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.
Florida Gas Storage and Secondary Recovery Unit Agreement is a contract that defines the terms and conditions governing the use of gas storage and secondary recovery units offered by various service providers in the state of Florida. This agreement is crucial for companies or individuals seeking to utilize such facilities for the storage and retrieval of natural gas. It ensures a mutually beneficial relationship between the storage unit owners and their customers. The primary purpose of this agreement is to outline the rights and responsibilities of both parties involved in the gas storage and secondary recovery process. It covers various aspects, including the terms of use, storage capacity, injection and withdrawal rates, operational procedures, and financial obligations. The terms and conditions may vary depending on the type of storage unit and the service provider. There are different types of Florida Gas Storage and Secondary Recovery Unit Agreements, each tailored to specific requirements. Some common types include: 1. Underground Gas Storage Agreement: This type of agreement covers the storage of natural gas in underground storage reservoirs or depleted gas fields. It typically includes provisions related to well operations, gas injections, compressors, gas quality, and withdrawal procedures. 2. Above ground Gas Storage Agreement: Unlike underground storage, above ground gas storage involves using surface facilities such as tanks or containers for storing natural gas. This agreement focuses on aspects like tank specifications, safety measures, maintenance, and security protocols. 3. Salt Cavern Gas Storage Agreement: Salt caverns are natural formations often used for gas storage due to their high storage capacity and integrity. This agreement governs the use of such caverns, addressing issues like cavern integrity, well operations, injection and withdrawal procedures, and environmental considerations. 4. Enhanced Oil Recovery Gas Agreement: In some instances, gas storage facilities may also be used for secondary recovery, primarily for enhanced oil recovery (FOR) projects. This agreement specifically outlines the terms and conditions related to gas injection into oil reservoirs, including pressure requirements, injection rates, and monitoring procedures. These various Florida Gas Storage and Secondary Recovery Unit Agreements aim to ensure a transparent and productive relationship between the service providers and their customers. Both parties must carefully review and negotiate the terms of the agreement to meet their specific needs while adhering to state regulations and industry best practices.
