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.
Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a contractual document specifically related to gas balancing agreements within the state of Montana. This exhibit serves as an attachment to the operating agreement, providing detailed provisions and guidelines for gas balancing activities. Keywords: Montana, Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2. Gas balancing agreements are essential in the natural gas industry to maintain equilibrium between producers and transporters. The Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 outlines the specific terms and conditions governing gas balancing activities in the state. This exhibit encompasses various aspects, including gas measurement, allocation, and settlement procedures. It establishes the necessary framework to ensure accurate calculations of gas quantities, ensuring fair distribution among the parties involved. Different types of Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist, customized for specific projects or entities operating in Montana's gas industry. These variations typically reflect specific requirements, such as contractual obligations, gas balancing frequency, reporting procedures, and dispute resolution mechanisms. Within this exhibit, gas measurement provisions play a vital role. It defines standardized methods for measuring the volume and quality of gas extracted from wells, providing clarity and transparency in the gas balancing process. Furthermore, it sets guidelines for accuracy and frequency of gas measurement, ensuring the precise determination of gas imbalances. Allocation procedures are another crucial component addressed in Montana Exhibit E. They establish the methodology to allocate gas volumes among multiple parties involved in gas production, transportation, and consumption. The exhibit outlines the procedures for accurately sharing the production or transport imbalance impacts, preventing any unfair advantages or disputes. Settlement procedures, as specified in Montana Exhibit E, define the financial aspects of gas balancing. These provisions govern the monetary compensations or adjustments agreed upon in case of imbalances. The document may include guidelines for payment timelines, penalty calculations for imbalances exceeding pre-defined thresholds, and reimbursement procedures for parties affected by imbalances. In conclusion, Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a crucial attachment that ensures the smooth operation of gas balancing activities in Montana. It addresses several key areas, including gas measurement, allocation, and settlement procedures, to maintain fairness and accuracy in gas balancing for parties involved in the state's gas industry.
