The Kansas Gas Storage Unit Agreement is a contractual agreement that governs the terms and conditions between a gas storage provider and a customer in the state of Kansas. It outlines the rights, responsibilities, and obligations of both parties regarding the storage of natural gas in underground storage facilities. One of the main types of Kansas Gas Storage Unit Agreements is the Base Gas Agreement. This agreement specifies the amount of natural gas that will be retained in the storage facility as "base gas" to maintain pressure, while the remaining space is allocated to "working gas" which can be injected or withdrawn as necessary. The Base Gas Agreement also defines the terms for the use of the stored gas and the fees associated with its storage. Another type of agreement is the Injection and Withdrawal Agreement. This agreement details the procedures, timelines, and limits for injecting and withdrawing gas from the storage facility. It sets up the rules for the customer to deliver gas into the storage unit during off-peak periods when gas demand and pricing are typically lower, and withdraw the gas during peak periods when demand and prices increase. The Kansas Gas Storage Unit Agreements also include provisions related to capacity rights and usage. Capacity rights determine the customer's entitlement to storage space and the maximum quantity of gas that can be stored. The usage provisions outline the operating conditions, quality standards, and safety requirements that must be adhered to during the injection, storage, and withdrawal of gas. Additionally, these agreements cover financial aspects such as payment terms, invoicing procedures, and penalties for non-compliance with the terms of the agreement. They also address force majeure events, liability, indemnification, and dispute resolution mechanisms to ensure a fair and balanced relationship between the gas storage provider and the customer. In summary, the Kansas Gas Storage Unit Agreement is a comprehensive contract that governs the storage of natural gas in underground facilities in Kansas. It includes various types of agreements such as the Base Gas Agreement and the Injection and Withdrawal Agreement. These agreements address capacity rights, usage provisions, financial aspects, and dispute resolution mechanisms to ensure a smooth operation and a mutually beneficial relationship between the storage provider and its customers.
Kansas Gas Storage Unit Agreement
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