This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
Louisiana Gas Storage and Secondary Recovery Unit Agreement is a contractual agreement established between gas storage operators and secondary recovery unit owners in the state of Louisiana. This agreement governs the operation and maintenance of secondary recovery units, which are responsible for enhancing gas recovery from existing storage wells. In the oil and gas industry, secondary recovery techniques are employed to maximize the production of natural gas and petroleum reserves. These techniques, such as water flooding and gas injection, are used after the primary recovery methods have been exhausted. In Louisiana, the Gas Storage and Secondary Recovery Unit Agreement regulates the collaboration between gas storage operators and secondary recovery unit owners to optimize gas recovery and maintain the efficiency of the operations. This agreement outlines various aspects, including the allocation of costs, responsibilities, and obligations between the storage operators and secondary recovery unit owners. It specifies the terms and conditions under which the secondary recovery units can operate within the gas storage infrastructure. The Louisiana Gas Storage and Secondary Recovery Unit Agreement encompasses different types of agreements, depending on the specific arrangements between the involved parties. These may include: 1. Operating Agreement: This details the operational guidelines, responsibilities, and procedures governing the secondary recovery unit's functioning within the gas storage facilities. It includes provisions related to reservoir engineering, injection rates, withdrawal regulations, and coordination with the gas storage operator. 2. Cost-Sharing Agreement: This agreement addresses the distribution of costs incurred during the secondary recovery operations. It outlines the allocation of expenses related to maintenance, repairs, equipment upgrades, and any other necessary activities carried out by both parties. 3. Storage and Recovery Contract: This agreement focuses on the commercial aspects of the collaboration between storage operators and secondary recovery unit owners. It covers the pricing of gas storage services, payments, delivery terms, and any other pertinent financial arrangements. 4. Environmental Agreement: This type of agreement outlines the environmental responsibilities, including compliance with regulations, monitoring, and mitigation measures related to the operation of the secondary recovery units. It ensures that all activities align with environmental standards and practices. Overall, the Louisiana Gas Storage and Secondary Recovery Unit Agreement serves as a vital framework for the effective and organized operation of secondary recovery units, allowing gas storage operators and secondary recovery unit owners to work together seamlessly, optimize gas recovery, and promote sustainable practices.
