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.
Description of Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: Alaska Exhibit E is a crucial component of the Operating Agreement Gas Balancing Agreement — Form 2, outlining specific provisions, terms, and conditions related to gas balancing in Alaska. This exhibit is designed to ensure fairness and efficiency in the management and distribution of gas resources among the parties involved. The Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 covers various aspects, such as gas production, transportation, allocation, and balancing procedures. It serves as a legally binding document that establishes the obligations and responsibilities of each party, guaranteeing a smooth functioning of the gas balancing agreement. Key components found within the Alaska Exhibit E may include: 1. Gas Balancing Principles: This section outlines the fundamental principles that govern the gas balancing process in Alaska. It may include guidelines for accurate measurement, data reporting, allocation methodology, and cost-sharing mechanisms. 2. Measurement and Reporting Procedures: This part details the specific methods and protocols for measuring and reporting gas production, quality, and volumes. It emphasizes the importance of precise and timely data to ensure proper gas balancing activities. 3. Allocation Methodology: The allocation methodology section stipulates how gas volumes will be allocated among the participating parties. It may include factors such as production capacity, gas quality, prior agreements, or various formulas for a fair distribution. 4. Balancing Procedures: This section describes the step-by-step process for balancing gas volumes to maintain equilibrium among the parties. It may cover activities such as nomination, confirmations, imbalances, penalties, resolutions, reconciliation, and settlement procedures. 5. Dispute Resolution: In case of conflicts or disputes arising from gas balancing activities, this part provides guidelines and mechanisms for resolving such issues. It may outline the steps involved in negotiation, mediation, or arbitration to ensure fair and timely resolutions. Different variations or types of Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist depending on the specific requirements, parties involved, or unique circumstances of gas production and distribution in Alaska. These variations can include amendments, addendums, or supplemental provisions tailored to meet the specific needs of diverse gas projects or joint ventures operating in Alaska. Ultimately, Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 aims to foster a cooperative atmosphere among gas producers and operators, ensuring efficient utilization of gas resources, minimizing wastage, and promoting a fair distribution that benefits all parties involved.
Description of Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: Alaska Exhibit E is a crucial component of the Operating Agreement Gas Balancing Agreement — Form 2, outlining specific provisions, terms, and conditions related to gas balancing in Alaska. This exhibit is designed to ensure fairness and efficiency in the management and distribution of gas resources among the parties involved. The Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 covers various aspects, such as gas production, transportation, allocation, and balancing procedures. It serves as a legally binding document that establishes the obligations and responsibilities of each party, guaranteeing a smooth functioning of the gas balancing agreement. Key components found within the Alaska Exhibit E may include: 1. Gas Balancing Principles: This section outlines the fundamental principles that govern the gas balancing process in Alaska. It may include guidelines for accurate measurement, data reporting, allocation methodology, and cost-sharing mechanisms. 2. Measurement and Reporting Procedures: This part details the specific methods and protocols for measuring and reporting gas production, quality, and volumes. It emphasizes the importance of precise and timely data to ensure proper gas balancing activities. 3. Allocation Methodology: The allocation methodology section stipulates how gas volumes will be allocated among the participating parties. It may include factors such as production capacity, gas quality, prior agreements, or various formulas for a fair distribution. 4. Balancing Procedures: This section describes the step-by-step process for balancing gas volumes to maintain equilibrium among the parties. It may cover activities such as nomination, confirmations, imbalances, penalties, resolutions, reconciliation, and settlement procedures. 5. Dispute Resolution: In case of conflicts or disputes arising from gas balancing activities, this part provides guidelines and mechanisms for resolving such issues. It may outline the steps involved in negotiation, mediation, or arbitration to ensure fair and timely resolutions. Different variations or types of Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist depending on the specific requirements, parties involved, or unique circumstances of gas production and distribution in Alaska. These variations can include amendments, addendums, or supplemental provisions tailored to meet the specific needs of diverse gas projects or joint ventures operating in Alaska. Ultimately, Alaska Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 aims to foster a cooperative atmosphere among gas producers and operators, ensuring efficient utilization of gas resources, minimizing wastage, and promoting a fair distribution that benefits all parties involved.
