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.
Alabama Gas Storage and Secondary Recovery Unit Agreement, also known as AGS-SRU Agreement, is a legally binding contract established between gas storage operators and secondary recovery unit operators in the state of Alabama, United States. The main purpose of the AGS-SRU Agreement is to facilitate the efficient storage and withdrawal of natural gas as well as the maximization of hydrocarbon reserves through secondary recovery methods, such as gas injection or water flooding. This agreement establishes the terms and conditions under which gas storage operators allow the secondary recovery unit operators to access and utilize the underground gas storage facilities. The AGS-SRU Agreement outlines various important aspects, including the duration of the agreement, lease terms, volume allocations, operational procedures, pricing mechanisms, and liability and indemnification clauses. It defines the roles and responsibilities of both parties involved and sets the framework for cooperation and coordination to ensure smooth operations and the mutually beneficial utilization of resources. There are different types of Alabama Gas Storage and Secondary Recovery Unit Agreements based on specific needs and requirements. These agreements can be categorized as follows: 1. Storage Capacity Allocation Agreements: This type of agreement focuses on the allocation of storage capacity within the underground gas storage facilities to the secondary recovery unit operators. It specifies the reserved capacity, injection and withdrawal rates, as well as any restrictions or requirements pertaining to the storage operations. 2. Injection and Withdrawal Rights Agreements: This agreement outlines the rights and obligations of secondary recovery unit operators regarding gas injection and withdrawal from the storage facility. It stipulates the methods, volumes, and timings for injection and withdrawal, ensuring the equitable utilization of the gas storage system. 3. Price and Tariff Agreements: This agreement covers the pricing mechanism of utilizing the gas storage facilities for secondary recovery operations. It establishes the rates, fees, and payment terms that the secondary recovery unit operators must adhere to while using the storage facilities. 4. Operational and Maintenance Agreements: This type of agreement focuses on the operational and maintenance aspects of the gas storage and secondary recovery systems. It outlines the procedures for handling emergencies, maintenance schedules, safety measures, and reporting requirements to ensure the integrity and reliability of the facilities. In conclusion, Alabama Gas Storage and Secondary Recovery Unit Agreement (AGS-SRU Agreement) is a comprehensive contract designed to regulate the use of gas storage facilities by secondary recovery unit operators in Alabama. The agreement covers various aspects, including capacity allocation, injection and withdrawal rights, pricing mechanisms, and operational procedures. The different types of AGS-SRU Agreements cater to specific needs and requirements, ensuring the efficient and effective utilization of gas storage resources while maximizing hydrocarbon reserves.
