This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Vermont Exhibit E is an essential component of the Operating Agreement Gas Balancing Agreement — Form 3, which outlines the specific terms and guidelines pertaining to gas balancing agreements in the state of Vermont. This exhibit provides important details and clauses that govern the gas balancing process, ensuring fair and efficient operations in the gas industry. The Vermont Exhibit E typically includes various sections and provisions. Some possible sections that may be included in different versions of the exhibit are: 1. Gas Balancing Objectives: This section outlines the primary goals and objectives of the gas balancing agreement, such as maintaining system integrity, ensuring gas supply reliability, and promoting equitable gas trade. 2. Measurement and Calculation Procedures: This section describes the methods and procedures used to measure and calculate gas quantities throughout the balancing process. It may include details about equipment, conversion factors, and standards to be followed. 3. Balancing Rules and Tolerance Limits: Here, the exhibit specifies the rules and tolerance limits governing gas imbalances. It may outline penalties or fees for significant imbalances and provide guidelines for resolution and correction. 4. Reconciliation and Settlement: This section explains the procedures for reconciling and settling imbalances between parties involved in the gas balancing agreement. It may include details on how financial settlements are calculated and timelines for payment. 5. Data Exchange and Reporting: This part identifies the requirements and protocols for sharing gas consumption and production data among the parties involved. It may include instructions on how frequently data needs to be reported and the format in which it should be exchanged. 6. Dispute Resolution: This section addresses the process for resolving any disputes or disagreements that may arise during the gas balancing agreement. It may include escalation procedures, mediation or arbitration options, and the choice of jurisdiction for legal proceedings. Vermont Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 encapsulates the specific guidelines and regulations pertaining to gas balancing in Vermont. Its purpose is to ensure transparent, efficient, and reliable gas trading operations. Different versions or variations of this exhibit may exist, depending on the specific requirements and agreements between the involved parties.
