This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that outlines the terms and conditions for gas balancing in a gas exploration and production operation in the state of Louisiana. It is commonly used in the oil and gas industry to establish the responsibilities and obligations of the parties involved in gas balancing activities. The Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 typically includes the following key components: 1. Parties: This section identifies the parties who are entering into the gas balancing agreement, including the gas operators and the gas owners. It also includes their legal names, addresses, and contact information for effective communication. 2. Purpose: This section clearly states the purpose of the agreement, which is to establish the framework for gas balancing activities in the Louisiana region. Gas balancing refers to the process of adjusting gas flows between different wells, pipelines, and storage facilities to maintain operational efficiency and maximize resource utilization. 3. Definitions: This part of the agreement provides definitions for various terms and phrases used throughout the document. It ensures that both parties have a clear understanding of the terminology used in the agreement, thereby avoiding any potential misunderstandings or disputes in the future. 4. Gas Balancing Procedures: The agreement specifies the gas balancing procedures to be followed by the parties involved. This includes the methodology for measuring gas volumes, calculating imbalances, and addressing any discrepancies between actual and allocated gas quantities. 5. Reporting and Record-Keeping: The agreement outlines the reporting and record-keeping requirements to ensure accurate documentation of gas balancing activities. This involves regular reporting of gas volumes, imbalances, allocations, and any adjustments made to the gas balancing process. 6. Dispute Resolution: In the event of a dispute or disagreement regarding gas balancing activities, this section defines the mechanism for resolving such disputes, often through negotiation, mediation, or arbitration. It helps the parties to resolve conflicts amicably without resorting to legal action. 7. Governing Law: This clause specifies the jurisdiction and governing law that will apply to the gas balancing agreement. In the case of Louisiana, it will typically be the state's laws and regulations pertaining to oil and gas operations. Some variations or additional types of Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may include specific provisions related to gas balancing in offshore operations or in different geological formations within the state. These variations may address the unique challenges and requirements associated with different regions or types of gas fields within Louisiana. Overall, the Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 serves as a crucial legal document that ensures smooth gas balancing operations, promotes transparent communication between the parties involved, and helps maintain compliance with relevant laws and regulations in the state of Louisiana.
