This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document that outlines the terms and conditions regarding gas balancing in Delaware operating agreements. This exhibit serves as an addendum to the operating agreement, specifically addressing the gas balancing aspect. Gas balancing refers to the process of ensuring that any imbalances between the produced and consumed natural gas are appropriately managed and accounted for. It plays a crucial role in maintaining the equilibrium of gas supply and demand within the operating agreement. The Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 includes several relevant provisions and sections, addressing various aspects of gas balancing. Some key keywords associated with this document are: 1. Operating Agreement: This refers to the main agreement governing the operations and activities of the parties involved in the gas production and distribution within Delaware. 2. Gas Balancing: It highlights the process of reconciling any discrepancies between the produced and consumed natural gas within the operating agreement. 3. Imbalances: This term refers to the differences in the quantity of gas produced and the amount consumed, which need to be addressed and regulated. 4. Measurement and Accounting: It outlines the methodologies and protocols for accurately measuring and accounting for the gas production and consumption, ensuring fairness and transparency. 5. Parties: This refers to the entities or individuals involved in the operating agreement, which could include gas producers, consumers, and any other relevant stakeholders. 6. Gas Balancing Agreement: This exhibit provides a specific agreement dedicated solely to gas balancing, elaborating on the processes, responsibilities, and obligations of the parties involved in maintaining gas equilibrium within the operating agreement. 7. Gas Supply and Demand: These terms indicate the overall dynamics between the availability of gas supply and the requirements or demand for gas within the operating agreement. Different types of Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may exist, specific to the industry, company, or contractual variations. These variations could include differing clauses, additional provisions, or modifications to suit the specific requirements of the involved parties. It is essential to review the specific version of this exhibit applicable to your specific operating agreement for accurate understanding and compliance.
