This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a crucial document that outlines the terms and conditions related to gas balancing agreements in Washington state. This agreement is designed to ensure fair and efficient gas distribution, production, and balancing among the parties involved. In Washington state, there are various types of Washington Exhibit E to Operating Agreement Gas Balancing Agreements — Form 2. These agreements can vary based on the participants' requirements and specific circumstances. Some common types of gas balancing agreements include: 1. Interstate Gas Balancing Agreement: This type of agreement governs the gas balancing activities between interstate pipeline companies operating in Washington state. It establishes the guidelines for gas balancing, including utilization and allocation of capacity, deadlines for nominations, scheduling, penalties for imbalances, and dispute resolution mechanisms. 2. Intrastate Gas Balancing Agreement: Intrastate gas balancing agreements are specific to gas distribution companies operating within the boundaries of Washington state. These agreements define the terms and conditions for balancing gas supplies between the different regions within the state or between different gas utilities. They also establish protocols for measurement, tracking, and settlement of imbalances. 3. Producer-Gas Utility Gas Balancing Agreement: This type of agreement pertains to gas balancing between gas producers and utility companies in Washington state. It outlines the responsibilities, rights, and obligations of both parties regarding gas imbalances, measurement, and settlement procedures. This agreement ensures that gas producers supply a consistent and balanced flow of gas while the utility company maintains a consistent supply to its customers. 4. Gas Balancing Agreement for Renewable Energy Sources: With the growing importance of renewable energy sources, this type of gas balancing agreement focuses on the interaction between renewable energy producers and gas utilities. It addresses the integration of intermittent renewable energy into the gas supply system, balancing challenges, surplus gas management, and contractual arrangements to ensure a stable and reliable gas supply for renewable energy generation. Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 typically includes essential elements such as definitions, gas balancing procedures, nomination protocols, gas measurement and allocation, penalties for imbalances, dispute resolution mechanisms, termination clauses, and confidentiality provisions. These agreements are legally binding and aim to maintain the integrity and reliability of the gas supply system in Washington state.
