Florida Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1016
• Format: Word; Rich Text

Description

This is an agreement to establish a gas storage unit on depleted producing property. The Florida Gas Storage Unit Agreement (FG SUA) is a legally binding contract that governs the establishment and operation of a gas storage unit on a depleted producing property within the state of Florida. This agreement outlines the rights and responsibilities of the parties involved in the storage and extraction of natural gas resources. The FG SUA allows participating entities to utilize depleted oil and gas fields as underground storage facilities for natural gas. These facilities enable the efficient and strategic management of natural gas supplies, providing a reliable source of energy during peak demand periods and ensuring a stable market for gas producers. There are two main types of Florida Gas Storage Unit Agreements: primary and secondary units. 1. Primary Units: These agreements involve the development and operation of gas storage facilities in depleted producing properties that are dedicated exclusively to the storage of natural gas. The primary units require substantial investments in infrastructure, including wells, pipelines, and compressors, to enable the injection and withdrawal of gas from the storage reservoirs. 2. Secondary Units: In contrast to primary units, secondary units are established within existing underground storage facilities or fields primarily dedicated to the production of oil or gas. These units allow gas storage to coexist with ongoing production activities, maximizing the utilization of the existing infrastructure and minimizing the need for additional development. The FG SUA addresses various aspects of the gas storage operation, including ownership and access rights, injection and withdrawal procedures, technical requirements, and financial obligations. It also defines the method for allocating storage space among participating parties and establishes rules for the pricing and trading of gas within the unit. To establish a Florida Gas Storage Unit Agreement, interested parties must meet certain criteria set forth by the Florida Department of Environmental Protection (FDP). These criteria include demonstrating technical feasibility, financial capability, and compliance with applicable regulations and environmental standards. The FDP oversees the approval process and ensures adherence to the terms and conditions of the agreement, safeguarding environmental and public interests. In summary, the Florida Gas Storage Unit Agreement provides a framework for the development and operation of gas storage units on depleted producing properties, enhancing the flexibility and reliability of the natural gas supply chain in Florida. Primary and secondary units offer distinct opportunities for gas storage, catering to different infrastructure requirements and operational scenarios.

The Florida Gas Storage Unit Agreement (FG SUA) is a legally binding contract that governs the establishment and operation of a gas storage unit on a depleted producing property within the state of Florida. This agreement outlines the rights and responsibilities of the parties involved in the storage and extraction of natural gas resources. The FG SUA allows participating entities to utilize depleted oil and gas fields as underground storage facilities for natural gas. These facilities enable the efficient and strategic management of natural gas supplies, providing a reliable source of energy during peak demand periods and ensuring a stable market for gas producers. There are two main types of Florida Gas Storage Unit Agreements: primary and secondary units. 1. Primary Units: These agreements involve the development and operation of gas storage facilities in depleted producing properties that are dedicated exclusively to the storage of natural gas. The primary units require substantial investments in infrastructure, including wells, pipelines, and compressors, to enable the injection and withdrawal of gas from the storage reservoirs. 2. Secondary Units: In contrast to primary units, secondary units are established within existing underground storage facilities or fields primarily dedicated to the production of oil or gas. These units allow gas storage to coexist with ongoing production activities, maximizing the utilization of the existing infrastructure and minimizing the need for additional development. The FG SUA addresses various aspects of the gas storage operation, including ownership and access rights, injection and withdrawal procedures, technical requirements, and financial obligations. It also defines the method for allocating storage space among participating parties and establishes rules for the pricing and trading of gas within the unit. To establish a Florida Gas Storage Unit Agreement, interested parties must meet certain criteria set forth by the Florida Department of Environmental Protection (FDP). These criteria include demonstrating technical feasibility, financial capability, and compliance with applicable regulations and environmental standards. The FDP oversees the approval process and ensures adherence to the terms and conditions of the agreement, safeguarding environmental and public interests. In summary, the Florida Gas Storage Unit Agreement provides a framework for the development and operation of gas storage units on depleted producing properties, enhancing the flexibility and reliability of the natural gas supply chain in Florida. Primary and secondary units offer distinct opportunities for gas storage, catering to different infrastructure requirements and operational scenarios.