Minnesota Gas Storage Service Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1014
• Format: Word; Rich Text

Description

This is an agreement for gas storage service. A Minnesota Gas Storage Service Agreement is a contractual arrangement between a gas storage provider and a customer that defines the terms and conditions for utilizing gas storage facilities in the state of Minnesota. This agreement is essential for businesses involved in the storage, distribution, and transportation of natural gas and ensures a reliable supply of gas during high-demand periods or unforeseen disruptions. The agreement outlines the rights and obligations of both the gas storage provider and the customer, ensuring a fair and transparent operation. It typically includes details such as the duration of the agreement, storage capacity allocation, injection and withdrawal rates, delivery locations, pricing mechanisms, and operational procedures. There are different types of Minnesota Gas Storage Service Agreements based on the specific needs of customers: 1. Firm Service Agreement: This type of agreement guarantees a certain storage capacity to the customer throughout the agreed-upon time frame. It ensures access to gas storage facilities irrespective of the overall system demand, offering enhanced reliability and security. 2. Interruptible Service Agreement: This agreement provides gas storage services to customers on a non-guaranteed basis, meaning that the service may be interrupted or curtailed if there is high system demand or operational constraints. It is often offered at a lower cost than firm service contracts and is suitable for customers who can manage their storage needs flexibly. 3. Balancing Agreement: This agreement is designed to assist customers in managing imbalances between their nominated gas quantities and actual usage. It allows customers to use storage services to balance their gas supply and demand, ensuring compliance with pipeline system requirements. 4. Capacity Release Agreement: A capacity release agreement pertains to the temporary transfer of storage capacity from the original customer to another party. It enables market participants to optimize their storage resources by allowing the secondary party to utilize the available capacity. These different types of agreements cater to the diverse requirements of gas storage customers, enabling them to manage their gas supply efficiently and adapt to changing market conditions. In summary, a Minnesota Gas Storage Service Agreement governs the use of gas storage facilities in Minnesota, defining the terms and conditions for customers and providers. It ensures a reliable gas supply and offers various agreement types such as firm service, interruptible service, balancing agreement, and capacity release agreement, allowing customers to select the most appropriate option for their needs.

A Minnesota Gas Storage Service Agreement is a contractual arrangement between a gas storage provider and a customer that defines the terms and conditions for utilizing gas storage facilities in the state of Minnesota. This agreement is essential for businesses involved in the storage, distribution, and transportation of natural gas and ensures a reliable supply of gas during high-demand periods or unforeseen disruptions. The agreement outlines the rights and obligations of both the gas storage provider and the customer, ensuring a fair and transparent operation. It typically includes details such as the duration of the agreement, storage capacity allocation, injection and withdrawal rates, delivery locations, pricing mechanisms, and operational procedures. There are different types of Minnesota Gas Storage Service Agreements based on the specific needs of customers: 1. Firm Service Agreement: This type of agreement guarantees a certain storage capacity to the customer throughout the agreed-upon time frame. It ensures access to gas storage facilities irrespective of the overall system demand, offering enhanced reliability and security. 2. Interruptible Service Agreement: This agreement provides gas storage services to customers on a non-guaranteed basis, meaning that the service may be interrupted or curtailed if there is high system demand or operational constraints. It is often offered at a lower cost than firm service contracts and is suitable for customers who can manage their storage needs flexibly. 3. Balancing Agreement: This agreement is designed to assist customers in managing imbalances between their nominated gas quantities and actual usage. It allows customers to use storage services to balance their gas supply and demand, ensuring compliance with pipeline system requirements. 4. Capacity Release Agreement: A capacity release agreement pertains to the temporary transfer of storage capacity from the original customer to another party. It enables market participants to optimize their storage resources by allowing the secondary party to utilize the available capacity. These different types of agreements cater to the diverse requirements of gas storage customers, enabling them to manage their gas supply efficiently and adapt to changing market conditions. In summary, a Minnesota Gas Storage Service Agreement governs the use of gas storage facilities in Minnesota, defining the terms and conditions for customers and providers. It ensures a reliable gas supply and offers various agreement types such as firm service, interruptible service, balancing agreement, and capacity release agreement, allowing customers to select the most appropriate option for their needs.