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.
Wisconsin Gas Storage and Secondary Recovery Unit Agreement: A Comprehensive Overview Introduction: The Wisconsin Gas Storage and Secondary Recovery Unit Agreement is a vital component of natural gas storage and secondary recovery operations in the state of Wisconsin, United States. This agreement establishes the terms and conditions under which gas storage facilities and secondary recovery units operate, ensuring efficient utilization of resources and adherence to safety and environmental standards. In this detailed description, we will explore the significance, purpose, key provisions, and types of Wisconsin Gas Storage and Secondary Recovery Unit Agreements. Significance: The agreement plays a critical role in supporting uninterrupted natural gas supply during high-demand periods, such as extreme weather conditions or supply disruptions. Moreover, it facilitates secondary recovery operations aimed at enhancing the extraction and production of natural gas from existing reservoirs. Through storage and secondary recovery, the agreement ensures energy reliability, market stability, and cost-effective utilization of natural gas resources. Purpose: The primary purpose of the Wisconsin Gas Storage and Secondary Recovery Unit Agreement is to regulate the operations, rights, and obligations of gas storage operators and secondary recovery units. The agreement aims to provide legal certainty, promote fair competition, protect the environment, and safeguard the interests of both operators and consumers. It also facilitates optimization of gas storage and recovery capacities, enabling efficient use of infrastructure and resources. Key Provisions: 1. Storage Capacity Allocation: The agreement describes how storage capacity is allocated among different market participants and the criteria for determining allocations, ensuring equitable access and fair competition. 2. Injection and Withdrawal Rates: It specifies the permitted injection and withdrawal rates, enabling coordinated management of inventory and optimizing system performance. 3. Monitoring and Reporting: Gas storage operators are required to regularly monitor and report on storage levels, injection and withdrawal activities, and any operational issues or incidents. 4. Safety and Environmental Standards: The agreement mandates adherence to strict safety and environmental regulations, ensuring the protection of underground reservoirs, groundwater, and surrounding areas. 5. Tariff Structure and Pricing: It outlines the pricing methodology, tariff structure, and payment terms applicable to storage services, promoting transparency and ensuring cost-reflective pricing. 6. Operational Coordination: The agreement establishes rules for the coordination of gas storage operations with other interconnected systems, such as pipelines, to maintain operational efficiency and reliability. Types of Wisconsin Gas Storage and Secondary Recovery Unit Agreements: 1. Long-Term Storage Agreements: These contracts span multiple years, providing storage operators with a long-term commitment from customers and offering price stability. 2. Short-Term Storage Agreements: These contracts typically cover shorter durations, such as one season or one year, enabling more flexibility for customers with fluctuating demand or storage needs. 3. Secondary Recovery Unit Agreements: These agreements specifically pertain to the operation and management of secondary recovery units, which employ advanced techniques to extract additional natural gas from mature or depleted fields. Conclusion: The Wisconsin Gas Storage and Secondary Recovery Unit Agreement serves as a regulatory framework that ensures the efficient and secure operation of gas storage facilities and secondary recovery units in Wisconsin. By promoting fair competition, transparency, and adherence to safety and environmental standards, this agreement contributes to the reliability, availability, and sustainability of natural gas resources.
