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.
Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a document that outlines the specific terms and conditions related to gas balancing agreements within the state of Illinois. This agreement is typically used in the energy industry to ensure a fair and equitable distribution of gas resources between parties involved in gas production, transportation, and consumption. The Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 contains several sections that outline the various aspects of the agreement. These sections include: 1. Parties Involved: This section identifies the parties involved in the gas balancing agreement, including the gas producer, transporter, and consumer. It provides their names, addresses, and contact information. 2. Purpose: This section states the main objective of the gas balancing agreement, which is to establish a framework for gas balancing activities to maintain system integrity and ensure reliable gas supply to customers. 3. Term: This section specifies the duration of the gas balancing agreement, including the start and end dates. 4. Gas Balancing Obligations: This section outlines the obligations of each party regarding gas balancing activities. It includes provisions related to production, transportation, and consumption of gas, and it establishes guidelines for measuring and reporting gas imbalances. 5. Imbalance Charges and Penalties: This section details the charges and penalties that may be imposed on parties in the event of gas imbalances. It includes provisions for calculating these charges and penalties and describes the process for resolving disputes. 6. Force Mature: This section addresses the occurrence of unforeseen events, such as natural disasters or government actions, that may prevent a party from fulfilling their gas balancing obligations. It outlines the procedures to be followed in such cases and the potential effects on the agreement. 7. Termination: This section specifies the conditions under which the gas balancing agreement may be terminated, including breach of contract or mutual agreement between the parties. It also outlines the procedures to be followed during the termination process. Types of Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3: 1. Standard Gas Balancing Agreement — Form 3: This is the most commonly used form of the gas balancing agreement in Illinois. It includes all the essential provisions and clauses required for a gas balancing agreement in compliance with the state's regulations. 2. Modified Gas Balancing Agreement — Form 3: This type of agreement may include additional or modified provisions based on specific requirements or negotiations between the parties. It allows for more flexibility and customization to meet the specific needs of the gas producer, transporter, or consumer. In summary, the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a comprehensive document that governs the gas balancing activities between parties involved in the production, transportation, and consumption of gas in Illinois. It outlines the rights, responsibilities, and obligations of each party, and provides a framework for maintaining system integrity and ensuring a reliable gas supply.Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a document that outlines the specific terms and conditions related to gas balancing agreements within the state of Illinois. This agreement is typically used in the energy industry to ensure a fair and equitable distribution of gas resources between parties involved in gas production, transportation, and consumption. The Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 contains several sections that outline the various aspects of the agreement. These sections include: 1. Parties Involved: This section identifies the parties involved in the gas balancing agreement, including the gas producer, transporter, and consumer. It provides their names, addresses, and contact information. 2. Purpose: This section states the main objective of the gas balancing agreement, which is to establish a framework for gas balancing activities to maintain system integrity and ensure reliable gas supply to customers. 3. Term: This section specifies the duration of the gas balancing agreement, including the start and end dates. 4. Gas Balancing Obligations: This section outlines the obligations of each party regarding gas balancing activities. It includes provisions related to production, transportation, and consumption of gas, and it establishes guidelines for measuring and reporting gas imbalances. 5. Imbalance Charges and Penalties: This section details the charges and penalties that may be imposed on parties in the event of gas imbalances. It includes provisions for calculating these charges and penalties and describes the process for resolving disputes. 6. Force Mature: This section addresses the occurrence of unforeseen events, such as natural disasters or government actions, that may prevent a party from fulfilling their gas balancing obligations. It outlines the procedures to be followed in such cases and the potential effects on the agreement. 7. Termination: This section specifies the conditions under which the gas balancing agreement may be terminated, including breach of contract or mutual agreement between the parties. It also outlines the procedures to be followed during the termination process. Types of Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3: 1. Standard Gas Balancing Agreement — Form 3: This is the most commonly used form of the gas balancing agreement in Illinois. It includes all the essential provisions and clauses required for a gas balancing agreement in compliance with the state's regulations. 2. Modified Gas Balancing Agreement — Form 3: This type of agreement may include additional or modified provisions based on specific requirements or negotiations between the parties. It allows for more flexibility and customization to meet the specific needs of the gas producer, transporter, or consumer. In summary, the Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a comprehensive document that governs the gas balancing activities between parties involved in the production, transportation, and consumption of gas in Illinois. It outlines the rights, responsibilities, and obligations of each party, and provides a framework for maintaining system integrity and ensuring a reliable gas supply.
