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.
Description: A Virginia Gas Storage and Secondary Recovery Unit Agreement is a contract that establishes the terms and conditions for the storage and recovery of natural gas in Virginia. This agreement is entered into between a gas storage operator and an end-user or customer who requires gas storage services. Gas storage and secondary recovery units play a vital role in the energy industry by providing a reliable and flexible supply of natural gas. They enable gas operators to store excess gas during periods of low demand and withdraw it when demand is high. This allows for efficient management of supply and demand fluctuations, ensuring a steady and uninterrupted supply of natural gas to end-users. The terms of a Virginia Gas Storage and Secondary Recovery Unit Agreement encompass various aspects, including the quantity of gas to be stored, the duration of storage, and the terms of the secondary recovery of the gas. The agreement also defines the responsibilities of both parties, such as safety measures, maintenance, and operation of the storage facility. In Virginia, there are different types of Gas Storage and Secondary Recovery Unit Agreements depending on the specific needs of the customer. These agreements may include: 1. Seasonal Storage Agreement: This type of agreement is suitable for customers who require gas storage services only during specific seasons, such as winter when demand for natural gas is highest. The agreement outlines the specific storage period and capacity required by the customer. 2. Interruptible Storage Agreement: This agreement is intended for customers who can tolerate interruptions in gas supply during times of high demand. It offers a lower cost option since it allows the gas storage operator to prioritize other customers and interrupt the supply to the customer if necessary. 3. Firm Storage Agreement: This type of agreement guarantees a continuous and uninterrupted supply of gas. The customer pays a premium to ensure their gas is available at all times, even during periods of high demand. It provides a higher level of security and reliability but comes with a higher cost. Regardless of the type of agreement, a Virginia Gas Storage and Secondary Recovery Unit Agreement is a crucial tool for both gas storage operators and end-users, enabling them to efficiently manage natural gas supply, mitigate risks, and ensure a stable energy supply throughout the year.
