Arizona Gas Storage Service Agreement

State:
Multi-State
Control #:
US-OG-1014
Format:
Word; 
Rich Text
Instant download

Description

This is an agreement for gas storage service.

Arizona Gas Storage Service Agreement is a legal contract that outlines the terms and conditions between a natural gas storage service provider and a customer in the state of Arizona. This agreement enables the customer to utilize gas storage facilities for the purpose of storing natural gas for future use. The Arizona Gas Storage Service Agreement typically includes key provisions such as: 1. Parties involved: The agreement identifies the service provider, often a natural gas utility company or a third-party storage facility operator, and the customer who is seeking gas storage services. 2. Term and commencement: This section specifies the duration of the agreement, including the start and end dates, as well as any renewal or termination provisions. 3. Storage capacity and injection/withdrawal rights: The agreement outlines the quantity of gas that the customer is entitled to store and the permitted rates of injecting or withdrawing gas from the storage facility. 4. Rates and charges: The agreement establishes the fees or tariffs applicable for using the gas storage service, including any capacity charges, injection/withdrawal fees, and any applicable taxes or surcharges. 5. Operational requirements: This section details operating procedures, safety regulations, and any compliance measures that both the service provider and the customer must adhere to while using the storage facilities. 6. Force majeure and liabilities: The agreement addresses force majeure events such as natural disasters or unforeseen circumstances that may affect the storage service. It also outlines the liabilities and indemnification provisions between the parties. 7. Confidentiality and information sharing: This clause ensures that the customer's information and data pertaining to gas storage activities are kept confidential and may only be shared with relevant government agencies or authorized entities. Types of Arizona Gas Storage Service Agreements: 1. General Gas Storage Service Agreement: This is the standard agreement that covers the use of gas storage facilities by customers for various purposes such as peak shaving, supply disruptions, or meeting seasonal demand fluctuations. 2. Firm vs. Interruptible Gas Storage Agreement: Depending on the customer's requirements, there may be separate agreements available for firm storage, which guarantees a specific storage capacity, and interruptible storage, which may be subject to interruption or curtailment during high-demand periods. 3. Long-term vs. Short-term Agreements: Storage service providers might offer different agreement options based on the duration of storage needs. Long-term agreements generally cover a period of several years, while short-term agreements could be as short as a few months. In conclusion, the Arizona Gas Storage Service Agreement is a legally binding contract that governs the relationship between a gas storage service provider and its customers. By clearly defining the rights, obligations, and operational procedures, this agreement ensures efficient utilization of gas storage facilities in Arizona.

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FAQ

How is Natural Gas Stored? Natural gas is stored underground primarily in three reservoir types: depleted oil and natural gas fields, salt formations and depleted aquifers.

Natural gas storage comes with certain risks, including gas leaks, health hazards, environmental impacts, and infrastructure failures. However, implementing safety measures such as regular inspections, emergency response plans, enhanced monitoring systems, and public awareness campaigns can greatly reduce these risks.

Depleted natural gas or oil fields function as gas storage reservoirs in California. Natural gas is injected into the storage reservoirs through gas storage wells and stored until withdrawn for use. There are 12 underground natural gas storage fields in the state.

Natural gas storage during periods of low demand helps to ensure that enough natural gas is available during periods of high demand. Natural gas is stored in large volumes in underground facilities and in smaller volumes in tanks above or below ground.

In short, methane is not stored in household tanks because the symmetry of its molecule makes it hard to liquify. You could in principle store methane in a tank in the gas state, but methane has such low density in the gas state that you could not store a usable amount.

These agreements can often be found on company's websites or given to customers to review before starting a project. Terms of service agreements typically outline the service being provided, how it works, what to expect as a customer, what your obligations are as a customer, how to properly use the service, and more.

More info

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Arizona Gas Storage Service Agreement