shall transfer possessio