Kansas Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1092
• Format: Word; Rich Text

Description

This form of Agreement may be used to create a Unit for the purposes of producing oil and gas on a pooled unit basis, from existing producing leases. Kansas Production and Storage Unit Agreement (KS-PSUA), is a legally binding contract that governs the production and storage of hydrocarbons, such as oil and gas, within a specific area located in the state of Kansas. This agreement outlines the roles, responsibilities, and rights of the parties involved in the production and storage activities. The KS-PSUA is designed to ensure efficient and effective development and utilization of hydrocarbon resources in Kansas. It is typically entered into between the operator of the production and storage unit, which is usually an oil and gas company, and the various co-owners or working interest owners who hold an ownership interest in the unit. Different types of Kansas Production and Storage Unit Agreements may exist, each tailored to the unique circumstances and objectives of the parties involved. They can be categorized based on the type of hydrocarbon resource being produced or the specific area of operations. 1. Oil Production and Storage Unit Agreement: This type of KS-PSUA focuses specifically on the production and storage of crude oil. It outlines the responsibilities of the parties related to drilling, extraction, transportation, and storage of oil within the defined geographic area. 2. Gas Production and Storage Unit Agreement: This agreement is centered around the production and storage of natural gas. It specifies the obligations of the parties regarding drilling, extraction, transportation, and storage of natural gas within the specified location. 3. Combined Production and Storage Unit Agreement: In some cases, a KS-PSUA may encompass the production and storage of both oil and gas. This type of agreement encompasses all aspects related to drilling, extraction, transportation, and storage of both hydrocarbon resources. The Kansas Production and Storage Unit Agreement typically covers a range of important provisions, including: a) Unit Area and Interests: It defines the geographic area of the unit and the respective interests of the co-owners or working interest owners involved. b) Operations and Responsibilities: This section outlines the responsibilities of each party regarding drilling, production, facilities maintenance, and compliance with relevant regulations. c) Unit Operations Committee: The agreement may establish a Unit Operations Committee comprising representatives from the parties involved to oversee and make decisions related to unit operations. d) Unit Costs and Revenues: It details the allocation of costs, expenses, and revenues among the parties, taking into consideration their respective interests. e) Storage Facilities and Reservoir Management: If applicable, the agreement may address the construction, operation, and management of storage facilities within the unit, along with reservoir management strategies. f) Dispute Resolution and Termination: The KS-PSUA includes provisions for resolving any disputes that may arise during the course of operations. It also outlines the conditions and procedures for termination of the agreement. In conclusion, the Kansas Production and Storage Unit Agreement is a comprehensive contract that regulates the production and storage of hydrocarbon resources in Kansas. With different variations depending on the type of hydrocarbon, this agreement ensures efficient and effective collaboration among parties involved, promoting responsible resource utilization and optimizing operational outcomes.

Kansas Production and Storage Unit Agreement (KS-PSUA), is a legally binding contract that governs the production and storage of hydrocarbons, such as oil and gas, within a specific area located in the state of Kansas. This agreement outlines the roles, responsibilities, and rights of the parties involved in the production and storage activities. The KS-PSUA is designed to ensure efficient and effective development and utilization of hydrocarbon resources in Kansas. It is typically entered into between the operator of the production and storage unit, which is usually an oil and gas company, and the various co-owners or working interest owners who hold an ownership interest in the unit. Different types of Kansas Production and Storage Unit Agreements may exist, each tailored to the unique circumstances and objectives of the parties involved. They can be categorized based on the type of hydrocarbon resource being produced or the specific area of operations. 1. Oil Production and Storage Unit Agreement: This type of KS-PSUA focuses specifically on the production and storage of crude oil. It outlines the responsibilities of the parties related to drilling, extraction, transportation, and storage of oil within the defined geographic area. 2. Gas Production and Storage Unit Agreement: This agreement is centered around the production and storage of natural gas. It specifies the obligations of the parties regarding drilling, extraction, transportation, and storage of natural gas within the specified location. 3. Combined Production and Storage Unit Agreement: In some cases, a KS-PSUA may encompass the production and storage of both oil and gas. This type of agreement encompasses all aspects related to drilling, extraction, transportation, and storage of both hydrocarbon resources. The Kansas Production and Storage Unit Agreement typically covers a range of important provisions, including: a) Unit Area and Interests: It defines the geographic area of the unit and the respective interests of the co-owners or working interest owners involved. b) Operations and Responsibilities: This section outlines the responsibilities of each party regarding drilling, production, facilities maintenance, and compliance with relevant regulations. c) Unit Operations Committee: The agreement may establish a Unit Operations Committee comprising representatives from the parties involved to oversee and make decisions related to unit operations. d) Unit Costs and Revenues: It details the allocation of costs, expenses, and revenues among the parties, taking into consideration their respective interests. e) Storage Facilities and Reservoir Management: If applicable, the agreement may address the construction, operation, and management of storage facilities within the unit, along with reservoir management strategies. f) Dispute Resolution and Termination: The KS-PSUA includes provisions for resolving any disputes that may arise during the course of operations. It also outlines the conditions and procedures for termination of the agreement. In conclusion, the Kansas Production and Storage Unit Agreement is a comprehensive contract that regulates the production and storage of hydrocarbon resources in Kansas. With different variations depending on the type of hydrocarbon, this agreement ensures efficient and effective collaboration among parties involved, promoting responsible resource utilization and optimizing operational outcomes.