This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Louisiana Exhibit E is an essential component of the Operating Agreement Gas Balancing Agreement — Form 3, which is a contractual agreement entered into by parties involved in the gas industry. This specific exhibit focuses on the gas balancing aspect in the state of Louisiana. Gas balancing refers to the process of ensuring that the amount of natural gas entering and exiting a pipeline system is accurately measured and accounted for. It aims to maintain equilibrium between gas supply and demand, allowing for smooth operations and the avoidance of imbalances in the system. The gas balancing agreement is crucial in facilitating this process by outlining the rights, responsibilities, and procedures related to gas balancing. The Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is tailored specifically for gas balancing activities within the state of Louisiana. It includes detailed provisions addressing various aspects unique to Louisiana's gas market. This exhibit helps in ensuring compliance with the relevant state regulations and requirements. Different variations or types of Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 may exist depending on specific considerations and agreements between the parties involved. Some potential variations could include: 1. Louisiana Exhibit E (Pipeline Specific): This variation focuses on the gas balancing requirements of a specific pipeline system operating exclusively within Louisiana. The terms and conditions laid out in this exhibit would pertain exclusively to the gas balancing operations associated with that particular pipeline. 2. Louisiana Exhibit E (Interstate Gas Balancing): This type of exhibit pertains to gas balancing activities related to interstate pipelines passing through Louisiana. It addresses the unique aspects of balancing gas flows across state borders, ensuring compliance with federal regulations along with any additional Louisiana-specific requirements. 3. Louisiana Exhibit E (Storage Facility Balancing): In cases where the gas balancing agreement includes provisions for gas storage facilities in Louisiana, this specific exhibit would outline the requirements, procedures, and rights related to balancing gas inventories at such facilities. This variation would cater to the specific rules and regulations governing gas storage operations in Louisiana. These variations illustrate the flexibility of the Louisiana Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, allowing for customization based on the specific circumstances of the gas balancing activities within the state. It is essential for parties involved in gas balancing agreements in Louisiana to carefully review and draft this exhibit to ensure compliance with all applicable regulations and effective management of gas flows.
