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 New Jersey Gas Storage and Secondary Recovery Unit Agreement is a legally binding contract that governs the terms and conditions for the utilization and operation of gas storage and secondary recovery units in the state of New Jersey. This agreement outlines the rights, responsibilities, and obligations of the parties involved, including the gas storage operator, secondary recovery operator, landowners, and regulatory authorities. Gas storage units typically refer to facilities that store natural gas for future use, ensuring a steady and reliable supply during periods of high demand or operational interruptions. These units are crucial for balancing fluctuations in gas supply and demand, optimizing energy distribution, and maintaining a reliable energy infrastructure. Secondary recovery units, on the other hand, involve the extraction of additional hydrocarbons from reservoirs to enhance oil or gas production. This process utilizes various techniques such as water flooding, gas injection, or chemical treatment to increase the recovery percentage of the hydrocarbons present in the reservoir. New Jersey Gas Storage and Secondary Recovery Unit Agreement encompasses provisions related to the establishment, construction, operation, maintenance, and decommissioning of gas storage and secondary recovery units within the state. It covers crucial aspects like lease terms, storage capacity, injection and withdrawal rates, environmental considerations, safety measures, reporting requirements, and financial arrangements. Different types of New Jersey Gas Storage and Secondary Recovery Unit Agreements may include: 1. Commercial Storage Agreement: This type of agreement is typically entered into between the gas storage operator and customers who wish to lease storage capacity for a specific period. It outlines the terms of storage capacity utilization, injection and withdrawal rates, pricing, and contractual obligations. 2. Access and Use Agreement: This agreement is between the gas storage operator and secondary recovery operator, detailing the terms and conditions for access and utilization of storage facilities for secondary recovery purposes. It may include provisions covering facility access, injection and withdrawal rates, the sharing of costs and benefits, and operational coordination. 3. Land Lease Agreement: When a gas storage or secondary recovery unit is established on private or public land, a land lease agreement is often required. This agreement outlines the terms for land use, compensation to landowners, site maintenance, and liability issues pertaining to the installation and operation of the unit. 4. Regulatory Agreements: Gas storage and secondary recovery units are subject to regulatory oversight to ensure compliance with safety, environmental, and operational standards. Regulatory agreements may be executed between the storage or recovery operators and relevant regulatory bodies, outlining compliance requirements, monitoring protocols, reporting obligations, and enforcement mechanisms. In conclusion, the New Jersey Gas Storage and Secondary Recovery Unit Agreement regulates the operation of gas storage and secondary recovery units in the state, covering various aspects of utilization, operation, and compliance. Different types of agreements exist depending on the nature of the parties involved and the specific purpose of the unit.
