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.
Maine Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that plays a vital role in providing gas balancing provisions for operating agreements in the state of Maine. This agreement ensures an equitable distribution of natural gas supplies, promotes efficient operations, and mitigates imbalances between production and consumption. The Maine Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 encompasses several key aspects that are crucial for maintaining gas balancing procedures. These include: 1. Gas Balancing Methodology: This section outlines the methodology used to calculate and monitor gas imbalances. It defines the measurement units, conversion factors, timeframes for reporting, and accounting procedures. The agreement ensures that all parties involved adhere to the same gas balancing methodology. 2. Imbalance Tolerance and Penalties: The document outlines the acceptable range of gas imbalances and the penalties imposed for exceeding these limits. It specifies the tolerance thresholds for over-deliveries and under-deliveries and the associated charges or deductions to be applied. This provision promotes efficient gas usage and discourages imbalances. 3. Monthly Imbalance Statements: The agreement mandates the submission of monthly imbalance statements by each party to track and record gas imbalances accurately. These statements provide an overview of each party's gas consumption and production, allowing for transparency and accountability. 4. Settlement and Payment: This section describes the procedures for settling monthly imbalances and handles the financial aspect of gas balancing. It includes details on invoicing, payment terms, and any interest or late fees that may be applicable. 5. Dispute Resolution: In the event of disputes related to gas balancing, the agreement provides a mechanism for resolution. It outlines the process for raising concerns, negotiation, mediation, or arbitration, ensuring that conflicts can be addressed promptly and fairly. Different types of Maine Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist, depending on the specific operating agreement and gas balancing requirements involved. However, the general content of these agreements remains consistent as described above. Overall, Maine Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a crucial document that promotes efficient gas operations, fair distribution, and effective dispute resolution. Its provisions ensure that gas imbalances are managed effectively, benefiting all parties involved in the gas industry in Maine.
