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.
The North Carolina Gas Storage and Secondary Recovery Unit Agreement refers to a legally binding contract executed between parties involved in the gas storage and secondary recovery industry in North Carolina. This agreement outlines the terms and conditions under which gas storage and secondary recovery operations are conducted, providing clarity and protection for all parties involved. Gas storage involves the process of injecting natural gas into underground reservoirs during periods of low demand, to be withdrawn during periods of high demand. Secondary recovery, on the other hand, refers to the extraction of additional natural gas from reservoirs after the primary recovery phase. There might be different types of North Carolina Gas Storage and Secondary Recovery Unit Agreements, each tailored to specific needs and scenarios. Some of these variations may include: 1. Conventional Gas Storage and Secondary Recovery Agreement: This agreement covers standard gas storage and secondary recovery operations, typically involving traditional reservoirs suitable for storing and extracting natural gas. 2. Enhanced Gas Storage and Secondary Recovery Agreement: This type of agreement outlines provisions for more advanced techniques and technologies employed in gas storage and secondary recovery. It may involve the use of hydraulic fracturing (fracking) or carbon capture and storage (CCS) methods to enhance gas recovery rates. 3. Underground Gas Storage and Secondary Recovery Agreement: This agreement specifically focuses on gas storage and secondary recovery operations conducted underground. It defines the responsibilities and rights of the parties involved in utilizing underground reservoirs for storing and extracting natural gas. 4. Compressed Natural Gas (CNG) Storage and Secondary Recovery Agreement: This type of agreement pertains to the storage and recovery of compressed natural gas, typically in mobile or portable containers. It could involve agreements between gas producers, storage facility operators, and transportation companies utilizing CNG as an alternative fuel source. The North Carolina Gas Storage and Secondary Recovery Unit Agreement typically covers various aspects, including but not limited to: — Parties involved: The agreement clearly identifies and outlines the responsibilities of the gas storage facility operators, gas producers, and any other relevant stakeholders. — Storage rights and obligations: It establishes the rights of the gas producers to store their natural gas in the designated storage facilities and defines the obligations of the facility operators in maintaining and providing access to the stored gas. — Withdrawal terms: This section specifies the conditions under which the stored gas may be withdrawn and the associated procedures, including delivery schedule and quantities. — Financial arrangements: The agreement outlines the financial terms, including storage fees, penalties, and any revenue-sharing arrangements between the parties. — Liability and insurance: It addresses the responsibilities and liabilities of each party, including insurance requirements, in case of accidents, damages, or other unforeseen events. — Termination and dispute resolution: This section sets forth the conditions under which the agreement can be terminated and the procedures for resolving any disputes that may arise. In conclusion, the North Carolina Gas Storage and Secondary Recovery Unit Agreement is a comprehensive contractual document that governs the operations, rights, and obligations of parties involved in gas storage and secondary recovery activities in North Carolina. Its ultimate purpose is to ensure smooth and equitable collaborations while providing a secure and sustainable energy supply to the region.
