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.
Hawaii Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document that is typically used in the oil and gas industry. This agreement specifically pertains to gas balancing in the state of Hawaii. The purpose of the agreement is to establish a framework for managing gas balancing activities between the parties involved. Gas balancing refers to the process of ensuring that the supply and demand of natural gas in a specific area are harmonized. This is crucial for maintaining the stability and reliability of the gas supply and distribution network. The gas balancing agreement outlines the responsibilities, obligations, and procedures that the parties must adhere to in order to achieve this balance. There may be different types of Hawaii Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, depending on the specific industry, company, or location. These types could include variations based on the project scope, size, and complexity of the gas balancing operations. Additionally, the agreement might differ depending on whether it is being utilized for onshore or offshore gas operations in Hawaii. The key contents of the agreement typically include: 1. Purpose and Scope: Outlines the overall objective of the gas balancing agreement, providing a high-level view of what is to be achieved. 2. Definitions: Offers clear definitions of key terms and phrases used throughout the agreement for the sake of clarity and consistency. 3. Parties' Responsibilities: Lists the duties, roles, and obligations of the parties involved in the gas balancing operations, including gas suppliers, distributors, and regulatory bodies. 4. Gas Balancing Principles: Describes the fundamental principles, methodologies, and guidelines to be followed when managing gas balancing activities. This may encompass procedures for measuring gas quantities, scheduling, imbalances, and penalties for non-compliance. 5. Gas Balancing Procedures: Provides step-by-step instructions on how the gas balancing process will be carried out, including reporting and documentation requirements, nomination and confirmation procedures, gas allocation, and settlement mechanisms. 6. Dispute Resolution Mechanisms: Details the methods for resolving any disputes that may arise between the parties, such as mediation, arbitration, or litigation. 7. Term and Termination: Specifies the duration of the agreement and the conditions under which it can be terminated, including breach of contract, force majeure events, or mutual agreement. It is worth noting that the specific content and structure of Hawaii Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may vary, as it is often customized to meet the specific needs and requirements of the parties involved and the local regulations governing gas operations in Hawaii.
