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.
The Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a vital document that outlines the specific terms and conditions related to gas balancing in the state of Kansas. This agreement is generally used in the oil and gas industry and is crucial for effectively managing gas production and distribution activities. The purpose of the Kansas Exhibit E is to establish a fair and equitable gas balancing mechanism that ensures the accurate measurement and allocation of gas quantities between parties involved in the agreement. It provides a framework for handling any imbalances that may occur due to operational issues or discrepancies in gas measurements. There are various types of Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, each tailored for specific scenarios and circumstances. These may include: 1. Kansas Exhibit E for Joint Venture Operators: This type of agreement is typically applicable to joint venture partnerships where multiple operators are involved in the production and distribution of gas. It outlines the obligations, responsibilities, and rights of each operator regarding gas balancing. 2. Kansas Exhibit E for Working Interest Owners: This form is designed for working interest owners who have a share in the gas production from a particular lease or well. It outlines the gas balancing procedures and requirements for such owners. 3. Kansas Exhibit E for Pipeline Companies: This version of the agreement is specific to pipeline companies that transport gas from producers to end-users. It focuses on the gas balancing provisions, responsibilities, and penalties for the pipeline operators. 4. Kansas Exhibit E for Gas Marketers: Gas marketers, who buy gas from producers and sell it to customers, have their own version of the agreement. This exhibit outlines the gas balancing requirements and procedures for gas marketers, ensuring accurate measurement and allocation. In conclusion, the Kansas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document in the oil and gas industry, aiming to establish a fair gas balancing mechanism and ensure accurate measurement and allocation of gas quantities. Different types of exhibits exist, tailored for joint venture operators, working interest owners, pipeline companies, and gas marketers, addressing their specific roles and responsibilities in gas balancing.
