This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that outlines the terms and conditions for gas balancing agreements in North Dakota. This agreement is often used in the oil and gas industry to ensure the proper management and allocation of gas resources. The North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 includes the following key provisions: 1. Purpose: This section outlines the purpose of the agreement, which is to establish a framework for gas balancing among the parties involved. It ensures that gas supplies are properly accounted for and allocated to each party. 2. Definitions: This section provides definitions for various terms used throughout the agreement, such as "Operator," "Working Interest Owner," "Gas Balance," and "Negotiated Balancing Arrangement." 3. Gas Balancing Obligations: This section sets forth the gas balancing obligations of each party, including the requirement to accurately measure and report gas production, and the obligation to make adjustments to gas allocations as necessary. 4. Measurement and Reporting: This section details the procedures for measuring and reporting gas production, including the use of approved measurement devices and the frequency of reporting. 5. Balancing Determination: This section outlines the process for determining the gas imbalances among the parties. It includes provisions for determining the allocations and potential penalties for non-compliance. 6. Balancing Statements: This section explains the requirements for submitting balancing statements and the timeline for resolution of gas imbalances. 7. Disputes and Remedies: This section provides a mechanism for resolving disputes related to gas balancing, including the option for mediation or arbitration. Some possible variations or types of North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may include— - Amended versions: These are modified versions of the original agreement to incorporate changes in the gas balancing process or to address specific circumstances unique to a particular project or operation. — Supplemental agreements: These are additional agreements that may be attached to the main Exhibit E to address specific aspects of gas balancing, such as measurement methodologies or allocation formulas. — Joint ownership agreements: In cases where multiple parties have joint ownership of gas wells or facilities, a separate Exhibit E may be required to establish the gas balancing arrangements among the co-owners. In summary, the North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a crucial document for ensuring fair and efficient management of gas resources in North Dakota. It outlines the obligations, measurement procedures, and dispute resolution mechanisms related to gas balancing among parties involved in oil and gas operations.
