Nevada Memorandum of Subsurface Undergound Gas Storage Lease and Agreement

• Category: Oil Gas and Minerals - Leases
• State: Multi-State
• Control #: US-OG-1038
• Format: Word; Rich Text

Description

This form is a memorandum of subsurface underground gas storage lease and agreement.

Title: Nevada Memorandum of Subsurface Underground Gas Storage Lease and Agreement: Overview, Types, and Key Features Description: The Nevada Memorandum of Subsurface Underground Gas Storage Lease and Agreement is a legally binding document that governs the terms and conditions for the lease and operation of underground gas storage facilities in the state of Nevada. This detailed description aims to shed light on the purpose and features of these agreements, covering relevant keywords like types, formation, benefits, and more. Types of Nevada Memorandum of Subsurface Underground Gas Storage Lease and Agreement: 1. Voluntary Storage Agreements: These agreements are entered into voluntarily between the underground gas storage operator and the gas supplier, providing a framework for the storage and withdrawal of gas for commercial purposes. 2. Regulatory Storage Agreements: Also known as regulated storage agreements, these contracts are established under the oversight and regulation of the Nevada Public Utilities Commission (PUN). They set forth the terms and conditions under which gas storage operators provide services to public utilities to ensure reliable gas supplies. Key Features and Considerations: 1. Lease Duration and Renewal: The duration of the lease period is specified in the agreement, encompassing the initial term and any potential options for renewal. It also outlines the conditions for renewal, such as the gas supplier's satisfactory performance and compliance with regulations. 2. Storage Capacity and Injection/Withdrawal Rates: The agreement specifies the amount of storage capacity allocated to the gas supplier, including the maximum rates at which gas can be injected into or withdrawn from the storage facility. These provisions ensure efficient utilization of storage facilities and help manage supply fluctuations. 3. Payment Terms: The financial aspects of the agreement are crucial and cover the cost of lease, gas injection, withdrawal charges, and any additional fees. Clear payment schedules, billing methods, and penalties for non-compliance may also be included. 4. Safety and Environmental Standards: The agreement generally incorporates safety and environmental regulations to ensure the protection of storage facilities, surrounding communities, and the environment. Compliance with relevant laws and regulations, maintenance responsibilities, and measures to prevent accidents or gas leaks are highlighted. 5. Force Mature: In the case of unavoidable events beyond the control of either party (e.g., natural disasters, acts of terrorism, regulatory actions), force majeure provisions define the rights and obligations of the gas supplier and the storage operator, including potential temporary storage capacity reductions or terminations. Benefits of Nevada Memorandum of Subsurface Underground Gas Storage Lease and Agreement: 1. Secure Gas Supply: The agreement ensures a reliable and uninterrupted supply of natural gas to residential, commercial, and industrial customers by allowing for the storage of excess gas during periods of low demand. 2. Flexibility in Energy Management: Gas storage agreements provide flexibility for gas suppliers to manage variations in demand, enabling them to meet peak demand periods efficiently and effectively. 3. Economic Stability: Storage facilities allow for strategic gas purchases at advantageous prices and viable hedging strategies, which ultimately contribute to price stability and cost savings for gas consumers. Remember, it is crucial to consult legal and industry experts to fully understand the intricacies and specific requirements of each Nevada Memorandum of Subsurface Underground Gas Storage Lease and Agreement before entering into any contractual obligations.