This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that outlines the terms and conditions related to gas balancing agreement in the state of Louisiana. This agreement is important for ensuring the efficient and fair distribution of gas resources among multiple stakeholders in the state. The Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is specifically designed for agreements related to gas balancing in Louisiana, providing a standardized template for such agreements. This form includes various relevant clauses and provisions that govern the gas balancing process. Some of the key components that may be included in Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 are: 1. Identification and Definitions: This section establishes the parties involved in the gas balancing agreement, their roles and responsibilities, and defines key terms related to gas balancing. 2. Balancing Obligations: This section outlines the specific obligations and requirements of each party involved in the gas balancing agreement. It may include details about gas delivery and injection points, measurement methods, and timing requirements for gas balancing. 3. Allocation and Proration: This section details the method to be used for allocating and prorating gas among the parties involved. It may include formulas or ratios for determining each party's share of gas resources. 4. Penalties and Remedies: This section discusses the penalties or remedies that may be imposed in case of non-compliance with the gas balancing agreement. It may include financial penalties, loss of gas entitlement, or termination of the agreement. 5. Dispute Resolution: This section provides a mechanism for resolving disputes that may arise during the gas balancing process. It may specify mediation, arbitration, or litigation procedures. 6. Term and Termination: This section delineates the duration of the gas balancing agreement and the conditions under which it can be terminated by either party. Different types of Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist depending on the specific gas balancing arrangement or the companies involved. These variations may reflect different terms, conditions, or provisions tailored to meet the unique needs of the parties involved. Keywords: Louisiana, Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2, gas resources, stakeholders, gas balancing process, standardized template, clauses, provisions, identification, definitions, obligations, requirements, gas delivery, injection points, measurement methods, timing, allocation, proration, penalties, remedies, dispute resolution, term, termination.
