This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document that plays a significant role in the gas industry. It specifically pertains to gas balancing agreements under the operating agreement in Virginia. This agreement serves to establish the terms and conditions for gas balancing, which refers to the management of natural gas supply and demand to maintain the efficient and smooth operation of the gas system. The Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 outlines the specific provisions regarding gas balancing. These provisions typically include the responsibilities and obligations of the parties involved, the procedures for reconciling imbalances, penalties for imbalances, and dispute resolution mechanisms. Within the context of Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, there may be different types or variations depending on the specific agreements between the parties involved. Some variations may include: 1. Fixed-Percentage Gas Balancing Agreement: This type of agreement establishes a predetermined percentage by which imbalances are managed. It ensures that each party is responsible for balancing a set percentage of their imbalances, minimizing the risk of disruptions to the overall gas system. 2. Cash-Out Gas Balancing Agreement: In this type of agreement, imbalances are settled through financial compensation. If a party fails to meet its balancing obligations, they are required to pay a predetermined rate or penalty per unit of imbalance. 3. Swing Gas Balancing Agreement: This agreement allows parties to manage imbalances by using swing gas, which refers to gas quantities that can be used to offset imbalances. It provides flexibility to adjust for imbalances without relying solely on financial compensation. 4. Integrated Gas Balancing Agreement: This type of agreement involves the integration of multiple gas sources or systems, where imbalances are managed collectively. It requires coordination and collaboration between the parties to ensure a balanced and reliable gas supply. It is important to note that the specific terms and types of Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may vary between individual agreements. Parties involved in these agreements should carefully review the document to understand their specific responsibilities, rights, and obligations related to gas balancing in Virginia.
