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.
Indiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document specific to gas balancing agreements in the state of Indiana. This exhibit is a crucial component of the Operating Agreement and serves to outline the roles, responsibilities, and procedures related to gas balancing among the involved parties. Gas balancing agreements are commonly used in the oil and gas industry to regulate the distribution, consumption, and settlement of gas quantities between different parties. These agreements ensure that gas reserves are efficiently utilized and fairly allocated among the participants. The Indiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 provides a comprehensive framework to facilitate this process in accordance with the specific regulations and laws in Indiana. This exhibit may encompass various types of gas balancing agreements, which can depend on the specific circumstances, parties involved, and the nature of the gas operations. Some potential types of Indiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may include: 1. "Production Gas Balancing Agreement": This type of gas balancing agreement typically governs the allocation and distribution of gas produced from various wells within a specific area or field. It establishes a mechanism to account for variances in production rates and ensures an equitable sharing of the produced gas between the parties involved. 2. "Pipeline Gas Balancing Agreement": This type of agreement focuses on the balancing of gas quantities transported through pipelines. It addresses issues such as pressure differentials, volume variations, and operational constraints that may occur during the transportation process. This agreement establishes rules for measuring, monitoring, and rectifying imbalances to maintain a consistent gas supply. 3. "Sales Gas Balancing Agreement": This agreement pertains to the allocation and balancing of gas quantities sold to customers or third parties. It outlines the procedures for measuring, accounting, and reconciling any discrepancies that may arise during gas sales transactions. This agreement ensures accurate invoicing, fair distribution of revenues, and compliance with regulatory requirements. The Indiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 typically includes sections addressing important aspects such as measurement and accounting procedures, allocation methods, penalty provisions for imbalances, reporting and settlement timelines, dispute resolution mechanisms, and other relevant terms and conditions applicable to gas balancing operations in Indiana. Overall, the Indiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 plays a crucial role in facilitating fair and efficient gas balancing practices while ensuring compliance with Indiana's specific regulations and requirements.
