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.
Mississippi Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a crucial document in the oil and gas industry that outlines the terms and conditions for gas balancing activities under an operating agreement in Mississippi. This agreement is designed to ensure the efficient and equitable allocation of natural gas production and royalties among the participating parties. The main objective of this exhibit is to establish a mechanism for maintaining a proper gas balance between the producer and the purchaser. It addresses the issue of imbalances that may result from variations in production, transportation, and consumption of natural gas. The purpose is to ensure that all parties receive their fair share of gas production and mitigate any potential financial losses or disputes. Mississippi Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 typically includes several key sections. These may include: 1. Definitions: This section provides clear definitions of terms used throughout the agreement, ensuring that all parties are on the same page and understand the language and terminology. 2. Balancing Operations: This section outlines the procedures and responsibilities involved in gas balancing operations. It may address topics such as measuring gas production, reporting imbalances, and resolving discrepancies. 3. Imbalances and Deviations: This section explains how imbalances are calculated and managed. It may specify the timeframe for balancing and the consequences of extended imbalances, such as financial penalties or adjustments in future production. 4. Measurement and Reporting: This section details the requirements for accurate measurement and reporting of gas production, transportation, and consumption. It may outline the use of specific measurement units, reporting frequency, and the exchange of relevant data between parties. 5. Dispute Resolution: This section establishes a framework for resolving disputes that may arise from gas balancing activities. It may include provisions for negotiation, mediation, or arbitration to reach a fair and reasonable resolution. Different types or variations of Mississippi Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist, depending on the specific needs and circumstances of the participating parties. These could include modifications to certain clauses, additional sections addressing unique operational requirements, or provisions tailored to different reservoir characteristics or contractual arrangements. In summary, Mississippi Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a critical document that outlines the procedures and mechanisms for gas balancing operations under an operating agreement in Mississippi. It ensures fair and efficient allocation of gas production and royalties, mitigates imbalances, and provides a framework for dispute resolution.
