This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
The Minnesota Gas Storage and Secondary Recovery Unit Agreement is a legal contract that governs the storage and secondary recovery of gas in the state of Minnesota. This agreement outlines the terms and conditions under which gas can be stored and retrieved from designated storage facilities within the state. Gas storage is an important aspect of the energy infrastructure as it allows for the stockpiling of natural gas during periods of low demand and subsequent release during times of high demand. This ensures a consistent supply of gas to meet consumer needs and helps stabilize prices in the market. The agreement establishes the rights and responsibilities of the gas storage facility operator and the gas customers utilizing the storage services. It outlines the technical specifications, operational procedures, and safety protocols that must be adhered to during the storage and recovery processes. In addition to gas storage, the agreement also covers the secondary recovery of gas. This refers to the extraction of additional gas from existing reservoirs or fields, using techniques such as gas injection or enhanced oil recovery. Secondary recovery methods help maximize the extraction of gas resources, prolonging the lifespan of gas fields and ensuring a more efficient use of natural resources. There may be different types of Minnesota Gas Storage and Secondary Recovery Unit Agreements, depending on factors such as the specific gas storage facility, the volume of gas to be stored, and the duration of the agreement. Some agreements may be short-term, spanning only a few months, while others may be long-term, extending for several years. The key components of the agreement include the technical specifications of the storage facilities, such as capacity, pressure limits, and injection/withdrawal rates. It also outlines the financial obligations of the gas customers, including fees for storage services and penalties for non-compliance with the agreement. Safety and environmental considerations are crucial when dealing with gas storage and recovery, and the agreement addresses these aspects as well. It includes provisions for regular inspection and maintenance of the storage facilities, implementation of safety protocols, and compliance with applicable environmental regulations. Overall, the Minnesota Gas Storage and Secondary Recovery Unit Agreement plays a vital role in facilitating the efficient and reliable storage and utilization of gas resources within the state. By providing a legal framework and clear guidelines, the agreement ensures the smooth functioning of gas storage operations, benefiting both the gas industry and consumers alike.
