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.
Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that pertains to the gas balancing agreement between parties involved in the extraction and distribution of natural gas in Kansas. It provides a comprehensive framework for managing and reconciling gas imbalances, ensuring fair allocation of gas resources among the parties involved. Keywords: Kansas Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2, natural gas, extraction, distribution, legal document, gas imbalances, gas resources. There are no different types of Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2, as it is a standardized form used in the state of Kansas for gas balancing agreements within operating agreements. It serves as an addendum or exhibit to the main operating agreement, specifically addressing gas balancing procedures and rights of the parties involved. The purpose of Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is to establish clear guidelines and procedures for the measurement, calculation, and settlement of gas imbalances among the parties. It outlines the responsibilities of each party in maintaining accurate gas measurement systems, reporting gas imbalances, and resolving any discrepancies. The agreement ensures that each party is fairly compensated for gas imbalances, while also encouraging efficient usage and minimizing waste. Some key provisions that may be included in Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 are: 1. Gas Measurement and Reporting: It specifies the requirements for gas measurement, including metering equipment, measurement standards, and frequency of reporting gas volumes. 2. Imbalance Notification: It defines the procedures for notifying the parties of gas imbalances, including reporting timelines and methods of communication. 3. Imbalance Calculation and Settlement: It outlines the formula for calculating gas imbalances and the frequency at which settlements will be conducted. It may also include provisions for penalties or financial adjustments in case of significant imbalances. 4. Balancing Pool: It establishes a pool to which excessive or deficient gas quantities are added or withdrawn to achieve overall balance among the parties. This section defines the rules and procedures governing the balancing pool, including allocations and withdrawals. 5. Dispute Resolution: It includes mechanisms for resolving disputes related to gas imbalances, such as arbitration or mediation procedures. 6. Duration and Termination: It specifies the duration of the gas balancing agreement and the conditions under which it can be terminated or modified. In summary, Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is an important legal document in the natural gas industry, ensuring fair and efficient management of gas imbalances among parties involved in extraction and distribution. It provides clarity, accountability, and a standardized framework for gas balancing procedures within the state of Kansas.
