Arkansas Gas Storage Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-723
• Format: Word; Rich Text

Description

This form is used when Owner owns and operates underground gas storage facilities and Customer desires storage service for natural gas to serve its Plant, and Owner is willing to render such storage services. Arkansas Gas Storage Agreement is a legally binding contract that outlines the terms and conditions between a gas storage facility owner/operator and a gas storage customer in the state of Arkansas. This agreement establishes the rights, responsibilities, and obligations of both parties involved in the gas storage arrangement. Gas storage agreements are crucial for ensuring smooth and efficient operations within the gas industry. These agreements allow gas storage facilities to store natural gas for a specified period of time and provide customers with access to these stored reserves when needed. They help maintain a stable supply of natural gas during high-demand periods and enable gas market participants to manage their inventory effectively. There are several types of gas storage agreements that may be encountered in Arkansas: 1. Firm Storage Agreement: This type of agreement offers customers a guaranteed capacity reservation in the gas storage facility. It ensures that the customer will have access to a specific volume of stored gas at any given time, regardless of market conditions. This type of agreement provides a higher level of assurance and comes at a premium cost compared to other types. 2. Interruptible Storage Agreement: In contrast to a firm storage agreement, an interruptible storage agreement does not guarantee access to stored gas at all times. The availability of stored gas under this agreement is subject to the demand and operational needs of the storage facility. This type of agreement offers customers a lower cost option but with potential interruptions during high-demand periods. 3. Wheeling Agreement: A wheeling agreement allows customers without direct access to a gas storage facility to utilize the storage services of another customer who has reserved capacity. This agreement enables gas to be injected into or withdrawn from the storage facility on behalf of the customer, facilitating the transportation and balancing of gas supplies. Each type of gas storage agreement mentioned above carries its own specific terms and conditions, including pricing mechanisms, injection/withdrawal rights, storage duration, notice periods, and penalties for non-compliance. These agreements are typically negotiated based on the requirements and preferences of both the gas storage facility owner/operator and the customer. In Arkansas, gas storage agreements are regulated by the Arkansas Public Service Commission, which ensures compliance with state laws, rules, and regulations governing gas storage operations. Gas storage facilities in Arkansas must obtain necessary permits and approvals before entering into any gas storage agreements.

Arkansas Gas Storage Agreement is a legally binding contract that outlines the terms and conditions between a gas storage facility owner/operator and a gas storage customer in the state of Arkansas. This agreement establishes the rights, responsibilities, and obligations of both parties involved in the gas storage arrangement. Gas storage agreements are crucial for ensuring smooth and efficient operations within the gas industry. These agreements allow gas storage facilities to store natural gas for a specified period of time and provide customers with access to these stored reserves when needed. They help maintain a stable supply of natural gas during high-demand periods and enable gas market participants to manage their inventory effectively. There are several types of gas storage agreements that may be encountered in Arkansas: 1. Firm Storage Agreement: This type of agreement offers customers a guaranteed capacity reservation in the gas storage facility. It ensures that the customer will have access to a specific volume of stored gas at any given time, regardless of market conditions. This type of agreement provides a higher level of assurance and comes at a premium cost compared to other types. 2. Interruptible Storage Agreement: In contrast to a firm storage agreement, an interruptible storage agreement does not guarantee access to stored gas at all times. The availability of stored gas under this agreement is subject to the demand and operational needs of the storage facility. This type of agreement offers customers a lower cost option but with potential interruptions during high-demand periods. 3. Wheeling Agreement: A wheeling agreement allows customers without direct access to a gas storage facility to utilize the storage services of another customer who has reserved capacity. This agreement enables gas to be injected into or withdrawn from the storage facility on behalf of the customer, facilitating the transportation and balancing of gas supplies. Each type of gas storage agreement mentioned above carries its own specific terms and conditions, including pricing mechanisms, injection/withdrawal rights, storage duration, notice periods, and penalties for non-compliance. These agreements are typically negotiated based on the requirements and preferences of both the gas storage facility owner/operator and the customer. In Arkansas, gas storage agreements are regulated by the Arkansas Public Service Commission, which ensures compliance with state laws, rules, and regulations governing gas storage operations. Gas storage facilities in Arkansas must obtain necessary permits and approvals before entering into any gas storage agreements.