This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a document that outlines the terms and conditions related to gas balancing agreements in the state of Kansas. This exhibit is commonly used in the oil and gas industry and plays a crucial role in ensuring fair and efficient gas operations. The purpose of this document is to establish a framework for balancing gas production and consumption among different parties involved in gas operations. It outlines the methodology, procedures, and obligations for measuring, monitoring, and adjusting gas quantities to maintain equilibrium in the system. The Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 typically covers several key aspects, including: 1. Gas Measurement: This section defines the requirements for accurate measurement of gas quantities at various points within the operation. It outlines the installation, maintenance, and testing of measurement equipment to ensure accurate and consistent readings. 2. Balancing Obligations: This part of the exhibit details the obligations of each party involved in the gas balancing agreement. It specifies the responsibility to deliver or receive gas to maintain balance and outlines the consequences for failure to meet these obligations. 3. Settlement and Imbalance Charges: This section covers the process of settling imbalances between parties. It outlines the calculation of any imbalance charges or penalties that may apply in case of a deficit or surplus of gas quantities. The procedures for billing and payment of such charges are also described. 4. Dispute Resolution: In case of disputes or disagreements related to gas balancing, this section explains the procedures for resolving conflicts. It may include mediation, arbitration, or other dispute resolution methods to ensure fair and efficient resolution. Different variations or versions of the Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may exist due to updates, revisions, or customization based on specific gas operations or contractual arrangements. However, the core purpose and content of the exhibit remain consistent, focusing on gas measurement, balancing obligations, settlement of imbalances, and dispute resolution. It is essential for parties entering into gas balancing agreements in Kansas to carefully review the specific exhibit and understand its terms and clauses to ensure compliance and avoid any potential disputes or financial liabilities.
