This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document in the natural gas industry. It is designed to outline the specific terms and conditions for gas balancing between different parties involved in gas operations in Pennsylvania. This exhibit serves as an addendum to the operating agreement, providing a comprehensive framework for gas balancing activities. Gas balancing refers to the process of maintaining the proper balance between gas production, consumption, and transportation to ensure efficient operations and minimize imbalances. The Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 acts as a legal contract binding various parties, including gas producers, transmission companies, and distribution companies, to collaborate in maintaining this balance. The detailed content of Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 includes: 1. Gas Balancing Objectives: This section describes the primary goals of gas balancing, such as maintaining system integrity, minimizing operational disruptions, and ensuring fair allocation of gas among the parties involved. 2. Gas Balancing Procedures: This outlines the specific processes and procedures to be followed during gas balancing operations. It includes details on gas nomination, confirmation, and scheduling, as well as any specific requirements for measurement, reporting, and communication between the parties. 3. Imbalance Management: This section delineates the procedures for managing imbalances that may occur during gas operations. It includes details on penalties for imbalances, procedures for balancing corrections, and any dispute resolution mechanisms. 4. Measurement and Data: This section specifies the requirements for accurate measurement and reporting of gas quantities. It discusses the measurement standards, calibration procedures, data exchange formats, and frequency of reporting. 5. Settlement and Invoicing: This section outlines the process for settlement of imbalances and invoicing between the parties. It includes details on the calculation of imbalances, payment terms, and any other financial arrangements. 6. Term and Termination: This section defines the duration of the gas balancing agreement and the conditions under which it can be terminated. It may also include provisions for renewals and amendments. 7. Other Provisions: This section covers any additional terms, conditions, or legal clauses necessary to safeguard the interests of the parties involved. It may include provisions on force majeure, confidentiality, indemnification, governing law, and jurisdiction. Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may have variations or different types depending on the specific requirements and arrangements between the parties involved. These variations may include modifications based on the gas volume, geographical location, contractual terms, and specific gas balancing practices adopted by the companies or regulatory authorities in Pennsylvania. The parties should ensure that the exhibit is tailored to address the unique characteristics of their gas operations while adhering to the relevant regulatory framework.
