California Gas Storage and Secondary Recovery Unit Agreement

State:
Multi-State
Control #:
US-OG-774
Format:
Word; 
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Description

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.

California Gas Storage and Secondary Recovery Unit Agreement is a legally binding contract that governs the terms and conditions of gas storage and secondary recovery unit activities in California. This agreement outlines the rights, obligations, and responsibilities of the parties involved in utilizing gas storage facilities and implementing secondary recovery techniques. Gas storage is a critical aspect of the energy infrastructure in California, allowing for the safe and efficient storage of natural gas for future use. It involves storing excess natural gas during periods of low demand and withdrawing it during times of high demand. The gas storage facilities are strategically located across different regions of California to ensure a reliable and resilient supply of natural gas. Secondary recovery units, on the other hand, are technologies and methods employed to enhance the production and recovery of natural gas from existing reservoirs. These units aim to increase the overall production rate and extend the life of the reservoirs by utilizing various techniques, such as water injection, gas injection, and chemical injection. California Gas Storage and Secondary Recovery Unit Agreement typically includes essential components such as: 1. Parties: The agreement identifies the participating parties involved, including the gas storage facility operator, the secondary recovery unit operator, and any other relevant stakeholders or government authorities. 2. Scope and objectives: The agreement defines the purpose, goals, and specific activities to be conducted under the agreement, including the storage capacity, injection and withdrawal rates, and secondary recovery objectives. 3. Rights and obligations: It outlines the rights and obligations of each party, including access rights, operating procedures, maintenance responsibilities, safety protocols, and compliance with relevant laws and regulations. 4. Financial considerations: This section covers the financial terms, including payment obligations, cost sharing arrangements, billing methods, and any penalties or incentives associated with performance or compliance. 5. Confidentiality and intellectual property: It addresses the protection and confidentiality of any proprietary or sensitive information shared between the parties during the agreement's term. 6. Dispute resolution: The agreement may include a dispute resolution mechanism, such as arbitration or mediation, to address any conflicts or disagreements that may arise during its implementation. There might exist different types of California Gas Storage and Secondary Recovery Unit Agreements based on factors such as the specific gas storage facility, the size of the reservoir, the technology employed for secondary recovery, and the parties involved. These agreements can include variations in terms and conditions depending on the unique characteristics and requirements of each arrangement. In conclusion, the California Gas Storage and Secondary Recovery Unit Agreement is a comprehensive contract that governs the operations and utilization of gas storage facilities and secondary recovery units in California. It ensures efficient gas storage and enhanced reservoir productivity, contributing to the overall reliability and sustainability of the natural gas supply in the state.

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FAQ

Unit Operating Agreement means any operating or unit agreement to which a Company is a party or by which it is legally or contractually bound governing oil and gas drilling, completion, and other operations and related activities in any Unit.

The majority of its natural gas comes from the American Southwest, the Rocky Mountain states, and Canada. The remaining 15% of California's natural gas is produced in-state, both off-shore and onshore. Natural gas-fired electricity generator plants have been the dominant use of natural gas California for many years.

When an oil and gas field is unitized, the various owners of the tracts above the reservoir work together to extract the reservoir's oil and gas. The Unitization Agreement aims to protect the interests of all parties involved while also avoiding some legal pitfalls.

A unit agreement entails a BLM-approved agreement to cooperate in all facets of oil and gas production, without regard to lease boundaries and ownership. All unit agreements are subject to Onshore Oil and Gas Operations regulations (43 CFR Part 3160).

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California Gas Storage and Secondary Recovery Unit Agreement