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.
New York Gas Storage and Secondary Recovery Unit Agreement is a legal contract that governs the terms and conditions of storing natural gas and implementing secondary recovery processes in the state of New York, United States. This agreement involves the participation of gas storage operators and secondary recovery unit operators, and it plays a critical role in ensuring efficient and sustainable utilization of natural gas resources. In New York, there are two primary types of Gas Storage and Secondary Recovery Unit Agreements: 1. Underground Gas Storage Agreement: This type of agreement focuses on establishing the terms for storing natural gas in underground reservoirs or depleted gas fields. Gas storage operators enter into contracts with gas producers or suppliers to store excess natural gas during periods of low demand. Underground gas storage facilities provide a vital mechanism for balancing gas supply and demand, ensuring uninterrupted gas supply during peak consumption periods, and preventing price fluctuations. 2. Secondary Recovery Unit Agreement: This type of agreement primarily focuses on the extraction of additional natural gas from existing reservoirs through secondary recovery techniques. Secondary recovery involves the injection of gas, water, or other substances into depleted reservoirs to facilitate the movement and extraction of remaining gas resources. The agreement establishes the obligations, rights, and responsibilities of secondary recovery unit operators, who work closely with gas producers or suppliers to optimize extraction efficiency and maximize the extraction of remaining gas reserves. The New York Gas Storage and Secondary Recovery Unit Agreements are designed to encourage responsible and sustainable management of natural gas resources. These agreements ensure efficient utilization, mitigate supply shortages, stabilize prices, and contribute to the overall energy security and reliability of New York State. Compliance with the terms outlined in the agreements is crucial to maintain a well-functioning and competitive natural gas market within the state.
