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 Oklahoma Gas Storage and Secondary Recovery Unit Agreement is a legal contract that outlines the terms and conditions for utilizing gas storage and secondary recovery services in the state of Oklahoma. This agreement is vital in facilitating the efficient and safe extraction, storage, and distribution of natural gas resources in the region. Oklahoma, being a significant hub for oil and gas production, requires well-structured agreements to regulate operations within its gas storage and secondary recovery facilities. These facilities allow for the underground storage of natural gas, which serves as a vital reserve supply during peak demand periods or emergencies, ensuring a reliable energy supply for consumers. There are different types of Oklahoma Gas Storage and Secondary Recovery Unit Agreements available, depending on the specific requirements and preferences of the parties involved. These agreements can be categorized into the following types: 1. Prepaid Capacity Agreement: This type of agreement allows customers to secure a specific storage capacity within the gas storage facility by making a prepayment. It ensures that the agreed-upon storage capacity will be reserved exclusively for the customer, providing them with a designated share of the available storage space. 2. Interruptible Service Agreement: This agreement type offers customers the opportunity to access gas storage services on a non-guaranteed basis. The availability of storage capacity under this agreement type is subject to the overall demands and priorities of the gas storage facility. Customers with interruptible agreements typically enjoy lower rates but may be required to release their storage capacity during periods of high demand. 3. Firm Service Agreement: A firm service agreement guarantees customers a specific storage capacity within the gas storage facility that will be available to them continuously, without interruption. This type of agreement is suitable for customers requiring a reliable and uninterrupted storage solution for their natural gas reserves. 4. Lease Agreement: In addition to storage services, the gas storage and secondary recovery facilities in Oklahoma may also offer lease agreements. These agreements involve the leasing of underground storage spaces within the facility, allowing third-party operators to utilize the infrastructure for their own storage operations. Overall, the Oklahoma Gas Storage and Secondary Recovery Unit Agreement plays a crucial role in governing the utilization and management of gas storage and secondary recovery facilities. By offering different agreement types, it allows customers to select the most suitable option based on their specific requirements, ensuring an efficient and reliable natural gas supply for both residential and commercial consumers in Oklahoma.
