Michigan Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1016
• Format: Word; Rich Text

Description

This is an agreement to establish a gas storage unit on depleted producing property. The Michigan Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) is a legal contract that governs the establishment and operation of a gas storage unit on a depleted producing property in the state of Michigan. This agreement is crucial for regulating the storage and withdrawal of natural gas from underground reservoirs within the state. In Michigan, there are different types of gas storage unit agreements based on the specific characteristics and requirements of the property. Some notable types include: 1. Depleted Field Storage: This type of agreement involves converting an already depleted gas field into a storage facility. It emphasizes the utilization of existing infrastructure such as wells, pipelines, and storage reservoirs for efficient storage operations. 2. Salt Cavern Storage: This agreement focuses on constructing storage facilities within salt caverns that are capable of holding large volumes of natural gas. Salt caverns provide secure and reliable storage due to their impermeability and ability to withstand high pressures. 3. Aquifer Storage: This type of agreement involves storing natural gas in underground aquifers, which are essentially porous rock formations capable of holding substantial volumes of gas. Proper management of aquifer storage facilities is essential to prevent gas migration and protect the environment. 4. Depleted Reservoir Storage: This agreement entails storing natural gas in already depleted oil or gas reservoirs. The reservoirs must possess certain geological properties, such as appropriate porosity and permeability, to ensure efficient storage and later retrieval of the gas. The Michigan Gas Storage Unit Agreement contains several key provisions that address various aspects of storage unit operations, including: — Definitions: Clearly defining terms such as "gas storage unit," "withdrawal," "injection," and "deliverability" to ensure consistency and clarity throughout the agreement. — Storage Rights: Outlining the rights of the storage unit operator, including the ability to store, withdraw, and manage natural gas within the designated storage unit. — Gas Injection and Withdrawal: Establishing protocols and limitations for injecting gas into the storage unit during periods of excess supply and withdrawing gas during periods of high demand. This includes specifying injection and withdrawal rates, operational procedures, and seasonal variations. — Storage Fee Structure: Detailing the fees and charges associated with using the gas storage unit, including storage capacity reservation fees, commodity charges, and penalties for noncompliance. — Unit Operation and Maintenance: Outlining the responsibilities of the operator in maintaining and monitoring the integrity and safety of the storage unit. This includes regular inspections, testing, and maintenance activities to ensure compliance with safety regulations. — ForcMaturere: Addressing unforeseen circumstances or events beyond the control of the parties involved, such as natural disasters or regulatory changes, by establishing provisions that govern actions and potential compensation in these situations. — Dispute Resolution: Specifying procedures for resolving any disputes that may arise during the term of the agreement, including mediation or arbitration options. Overall, the Michigan Gas Storage Unit Agreement is essential for establishing, managing, and operating gas storage units on depleted producing properties in the state. It ensures the efficient utilization of existing resources, compliance with safety and environmental regulations, and the reliable supply of natural gas for consumers and businesses alike.

The Michigan Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) is a legal contract that governs the establishment and operation of a gas storage unit on a depleted producing property in the state of Michigan. This agreement is crucial for regulating the storage and withdrawal of natural gas from underground reservoirs within the state. In Michigan, there are different types of gas storage unit agreements based on the specific characteristics and requirements of the property. Some notable types include: 1. Depleted Field Storage: This type of agreement involves converting an already depleted gas field into a storage facility. It emphasizes the utilization of existing infrastructure such as wells, pipelines, and storage reservoirs for efficient storage operations. 2. Salt Cavern Storage: This agreement focuses on constructing storage facilities within salt caverns that are capable of holding large volumes of natural gas. Salt caverns provide secure and reliable storage due to their impermeability and ability to withstand high pressures. 3. Aquifer Storage: This type of agreement involves storing natural gas in underground aquifers, which are essentially porous rock formations capable of holding substantial volumes of gas. Proper management of aquifer storage facilities is essential to prevent gas migration and protect the environment. 4. Depleted Reservoir Storage: This agreement entails storing natural gas in already depleted oil or gas reservoirs. The reservoirs must possess certain geological properties, such as appropriate porosity and permeability, to ensure efficient storage and later retrieval of the gas. The Michigan Gas Storage Unit Agreement contains several key provisions that address various aspects of storage unit operations, including: — Definitions: Clearly defining terms such as "gas storage unit," "withdrawal," "injection," and "deliverability" to ensure consistency and clarity throughout the agreement. — Storage Rights: Outlining the rights of the storage unit operator, including the ability to store, withdraw, and manage natural gas within the designated storage unit. — Gas Injection and Withdrawal: Establishing protocols and limitations for injecting gas into the storage unit during periods of excess supply and withdrawing gas during periods of high demand. This includes specifying injection and withdrawal rates, operational procedures, and seasonal variations. — Storage Fee Structure: Detailing the fees and charges associated with using the gas storage unit, including storage capacity reservation fees, commodity charges, and penalties for noncompliance. — Unit Operation and Maintenance: Outlining the responsibilities of the operator in maintaining and monitoring the integrity and safety of the storage unit. This includes regular inspections, testing, and maintenance activities to ensure compliance with safety regulations. — ForcMaturere: Addressing unforeseen circumstances or events beyond the control of the parties involved, such as natural disasters or regulatory changes, by establishing provisions that govern actions and potential compensation in these situations. — Dispute Resolution: Specifying procedures for resolving any disputes that may arise during the term of the agreement, including mediation or arbitration options. Overall, the Michigan Gas Storage Unit Agreement is essential for establishing, managing, and operating gas storage units on depleted producing properties in the state. It ensures the efficient utilization of existing resources, compliance with safety and environmental regulations, and the reliable supply of natural gas for consumers and businesses alike.