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.
South Dakota Gas Storage and Secondary Recovery Unit Agreement refers to a legal contract between a gas storage operator and a secondary recovery unit operator in the state of South Dakota. This agreement outlines the terms and conditions under which the secondary recovery unit will utilize the gas storage facilities for the purpose of extracting additional natural gas reserves. The South Dakota Gas Storage and Secondary Recovery Unit Agreement involves the allocation of storage capacity within the gas storage facility, as well as the exchange of financial considerations between the parties involved. The agreement typically includes provisions related to the duration of the agreement, rates and fees, utilization of storage capacity, withdrawal and injection rights, and liability and indemnification. Keywords: South Dakota, gas storage, secondary recovery, unit agreement, legal contract, gas storage operator, secondary recovery unit operator, natural gas reserves, storage capacity, financial considerations, rates, fees, withdrawal rights, injection rights, liability, indemnification. Different types of South Dakota Gas Storage and Secondary Recovery Unit Agreements may include: 1. Short-term Agreements: These agreements have a relatively shorter duration, usually ranging from a few months to a few years. They are suitable for operators looking for temporary secondary recovery opportunities or incremental gas storage capacity for a specific period. 2. Long-term Agreements: These agreements have a longer duration, typically lasting beyond five years. They are mainly signed by operators who require a more extended period for secondary recovery operations or for securing long-term gas storage capacity. 3. Reserve Sharing Agreements: This type of agreement involves multiple gas storage operators and secondary recovery unit operators collaborating to share the gas storage capacity and the extracted reserves. It allows for more efficient utilization of resources and cost-sharing between the parties involved. 4. Lease Agreements: In some cases, the gas storage operator may enter into a lease agreement with the secondary recovery unit operator, granting them exclusive rights to access and utilize the gas storage facility for a specific period. Lease agreements often involve additional provisions related to facility maintenance, security, and compliance with regulatory requirements. 5. Working Interest Agreements: This type of agreement is commonly used in the oil and gas industry and may also apply to gas storage. It establishes a partnership between the gas storage operator and the secondary recovery unit operator, where both parties share the costs, risks, and benefits associated with the operations. Keywords: Short-term agreements, long-term agreements, reserve sharing agreements, lease agreements, working interest agreements, gas storage capacity, secondary recovery operations, gas storage facilities, exclusive rights, partnership, costs, risks, benefits.
