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 Pennsylvania Gas Storage and Secondary Recovery Unit Agreement is a legally binding contract that governs the operation and utilization of gas storage and secondary recovery units in the state of Pennsylvania. This agreement outlines the terms and conditions for the establishment, maintenance, and use of such units to efficiently harness, store, and recover natural gas resources. Pennsylvania, being rich in natural gas reserves, has numerous types of gas storage and secondary recovery units agreements, each catering to specific needs and circumstances. Some main types include: 1. Underground Gas Storage Agreements: These agreements regulate the utilization and operation of underground reservoirs to store natural gas. Such units are strategically located underground to store surplus gas during periods of low demand and promptly deliver it when demand spikes. 2. Secondary Recovery Unit Agreements: This type of agreement focuses on the implementation of enhanced recovery techniques, such as water flood or gas injection, to extract additional gas from reservoirs. It outlines the responsibilities of parties involved, including the operator and investors, in conducting secondary recovery operations. 3. Interconnected Storage Facility Agreements: Interconnected storage facilities allow multiple gas storage units to be connected and operated as a single entity. These agreements ensure smooth coordination between interconnected units and maximize the efficiency of gas storage operations. 4. Natural Gas Liquids Storage Agreements: This specific type of agreement pertains to the storage and handling of natural gas liquids (GLS). GLS are hydrocarbons found in natural gas that are in liquid form under normal temperature and pressure. These agreements govern the safe storage and transportation of GLS to support various industries like petrochemicals, refineries, and heating services. Essential elements covered in all forms of Pennsylvania Gas Storage and Secondary Recovery Unit Agreements include rights and obligations of the parties involved, terms and conditions for storage utilization, payment terms, liability and insurance provisions, maintenance protocols, and dispute resolution mechanisms. By entering into these agreements, gas operators, investors, and stakeholders ensure the efficient and sustainable utilization of natural gas resources in Pennsylvania, while adhering to legal and environmental regulations.
