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.
Oklahoma Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document related to gas operations in the state of Oklahoma. This agreement is an essential component of gas balancing activities between operators and working interest owners in various oil and gas fields. Gas balancing refers to the process of reconciling the differences between actual gas production and allocation quantities among different parties involved in the production of natural gas. The purpose of this agreement is to establish the terms and conditions for gas balancing, ensuring fair distribution and accurate measurement of gas production. There are different types of Oklahoma Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, which may vary based on specific fields and operators involved. Some common variations or specific types of this agreement include: 1. Field-Specific Gas Balancing Agreement: This type of agreement specifically addresses gas balancing for a particular oil or gas field in Oklahoma. It outlines the procedures and protocols unique to that field and captures the specific requirements and obligations of the operators and working interest owners involved. 2. Operator-Specific Gas Balancing Agreement: This agreement type is tailored to the needs and operations of a specific operator. It includes provisions specific to the operator's gas production operations and often outlines their rights and responsibilities in the gas balancing process. 3. Joint Venture Gas Balancing Agreement: This agreement type is applicable when multiple parties jointly operate an oil or gas field in Oklahoma. It outlines the obligations and duties of each joint venture partner in relation to gas balancing and ensures equitable distribution of gas production among all parties involved. The Oklahoma Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 generally includes important terms and provisions such as: — Gas Measurement: This section outlines the methodologies and devices used for accurate measurement and determination of gas production quantities. It may specify the use of meters, gauges, or other measurement tools and the frequency of measurement. — Balancing Procedures: This section details the procedures for gas balancing, including how discrepancies in gas production quantities are identified and resolved. It may include provisions for communicating and reporting imbalances, adjusting allocations, and penalties for non-compliance. — Settlement and Payments: This part explains how financial settlements are made related to gas imbalances. It may outline deadlines for payments and specify the procedures for resolving disputes related to billing and reimbursement. — Record Keeping and Reporting: This section highlights the requirements for keeping records related to gas balancing activities, such as production data, measurement reports, and allocation records. It may also stipulate the frequency and format for reporting gas production and imbalances to the relevant parties. Overall, Oklahoma Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial legal document that ensures the fair and accurate distribution of gas production among operators and working interest owners in the state of Oklahoma.
