This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a crucial document used in the oil and gas industry to ensure proper gas balancing and distribution among parties involved in a project. This agreement outlines the terms and conditions for managing gas imbalances, which can occur due to variations in production, utilization, or transportation. The purpose of the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is to maintain fairness and efficiency in the gas supply chain while minimizing potential disputes between parties. It helps in establishing a framework for accurately measuring, monitoring, and reconciling imbalances between actual gas deliveries and nominations. Key terms and sections mentioned in the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 include: 1. Gas balancing procedures: This section details the methodology for calculating imbalances, including flow measurement devices, agreed-upon units for measurement, and frequency of reporting. 2. Measurement and accuracy: It outlines the standards and requirements for gas measurement, calibration, and accuracy to ensure fairness in the allocation of imbalances. 3. Balancing responsibilities: This section defines the responsibilities of each party involved, including operators, transporters, and shippers, in maintaining and managing their gas balances. 4. Imbalance resolution: It establishes the process for reconciling gas imbalances, including systematic correction methods, balancing charges or credits, and the timeline for resolution. 5. Notification and reporting: Parties are required to promptly notify each other regarding any suspected or confirmed imbalances, as well as submit regular reports to track the status of imbalances. Different types of Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may exist depending on the specific gas project, but generally, they serve the same purpose of ensuring fair and balanced gas operations. Examples of variations may include amendments or revisions to the original agreement, different distribution scenarios, or specific state regulations that need to be incorporated. In summary, the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is an essential document that provides a comprehensive framework for managing gas imbalances in the oil and gas industry. It aims to maintain fairness, accuracy, and transparency in gas allocation and enables efficient coordination among parties involved.
