This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
The Illinois Gas Storage and Secondary Recovery Unit Agreement is a legal contract entered into between gas storage operators and well owners in the state of Illinois. This agreement establishes the terms and conditions for the storage and secondary recovery of natural gas from underground reservoirs. Under this agreement, gas storage operators have the right to use the underground reservoirs and associated facilities to store natural gas. They are responsible for operating and maintaining the storage infrastructure, including monitoring the gas injections and withdrawals, maintaining the integrity of the reservoirs, and ensuring compliance with safety regulations. Well owners, on the other hand, grant access to their wells to the gas storage operators for the purpose of secondary recovery. Secondary recovery refers to the process of injecting gas or other substances into the reservoir to enhance the extraction of trapped natural gas. Well owners may receive compensation for allowing the gas storage operators to use their wells for secondary recovery activities. The Illinois Gas Storage and Secondary Recovery Unit Agreement is typically divided into different types based on the specific terms and conditions agreed upon by the parties involved. These types include: 1. Standard Agreement: This is the most common type of agreement, often used as a template for new gas storage projects. It outlines the general terms and conditions applicable to all parties involved. 2. Area of Mutual Interest (AMI) Agreement: This agreement is used when multiple well owners and gas storage operators collaborate in a specific geographic area. It establishes the rules for coordination and the sharing of resources and responsibilities among the parties. 3. Lease Agreement: In some cases, gas storage operators may enter into lease agreements with well owners, granting them exclusive rights to use the wells for secondary recovery. This type of agreement outlines the lease terms, rental fees, and obligations of both parties. 4. Fill and Withdrawal Agreement: This agreement specifically addresses the processes and procedures for gas injections and withdrawals from the storage reservoirs. It includes details on scheduling, allocation of storage capacity, measurement, and pricing. In conclusion, the Illinois Gas Storage and Secondary Recovery Unit Agreement is a comprehensive legal document that governs the storage and secondary recovery of natural gas in underground reservoirs. With various types of agreements available, it allows for flexibility in accommodating the specific needs and obligations of the parties involved.The Illinois Gas Storage and Secondary Recovery Unit Agreement is a legal contract entered into between gas storage operators and well owners in the state of Illinois. This agreement establishes the terms and conditions for the storage and secondary recovery of natural gas from underground reservoirs. Under this agreement, gas storage operators have the right to use the underground reservoirs and associated facilities to store natural gas. They are responsible for operating and maintaining the storage infrastructure, including monitoring the gas injections and withdrawals, maintaining the integrity of the reservoirs, and ensuring compliance with safety regulations. Well owners, on the other hand, grant access to their wells to the gas storage operators for the purpose of secondary recovery. Secondary recovery refers to the process of injecting gas or other substances into the reservoir to enhance the extraction of trapped natural gas. Well owners may receive compensation for allowing the gas storage operators to use their wells for secondary recovery activities. The Illinois Gas Storage and Secondary Recovery Unit Agreement is typically divided into different types based on the specific terms and conditions agreed upon by the parties involved. These types include: 1. Standard Agreement: This is the most common type of agreement, often used as a template for new gas storage projects. It outlines the general terms and conditions applicable to all parties involved. 2. Area of Mutual Interest (AMI) Agreement: This agreement is used when multiple well owners and gas storage operators collaborate in a specific geographic area. It establishes the rules for coordination and the sharing of resources and responsibilities among the parties. 3. Lease Agreement: In some cases, gas storage operators may enter into lease agreements with well owners, granting them exclusive rights to use the wells for secondary recovery. This type of agreement outlines the lease terms, rental fees, and obligations of both parties. 4. Fill and Withdrawal Agreement: This agreement specifically addresses the processes and procedures for gas injections and withdrawals from the storage reservoirs. It includes details on scheduling, allocation of storage capacity, measurement, and pricing. In conclusion, the Illinois Gas Storage and Secondary Recovery Unit Agreement is a comprehensive legal document that governs the storage and secondary recovery of natural gas in underground reservoirs. With various types of agreements available, it allows for flexibility in accommodating the specific needs and obligations of the parties involved.
