This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that outlines the terms and conditions related to gas balancing agreements in the state of Kentucky. This agreement is commonly used in the oil and gas industry to ensure proper allocation and distribution of gas resources among the parties involved in production and transportation. The Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a comprehensive document that covers various aspects of gas balancing arrangements. It specifies the responsibilities and obligations of the parties involved, including the gas producers, transporters, and purchasers. This agreement helps to maintain fair and efficient gas balancing practices, ensuring smooth operations and reducing disputes among the parties. Some key provisions covered in the Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 include: 1. Gas Balancing Methodology: This section outlines the methodology for gas balancing, including the formulas and calculations used to determine the gas allocation and imbalances. It establishes guidelines for measuring, accounting, and reporting gas production and consumption. 2. Notice and Communication: This section highlights the importance of timely communication between the parties involved. It specifies how notices and reports regarding gas imbalances and corrective actions should be provided, ensuring transparency and effective coordination. 3. Imbalance Charges: This clause addresses the financial implications of gas imbalances. It defines the charges or penalties applied to parties responsible for imbalances and outlines the payment terms and mechanisms. 4. Dispute Resolution: The Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 includes provisions to resolve disputes related to gas balancing. It outlines the process for resolving conflicts, including negotiation, mediation, or arbitration, to ensure fair resolutions and prevent prolonged disputes. It is essential to note that there may be variations or different versions of the Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1, depending on specific circumstances or contractual arrangements. These variants may include additional provisions or modifications tailored to meet the unique needs of the parties involved or comply with state regulations. In conclusion, the Kentucky Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a crucial legal document in the oil and gas sector. It establishes the terms for gas balancing practices, ensuring fair allocation and distribution of gas resources among the parties involved. Compliance with this agreement helps maintain efficient operations, reduces disputes, and facilitates smooth functioning of the gas industry in Kentucky.
