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.
Montana Gas Storage and Secondary Recovery Unit Agreement is a legal contract designed to facilitate gas storage and secondary recovery operations in the state of Montana, United States. This agreement governs the terms and conditions between the gas storage operator and the party utilizing the storage and recovery facilities. The primary objective of this agreement is to provide a framework for the efficient and sustainable utilization of natural gas storage facilities in Montana. It outlines the roles and responsibilities of both the gas storage operator and the party seeking to utilize the facilities. The agreement encompasses various crucial factors, including but not limited to: 1. Storage Capacity: It specifies the agreed-upon capacity of gas storage available to the party utilizing the facilities. This ensures that there is a clear allocation of storage capacity and helps avoid any disputes or misunderstandings. 2. Operating and Maintenance Requirements: The agreement outlines the operational and maintenance obligations of the gas storage operator to ensure the facilities are properly managed and maintained. It stipulates the necessary safety measures and environmental regulations that need to be adhered to during the storage and recovery operations. 3. Injection and Withdrawal Procedures: The agreement includes the procedures and protocols for injecting natural gas into storage, as well as the withdrawal process. It specifies the timelines and quantities of gas that can be injected or withdrawn, enabling efficient and coordinated gas storage operations. 4. Payment Terms: The financial aspects of the agreement are clearly defined, including payment for storage capacity, injection and withdrawal services, and any other applicable fees or charges. This ensures a transparent and fair arrangement between the storage operator and the party utilizing the facilities. Different types of Montana Gas Storage and Secondary Recovery Unit Agreements may exist, tailored to specific circumstances. For instance: 1. Short-term Agreements: These agreements typically cover storage needs with a duration of less than a year. They are suitable for parties seeking temporary or seasonal gas storage solutions. 2. Long-term Agreements: These agreements involve longer durations, extending over multiple years. They are often preferred by parties that require consistent and reliable gas storage capacity for extended periods. 3. Customized Agreements: When parties have unique requirements or specific terms that are not covered in standard agreements, customized agreements can be crafted to address their specific needs. This includes cases where specific recovery processes or advanced technologies are involved. In conclusion, the Montana Gas Storage and Secondary Recovery Unit Agreement regulates the utilization of natural gas storage facilities in Montana. Whether short-term, long-term, or customized, these agreements provide clear guidelines for efficiently managing gas storage and secondary recovery operations, ensuring a smooth and mutually beneficial relationship between the storage operator and the party utilizing the facilities.
