This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
The Arizona Gas Storage and Secondary Recovery Unit Agreement is a legal contract that outlines the rights and responsibilities between a gas storage facility and a secondary gas recovery facility located in the state of Arizona. This agreement is crucial for ensuring the efficient and effective operation of both facilities and establishing guidelines for the extraction, storage, and retrieval of natural gas resources. One type of Arizona Gas Storage and Secondary Recovery Unit Agreement is the Lease Agreement. This agreement allows the secondary recovery unit to lease a specific area within the gas storage facility for the purpose of extracting and recovering natural gas. The lease agreement typically specifies the duration of the lease, payment terms, and any restrictions or conditions imposed by the gas storage facility. Another type is the Operating Agreement, which governs the day-to-day operations of both the gas storage facility and the secondary recovery unit. This agreement establishes guidelines for the extraction and storage of natural gas and includes provisions for safety, maintenance, and environmental compliance. The operating agreement also outlines the responsibilities and liabilities of each party involved in the operation. In addition to these main types, there may be variations of the Arizona Gas Storage and Secondary Recovery Unit Agreement tailored to specific situations or requirements. For example, there may be agreements that focus on the rental of storage space within the gas storage facility or agreements that address the rights and responsibilities of multiple secondary recovery units operating within the same facility. The purpose of the Arizona Gas Storage and Secondary Recovery Unit Agreement is to ensure the smooth coordination and collaboration between the gas storage facility and the secondary recovery unit. By clearly defining the terms and conditions of their relationship, this agreement minimizes conflicts and establishes a framework for efficient operation, resource management, and compliance with legal and regulatory standards. The agreement typically includes essential details such as the ownership rights of extracted natural gas, operational protocols, access rights, measurement and monitoring procedures, maintenance responsibilities, emergency response plans, insurance requirements, and dispute resolution mechanisms. These clauses aim to protect the interests of both parties and safeguard the overall integrity and productivity of the gas storage and secondary recovery processes. In summary, the Arizona Gas Storage and Secondary Recovery Unit Agreement is a comprehensive legal document that establishes the working relationship between a gas storage facility and a secondary recovery unit in Arizona. Through its various types and iterations, this agreement provides a clear framework for the extraction, storage, and retrieval of natural gas resources, ensuring efficient operation, compliance with regulations, and the protection of the parties' interests.
