This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that outlines the terms and conditions regarding gas balancing and allocation within the state of Illinois. This agreement is typically used by parties involved in gas exploration, production, and distribution in the state. The Gas Balancing Agreement — Form 2 is a crucial component of gas operations in Illinois as it ensures fair and equitable distribution of gas reserves among the participating parties. This agreement helps manage and maintain gas supply efficiently, preventing imbalances and ensuring a steady flow of gas throughout the region. Key elements covered in Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 include: 1. Purpose: This section describes the primary objective of the agreement, which is to establish a framework for gas balancing and allocation among the parties involved. It emphasizes the need for accurate measurement, tracking, and settlement of gas production. 2. Gas Balancing Procedures: The agreement outlines the procedures and methodologies to be followed regarding gas balancing. It includes the nomination and allocation process, measurement standards, and the calculation of imbalances. 3. Gas Balancing Obligations: This section sets out the obligations of each party involved in maintaining gas balance. It defines the responsibilities for measurement, reporting, and settlement of imbalances within specific timeframes. 4. Reconciliation and Settlement: The agreement specifies the procedures for reconciling and settling imbalances among the parties. It delineates the timeline for submitting imbalance statements, invoicing, and payment mechanisms. 5. Dispute Resolution: In the case of disputes arising from the gas balancing process, this section outlines the procedures for resolving conflicts through negotiation, mediation, or arbitration. 6. Term and Termination: This clause establishes the duration of the agreement and the conditions under which it can be terminated. It may also include provisions for renewal or extension if required. It's important to note that there are no distinct types of Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2. However, variations may exist depending on the specific gas exploration and production operations in the state, such as onshore vs. offshore operations, or agreements between different parties involved in the gas industry. In conclusion, the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is an essential legal document that governs gas balancing and allocation in Illinois. It ensures fairness, efficiency, and proper management of gas reserves by outlining procedures, obligations, and dispute resolution mechanisms.
