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.
Nevada Gas Storage and Secondary Recovery Unit Agreement is a contractual agreement that outlines the terms and conditions between parties involved in the gas storage and secondary recovery operations in the state of Nevada. This agreement is crucial for ensuring efficient and compliant gas storage and secondary recovery processes. The Nevada Gas Storage and Secondary Recovery Unit Agreement typically covers various aspects, including but not limited to, the following: 1. Scope: This agreement defines the scope of operations, stating the specific gas storage and secondary recovery activities to be carried out. It typically includes details about the specific gas reservoirs and wells involved. 2. Duration: The agreement specifies the duration for which the parties are bound by the terms and conditions. It may also outline provisions for renewal or termination of the agreement. 3. Rights and obligations: The agreement outlines the rights and obligations of each party involved. This can include the right to store and access gas, obligations to maintain equipment and facilities, and responsibilities related to compliance with regulatory requirements. 4. Gas injection and withdrawal: The agreement defines the procedures and requirements for gas injection into the storage reservoirs and subsequent withdrawal for commercial purposes. It details the maximum storage capacities, injection and withdrawal rates, and any limitations or restrictions. 5. Gas quality and measurement: The agreement typically addresses gas quality standards and measurement protocols to ensure that the gas meets specific requirements. It may include provisions for gas composition, moisture content, and impurity limits. 6. Pricing and payment terms: This section of the agreement covers the pricing structure for gas storage and secondary recovery services and establishes the terms and conditions for payment. It may include details about pricing mechanisms, price adjustments, and invoicing procedures. 7. Insurance and liabilities: The agreement includes provisions regarding insurance coverage and liabilities associated with gas storage and secondary recovery operations. It may specify the types and levels of insurance coverage required and outline the allocation of risks and responsibilities among the parties. Different types of Nevada Gas Storage and Secondary Recovery Unit Agreements can exist depending on the specific circumstances and parties involved. Some variations may arise based on factors such as the scale of operations, ownership structures, the presence of multiple stakeholders, and specific technical requirements. It is important to consult legal experts or industry professionals to understand the nuances of individual agreements and their varied types.
