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.
New Jersey Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that outlines the terms and conditions related to gas balancing within the state of New Jersey. This agreement is essential for parties involved in the extraction, production, and distribution of natural gas in New Jersey. The purpose of the agreement is to establish procedures and guidelines for gas balancing, which ensures the efficient distribution and utilization of natural gas resources. Gas balancing refers to the process of adjusting the amount of gas delivered to meet the demands of different customers and to maintain system integrity. This exhibit specifies the responsibilities and obligations of all parties involved in gas balancing, including the gas suppliers, operators, pipeline companies, and customers. It covers various aspects such as allocation of gas, measurement procedures, over/under-deliveries, penalties for non-compliance, and dispute resolution mechanisms. The New Jersey Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may have different types based on the specific gas balancing requirements in different regions or for different methods of gas extraction, such as offshore drilling or onshore extraction. These types could include: 1. Onshore Gas Balancing Agreement Form: This type of agreement is specific to gas balancing operations conducted on land, whether it involves drilling from conventional wells, shale gas extraction, or any other method employed for natural gas production. 2. Offshore Gas Balancing Agreement Form: This variant of the agreement focuses on the gas balancing requirements related to offshore drilling operations, such as those conducted in the Atlantic Ocean along the coastline of New Jersey. It may include additional clauses to address the unique challenges and considerations associated with offshore gas extraction. 3. Time-Based Gas Balancing Agreement Form: This type of agreement may be utilized in situations where gas balancing requirements vary based on time-specific factors. For example, it could be relevant for addressing seasonal fluctuations in gas demand, allowing for more flexible adjustments in gas allocation during different times of the year. Irrespective of the specific type, the New Jersey Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 serves as a crucial legal document that ensures smooth operations and fair distribution of natural gas resources in New Jersey. It is a comprehensive framework that outlines the rights, responsibilities, and procedures for gas balancing, promoting transparency and accountability within the gas industry in the state.
