This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document used in the state of Arizona for establishing a gas balancing agreement between parties involved in gas exploration and production activities. It contains detailed provisions, obligations, and conditions regarding the balancing of gas quantities between multiple parties operating within a specified area. The primary purpose of Arizona Exhibit E is to ensure the fair distribution and accurate accounting of gas produced from a shared resource or gas field. It helps prevent imbalances in gas production and consumption by setting guidelines for allocation, measurement, and reconciliation of gas quantities among the participating parties. The Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may have different variations or types based on specific contractual arrangements or gas field characteristics. These types may include: 1. Conventional Gas Balancing Agreement — This type of Exhibit E typically applies to gas fields where conventional methods of exploration and production are utilized. 2. Unconventional Gas Balancing Agreement — This type of Exhibit E is designed for gas fields that employ unconventional methods like hydraulic fracturing (fracking) or coaled methane extraction. 3. Offshore Gas Balancing Agreement — This type of Exhibit E is specific to gas fields located offshore, such as those situated in the Gulf of Mexico or other coastal areas of Arizona. 4. Exploration and Production Sharing Agreement (ESA) Gas Balancing Agreement — This type of Exhibit E is used in situations where multiple parties are involved in both the exploration and production phases of gas operations, often in collaboration with a government entity. The content of Arizona Exhibit E includes several key sections and clauses that outline the rights, responsibilities, and obligations of each party involved. These may include: 1. Definitions — This section provides clear definitions of key terms used throughout the document to ensure mutual understanding. 2. Purpose — This section explains the overall objective of the gas balancing agreement and sets the context for the subsequent provisions. 3. Parties and Effective Date — This section identifies the participating parties involved in the agreement and specifies the date when the agreement becomes effective. 4. Allocation Mechanism — This section describes the method by which gas volumes will be allocated among the parties, taking into account factors such as production, delivery, and consumption. 5. Measurement and Reporting — This section establishes guidelines for accurate measurement, reporting, and verification of gas quantities produced and consumed by each party. 6. Balancing and Reconciliation — This section outlines the procedures and timelines for reconciling any imbalances that may occur, including methods for gas balancing, penalties for non-compliance, and dispute resolution mechanisms. 7. Force Mature — This section addresses circumstances beyond the control of the parties, such as natural disasters or political unrest, which may temporarily affect gas production and balancing obligations. 8. Term and Termination — This section specifies the duration of the agreement and the conditions under which it can be terminated or extended. It is important to note that the content and specific provisions of Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may vary based on the unique circumstances of each gas project and the requirements of the parties involved. Therefore, it is essential to review and customize the document to ensure it accurately reflects the intended contractual obligations and arrangements.Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document used in the state of Arizona for establishing a gas balancing agreement between parties involved in gas exploration and production activities. It contains detailed provisions, obligations, and conditions regarding the balancing of gas quantities between multiple parties operating within a specified area. The primary purpose of Arizona Exhibit E is to ensure the fair distribution and accurate accounting of gas produced from a shared resource or gas field. It helps prevent imbalances in gas production and consumption by setting guidelines for allocation, measurement, and reconciliation of gas quantities among the participating parties. The Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may have different variations or types based on specific contractual arrangements or gas field characteristics. These types may include: 1. Conventional Gas Balancing Agreement — This type of Exhibit E typically applies to gas fields where conventional methods of exploration and production are utilized. 2. Unconventional Gas Balancing Agreement — This type of Exhibit E is designed for gas fields that employ unconventional methods like hydraulic fracturing (fracking) or coaled methane extraction. 3. Offshore Gas Balancing Agreement — This type of Exhibit E is specific to gas fields located offshore, such as those situated in the Gulf of Mexico or other coastal areas of Arizona. 4. Exploration and Production Sharing Agreement (ESA) Gas Balancing Agreement — This type of Exhibit E is used in situations where multiple parties are involved in both the exploration and production phases of gas operations, often in collaboration with a government entity. The content of Arizona Exhibit E includes several key sections and clauses that outline the rights, responsibilities, and obligations of each party involved. These may include: 1. Definitions — This section provides clear definitions of key terms used throughout the document to ensure mutual understanding. 2. Purpose — This section explains the overall objective of the gas balancing agreement and sets the context for the subsequent provisions. 3. Parties and Effective Date — This section identifies the participating parties involved in the agreement and specifies the date when the agreement becomes effective. 4. Allocation Mechanism — This section describes the method by which gas volumes will be allocated among the parties, taking into account factors such as production, delivery, and consumption. 5. Measurement and Reporting — This section establishes guidelines for accurate measurement, reporting, and verification of gas quantities produced and consumed by each party. 6. Balancing and Reconciliation — This section outlines the procedures and timelines for reconciling any imbalances that may occur, including methods for gas balancing, penalties for non-compliance, and dispute resolution mechanisms. 7. Force Mature — This section addresses circumstances beyond the control of the parties, such as natural disasters or political unrest, which may temporarily affect gas production and balancing obligations. 8. Term and Termination — This section specifies the duration of the agreement and the conditions under which it can be terminated or extended. It is important to note that the content and specific provisions of Arizona Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may vary based on the unique circumstances of each gas project and the requirements of the parties involved. Therefore, it is essential to review and customize the document to ensure it accurately reflects the intended contractual obligations and arrangements.
