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.
Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legally binding document used in the energy industry to regulate and maintain the balance of natural gas supply and demand within Iowa. This agreement is a crucial component for companies involved in producing, transporting, and distributing natural gas in Iowa. The purpose of Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is to establish a framework that ensures the efficient and reliable operation of the natural gas system in Iowa. By setting out clear guidelines and procedures, this agreement helps prevent imbalances between gas supply and demand, thereby promoting consistent delivery to end-users. There are different types of Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, which may vary based on the specific parties involved, the duration of the agreement, and the terms and conditions outlined. Some key variations may include: 1. Short-term Gas Balancing Agreement: This type of agreement typically covers a shorter duration, such as a month or a quarter. It may be suitable for companies with relatively stable gas supply and demand patterns or where there is a need for periodic adjustments. 2. Long-term Gas Balancing Agreement: A long-term agreement may span several years and is ideal for companies that require a more extended commitment. This type of agreement allows for greater stability and predictability in gas supply and demand. 3. Customized Gas Balancing Agreement: Depending on the unique requirements and circumstances of the parties involved, a customized gas balancing agreement may be created. This allows for flexibility in tailoring specific clauses and provisions to suit individual needs. The Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 typically includes several essential components: 1. Parties: It identifies the participating entities or companies involved in the agreement, including their legal names, addresses, and contact details. 2. Purpose and Scope: This section describes the overall objective of the agreement, which is to establish gas balancing mechanisms and outlines the geographic scope or specific areas within Iowa covered by the agreement. 3. Gas Balancing Procedures: The agreement details the procedures and protocols to maintain gas balance and addresses how imbalances are to be rectified, including scheduling requirements, measurement standards, and reconciliation processes. 4. Measurement and Reporting: This section defines the measurement and reporting standards for gas balancing, including the frequency and format for submitting metering data, imbalances, and settlements. 5. Financial Matters: The agreement specifies the financial aspects related to balancing gas supply and demand, including penalties for imbalances, mechanisms for resolving disputes, and invoicing and payment procedures. 6. Duration and Termination: It stipulates the duration of the agreement, typically including a start and end date. Additionally, it may outline provisions for termination, extension, and renewal. Overall, Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 serves as a crucial tool for maintaining the reliability and efficiency of natural gas operations in Iowa. Through clear guidelines and procedures, it facilitates seamless coordination between parties involved in gas production, transportation, and distribution, ultimately benefiting both the industry and end-users.
