Maine Gas Processing Rights Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1011
• Format: Word; Rich Text

Description

This form is a gas processing rights agreement. Maine Gas Processing Rights Agreement, also known as a gas processing agreement, is a legally binding contract that outlines the terms and conditions between a gas producer and a gas processing company. This agreement pertains to the processing, treatment, and separation of raw natural gas extracted from gas wells in the state of Maine, USA. The Maine Gas Processing Rights Agreement grants the gas processing company the exclusive rights to receive, process, and treat the gas produced by the gas producer. It encompasses the activities involved in converting the raw natural gas into marketable products, such as methane, ethane, propane, butane, and other natural gas liquids (GLS). This agreement is essential in the gas industry as it establishes the responsibilities, rights, and obligations of both parties involved. It typically covers crucial aspects, including gas measurement, processing fees, quality standards, product allocation, transportation, and the treatment of impurities from the extracted gas. There can be several types of Maine Gas Processing Rights Agreements based on specific requirements and commercial arrangements. Some common types to consider are as follows: 1. Fee-Based Agreement: This type of agreement involves the gas producer paying a processing fee to the gas processing company for each unit of gas processed, regardless of the final product's value or sales. 2. Keep-Whole Agreement: In a keep-whole agreement, the gas processor is responsible for maintaining the gas's energy content during processing. The gas producer retains ownership of the GLS extracted, which are later sold separately. 3. Percent-of-Proceeds Agreement: This agreement involves the gas processor receiving a percentage of the revenue generated from the sales of the processed natural gas and its derived products, typically GLS. 4. Minimum Volume Commitment Agreement: A contract with a minimum volume commitment ensures that the gas producer commits to send a minimum volume of gas to the gas processing company for a specified period. This guarantees a steady supply of raw natural gas for the processor's operations. 5. Fractionization Agreement: A fractionization agreement focuses on the separation of the GLS into individual components like propane, ethane, and butane. This type of agreement is common when the gas producer wants to utilize or sell specific GLS separately. Maine Gas Processing Rights Agreements play a vital role in ensuring a smooth and efficient gas production and processing operation in the state. They establish clear guidelines and expectations between the gas producer and processor, enabling both parties to effectively manage their respective roles and maximize the value obtained from the natural gas resources.

Maine Gas Processing Rights Agreement, also known as a gas processing agreement, is a legally binding contract that outlines the terms and conditions between a gas producer and a gas processing company. This agreement pertains to the processing, treatment, and separation of raw natural gas extracted from gas wells in the state of Maine, USA. The Maine Gas Processing Rights Agreement grants the gas processing company the exclusive rights to receive, process, and treat the gas produced by the gas producer. It encompasses the activities involved in converting the raw natural gas into marketable products, such as methane, ethane, propane, butane, and other natural gas liquids (GLS). This agreement is essential in the gas industry as it establishes the responsibilities, rights, and obligations of both parties involved. It typically covers crucial aspects, including gas measurement, processing fees, quality standards, product allocation, transportation, and the treatment of impurities from the extracted gas. There can be several types of Maine Gas Processing Rights Agreements based on specific requirements and commercial arrangements. Some common types to consider are as follows: 1. Fee-Based Agreement: This type of agreement involves the gas producer paying a processing fee to the gas processing company for each unit of gas processed, regardless of the final product's value or sales. 2. Keep-Whole Agreement: In a keep-whole agreement, the gas processor is responsible for maintaining the gas's energy content during processing. The gas producer retains ownership of the GLS extracted, which are later sold separately. 3. Percent-of-Proceeds Agreement: This agreement involves the gas processor receiving a percentage of the revenue generated from the sales of the processed natural gas and its derived products, typically GLS. 4. Minimum Volume Commitment Agreement: A contract with a minimum volume commitment ensures that the gas producer commits to send a minimum volume of gas to the gas processing company for a specified period. This guarantees a steady supply of raw natural gas for the processor's operations. 5. Fractionization Agreement: A fractionization agreement focuses on the separation of the GLS into individual components like propane, ethane, and butane. This type of agreement is common when the gas producer wants to utilize or sell specific GLS separately. Maine Gas Processing Rights Agreements play a vital role in ensuring a smooth and efficient gas production and processing operation in the state. They establish clear guidelines and expectations between the gas producer and processor, enabling both parties to effectively manage their respective roles and maximize the value obtained from the natural gas resources.