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 Utah Gas Storage and Secondary Recovery Unit Agreement is a legal contract specifically designed to facilitate the operation, management, and development of gas storage and secondary recovery units in the state of Utah. This agreement is crucial for regulating the operations of these units, ensuring safe practices, and protecting the rights and interests of all involved parties. Gas storage and secondary recovery units are crucial components of the oil and gas industry. These units enable the extraction, storage, and re-injection of natural gas or petroleum products, allowing maximal utilization and value creation from underground reservoirs. The purpose of the Utah Gas Storage and Secondary Recovery Unit Agreement is to govern such activities and establish a framework to avoid conflicts and ensure compliance with various regulations. Different types of Utah Gas Storage and Secondary Recovery Unit Agreements may exist to cater to specific needs or projects within the state. These could include agreements related to underground gas storage facilities, secondary recovery operations in oil fields, or joint venture agreements that involve multiple parties working together. When it comes to underground gas storage facilities, the agreement would outline the terms and conditions related to the utilization, development, maintenance, and operation of these facilities. It may cover aspects such as storage capacity allocation, injection and withdrawal rates, safety measures, reporting requirements, and dispute resolution procedures. In the case of secondary recovery operations in oil fields, the Utah Gas Storage and Secondary Recovery Unit Agreement would detail the roles and responsibilities of the involved parties. It may address topics such as enhanced oil recovery techniques, cost-sharing mechanisms, production sharing arrangements, liability provisions, and environmental obligations. Joint venture agreements, on the other hand, involve collaboration between multiple entities in developing and managing gas storage or secondary recovery projects. These agreements would encompass aspects like ownership interests, investment contributions, profit-sharing mechanisms, decision-making processes, and governance structures. Overall, the Utah Gas Storage and Secondary Recovery Unit Agreement is a crucial legal instrument that covers a broad range of topics related to the operation and administration of gas storage and secondary recovery units in Utah. Whether associated with underground gas storage facilities, secondary recovery operations, or joint ventures, these agreements ensure that various parties work together effectively, efficiently, and in compliance with applicable laws and regulations.
