This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that outlines specific provisions related to gas balancing agreements in the state of Virginia. This agreement is crucial in ensuring a smooth and efficient gas balancing process between parties involved in the gas industry. Understanding the intricacies of this agreement is essential for gas companies, operators, and stakeholders in Virginia's energy sector. The Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 contains numerous key provisions that cover various aspects of gas balancing agreements. These provisions typically include: 1. Gas Balancing Principles: This section explains the fundamental principles and objectives of gas balancing, defining the purpose of the agreement and the responsibilities of the parties involved. 2. Measurement and Calculation: These provisions outline the accurate measurement and calculation methodologies required for gas balancing, ensuring transparency and fairness in settling imbalances between parties. 3. Imbalance Charges: This section specifies the calculation and application of imbalance charges, which are the financial penalties incurred for imbalances that exceed specified thresholds. 4. Settlement Period: The duration and intervals for which the gas balancing agreement is valid and applicable are clearly defined in this section. 5. Notification and Communication: Parties involved are required to maintain effective communication for the timely resolution of imbalances and coordination of gas supply. 6. Dispute Resolution: The process for resolving disputes related to gas balancing is detailed in this section, outlining steps such as negotiation, mediation, or arbitration if necessary. 7. Termination and Suspension: The circumstances under which the gas balancing agreement may be terminated or suspended are explained, along with the associated procedures and consequences. It's important to note that different versions or revisions of Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may exist, particularly as the gas industry and regulatory landscape continue to evolve. The Virginia State Corporation Commission or relevant governing bodies may release updated versions, addressing new developments or requirements within the industry. Therefore, it's crucial for stakeholders to stay updated and ensure compliance with the most recent version applicable in Virginia.
