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.
Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document that outlines the terms and conditions for gas balancing activities within an operating agreement in the state of Maryland. Gas balancing refers to the process of adjusting the volumes of gas delivered and received to ensure a balanced energy supply. This agreement is specific to Maryland and is intended to be used as an annex or exhibit to an existing Operating Agreement. It serves as a means to establish a framework for gas balancing activities, ensuring that gas supplies are efficiently allocated, and any imbalances are resolved in a fair and equitable manner. The Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 typically includes various sections that provide comprehensive guidance on gas balancing procedures. These sections may include: 1. Purpose: Outlines the overall objective of the gas balancing agreement, which is to maintain a consistent and balanced gas supply. 2. Definitions: Provides clear definitions of key terms used throughout the agreement, such as "imbalance," "gas day," "base nominated quantity," and "balancing tolerance." 3. Balancing Tolerance: Specifies the acceptable range within which imbalances in gas deliveries and receipts will be deemed acceptable. This section ensures that minor discrepancies are allowed while also providing guidelines for resolving significant imbalances. 4. Imbalance Charges: Describes the methodology for determining charges or penalties associated with imbalances. It may include details on how charges are calculated, the payment terms, and any applicable interest rates. 5. Measurement and Data Exchange: Covers the procedures and requirements for accurate measurement and reporting of gas volumes, as well as the exchange of data between parties involved in the gas balancing agreement. 6. Notifications and Dispute Resolution: Outlines the process for notifying parties of gas imbalances, including the timelines and communication channels. It may also provide information on dispute resolution mechanisms, such as negotiation, mediation, or arbitration. It's important to note that there may be different types of Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, depending on the specific circumstances or parties involved. For example, there might be variations based on the duration of the agreement, the types of gas resources involved (e.g., natural gas, liquefied natural gas), or specific provisions based on Maryland state regulations. In conclusion, the Maryland Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a vital legal document that ensures the effective and efficient balancing of gas supplies within an operating agreement in Maryland. It establishes clear procedures for measuring, reporting, and resolving gas imbalances, ultimately contributing to a balanced energy supply and maintaining fairness among the parties involved.
