Delaware Gas Storage Service Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1014
• Format: Word; Rich Text

Description

This is an agreement for gas storage service.

Delaware Gas Storage Service Agreement is a contractual arrangement between a gas storage provider and a customer, outlining the terms and conditions for the storage of natural gas in underground storage facilities in the state of Delaware. This agreement governs the rights, responsibilities, and obligations of both parties involved, ensuring a smooth and efficient storage process. One primary type of Delaware Gas Storage Service Agreement is the Firm Storage Agreement. It offers customers a guaranteed level of storage capacity and ensures that their gas is readily available when needed. Firm Storage Agreements are often preferred by large industrial, commercial, and residential customers who rely heavily on natural gas for their operations or heating needs. Another type is the Interruptible Storage Agreement, which provides a higher level of flexibility but without the guarantee of availability. Customers opting for this agreement agree to have their gas stored on a best-effort basis, meaning it may be interrupted or curtailed during periods of high demand or emergencies. This agreement is typically chosen by customers who can accommodate temporary interruptions and are willing to trade off reliability for lower storage costs. The Delaware Gas Storage Service Agreement covers various crucial aspects, including storage capacity, injection and withdrawal rights, pricing, term length, operational procedures, force majeure clauses, and termination provisions. The agreement specifies the maximum and minimum storage quantities that the customer can request, as well as the procedures for scheduling injections and withdrawals. Pricing details are outlined, which may include capacity fees, injection and withdrawal charges, and any applicable penalties or incentives. Term lengths of the Delaware Gas Storage Service Agreement can vary depending on the customer's needs and the provider's available capacity. Agreements can be short-term, typically spanning a single season, or long-term, covering multiple years. Both parties must adhere to strict operational procedures to ensure the safe and efficient operation of the storage facility. These procedures may include timely nomination submissions, balancing requirements, and compliance with relevant regulations and safety standards. Force majeure clauses exist to address unforeseen circumstances that may impact gas storage operations, such as natural disasters, equipment failures, or regulatory changes. The agreement outlines the procedures for notification and resolution in such cases. Termination provisions specify the conditions under which either party can terminate the agreement, including non-payment, breach of contract, or mutual agreement. In conclusion, the Delaware Gas Storage Service Agreement is a comprehensive contractual document that defines the terms and conditions governing the storage of natural gas in underground facilities. It provides different types of agreements such as the Firm Storage Agreement and the Interruptible Storage Agreement, catering to the diverse needs of customers. By entering into this agreement, both parties ensure a secure and reliable gas storage service, supporting the smooth functioning of gas-dependent industries, commercial establishments, and residential areas in Delaware.