This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 is a legal document that pertains to gas balancing agreements in the state of Arkansas. This agreement is designed to facilitate the proper management and tracking of gas production and consumption within the specified operating area. Gas balancing agreements are crucial in ensuring the efficient and equitable distribution of gas resources among different parties involved in the extraction, transportation, and utilization processes. These agreements help to prevent imbalances in gas supply and demand, which can lead to disruptions in energy supply and financial losses. The Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 typically includes several key components. These may include: 1. Parties involved: The agreement will specify the names and contact information of the parties involved in the gas balancing agreement. This includes gas producers, pipeline operators, and end-use consumers. 2. Gas balancing methodology: The document will outline the methodology and procedures for measuring gas production, consumption, and transportation. It may provide details on how imbalances will be calculated and resolved, as well as any penalties or charges that may be imposed in case of non-compliance. 3. Reporting and record-keeping requirements: Gas balancing agreements often require regular reporting of gas volumes, measurements, and imbalances. The form may include templates or guidelines for these reports, as well as instructions on how records should be maintained and shared among relevant parties. 4. Dispute resolution mechanisms: In the case of conflicts or disputes, the agreement may include provisions for resolving disagreements through negotiation, mediation, or arbitration. This ensures that disputes are addressed promptly and efficiently, minimizing potential disruptions in gas supply. 5. Term and termination: The agreement will specify the duration of the gas balancing agreement, along with any provisions for termination or renewal. It may also outline the consequences of early termination and the procedures for notifying the parties involved. Different versions or types of Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 may exist based on specific regional or industry requirements. These variations could include additional clauses or provisions that cater to unique circumstances or regulatory frameworks within different areas of Arkansas. In summary, the Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 is a vital legal document that ensures the efficient management of gas resources within Arkansas. By establishing clear procedures for gas measurement, reporting, and dispute resolution, this agreement helps to maintain a steady and balanced gas supply, benefiting all parties involved in the gas supply chain.Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 is a legal document that pertains to gas balancing agreements in the state of Arkansas. This agreement is designed to facilitate the proper management and tracking of gas production and consumption within the specified operating area. Gas balancing agreements are crucial in ensuring the efficient and equitable distribution of gas resources among different parties involved in the extraction, transportation, and utilization processes. These agreements help to prevent imbalances in gas supply and demand, which can lead to disruptions in energy supply and financial losses. The Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 typically includes several key components. These may include: 1. Parties involved: The agreement will specify the names and contact information of the parties involved in the gas balancing agreement. This includes gas producers, pipeline operators, and end-use consumers. 2. Gas balancing methodology: The document will outline the methodology and procedures for measuring gas production, consumption, and transportation. It may provide details on how imbalances will be calculated and resolved, as well as any penalties or charges that may be imposed in case of non-compliance. 3. Reporting and record-keeping requirements: Gas balancing agreements often require regular reporting of gas volumes, measurements, and imbalances. The form may include templates or guidelines for these reports, as well as instructions on how records should be maintained and shared among relevant parties. 4. Dispute resolution mechanisms: In the case of conflicts or disputes, the agreement may include provisions for resolving disagreements through negotiation, mediation, or arbitration. This ensures that disputes are addressed promptly and efficiently, minimizing potential disruptions in gas supply. 5. Term and termination: The agreement will specify the duration of the gas balancing agreement, along with any provisions for termination or renewal. It may also outline the consequences of early termination and the procedures for notifying the parties involved. Different versions or types of Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 may exist based on specific regional or industry requirements. These variations could include additional clauses or provisions that cater to unique circumstances or regulatory frameworks within different areas of Arkansas. In summary, the Arkansas Exhibit E to Operating Agreement Gas Balancing Agreement Form 3 is a vital legal document that ensures the efficient management of gas resources within Arkansas. By establishing clear procedures for gas measurement, reporting, and dispute resolution, this agreement helps to maintain a steady and balanced gas supply, benefiting all parties involved in the gas supply chain.
