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.
Nebraska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that is part of the operating agreement between parties involved in the gas industry. It specifically addresses the gas balancing aspect of the agreement and serves as an important tool to ensure the efficient and fair management of gas resources. This exhibit outlines the procedures and responsibilities related to gas balancing activities in the state of Nebraska. It details the measurements, calculations, and reconciliation processes necessary to maintain equilibrium in gas supply and demand. By adhering to the guidelines specified in this exhibit, all parties involved can avoid imbalances and potential disputes that may arise from differences in gas deliveries or consumption. The Nebraska Exhibit E typically includes the following sections: 1. Definitions: This section provides clear and concise definitions of key terms and concepts used throughout the agreement. It ensures a common understanding among all parties involved, which is crucial for effective gas balancing. 2. Gas Balancing Procedure: This section outlines the step-by-step process for gas balancing. It covers metering, measurement, and reporting requirements, as well as any necessary adjustments or corrections. It also includes guidelines for handling imbalances and the timelines within which these imbalances must be rectified. 3. Balancing Agreement Responsibilities: This section specifies the responsibilities of each party involved in the agreement. It details their obligations in terms of gas deliveries, nominations, and the provision of accurate and timely information. This section also highlights the consequences of failing to fulfill these responsibilities, such as penalties or contract termination. 4. Dispute Resolution: In the event of a dispute related to gas balancing, this section defines the procedures to be followed for resolution. It may outline the need for mediation, arbitration, or other alternative dispute resolution methods to ensure fair and timely resolution. It is important to note that Nebraska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may have variations or additional appendices depending on the specific circumstances or parties involved. These variations could include provisions related to transportation agreements, pipeline interconnectivity, or additional reporting requirements. However, the core purpose of the exhibit remains the same, which is to establish clear guidelines and processes for gas balancing in Nebraska. In conclusion, Nebraska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a vital component of gas supply agreements in Nebraska. It prevents imbalances in gas supply and demand by providing a comprehensive framework for measurement, calculation, and reconciliation. By following the provisions outlined in this exhibit, parties involved can ensure efficient gas operations and minimize potential disputes.
