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.
Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that outlines the specifics of gas balancing agreements related to operating agreements in the state of Maryland. This exhibit provides detailed information about the processes and responsibilities involved in balancing gas usage and maintaining its proper distribution within a designated area. Keywords: Maryland, Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2 1. Purpose: Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 serves the purpose of ensuring a fair and equitable distribution of gas among parties involved in a gas balancing agreement within the state of Maryland. 2. Parties Involved: The agreement involves multiple parties, including gas producers, distributors, and consumers. Each party is identified and described in detail within the exhibit. 3. Balancing Mechanisms: Maryland Exhibit E outlines the methods and procedures by which gas balancing is achieved, including the monitoring of gas quantity, pressure, and flow rate. It describes the mechanisms used to allocate gas among different parties to maintain system integrity. 4. Allocation Criteria: The exhibit explains the allocation criteria used to determine each party's share of gas, accounting for factors such as production capacities, contract terms, and historical usage patterns. 5. Balancing Periods: Different types of gas balancing agreements may have various balancing periods, such as daily, monthly, quarterly, or yearly. Maryland Exhibit E defines the specific duration for each balancing period, depending on the agreement type. 6. Reporting and Communication: The exhibit emphasizes the importance of accurate reporting and timely communication between the parties involved in the gas balancing agreement. It highlights the required frequency and format for submitting gas data and the consequences of non-compliance. 7. Dispute Resolution: Maryland Exhibit E addresses the resolution of any disputes that may arise during the gas balancing process, including the procedures and escalation measures to resolve conflicts. It may also specify the jurisdiction and applicable laws governing dispute resolution. 8. Amendments and Termination: The exhibit allows for potential amendments to the gas balancing agreement, detailing the process and requirements for modifying the agreement. Additionally, it outlines the circumstances under which the agreement can be terminated and the corresponding termination procedures. Types of Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: 1. Daily Gas Balancing Agreement: This type of exhibit outlines the gas balancing procedures on a daily basis, requiring parties to allocate, reconcile, and report gas quantities within a 24-hour period. 2. Monthly Gas Balancing Agreement: In this variant, gas balancing procedures occur on a monthly basis, allowing parties more time to reconcile and allocate gas quantities. Monthly reports and settlements play a significant role in this type of agreement. 3. Long-term Gas Balancing Agreement: This agreement covers a longer duration, such as quarterly or yearly periods. It involves extensive planning, forecasting, and allocations based on historical usage data and projected consumption patterns. It is essential to consult legal experts and relevant documentation to obtain the most accurate and up-to-date information on Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 and its specific variations.
