Michigan 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. The Michigan Gas Storage Agreement is a legally binding contract between a gas storage provider and a user in the state of Michigan. It outlines the terms and conditions for the storage of natural gas in underground reservoirs or facilities owned by the gas storage provider. This agreement allows users to secure long-term storage capacity for natural gas that can be withdrawn when needed, providing flexibility for gas supply management. One type of Michigan Gas Storage Agreement is the Firm Storage Service Agreement. This agreement guarantees the user a specific capacity of gas storage that is reserved exclusively for their use, ensuring access to stored gas even during high demand periods. The user pays a fixed fee for this reserved capacity, regardless of whether they fully utilize it or not. This type of agreement is beneficial for users who require a consistent supply of natural gas throughout the year. Another type is the Interruptible Storage Service Agreement. This agreement provides users with access to gas storage capacity when it is available, but it may be subject to interruption or curtailment by the storage provider during periods of high demand. Users who enter into this agreement receive a lower rate compared to the Firm Storage Service Agreement but accept the risk of potentially having their gas supply interrupted. The Michigan Gas Storage Agreement typically includes important terms and provisions such as the duration of the agreement, the maximum storage capacity allocated to the user, the injection and withdrawal rates, the start and end dates of the storage period, billing and payment details, liability and force majeure clauses, and dispute resolution procedures. It is crucial for both parties to carefully review and negotiate the terms of the agreement to ensure that the storage capacity meets the user's needs and that the provider can accommodate those needs reliably. Furthermore, compliance with applicable regulatory requirements, such as reporting and safety standards, should also be incorporated into the agreement. In conclusion, the Michigan Gas Storage Agreement provides users in Michigan with the opportunity to secure storage capacity for natural gas, enabling them to manage supply fluctuations effectively and ensure reliable access to natural gas when it is needed. The agreement's specific type, either Firm Storage Service or Interruptible Storage Service, determines the level of reservation and interruption risk associated with the storage capacity.

The Michigan Gas Storage Agreement is a legally binding contract between a gas storage provider and a user in the state of Michigan. It outlines the terms and conditions for the storage of natural gas in underground reservoirs or facilities owned by the gas storage provider. This agreement allows users to secure long-term storage capacity for natural gas that can be withdrawn when needed, providing flexibility for gas supply management. One type of Michigan Gas Storage Agreement is the Firm Storage Service Agreement. This agreement guarantees the user a specific capacity of gas storage that is reserved exclusively for their use, ensuring access to stored gas even during high demand periods. The user pays a fixed fee for this reserved capacity, regardless of whether they fully utilize it or not. This type of agreement is beneficial for users who require a consistent supply of natural gas throughout the year. Another type is the Interruptible Storage Service Agreement. This agreement provides users with access to gas storage capacity when it is available, but it may be subject to interruption or curtailment by the storage provider during periods of high demand. Users who enter into this agreement receive a lower rate compared to the Firm Storage Service Agreement but accept the risk of potentially having their gas supply interrupted. The Michigan Gas Storage Agreement typically includes important terms and provisions such as the duration of the agreement, the maximum storage capacity allocated to the user, the injection and withdrawal rates, the start and end dates of the storage period, billing and payment details, liability and force majeure clauses, and dispute resolution procedures. It is crucial for both parties to carefully review and negotiate the terms of the agreement to ensure that the storage capacity meets the user's needs and that the provider can accommodate those needs reliably. Furthermore, compliance with applicable regulatory requirements, such as reporting and safety standards, should also be incorporated into the agreement. In conclusion, the Michigan Gas Storage Agreement provides users in Michigan with the opportunity to secure storage capacity for natural gas, enabling them to manage supply fluctuations effectively and ensure reliable access to natural gas when it is needed. The agreement's specific type, either Firm Storage Service or Interruptible Storage Service, determines the level of reservation and interruption risk associated with the storage capacity.