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.
Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document that pertains to gas balancing agreements within the state of Washington. This exhibit is an essential component of the operating agreement and outlines the specific terms and conditions related to gas balancing activities. The purpose of this exhibit is to ensure that all parties involved in gas operations adhere to a standardized process for balancing gas supplies. It helps prevent imbalances and establish a fair mechanism for correcting any discrepancies. This form acts as a reference for resolving disagreements that may arise between the gas supplier and the purchaser. Key provisions covered in Washington Exhibit E include: 1. Gas Balancing Procedures: This section details the step-by-step process for gas balancing, including measurement methods, reporting requirements, and timeframes. It ensures compliance with state regulations and industry best practices maintaining a reliable gas supply. 2. Imbalance Charges: This part clarifies the monetary penalties or credits associated with imbalances. It specifies the formula used for calculating charges and credits, ensuring transparency and fairness for all parties involved. 3. Record-Keeping Requirements: This section outlines the documentation and reporting obligations for both the gas supplier and purchaser. It ensures accurate records are maintained to facilitate effective gas balancing and dispute resolution. 4. Dispute Resolution Mechanism: The exhibit establishes a mechanism for resolving any disputes that may arise in connection with gas balancing activities. It may include procedures such as negotiation, mediation, or arbitration to facilitate a fair and expedient resolution. In Washington, there may be variations or different types of Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 based on specific project requirements or unique contractual agreements between parties. These variations may include: 1. Exhibit E-1: This variation could modify certain provisions of the standard form, such as gas measurement methodologies or dispute resolution procedures, to suit a particular gas project's needs in Washington. 2. Exhibit E-2: Another possible variation, Exhibit E-2, may include additional provisions related to extraordinary circumstances, force majeure events, or emergency gas balancing procedures. Such provisions would address specific situations that may occur during gas operations. 3. Exhibit E-3: This version might focus on specific gas balancing mechanisms for different regions within Washington, taking into account varying demand patterns, infrastructure requirements, or regulatory considerations. Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is an integral part of gas operations in the state, ensuring accountability, fair practices, and effective gas supply management. It serves as a comprehensive reference guide in maintaining a well-balanced and reliable gas network.
