This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that provides specific instructions and guidelines for gas balancing agreements in the state of Michigan. This agreement is crucial for ensuring the efficient management and allocation of natural gas resources among multiple parties involved in gas exploration, production, and distribution. The Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 includes the following key provisions: 1. Purpose: This section outlines the primary objective of the gas balancing agreement, which is to maintain equitable gas distribution and to prevent imbalances among the participating parties. It emphasizes the need for continuous monitoring and adjustments to ensure accurate gas measurement and allocation. 2. Definitions: This section provides a comprehensive list of terms and phrases used throughout the agreement, ensuring clarity and uniform understanding of the document. Commonly defined terms may include "Gas Balancing Account," "Allocation Statement," "Imbalance," "Imbalance Penalty," and "Pooling Agreement," among others. 3. Gas Measurement and Allocation: This section explains the procedures and methods to measure gas production, delivery, and consumption accurately. It also includes guidelines for allocating the gas produced by individual wells or fields among the participating parties based on their respective ownership interests or contractual agreements. 4. Reporting Requirements: The agreement typically outlines the frequency and format for reporting gas measurement data, such as daily, monthly, or annually. It may also specify the methods for submitting production and consumption data, including any necessary documentation or forms. 5. Imbalance Settlement and Penalties: In the event of discrepancies between gas production and consumption, this section defines the process for resolving imbalances. It establishes the formula or methodology for calculating imbalances and the associated penalties, if applicable. It may also provide guidelines for excess gas credits and debits. 6. Dispute Resolution: In cases where disputes arise regarding gas measurement, allocation, or imbalance settlement, this section outlines the procedures for resolution, such as negotiation, mediation, or arbitration. It emphasizes the importance of prompt and fair dispute resolution to maintain efficient operations and relationships among the parties involved. Different types of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may exist based on specific variations or amendments made to the standard template. Some variations may incorporate additional provisions related to gas processing, transportation, or storage, depending on the unique requirements of the parties involved or the specific characteristics of the gas field or project. Overall, the Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 serves as a critical legal tool for governing the gas balancing process in Michigan, promoting fairness, accuracy, and efficiency in the allocation of natural gas resources among multiple stakeholders.Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that provides specific instructions and guidelines for gas balancing agreements in the state of Michigan. This agreement is crucial for ensuring the efficient management and allocation of natural gas resources among multiple parties involved in gas exploration, production, and distribution. The Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 includes the following key provisions: 1. Purpose: This section outlines the primary objective of the gas balancing agreement, which is to maintain equitable gas distribution and to prevent imbalances among the participating parties. It emphasizes the need for continuous monitoring and adjustments to ensure accurate gas measurement and allocation. 2. Definitions: This section provides a comprehensive list of terms and phrases used throughout the agreement, ensuring clarity and uniform understanding of the document. Commonly defined terms may include "Gas Balancing Account," "Allocation Statement," "Imbalance," "Imbalance Penalty," and "Pooling Agreement," among others. 3. Gas Measurement and Allocation: This section explains the procedures and methods to measure gas production, delivery, and consumption accurately. It also includes guidelines for allocating the gas produced by individual wells or fields among the participating parties based on their respective ownership interests or contractual agreements. 4. Reporting Requirements: The agreement typically outlines the frequency and format for reporting gas measurement data, such as daily, monthly, or annually. It may also specify the methods for submitting production and consumption data, including any necessary documentation or forms. 5. Imbalance Settlement and Penalties: In the event of discrepancies between gas production and consumption, this section defines the process for resolving imbalances. It establishes the formula or methodology for calculating imbalances and the associated penalties, if applicable. It may also provide guidelines for excess gas credits and debits. 6. Dispute Resolution: In cases where disputes arise regarding gas measurement, allocation, or imbalance settlement, this section outlines the procedures for resolution, such as negotiation, mediation, or arbitration. It emphasizes the importance of prompt and fair dispute resolution to maintain efficient operations and relationships among the parties involved. Different types of Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may exist based on specific variations or amendments made to the standard template. Some variations may incorporate additional provisions related to gas processing, transportation, or storage, depending on the unique requirements of the parties involved or the specific characteristics of the gas field or project. Overall, the Michigan Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 serves as a critical legal tool for governing the gas balancing process in Michigan, promoting fairness, accuracy, and efficiency in the allocation of natural gas resources among multiple stakeholders.
