This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, also known as the Gas Balancing Agreement, is a vital document that outlines the terms and conditions for effectively managing the gas balancing process in Montana. This agreement serves as a legally binding contract between the parties involved in gas production, transportation, and distribution activities. The Gas Balancing Agreement (GBA) acts as an addendum to the Operating Agreement, specifically addressing gas balancing issues. It ensures that gas supplies are maintained at optimal levels to meet market demands while minimizing imbalances between various gas producers and transportation entities. Key components covered in Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 include: 1. Purpose: This section provides a clear understanding of the purpose of the agreement and its objective, which is to establish a mutually beneficial gas balancing arrangement for all parties involved. 2. Definitions: The agreement includes a list of definitions to clarify the meaning of specific terms used throughout the document. Terms such as imbalances, nominated quantities, operating agreement, and gas balancing are well-defined to avoid ambiguity. 3. Balancing Mechanism: This section outlines the gas balancing mechanism used to calculate and resolve imbalances. It specifies the responsibilities of each party involved in balancing operations, including gas producers, pipeline operators, and any intermediaries. 4. Nominated Quantities and Reporting: This part details the process of nominating gas quantities by the gas producers, along with reporting requirements for accurate monitoring of gas flows. It ensures transparency in reporting and facilitates the resolution of any discrepancies promptly. 5. Measurement and Metering: The agreement specifies the measurement and metering requirements for accurate recording of gas quantities flowing through the pipeline system. It emphasizes the use of reliable measurement techniques and appropriate metering equipment. 6. Notification and Communication: This section describes the necessary protocols for timely communication between the parties regarding nominations, imbalances, and resolution measures. It establishes clear channels of communication and response times to ensure effective coordination during gas balancing operations. 7. Resolution of Imbalances: Montana Exhibit E provides a framework for resolving imbalances among the parties involved. It discusses the calculation of penalties for imbalances and outlines the procedures for balancing gas quantities and settling any outstanding amounts. Different types of Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may exist depending on the specific gas balancing requirements for different regions, pipelines, or gas fields in Montana. These variations may include additional clauses or provisions tailored to address specific operational needs or regulatory requirements applicable to a particular area. Overall, Montana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 establishes a standardized framework to ensure efficient gas balancing operations, maintain fair distribution, and resolve imbalances amicably.
