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.
Tennessee Gas Storage and Secondary Recovery Unit Agreement is a contractual agreement between Tennessee Gas Storage Company (GSC) and a secondary recovery unit operator, which governs the terms and conditions for the utilization of the storage and secondary recovery services offered by GSC. This agreement is primarily designed to facilitate the efficient and reliable storage of natural gas and its subsequent recovery from underground reservoirs. The Tennessee Gas Storage and Secondary Recovery Unit Agreement encompasses various types, specifically tailored to meet the diverse needs of gas storage customers and secondary recovery operators. These types may include: 1. Standard Agreement: This type of agreement applies to customers and operators seeking traditional gas storage and secondary recovery services provided by GSC. It outlines the general terms and conditions for the utilization of gas storage facilities, injection and withdrawal rates, operating procedures, and related obligations. 2. Firm Storage Agreement: This agreement is designed for customers and operators who require a guaranteed level of storage capacity and are willing to pay a premium for assured access to gas storage facilities. It provides priority storage services and ensures greater flexibility in terms of injection and withdrawal capabilities. 3. Interruptible Storage Agreement: Aimed at customers and operators who can tolerate occasional interruptions in gas storage services, this type of agreement offers lower-cost storage options with priority given to firm storage customers during high-demand periods. It is a suitable option for those seeking cost-effective storage solutions and have flexible gas usage requirements. 4. Combination Agreement: This agreement offers customers and operators the opportunity to combine multiple types of storage services in a single contract. It enables the allocation of storage capacity for different purposes, allowing simultaneous utilization of firm and interruptible storage services based on specific operational needs. Key provisions usually found in a Tennessee Gas Storage and Secondary Recovery Unit Agreement include: 1. Storage Capacity Allocation: Specifies the amount of storage capacity allocated to the customer or operator and establishes the methodology for capacity management and nominations. 2. Injection and Withdrawal Rates: Defines the maximum rates at which gas can be injected into or withdrawn from the storage facilities, ensuring efficient utilization and system integrity. 3. Tariffs and Payment Terms: Outlines the pricing structure, storage fees, and payment terms associated with the utilization of the storage and secondary recovery services. 4. Operational Procedures: Describes the operational protocols, scheduling, communication processes, and safety guidelines to be followed by the customer or operator while using the storage facilities. 5. Force Mature and Regulatory Compliance: Outlines the rights and obligations of both parties in the event of unforeseen circumstances beyond their control and ensures compliance with applicable laws and regulations. In summary, the Tennessee Gas Storage and Secondary Recovery Unit Agreement encompasses various types of agreements designed to meet the unique needs of gas storage customers and secondary recovery operators. These agreements govern the terms and conditions for the utilization of storage services, providing a framework for efficient and reliable storage of natural gas.
