This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document that outlines the specific terms and conditions related to gas balancing in Michigan. This exhibit is an integral part of the larger operating agreement, serving as a comprehensive guideline for gas producers, operators, and other stakeholders involved in gas production and transportation. The Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 typically covers various aspects related to gas balancing, including but not limited to: 1. Purpose: This section defines the purpose of the gas balancing agreement, which is to ensure a fair and efficient allocation of gas quantities between the parties involved. It emphasizes the need for accurate measurement and calculation methods to determine gas imbalances and the subsequent settlement procedures. 2. Definitions: The exhibit provides a detailed list of defined terms specific to gas balancing in Michigan. These definitions help in avoiding misunderstandings between the parties and provide a common understanding of technical terms and concepts. 3. Measurement and Calculation: This section lays out the methodology and procedures for gas measurement, including the use of approved devices and instruments. It also outlines calculation methods for determining gas imbalances, differentiating between "production meter imbalances" and "transportation meter imbalances." 4. Imbalance Notification and Reporting: Parties to the agreement are required to promptly notify each other of any imbalance detected. This section explains the necessary procedures for reporting imbalances, including the timeframe, format, and content of the notifications. 5. Imbalance Settlement: This section specifies the process for resolving gas imbalances, which may involve cash payments, gas compensation, or other agreed-upon methods. It details the responsibilities of each party in reconciling imbalances, setting deadlines for resolution, and establishing penalties for non-compliance. 6. Dispute Resolution: In the event of any disagreements or disputes regarding gas balancing, this section outlines the dispute resolution mechanism, highlighting mediation or arbitration as possible methods for resolving conflicts. It's worth noting that there may not be different types of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3. However, specific agreements may have unique variations or additional provisions based on the parties' requirements, regional regulations, or industry standards. Therefore, it is essential to carefully review the specific agreement to understand its precise content and implications.
