Maryland Gas Storage Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-723
• Format: Word; Rich Text

Description

This form is used when Owner owns and operates underground gas storage facilities and Customer desires storage service for natural gas to serve its Plant, and Owner is willing to render such storage services.

Maryland Gas Storage Agreement refers to a legally binding contract between a gas storage operator and a customer, outlining the terms and conditions regarding the storage of natural gas in the state of Maryland. Such agreements are crucial in the energy industry as they provide a framework for the secure and efficient storage of natural gas reserves. Key terms and components typically included in a Maryland Gas Storage Agreement may involve the following: 1. Parties Involved: This section delineates the identities of the gas storage operator, often an energy company or utility, and the customer, which can range from industrial entities to residential consumers. 2. Scope and Purpose: This segment defines the objective of the agreement, clarifying the intention to store natural gas within the state of Maryland, either for supply security, price stability, or peak demand management. 3. Storage Capacity: Details about the available storage capacity, measured in cubic feet or other agreed-upon units, are provided in terms of initial capacity, deliverability rates, and potential expansion options. It outlines the maximum volume of gas the operator can store on behalf of the customer. 4. Injection and Withdrawal Procedures: This section elaborates on the procedures for injecting gas into the storage facility and withdrawing it when required. It specifies the allocation of injection and withdrawal rights, outlining any restrictions, notice periods, or limitations imposed by operational needs or market conditions. 5. Pricing and Payment Terms: This component deals with the pricing mechanisms, tariffs, and fees associated with the storage services. It may feature details such as the cost of storage capacity reservation, injection and withdrawal charges, and any penalties incurred for non-compliance or early termination of the agreement. 6. Term and Termination: Here, the duration of the agreement is defined, along with any options for renewal or termination. Both parties' rights and responsibilities during the agreement's lifespan are outlined, ensuring clarity on contract duration and the circumstances under which termination can occur. 7. Force Mature: This section serves to protect both parties by outlining conditions that would relieve them from fulfilling their obligations due to unforeseen events beyond their control, such as natural disasters or government interventions. Different types of Maryland Gas Storage Agreements may include: 1. Firm Storage Agreement: This agreement provides the customer with the certainty and guarantee of accessing the agreed storage capacity, ensuring their reserved gas is available for withdrawal as needed. 2. Interruptible Storage Agreement: Unlike firm agreements, this type of agreement allows the operator to interrupt the provision of storage services during periods of high demand or system constraints, giving priority to firm agreement customers. 3. Wheeling Agreement: This agreement enables customers to transport gas through the storage facility, allowing for efficient movement from one location to another within Maryland's gas infrastructure. In conclusion, a Maryland Gas Storage Agreement is a comprehensive contractual arrangement defining the terms of natural gas storage within the state. By clarifying the rights and responsibilities of both the operator and the customer, it aims to facilitate the safe, reliable, and cost-effective storage of gas reserves in Maryland's energy market.