This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document that plays a significant role in the gas industry. This agreement is specifically tailored to address the gas balancing requirements within the state of Iowa. Here, we will provide a detailed explanation of what this agreement entails, along with its various types and key components. The Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 serves as a legally binding contract between gas companies, typically referred to as the "Parties", operating within Iowa. This agreement primarily focuses on managing gas imbalances between the sellers and purchasers involved in the gas trade. It establishes the rules, procedures, and responsibilities necessary to ensure efficient gas balancing operations. One of the key types of Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is the "Third-Party Balancing Agreement." This type involves a third-party entity acting as a mediator, managing the gas imbalances between the sellers and purchasers. The third party helps reconcile any discrepancies in gas quantities exchanged, ensuring both parties accurately account for their gas volumes. Another notable variation of Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is the "Virtual Pooling Agreement." This type allows gas companies to pool their gas resources and jointly manage gas balancing. By consolidating their resources, the parties can optimize gas utilization, reduce imbalances, and minimize costs associated with balancing. Regardless of the specific type, the Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 commonly includes essential elements. These components typically consist of: 1. Gas Imbalance: This section outlines the definitions and measurement units for gas imbalances. It describes how imbalances are calculated, tracked, and billed. 2. Balancing Periods: The agreement specifies the duration of balancing periods during which the gas imbalances are measured and resolved. 3. Notification Procedures: It details how and when the Parties shall communicate gas imbalances and related information, ensuring effective coordination. 4. Penalty Framework: This section establishes penalties or charges levied on the party responsible for imbalances, encouraging accountability and incentivizing accurate gas balancing. 5. Dispute Resolution: In case of disputes or disagreements regarding gas imbalances, this provision provides a framework for resolving conflicts through arbitration or mediation. 6. Termination Clause: This section outlines the circumstances and procedures for terminating the agreement, safeguarding the interests of all parties involved. In conclusion, the Iowa Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document that ensures efficient gas balancing operations within the state. Its various types, including the Third Party Balancing Agreement and Virtual Pooling Agreement, cater to different industry requirements. By addressing key components such as gas imbalances, balancing periods, penalties, and dispute resolution, this agreement promotes fair and transparent gas trading practices in Iowa's gas industry.
