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.
Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial legal document that outlines the gas balancing obligations and procedures for parties involved in the gas industry in Michigan. This agreement ensures the efficient and equitable balancing of gas supplies and demands within the state. It contains various provisions and terms that govern the gas balancing process, helping to maintain a stable and reliable gas supply for consumers. Some key elements covered in Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 include: 1. Gas Balancing Methodology: This section describes the specific methodology utilized for gas balancing, such as the use of hourly or daily balancing, tolerance limits, and calculation procedures. These measures are implemented to minimize imbalances and ensure fair distribution of gas among the parties. 2. Measurement and Reporting: This portion outlines the requirements for accurate gas measurement, recording, and reporting. Parties are obligated to measure and report their gas usage and imbalances regularly to maintain transparency and enable effective balancing. 3. Balancing Tolerance: It delineates the permissible deviation range allowed for gas imbalances. Parties must strive to maintain their gas supply and demand within these tolerance limits to avoid penalties or disputes. 4. Balancing Obligations and Responsibilities: This section specifies the responsibilities and obligations of each party involved in gas balancing. It may include actions such as adjusting gas flows, scheduling imbalances, and taking corrective measures to rectify imbalances promptly. 5. Penalties and Dispute Resolution: The agreement defines penalties or charges for exceeding the balancing tolerance limits, including any penalties for under or over-delivering gas during specified periods. Additionally, it may outline the procedure for dispute resolution, providing a mechanism to address conflicts and concerns related to gas balancing. Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may have various types or versions, depending on the specific gas transportation or distribution system, contractual agreements between parties, and regional regulations. It is important to review the precise content of each version to comprehend any unique provisions or amendments tailored to specific circumstances. Some possible variations of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 could include those adapted for interstate pipelines, intrastate pipelines, local distribution companies, gas storage facilities, or industrial consumers. Each variation may have distinct terms relevant to its respective operations and requirements. Understanding the specifics of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is essential for all parties involved in the gas industry in Michigan. Compliance with the agreement ensures a more efficient, reliable, and balanced gas supply, benefiting all stakeholders.
