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.
Puerto Rico Gas Storage and Secondary Recovery Unit Agreement is a contractual agreement established between the Puerto Rican government and private entities involved in the energy sector to facilitate the storage and secondary recovery of natural gas reserves in Puerto Rico. This agreement aims to enhance energy security, optimize the use of natural gas resources, and create an efficient and robust gas storage infrastructure. Key terms and aspects of the Puerto Rico Gas Storage and Secondary Recovery Unit Agreement include: 1. Gas Storage Facilities: The agreement outlines the construction, development, operation, and maintenance of gas storage facilities within Puerto Rico. These facilities enable the storage of natural gas reserves to meet demand fluctuations, ensuring a consistent and adequate gas supply. 2. Secondary Recovery Techniques: The agreement may also encompass secondary recovery techniques, such as gas injection and pressure maintenance systems, that aim to maximize the extraction of natural gas from existing reservoirs. These techniques enhance the overall gas recovery rate and extend the lifespan of the gas fields. 3. Infrastructure Investment: The agreement highlights the need for substantial infrastructure investment to establish and maintain gas storage and secondary recovery facilities. This involves the construction of pipelines, compression stations, injection wells, and monitoring systems required for efficient operations. 4. Technical and Operational Standards: To ensure the safe and efficient functioning of gas storage and secondary recovery units, the agreement may include specifications regarding technical and operational standards. These standards cover aspects such as storage capacity, pressure thresholds, emergency response protocols, and environmental regulations. 5. Regulatory Framework: The Puerto Rico Gas Storage and Secondary Recovery Unit Agreement may outline the regulatory framework governing the operation and management of gas storage facilities. This includes obtaining necessary permits and licenses, compliance with industry regulations, and coordination with relevant government bodies. Different types of Puerto Rico Gas Storage and Secondary Recovery Unit Agreements can be categorized based on the type of gas storage facilities involved, such as: 1. Underground Gas Storage Agreements: These agreements pertain to the construction and operation of underground natural gas storage facilities. These facilities typically utilize depleted natural gas reservoirs or salt caverns to store significant volumes of gas under controlled conditions. 2. Above-Ground Gas Storage Agreements: These agreements focus on the establishment of above-ground gas storage facilities. This can include options like compressed natural gas (CNG) storage tanks, LNG terminals, or floating storage units (FSU) for offshore storage. 3. Strategic Gas Reserves Agreements: Some Puerto Rico Gas Storage and Secondary Recovery Unit Agreements may specifically address the establishment of strategic gas reserves. These reserves are stockpiles of natural gas maintained for emergency situations, such as supply disruptions or increased demand during extreme weather conditions. In conclusion, the Puerto Rico Gas Storage and Secondary Recovery Unit Agreement is a comprehensive contractual arrangement that aims to optimize natural gas storage and secondary recovery in Puerto Rico. It entails the development of gas storage facilities, implementation of secondary recovery techniques, infrastructure investments, adherence to technical and operational standards, and compliance with regulatory frameworks. Various types of agreements can be established based on the specific gas storage facilities involved, such as underground storage, above-ground storage, or strategic reserve agreements.
