ANADARKO UINTAH MIDSTREAM,
LLC
WESTERN GAS RESOURCES, INC.
WGR HOLDINGS, LLC
WGR ASSET HOLDING COMPANY LLC
WESTERN GAS HOLDINGS, LLC
WES GP, INC.
WESTERN GAS PARTNERS, LP
WESTERN GAS HOLDINGS, LLC
WESTERN GAS OPERATING, LLC
WGR OPERATING, LP
and, for certain limited
purposes,
ANADARKO PETROLEUM CORPORATION
Covering the Contribution
of
a 51% membership interest in Chipeta
Processing LLC;
the 15-mile, 8” AUM NGL pipeline; and
certain other related rights and assets
Dated as of July 10,
2009
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Page
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ARTICLE I DEFINITIONS AND RULES OF
CONSTRUCTION
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3
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3
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Section 1.2 Rules of
Construction
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12
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ARTICLE II CONTRIBUTION; CLOSING
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13
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Section 2.1 Contribution of the System
Assets
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13
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Section 2.2 Excluded Assets
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15
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Section 2.3 Contribution of the Chipeta
Interest
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15
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Section 2.4 Consideration
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15
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Section 2.5 Borrowing by the Partnership;
Tax Treatment of Cash Consideration
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16
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Section 2.6 Purchase Price
Adjustments
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16
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Section 2.7 Contemplated Legal
Steps
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17
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18
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18
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Section 3.2 Deliveries by the Contributing
Parties
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18
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Section 3.3 Deliveries by the Recipient
Parties
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19
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Section 3.4 Receipts and Credits
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20
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21
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Section 3.6 Closing Costs; Transfer Taxes
and Fees
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21
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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF
ANADARKO AND THE CONTRIBUTING PARTIES
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22
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22
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Section 4.2 Authorization;
Enforceability
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22
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22
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Section 4.4 Preference Rights and Transfer
Requirements
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23
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23
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23
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Section 4.7 Taxes and
Assessments
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25
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Section 4.8 Compliance With Laws
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26
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Section 4.9 Environmental
Matters
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26
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Section 4.10 Brokers and Finders
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26
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27
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28
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Section 4.13 Condition of Assets
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28
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Section 4.14 Matters Relating to
Chipeta
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29
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Section 4.15 Financial
Statements
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29
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Section 4.16 No Undisclosed Liabilities;
Accuracy of Data
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29
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i
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Section 4.17 Absence of Certain
Changes
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30
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Section 4.18 Sufficiency of the
Assets
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30
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Section 4.19 Regulatory Matters
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31
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Section 4.20 Outstanding Capital
Commitments
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31
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31
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Section 4.22 Employees; Labor
Relations
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31
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Section 4.23 Management Projections and
Budgets
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31
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Section 4.24 Waivers and
Disclaimers
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32
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33
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ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE
RECIPIENT PARTIES
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33
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Section 5.1 Organization of
Recipient
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33
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Section 5.2 Authorization;
Enforceability
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33
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34
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34
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Section 5.5 Brokers’ Fees
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34
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34
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35
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Section 6.1 Conduct of Business
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35
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36
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36
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Section 6.4 Additional
Agreements
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36
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Section 6.5 Replacement of Bonds, Letters
of Credit and Guarantees
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36
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Section 6.6 General Matters
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36
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Section 6.7 Chipeta Interest
Matters
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37
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Section 6.8 Required Consents
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37
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Section 6.9 Chipeta Capital
Contributions
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37
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ARTICLE VII CONDITIONS TO CLOSING
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37
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Section 7.1 Conditions to Each
Party’s Obligation to Close
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37
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Section 7.2 Conditions to the Recipient
Parties’ Obligation to Close
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38
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Section 7.3 Conditions to the Contributing
Parties’ Obligation to Close
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39
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40
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40
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Section 8.2 Effect of
Termination
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41
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ARTICLE IX INDEMNIFICATION
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41
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41
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Section 9.2 Indemnification of the Anadarko
Indemnified Parties
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41
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Section 9.3 Indemnification of the
Partnership Indemnified Parties
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42
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ii
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Page
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43
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Section 9.5 Right to Contest and
Defend
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43
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44
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Section 9.7 Payment of Losses
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44
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Section 9.8 Limitations on
Indemnification
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44
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45
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Section 9.10 Express Negligence
Rule
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45
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ARTICLE X ADDITIONAL AGREEMENTS
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46
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Section 10.1 Further Assurances
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46
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Section 10.2 NORM, Wastes and Other
Substances
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46
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Section 10.3 754 Election
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46
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47
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47
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47
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Section 11.3 Severability
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49
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Section 11.4 Governing Law; Consent to
Jurisdiction
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49
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Section 11.5 Parties in Interest
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49
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49
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Section 11.7 No Amendment or
Waiver
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50
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Section 11.8 Counterparts
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50
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50
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Section 11.10 Determinations by the
Partnership
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50
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Section 11.11 Public Statements
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50
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—
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Contracts
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—
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Surface
Contracts
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—
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Equipment
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—
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Certain
Excluded Assets
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—
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Preliminary
Settlement Statement
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—
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Preference
Rights and Transfer Requirements
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Part 1 —
Contracts
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Part 2 —
Surface Contracts
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—
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Contributing
Party Litigation
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—
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Title to System
Assets
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Title to
Chipeta Interest
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Title to
Chipeta Assets
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—
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Tax Matters
Relating to the System Assets
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—
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Tax Matters
Relating to Chipeta
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—
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Compliance With
Laws
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—
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Environmental
Matters
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iii
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—
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Permits
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—
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Permits
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—
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Chipeta
Permits
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—
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System Asset
Contract Matters
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—
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Chipeta
Contract Matters
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—
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Obligations
Relating to Chipeta
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—
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Financial
Statements
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—
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Bonds, Letters
of Credit and Guarantees
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—
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Sufficiency of
the Assets
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—
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Outstanding
System Asset Capital Commitments
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—
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Outstanding
Chipeta Capital Commitments
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—
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Insurance
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—
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Recipient Party
Litigation
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Description of
Chipeta Plant
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Description of
AUM NGL Line
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Description of
Stagecoach Extension
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Description of
Chipeta Assets
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Form of Term
Loan Agreement
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Form of Chipeta
Interest Contribution Agreement
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Form of System
Asset Conveyances
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Form of
Partnership Agreement Amendment
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Form of Omnibus
Agreement Amendment
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iv
THIS CONTRIBUTION
AGREEMENT, dated as of July 10, 2009 (the “
Agreement ”), is made and entered into by and among
Western Gas Resources, Inc., a Delaware corporation (“
WGR ”), WGR Asset Holding Company LLC, a Delaware
limited liability company (“ WGRAH ”), Anadarko
Uintah Midstream, LLC, a Delaware limited liability company
(“ AUM ”), WGR Holdings, LLC, a Delaware limited
liability company (“ WGR Holdings ”), Western
Gas Holdings, LLC, a Delaware limited liability company (the
“ General Partner ”), WES GP, Inc. (“
WES GP ” and, together with the General Partner, WGR,
WGRAH, WGR Holdings and AUM, the “ Contributing
Parties ”), and Western Gas Partners, LP, a Delaware
limited partnership (the “ Partnership ”),
Western Gas Operating, LLC, a Delaware limited liability company
(“ Western Gas Operating ”), and WGR Operating,
LP, a Delaware limited partnership (the “ Operating
Partnership ”, and, together with the Partnership, the
General Partner and Western Gas Operating, the “ Recipient
Parties ”). The Contributing Parties and Recipient
Parties are sometimes referred to in this Agreement each as a
“ Party ” and collectively as the “
Parties .” In addition, Anadarko Petroleum
Corporation, a Delaware corporation (“ Anadarko
”), is a party to this Agreement for the limited purposes set
forth in Article II , Article IV ,
Section 6.6 , Article VIII and
Article IX , and is a “Party” under this
Agreement solely to that extent.
WHEREAS, WGR owns
all of the equity interests in WGRAH and WGR Holdings, each of
which is a disregarded entity for U.S. federal income tax
purposes;
WHEREAS, WGRAH
owns all of the equity interests in AUM;
WHEREAS, WGR
Holdings owns 99% of the equity interests in the General Partner,
which is a partnership for U.S. federal income tax
purposes;
WHEREAS, WGR
Holdings owns all of the equity interests in WES GP, which is a
corporation for federal income tax purposes;
WHEREAS, WES GP
owns 1% of the equity interests in the General Partner;
WHEREAS, WGR
Holdings is a limited partner of the Partnership;
WHEREAS, the
General Partner is the sole general partner of the
Partnership;
WHEREAS, the
Partnership owns all of the equity interests in Western Gas
Operating, which is a disregarded entity for U.S. federal income
tax purposes;
WHEREAS, the
Partnership is the sole limited partner and Western Gas Operating
is the sole general partner of the Operating
Partnership;
WHEREAS, AUM owns
the AUM NGL Line (defined herein) and the related System Assets
(defined herein);
1
WHEREAS, AUM will
acquire the Stagecoach Extension (defined herein) and the related
System Assets (defined herein) prior to Closing;
WHEREAS, AUM also
owns the Chipeta Interest (defined herein);
WHEREAS, AUM
desires to distribute the System Assets and the Chipeta Interest to
WGRAH and WGRAH desires to acquire the same;
WHEREAS, WGRAH
desires to distribute the System Assets and the Chipeta Interest to
WGR and WGR desires to acquire the same;
WHEREAS, WGR
desires to contribute the System Assets and the Chipeta Interest to
WGR Holdings and WGR Holdings desires to acquire the
same;
WHEREAS, WGR
Holdings desires to contribute an undivided interest in the System
Assets and the Chipeta Interest to WES GP, and WES GP desires to
acquire such undivided interest;
WHEREAS, WES GP
desires to contribute such undivided interest in the System Assets
and the Chipeta Interest to the General Partner, and the General
Partner desires to acquire such undivided interest;
WHEREAS, WGR
Holdings desires to contribute an undivided interest in the System
Assets and the Chipeta Interest to the General Partner, and the
General Partner desires to acquire such undivided
interest;
WHEREAS WGR
Holdings and the General Partner desire to contribute all of the
undivided interests in the System Assets and the Chipeta Interest
to the Partnership for the consideration described herein, and the
Partnership desires to acquire such undivided interests for such
consideration;
WHEREAS, the
Partnership desires to contribute an undivided interest in the
System Assets and the Chipeta Interest to Western Gas Operating,
and Western Gas Operating desires to acquire such undivided
interest;
WHEREAS, the
Partnership and Western Gas Operating desire to transfer all of the
undivided interests in the System Assets and the Chipeta Interest
to the Operating Partnership and the Operating Partnership desires
to acquire such undivided interests; and
WHEREAS, in order
to avoid multiple conveyances of the System Assets and the Chipeta
Interest, each of the Parties entitled to receive an interest in
the System Assets and the Chipeta Interest agrees that AUM will be
instructed to convey such interest to any Party to which it is
required to make such a conveyance, with the result that AUM will
execute and deliver a document to convey legal title to the System
Assets and the Chipeta Interest directly to the Operating
Partnership.
2
NOW, THEREFORE, in
consideration of the premises and mutual covenants contained herein
and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as
follows:
ARTICLE I
DEFINITIONS AND RULES OF CONSTRUCTION
Section 1.1
Definitions .
“
Accounting Time ” has the meaning set forth in
Section 3.4(a) .
“
Affiliate ” means, with respect to any Person, any
other Person that, directly or indirectly, Controls, is Controlled
by or is under common Control with, such specified Person through
one or more intermediaries or otherwise; provided ,
however , that (i) with respect to each of the Anadarko
Entities and the Contributing Parties, the term
“Affiliate” shall exclude the Partnership Entities,
(ii) with respect to each of the Partnership Entities and the
Recipient Parties, the term “Affiliate” shall exclude
the Anadarko Entities, and (iii) Chipeta shall be deemed to be
an Affiliate of the Anadarko Entities before the Closing Date and
an Affiliate of the Partnership Entities on and after the Closing
Date.
“
Aggregate Consideration ” has the meaning set forth in
Section 9.8(a) .
“
Agreement ” has the meaning set forth in the
preamble.
“
Anadarko ” has the meaning set forth in the
preamble.
“
Anadarko Entities ” means Anadarko and any other
Person Controlled by Anadarko other than the Partnership
Entities.
“
Anadarko Indemnified Parties ” has the meaning set
forth in Section 9.2 .
“
Ancillary Documents ” means, collectively, the
Recipient Party Ancillary Documents and the Contributing Party
Ancillary Documents.
“ Annual
Financial Statements ” has the meaning set forth in
Section 4.15 .
“ AUM
” has the meaning set forth in the preamble.
“ AUM NGL
Line ” means the approximately 15-mile, 8-inch NGL
pipeline (including all appurtenances thereto) connecting the
Chipeta Plant to the pipeline known as the “Mid-America
Pipeline,” which NGL pipeline is more specifically described
on Exhibit B .
“
Business Day ” means any day that is not a Saturday,
Sunday or legal holiday in the State of Texas or a federal holiday
in the United States.
“ Cash
Consideration ” means (i) $101,450,500 minus (ii) an
amount equal to the aggregate amount of all distributions (if any)
made by Chipeta to AUM with respect to the Chipeta Interest (but
not the Remaining Interest) between the date of this Agreement and
the
3
Closing Date,
except to the extent that such distributions were regular quarterly
distributions required by Section 4.2 of the Chipeta LLC
Agreement for quarters ended prior to the Effective
Time.
“
Chipeta ” means Chipeta Processing LLC, a Delaware
limited liability company.
“ Chipeta
Assets ” means the Chipeta Plant and the other assets
owned, held, used or held for use by Chipeta, which other assets
are more specifically described on Exhibit D
.
“ Chipeta
Asset Required Consents ” means any consent, approval,
authorization or permit of, or filing with or notification to, any
Person which was required to be obtained, made or complied with for
or in connection with any sale, assignment or transfer to Chipeta
of any Chipeta Asset or any Chipeta Surface Contract (or any
interest in any of them), and such required consent, approval,
authorization, permit, filing or notificiation has not been
obtained, made or complied with prior to Closing.
“ Chipeta
LLC Agreement ” means the limited liability company
agreement of Chipeta, dated May 22, 2008, as such agreement is
amended and in effect on the date of this Agreement.
“ Chipeta
Contracts ” means all contracts, agreements, instruments,
undertakings or commitments (including intercompany contracts,
agreements, instruments, undertakings or commitments), written or
oral, by which Chipeta or any of its properties or assets are
bound, or that relate to or are otherwise applicable to Chipeta or
the Chipeta Assets (including exchange agreements, transportation
or gathering agreements, construction agreements, operating
agreements, environmental compliance agreements, processing
agreements, work orders, purchase orders, service agreements,
rental agreements, compression agreements, utility services
agreements, non-disturbance agreements for the benefit of the
Chipeta, fractionation agreements, and agreements for the sale and
purchase of oil, gas, casinghead gas or other Hydrocarbons or
processing agreements to the extent applicable to Chipeta or any of
its properties or assets).
“ Chipeta
Interest ” means a 51% membership interest in
Chipeta.
“ Chipeta
Interest Contribution Agreement ” means a conveyance,
substantially in the form attached hereto as Exhibit F
, reflecting the contribution of the Chipeta Interest to the
Operating Partnership.
“ Chipeta
Permits ” has the meaning set forth in
Section 4.11(c).
“ Chipeta
Plant ” means the Chipeta natural gas processing plant
(including all appurtenances thereto), which plant is more
specifically described on Exhibit A .
“ Chipeta
Surface Contracts ” means all easements, Chipeta Permits,
licenses, servitudes, rights-of-way, surface leases, fee interests
in real property and other surface rights appurtenant to, and used
or held for use in connection with Chipeta or the Chipeta Assets,
including those identified on Schedule 4.6(d)
.
“ CIG
” means Colorado Interstate Gas Company.
4
“ CIG
Purchase Agreement ” means that certain Purchase and Sale
Agreement dated November 21, 2008 between CIG and
Chipeta.
“
Closing ” has the meaning set forth in
Section 3.1 .
“ Closing
Date ” has the meaning set forth in
Section 3.1 .
“
Code ” means the Internal Revenue Code of 1986, as
amended and as interpreted by the applicable Treasury Regulations
thereunder.
“ Consent
Decree ” has the meaning set forth in
Section 9.3 .
“
Contracts ” has the meaning set forth in
Section 2.1(b) .
“
Contributed Assets ” has the meaning set forth in
Section 2.7(a) .
“
Contributing Party Ancillary Documents ” means each
agreement, document, instrument or certificate to be delivered by
any Contributing Party, or any Affiliate thereof, at the Closing
pursuant to Section 3.2 and each other document or
contract entered into by any Contributing Party, or any Affiliate
thereof, in connection with this Agreement or the
Closing.
“
Contributing Parties ” has the meaning set forth in
the preamble.
“
Contributing Party Closing Certificate ” has the
meaning set forth in Section 7.2(c) .
“
Control ” means, where used with respect to any
Person, the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by
contract or otherwise, and the terms “ Controlling
” and “ Controlled ” have correlative
meanings.
“
Deductible ” has the meaning set forth in
Section 9.8(a) .
“
Effective Time ” has the meaning set forth in
Section 3.1 .
“
Environmental Activity ” shall mean any investigation,
study, assessment, evaluation, sampling, testing, monitoring,
containment, removal, disposal, closure, corrective action,
remediation (regardless of whether active or passive), natural
attenuation, restoration, bioremediation, response, repair,
corrective measure, cleanup, pollution control or abatement that is
required or necessary under any applicable Environmental Law,
including institutional or engineering controls or participation in
a governmental voluntary cleanup program to conduct voluntary
investigatory and remedial actions for the clean-up, removal or
remediation of Hazardous Substances that exceed actionable levels
established pursuant to Environmental Laws, or participation in a
supplemental environmental project in partial or whole mitigation
of a fine or penalty.
“
Environmental Laws ” means all federal, state, and
local laws, statutes, rules, regulations, orders, judgments,
ordinances, codes, injunctions, decrees, Environmental Permits and
other legally enforceable requirements and rules of common law
relating to (i) pollution or
5
protection of
the environment or natural resources, (ii) any Release or
threatened Release of, or any exposure of any Person or property
to, any Hazardous Substances or (iii) the generation,
manufacture, processing, distribution, use, treatment, storage,
transport, disposal or handling of any Hazardous Substances;
including the federal Comprehensive Environmental Response,
Compensation and Liability Act, the Superfund Amendments and
Reauthorization Act, the Resource Conservation and Recovery Act,
the Clean Air Act, the Clean Water Act, the Safe Drinking Water
Act, the Toxic Substances Control Act, the Oil Pollution Act of
1990, the Federal Hazardous Materials Transportation Law, the
Occupational Safety and Health Act, the Marine Mammal Protection
Act, the Endangered Species Act, the National Environmental Policy
Act and other environmental conservation and protection laws, each
as amended through the Closing Date.
“
Environmental Permit ” means any permit, approval,
identification number, license, registration, certification,
consent, exemption, variance or other authorization required under
or issued pursuant to any applicable Environmental Law.
“
Equipment ” has the meaning set forth in
Section 2.1(d) .
“ Equity
Interest ” means any capital stock, partnership interest,
membership interest or other unit of equity security, equity
ownership or voting security (including any security convertible
into or exchangeable or exercisable for any of the
same).
“
Excluded Assets ” has the meaning set forth in
Section 2.2 .
“ Final
Settlement Statement ” has the meaning set forth in
Section 2.6(b) .
“
Financial Statements ” has the meaning set forth in
Section 4.15 .
“
GAAP ” means generally accepted accounting principles
in the United States, consistently applied.
“ General
Partner ” has the meaning set forth in the
preamble.
“
Governmental Entity ” means any Federal, state, local,
municipal or foreign court or governmental agency, authority or
instrumentality or regulatory body having jurisdiction.
“ GP
Consideration ” means 7,172 general partner units of the
Partnership.
“
Hazardous Substance ” means (i) any substance
that is designated, defined or classified under any Environmental
Law as a hazardous waste, solid waste, hazardous material,
pollutant, contaminant or toxic or hazardous substance, or terms of
similar meaning, or that is otherwise regulated under any
Environmental Law, including any hazardous substance as defined
under the Comprehensive Environmental Response, Compensation, and
Liability Act, as amended, (ii) oil as defined in the Oil
Pollution Act of 1990, as amended, including oil, gasoline, natural
gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel and
other refined petroleum hydrocarbons and petroleum products and
(iii) radioactive materials, asbestos containing materials or
polychlorinated biphenyls.
6
“
Hydrocarbons ” means oil, gas, condensate and other
gaseous and liquid hydrocarbons or any combination thereof and
sulphur extracted from hydrocarbons.
“
Indemnified Party ” means any Person entitled to
indemnification in accordance with Article IX
.
“
Indemnifying Party ” means any Person from whom
indemnification is required in accordance with
Article IX .
“
Indemnity Claim ” has the meaning set forth in
Section 9.4 .
“
Independent Accountants ” has the meaning set forth in
Section 2.6(c) .
“ Interim
Financial Statements ” has the meaning set forth in
Section 4.15 .
“
Knowledge ” and any variations thereof or words to the
same effect means: (i) with respect to the Contributing
Parties, the actual knowledge of: (a) the officers of the
Contributing Parties and their respective Affiliates, (b) the
employees of Contributing Parties who have responsibility for the
System Assets and who have the title of Midstream General Manager
or Midstream Commercial Development Regional Manager and
(c) the employees of Contributing Parties who have
responsibility for Chipeta and who have the title of Midstream
General Manager or Midstream Commercial Development Regional
Manager; and (ii) with respect to the Recipient Parties, the
actual knowledge of the officers of Recipient Parties and their
respective Affiliates.
“
Laws ” means all statutes, laws, rules, regulations,
Orders, ordinances, writs, injunctions, judgments and decrees of
all Governmental Entities.
“
Lien ” means any lien, security interest, mortgage,
pledge, charge, encumbrance or right of others.
“
Losses ” means any losses, damages, liabilities,
claims, demands, causes of action, judgments, settlements, fines,
penalties, sanctions, costs and expenses (including court costs and
reasonable attorney’s and experts’ fees) of any and
every kind or character.
“
Material Adverse Effect ” means any effect that is
material and adverse to the ownership, operation, value,
properties, assets, liabilities, financial condition, results of
operations, or business (as currently operated) of
(a) Chipeta, the Chipeta Assets or the Chipeta Interest or (b)
the Systems or the assets related thereto, or the Contributing
Parties’ interest therein; provided , however ,
that “Material Adverse Effect” shall not include
(i) any effect resulting from the announcement of entering
into this Agreement or of the transactions contemplated by this
Agreement; (ii) any effect resulting from changes in general
market, economic or financial conditions or any outbreak of
hostilities or war, (iii) any effect that affects the
Hydrocarbon exploration, production, development, processing,
gathering and/or transportation industry generally (including
changes in commodity prices or general market prices in the
Hydrocarbon exploration, production, development, processing,
gathering and/or transportation industry generally) unless such
effect disproportionately affects Chipeta, the
7
Chipeta Plant,
the Chipeta Interest or the Systems, as applicable, relative to
such industry, and (iv) any effect resulting from a change in
Laws.
“
NORM ” means naturally occurring radioactive
material.
“ Omnibus
Agreement ” means the Omnibus Agreement dated as of
May 14, 2008 among the Partnership, the General Partner and
Anadarko, as amended through the date of this Agreement.
“ Omnibus
Agreement Amendment ” means an instrument substantially
in the form set forth on Exhibit I .
“
Operating Costs ” means all invoices, costs, expenses,
disbursements and payables (as determined in accordance with GAAP
consistent with past practices) attributable to the operation (but
not the ownership) of the System Assets in the ordinary course of
business and regularly invoiced to the Contributing Parties. For
clarity, Operating Costs do not include, without limitation, all
invoices, costs, expenses, disbursements, payables or Losses
directly or indirectly arising out of, resulting from or
attributable to: (i) actual or claimed personal injury,
illness or death; property damage; environmental damage or
contamination; negligence, misconduct or failure to operate
properly; other torts; private rights of action given under any
Law; violation of any Law; or breach or violation of contract,
agreement or duty; (ii) obligations to abandon, dismantle,
remediate or remove pipelines or facilities; (iii) calamity,
natural disaster, casualty, fire, explosion, weather or
condemnation; (iv) claims, investigations, administrative
proceedings, arbitration or litigation directly or indirectly
arising out of, resulting from or attributable to any of the
foregoing; (v) any claims for any of the foregoing or for
indemnification, contribution, reimbursement or similar matters
with respect to invoices, costs, expenses, disbursements, payables
or Losses of the type described in clauses (i) through (iv),
whether such claims are made pursuant to contract or otherwise;
(vi) matters similar to those described in clauses
(i) through (v); and (vii) other matters outside the
ordinary course of business or related to the ownership of the
System Assets.
“
Operating Partnership ” has the meaning set forth in
the preamble.
“
Order ” means any order, writ, injunction, decree,
ruling, compliance or consent order or decree, settlement
agreement, schedule and similar binding legal agreement issued by
or entered into with a Governmental Entity.
“
Partnership ” has the meaning set forth in the
preamble.
“
Partnership Agreement Amendment ” means an instrument
substantially in the form set forth on Exhibit H
.
“
Partnership Agreement ” means the First Amended and
Restated Agreement of Limited Partnership of the Partnership, dated
as of May 14, 2008, as such agreement is amended and in effect
on the date of this Agreement.
“
Partnership Debt ” has the meaning set forth in
Section 2.5 .
8
“
Partnership Entities ” means the General Partner and
each member of the Partnership Group.
“
Partnership Group ” means the Partnership and its
Subsidiaries treated as a single consolidated entity.
“
Partnership Indemnified Parties ” has the meaning set
forth in Section 9.3 .
“
Party ” and “ Parties ” have the
meanings set forth in the preamble.
“
Permits ” means all permits, licenses, variances,
exemptions, Orders, franchises, consents, registrations,
exemptions, authorizations, permissions and approvals of all
Governmental Entities necessary for the lawful ownership, lease and
operation of the System Assets.
“
Permitted Liens ” means (i) liens for Taxes,
impositions, assessments, fees, rents or other governmental charges
levied or assessed or imposed not yet delinquent or being contested
in good faith by appropriate proceedings, provided appropriate
reserves have been established with respect to such contest,
(ii) statutory liens (including materialmen’s,
warehousemen’s, mechanics’, repairmen’s,
landlord’s, and other similar liens) arising in the ordinary
course of business securing payments not yet delinquent or being
contested in good faith by appropriate proceedings, and
(iii) utility easements, restrictive covenants and defects,
imperfections or irregularities of title that do not and could not
reasonably be expected to interfere materially with the ordinary
conduct of the business of the System Assets or Chipeta.
“
Person ” means any individual, firm, corporation,
partnership (general or limited), limited liability company, trust,
joint venture, Governmental Entity or other entity.
“ Post
Closing Consents ” means (i) any consent, approval
or permit of, or filing with or notice to, any Governmental Entity,
railroad company or public utility which has issued or granted any
permit, license, right of way, lease or other authorizations
permitting any part of any pipeline included in the System Assets
to cross or be placed on land owned or controlled by such
Governmental Entity, railroad company or public utility and
(ii) any consent, approval or permit of, or filing with or
notice to, any Governmental Entity or other third party with
respect to any System Assets that, in the case of both clause
(i) and (ii), is customarily obtained or made after closing in
connection with transactions similar in nature to the transactions
contemplated hereby.
“
Preference Right ” means any right or agreement that
enables any Person to purchase or acquire any System Asset, the
Chipeta Interest or any properties or assets of Chipeta (or any
interest in or portion of any of them) as a result of or in
connection with (i) the sale, assignment or other transfer of
any System Asset, the Chipeta Interest or any properties or assets
of Chipeta (or any interest in or portion of any of them) or
(ii) the execution or delivery of this Agreement or the
consummation or performance of this Agreement or the transactions
contemplated hereby.
“
Preliminary Settlement Statement ” has the meaning set
forth in Section 2.6(a) .
“
Recipient Party Ancillary Documents ” means each
agreement, document, instrument or certificate to be delivered by
any Recipient Party, or any Affiliate thereof, at the
Closing
9
pursuant to
Section 3.3 and each other document or contract entered
into by any Recipient Party, or any Affiliate thereof, in
connection with this Agreement or the Closing.
“
Recipient Parties ” has the meaning set forth in the
preamble.
“
Recipient Party Closing Certificate ” has the meaning
set forth in Section 7.3(b) .
“
Records ” has the meaning set forth in
Section 2.1(i) .
“
Release ” means any depositing, spilling, leaking,
pumping, pouring, placing, emitting, discarding, abandoning,
emptying, discharging, migrating, injecting, escaping, leaching,
dumping or disposing into the environment.
“
Remaining Interest ” means the 24% membership interest
in Chipeta owned by AUM other than the Chipeta Interest.
“
Securities Act ” means the Securities Act of
1933.
“
Settlement Notice ” has the meaning set forth in
Section 2.6(c) .
“
Services and Secondment Agreement ” means the Services
and Secondment Agreement dated as of May 14, 2008 by and
between the General Partner and Anadarko, as such agreement is
amended and in effect on the date of this Agreement.
“ Special
Committee ” has the meaning set forth in the Partnership
Agreement.
“
Stagecoach Agreement ” means the Interconnect
Agreement dated July 21, 2008 between AUM and Questar Gas
Management Company.
“
Stagecoach Extension ” means the approximately
1.9-mile, 6-inch pipeline extension (including all appurtenances
thereto) connecting the Chipeta Plant to the plant generally known
as the “Stagecoach plant”, which pipeline extension is
more specifically described on Exhibit C .
“
Subsidiary ” means, with respect to any Person,
(i) a corporation of which more than 50% of the voting power
of shares entitled (without regard to the occurrence of any
contingency) to vote in the election of directors or other
governing body of such corporation is owned, directly or
indirectly, at the date of determination, by such Person, by one or
more Subsidiaries of such Person or a combination thereof,
(ii) a partnership (whether general or limited) in which more
than 50% of the partnership interests (considering all of the
partnership interests of the partnership as a single class) is
owned, directly or indirectly, at the date of determination, by
such Person, by one or more Subsidiaries of such Person, or a
combination thereof, or (iii) any other Person (other than a
corporation or a partnership) in which such Person, one or more
subsidiaries of such Person, or a combination thereof, directly or
indirectly, at the date of determination, has (A) at least a
majority ownership interest or (B) the power to elect or
direct the election of a majority of the directors or other
governing body of such Person.
“ Surface
Contracts ” has the meaning set forth in
Section 2.1(c) .
10
“ System
Assets ” has the meaning set forth in
Section 2.1 .
“ System
Asset Conveyances ” means instruments substantially in
the forms attached hereto as Exhibit G .
“ System
Asset Required Consents ” means any consent, approval,
authorization or permit of, or filing with or notification to, any
Person which was required to be obtained, made or complied with for
or in connection with any sale, assignment or transfer pursuant to
this Agreement (or any interest in any of them), and such required
consent, approval, authorization, permit, filing or notificiation
has not been obtained, made or complied with prior to
Closing.
“
Systems ” means the AUM NGL Line and the Stagecoach
Extension.
“ Tax
” or “ Taxes ” means (a) all taxes,
assessments, duties, levies, imposts or other similar charges
imposed by a Governmental Entity, including all income, franchise,
profits, capital gains, capital stock, transfer, gross receipts,
margins, sales, use, transfer, service, occupation, ad valorem,
property, excise, severance, windfall profits, premium, stamp,
license, payroll, employment, social security, unemployment,
disability, environmental (including taxes under Code
Section 59A), alternative minimum, add-on, value-added,
withholding (including backup withholding) and other taxes,
assessments, duties, levies, imposts or other similar charges of
any kind whatsoever (whether payable directly or by withholding and
whether or not requiring the filing of a Tax Return), and all
estimated taxes, deficiency assessments, additions to tax,
additional amounts imposed by any Governmental Entity, penalties
and interest, (b) any liability for the payment of any amounts
of any of the foregoing types as a result of being a member of an
affiliated, consolidated, combined or unitary group, or being a
party to any agreement or arrangement whereby liability for payment
of such amounts was determined or taken into account with reference
to the liability of any other Person, and (c) any liability
for the payment of any amounts as a result of being a party to any
Tax-Sharing Agreement or with respect to the payment of any amounts
of any of the foregoing types as a result of any express or implied
obligation to indemnify any other Person.
“ Tax
Authority ” means any Governmental Entity having
jurisdiction over the assessment, determination, collection or
imposition of any Tax.
“ Tax
Returns ” means all reports, returns, statements
(including estimated reports, returns or statements) and other
similar filings relating to, or required to be filed in connection
with, any Taxes.
“
Tax-Sharing Agreements ” means all existing contracts
or arrangements (whether or not written) regarding the sharing,
allocation, or payment of Taxes or amounts in lieu of
Taxes.
“ Term
Loan Agreement ” means a term loan agreement
substantially in the form of Exhibit E
“
Termination Date ” has the meaning set forth in
Section 8.1(a)(ii) .
“ TPH
” has the meaning set forth in Section 4.23
.
11
“
Transfer Requirements ” means any consent, approval,
authorization or permit of, or filing with or notification to, any
Person which is required to be obtained, made or complied with for
or in connection with any sale, assignment or transfer of any
System Asset, other than Post Closing Consents, or the Chipeta
Inter

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