Oklahoma 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. The Oklahoma Gas Storage Service Agreement is a contractual agreement that governs the terms and conditions between a gas storage customer and a gas storage service provider operating in Oklahoma. This agreement outlines the rights, obligations, and responsibilities of both parties involved in storing natural gas in underground storage facilities within the state. The agreement states that the gas storage service provider, which could be a regulated utility company, an independent storage operator, or a gas pipeline company, will provide the necessary infrastructure, facilities, and services to store and withdraw natural gas on behalf of the customer. The customer, on the other hand, agrees to pay for the use of these services and commits to complying with various operational and safety requirements. The Oklahoma Gas Storage Service Agreement typically includes key provisions such as: 1. Capacity Rights: This section defines the specific amount of storage capacity allocated to the customer, which is usually measured in cubic feet or barrels. It outlines the rights of the customer to inject, store, and withdraw gas within their allotted capacity. 2. Term and Renewal: This section specifies the initial term of the agreement, which is often several years, along with provisions for renewal or termination of the contract. It outlines the process for notifying, renegotiating, or extending the agreement upon expiration. 3. Rates and Charges: This part outlines the cost structure and pricing mechanisms associated with the gas storage services. It includes details of the rates, fees, and penalties applicable to the customer, along with any provisions for adjustments based on market conditions or demand fluctuations. 4. Operational Procedures: This section describes the operating procedures, nomination processes, and scheduling requirements that both the customer and the gas storage provider must follow. It outlines the protocols for injecting and withdrawing gas, including metering, measurement, and pressure requirements. 5. Force Mature: This clause addresses situations such as natural disasters, wars, or other unforeseen events that may temporarily suspend or alter the rights and obligations of the parties involved. It specifies the conditions under which force majeure can be invoked. Different types of Oklahoma Gas Storage Service Agreements may exist, depending on the specific needs and characteristics of the customer. These could include: 1. Firm Storage Service Agreement: This type of agreement provides customers with the right to store a predetermined quantity of natural gas for a specified period. The storage capacity allocated to the customer is guaranteed, ensuring access to stored gas even during peak demand periods. 2. Interruptible Storage Service Agreement: In contrast to the firm storage service agreement, the interruptible storage service agreement offers customers access to storage capacity only when it is available and not needed by firm storage customers. This type of agreement is typically cheaper but does not guarantee storage rights during high-demand periods. 3. Centralized Storage Service Agreement: This agreement involves pooling storage capacities from multiple customers into a central facility. It allows for shared access to storage resources, offering cost savings and flexibility to customers who may not require dedicated capacity for their specific needs. In conclusion, the Oklahoma Gas Storage Service Agreement is a vital contract that ensures the efficient and reliable storage of natural gas. It outlines the roles and responsibilities of both the gas storage service provider and the customer, and various types of agreements exist to cater to the diverse requirements of customers in terms of capacity, reliability, and cost.

The Oklahoma Gas Storage Service Agreement is a contractual agreement that governs the terms and conditions between a gas storage customer and a gas storage service provider operating in Oklahoma. This agreement outlines the rights, obligations, and responsibilities of both parties involved in storing natural gas in underground storage facilities within the state. The agreement states that the gas storage service provider, which could be a regulated utility company, an independent storage operator, or a gas pipeline company, will provide the necessary infrastructure, facilities, and services to store and withdraw natural gas on behalf of the customer. The customer, on the other hand, agrees to pay for the use of these services and commits to complying with various operational and safety requirements. The Oklahoma Gas Storage Service Agreement typically includes key provisions such as: 1. Capacity Rights: This section defines the specific amount of storage capacity allocated to the customer, which is usually measured in cubic feet or barrels. It outlines the rights of the customer to inject, store, and withdraw gas within their allotted capacity. 2. Term and Renewal: This section specifies the initial term of the agreement, which is often several years, along with provisions for renewal or termination of the contract. It outlines the process for notifying, renegotiating, or extending the agreement upon expiration. 3. Rates and Charges: This part outlines the cost structure and pricing mechanisms associated with the gas storage services. It includes details of the rates, fees, and penalties applicable to the customer, along with any provisions for adjustments based on market conditions or demand fluctuations. 4. Operational Procedures: This section describes the operating procedures, nomination processes, and scheduling requirements that both the customer and the gas storage provider must follow. It outlines the protocols for injecting and withdrawing gas, including metering, measurement, and pressure requirements. 5. Force Mature: This clause addresses situations such as natural disasters, wars, or other unforeseen events that may temporarily suspend or alter the rights and obligations of the parties involved. It specifies the conditions under which force majeure can be invoked. Different types of Oklahoma Gas Storage Service Agreements may exist, depending on the specific needs and characteristics of the customer. These could include: 1. Firm Storage Service Agreement: This type of agreement provides customers with the right to store a predetermined quantity of natural gas for a specified period. The storage capacity allocated to the customer is guaranteed, ensuring access to stored gas even during peak demand periods. 2. Interruptible Storage Service Agreement: In contrast to the firm storage service agreement, the interruptible storage service agreement offers customers access to storage capacity only when it is available and not needed by firm storage customers. This type of agreement is typically cheaper but does not guarantee storage rights during high-demand periods. 3. Centralized Storage Service Agreement: This agreement involves pooling storage capacities from multiple customers into a central facility. It allows for shared access to storage resources, offering cost savings and flexibility to customers who may not require dedicated capacity for their specific needs. In conclusion, the Oklahoma Gas Storage Service Agreement is a vital contract that ensures the efficient and reliable storage of natural gas. It outlines the roles and responsibilities of both the gas storage service provider and the customer, and various types of agreements exist to cater to the diverse requirements of customers in terms of capacity, reliability, and cost.