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.
Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that specifies the terms and conditions of gas balancing agreements in the state of Michigan. This agreement ensures the efficient management and allocation of natural gas resources among multiple parties involved in gas production, transportation, and distribution. The Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is typically divided into sections that outline the following key aspects: 1. Purpose: This section explains the overall purpose and objectives of the gas balancing agreement. It defines the roles and responsibilities of each party involved and sets the framework for balancing gas supply and demand. 2. Definitions: This section provides a comprehensive list of terms and definitions used throughout the agreement. It clarifies any ambiguous or technical language, ensuring a shared understanding among all parties. 3. Measurement and Reporting: This section outlines the procedures and protocols for measuring and reporting gas volumes. It defines the measurement units, standards, and frequency of reporting, ensuring accurate tracking of gas flows. 4. Balancing Mechanism: This section describes the specific mechanisms for balancing gas supply and demand. It may include provisions for over-deliveries, under-deliveries, and penalties or credits associated with imbalances. 5. Gas Balancing Statement: This section explains the format and content of the gas balancing statement, which summarizes the gas flows and imbalances for each party. It outlines the timelines for providing and reviewing these statements to ensure transparency and accuracy. 6. Dispute Resolution: This section provides a framework for resolving disputes related to gas balancing. It may specify the escalation process, mediation or arbitration procedures, and the governing law applicable to resolving conflicts. Types of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: 1. Standard Gas Balancing Agreement: This is the most common type of gas balancing agreement used in Michigan. It covers the general requirements for balancing gas supply and demand and is suitable for most gas-related operations. 2. Customized Gas Balancing Agreement: In some cases, parties may require specific modifications or additional provisions in their gas balancing agreement. These customizations can address unique operational or contractual requirements and are tailored to the parties' specific needs. It is important to note that Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 should be reviewed and executed by legal professionals familiar with Michigan's gas industry regulations to ensure compliance and fair treatment of all parties.
