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.
The Idaho Gas Storage and Secondary Recovery Unit Agreement is a legally binding contract that establishes the terms and conditions for utilizing gas storage and secondary recovery units in the state of Idaho. This agreement is crucial for companies involved in the oil and gas industry as it enables them to utilize storage facilities and implement secondary recovery techniques to maximize production. Gas storage refers to the process of storing natural gas in underground reservoirs during periods of low demand for later use during peak demand. It provides significant benefits to natural gas producers, marketers, and consumers by ensuring a steady supply and stabilizing prices. The Idaho Gas Storage Agreement outlines the terms under which natural gas can be stored, including capacity allocation, injection and withdrawal rates, usage rights, and storage fees. Secondary recovery, on the other hand, involves the implementation of various techniques to enhance the extraction of oil and gas reserves from existing fields. These techniques typically include injecting gas or other fluids into depleted reservoirs to increase the pressure and push the remaining hydrocarbons towards production wells. The Idaho Secondary Recovery Unit Agreement details the conditions for implementing such techniques, including injection rates, reservoir management, benefits sharing, and environmental considerations. It is important to note that there might be different types of Idaho Gas Storage and Secondary Recovery Unit Agreements, catering to the specific needs of different parties involved. For instance, there could be agreements tailored for gas storage operators, producers, marketers, or end consumers. Each agreement would outline the specific terms and conditions applicable to that particular type of engagement. In conclusion, the Idaho Gas Storage and Secondary Recovery Unit Agreement is a comprehensive contract that enables the efficient utilization of gas storage facilities and the implementation of secondary recovery techniques. These agreements play a vital role in facilitating the oil and gas industry's operations, ensuring an uninterrupted supply of natural gas and maximizing the recovery of valuable hydrocarbon resources.
