This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 The Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is an essential document that outlines the specific terms and conditions regarding gas balancing activities within a Delaware-based operating agreement. This agreement is typically used in the oil and gas industry, specifically in Delaware, where gas production and distribution are prominent. Gas balancing refers to the process of equalizing the gas consumption and production within a network of interconnected pipelines or gas fields. It plays a crucial role in ensuring a steady and consistent supply of natural gas to consumers. The Gas Balancing Agreement, represented by the Delaware Exhibit E to the Operating Agreement — Form 4, serves as a legally binding contract between the parties involved in the gas balancing process. The form contains detailed provisions and clauses that address the rights, responsibilities, and obligations of each party participating in the gas balancing agreement. Key components commonly found in the Delaware Exhibit E may include: 1. Identification of the Parties: This section provides the names and contact information of all parties involved in the agreement, including the gas producer, distributor, transporter, and any other relevant entities. 2. Gas Balancing Objectives: The exhibit will clearly define the goals and objectives of the gas balancing operations, such as maintaining a specified gas pressure, managing gas inventories, or ensuring uniform supply to end-users. 3. Gas Balancing Procedures: This section outlines the specific procedures and methodologies for gas balancing, including how measurements will be taken, how imbalances will be addressed, and how penalties or fees will be handled. 4. Allocation of Costs: The form may detail the allocation of costs associated with gas balancing activities among the parties involved. This can include charges for imbalanced gas quantities, transportation fees, or any other relevant expenses. 5. Dispute Resolution: A provision for dispute resolution may be included to govern the process and methods to be used in case disagreements or conflicts arise between the parties regarding gas balancing operations. Different variations or types of the Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may exist depending on specific industry requirements, the nature of the gas operation, or any additional clauses that the participating parties wish to include. In conclusion, the Delaware Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a crucial document that ensures transparent and efficient gas balancing operations within the Delaware oil and gas industry. Its detailed provisions aid in establishing accountability, fairness, and proper management of gas supplies.
