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.
Minnesota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that outlines the terms and conditions for gas balancing agreements in Minnesota. This exhibit serves as an attachment to the operating agreement between two parties involved in gas production or distribution. In this agreement, the parties agree to balance the gas supply and demand, ensuring that the gas delivered matches the gas consumed. The exhibit specifies the responsibilities, obligations, and procedures for gas balancing, including the measurement, allocation, notification, and reconciliation of gas imbalances. Some key elements covered in this exhibit include: 1. Gas Balancing Procedure: This section outlines the step-by-step process for gas balancing, including the establishment of a gas balancing account, measurement of gas quantities, calculation of imbalances, and the timeline for notification and reconciliation. 2. Measurement and Allocation: This clause details the methods and equipment used for measuring gas quantities, allocation of imbalances among the parties, and the frequency and accuracy of measurements. 3. Imbalance Notification: This section explains the requirements for notifying the other party about any imbalances in gas supply and demand. It specifies the timeline for providing notifications, the necessary information to include in the notice, and the communication channels to be used. 4. Reconciliation and Settlement: This part outlines the procedures for the regular reconciliation of imbalances and the subsequent settlement of any financial obligations resulting from such imbalances. It includes provisions for penalties, interest charges, and dispute resolution. It is important to note that different variations of Minnesota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist. Some variations could include additional clauses or modifications tailored to specific gas production or distribution scenarios. It is advisable to review the specific version of the exhibit applicable to a particular agreement to ensure compliance with relevant laws and regulations. Overall, the Minnesota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 provides a comprehensive framework for gas balancing practices in Minnesota, ensuring fair and efficient gas distribution while minimizing imbalances and related financial impacts.
