Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1
What this document covers
The Exhibit E to Operating Agreement Gas Balancing Agreement - Form 1 is a legal document used by parties involved in an operating agreement for gas production. This form governs the distribution and management of gas when one or more parties cannot take their share due to market limitations or other contractual obligations. Unlike other gas agreements, this specific balancing agreement outlines how gas shares should be allocated and stored, ensuring fairness among all parties involved in the operation.
What’s included in this form
- Detailed terms governing the allocation of gas production shares.
- Methods for sharing condensate recovered from production.
- Procedures for accounting and reporting gas balances among parties.
- Provisions for handling overproduction and underproduction scenarios.
- Settlement process in case of permanent cessation of gas production.
When to use this document
This form should be used when participating parties in an operating agreement for gas production encounter circumstances where they cannot take or market their share of gas. Specific situations may include when a party has contracted to sell its gas to a purchaser who is unable to take delivery or when a party is operationally constrained from taking its share due to market conditions.
Who this form is for
- Gas producers and operators involved in joint ventures under an operating agreement.
- Parties needing to manage gas allocations and balances effectively.
- Individuals or entities responsible for marketing and selling gas produced from shared resources.
- Anyone seeking to standardize a gas balancing process in gas production agreements.
Steps to complete this form
- Identify and list all parties involved in the operating agreement.
- Clearly specify the Unit Area from which gas is produced.
- Enter any pertinent details about gas production shares and allocation procedures.
- Document conditions under which the balancing agreement will become effective.
- Ensure all parties provide accurate statements regarding the amount of gas taken or delivered.
Notarization guidance
This form does not typically require notarization to be legally valid. However, some jurisdictions or document types may still require it. US Legal Forms provides secure online notarization powered by Notarize, available 24/7 for added convenience.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Failing to include all relevant parties in the agreement.
- Ignoring local regulations that may impact gas balancing agreements.
- Inaccurate reporting of gas production or distribution quantities.
- Neglecting to update accounts when production levels change.
Why use this form online
- Convenience of accessing and completing the form from any location.
- Instantly downloadable format allows for quick revisions and updates.
- Reliability of templates drafted by licensed attorneys to meet legal standards.
- Easy to share with all parties involved for clearer communication.
