This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
New Jersey Exhibit E to the Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document that outlines the specific terms and conditions related to gas balancing in the state of New Jersey. This agreement is designed to regulate the allocation and balancing of gas supplies among the participating parties involved in the gas industry, ensuring fair distribution and avoidance of imbalances. The content of New Jersey Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may vary depending on the specific circumstances, but it commonly includes the following key elements: 1. Purpose and Scope: This section explains the overall objective and extent of the agreement, detailing the intention to establish a fair and efficient gas balancing mechanism in New Jersey. 2. Definitions: To ensure clarity and consistency throughout the document, essential terms such as "balancing agent," "delivery point," "imbalances," and "operational tolerance" are defined. 3. Parties Involved: The agreement lists the parties who will be bound by its terms, including gas suppliers, pipeline operators, shippers, and any other relevant stakeholders. 4. Gas Balancing Procedures: This section lays out the specific procedures to manage gas balancing activities, including nomination and scheduling, imbalances calculations, curtailment procedures, and reconciliation of imbalances. 5. Measurement and Billing: It details the measurement methods, units, and instruments used to ascertain gas quantities for billing purposes. It also covers the process of resolving billing disputes and the responsibilities of the balancing agent. 6. Operational Tolerance and Penalties: This part defines the acceptable range of imbalances and the penalties associated with exceeding the established operational tolerance levels. It may include provisions for penalties, fines, or corrective measures. 7. Force Mature Provisions: In case unforeseen events or circumstances occur, this section addresses the procedures and remedies to be followed, including provisions for invoking force majeure clauses and potential exemptions from penalties during such occurrences. 8. Dispute Resolution: In the event of disputes or disagreements between the parties involved, this section explains the process for resolving conflicts, often requiring negotiation, mediation, or arbitration to reach a fair resolution. It is important to note that while the content outlined above is typical, specific versions or variations of the New Jersey Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may exist based on specific gas industry requirements, regulatory guidelines, or regional considerations. For a comprehensive understanding, it is essential to refer to the specific version of the agreement applicable in the given context.
