Mississippi Gas Storage Service Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1014
• Format: Word; Rich Text

Description

This is an agreement for gas storage service.

The Mississippi Gas Storage Service Agreement is a legally binding contract between a gas storage service provider and a customer. This agreement outlines the terms and conditions for the utilization of gas storage facilities and services in the state of Mississippi. In general, the Mississippi Gas Storage Service Agreement governs the storage, withdrawal, injection, and transportation of natural gas. It establishes the obligations, rights, and responsibilities of both the storage service provider and the customer. This allows for a smooth operation of gas storage facilities, ensuring efficient delivery of gas supplies in a reliable and controlled manner. Key elements and clauses commonly found in a Mississippi Gas Storage Service Agreement include: 1. Parties Involved: The agreement identifies the storage service provider, typically a gas storage company, and the customer, which can be a gas distributor, producer, or end-user. 2. Term: It stipulates the duration of the agreement, including the start and end dates or the mechanisms for termination or renewal. 3. Storage Capacity: The agreement defines the volume or capacity of gas storage that the customer is entitled to utilize. It may specify the maximum withdrawal and injection rates, as well as any limitations or restrictions. 4. Rates and Charges: The agreement delineates the fees, rates, and charges for storage services, such as injection, withdrawal, cushion gas, and imbalances. These costs may vary depending on factors like seasonal demand, storage capacity, or duration of service. 5. Scheduling and Nominations: It details the procedures and deadlines for customers to nominate and schedule their gas storage activities, ensuring effective coordination with the storage provider's operations. 6. Force Mature: This clause addresses unforeseen events that may hinder the fulfillment of the agreement, such as natural disasters, emergencies, or regulatory actions. It outlines the obligations and liabilities of both parties in such instances. 7. Access and Operating Procedures: The agreement specifies the operating rules and protocols for accessing and utilizing the storage facilities. This includes safety measures, nomination procedures, operating hours, communication channels, and any specific requirements or standards. 8. Liability and Indemnification: It highlights the liability limits of the storage service provider and customer and establishes provisions for indemnification in case of damages, losses, or accidents arising from the use of storage facilities. Different types of Mississippi Gas Storage Service Agreements may exist based on specific arrangements or services required: 1. Firm Storage Agreement: Provides the customer with assured and uninterrupted access to a specific storage capacity throughout the agreed-upon term. 2. Interruptible Storage Agreement: Offers storage services based on availability, subject to interruption during high-demand periods or when the storage provider requires the capacity for other purposes. 3. Wheeling Agreement: Allows the customer to transport gas from one location to another through the storage provider's facilities, offering flexibility in supply routes. 4. Park-and-Loan Agreement: Enables customers to park excess gas supplies in storage during low-demand periods and withdraw them when required, facilitating inventory management. Overall, the Mississippi Gas Storage Service Agreement plays a vital role in ensuring the reliable storage and safe transportation of natural gas within the state. It provides a framework for clear communication, efficient operations, and fair business practices between the storage service provider and its customers.