This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4: A Comprehensive Overview In the state of North Carolina, gas balancing agreements play a crucial role in maintaining efficient and reliable operations in the natural gas industry. Specifically, the North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 serves as a vital document outlining the terms and conditions that govern gas balancing activities within the state. Gas balancing refers to the practice of managing and equalizing the flow of natural gas through pipelines, storage facilities, and various distribution points. It involves ensuring that production matches consumption to maintain system integrity and prevent imbalances that could disrupt overall supply. The North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is specifically tailored to meet the unique requirements and legal framework in North Carolina. This document serves as an addendum to the primary gas balancing agreement, capturing specific provisions and obligations that pertain to operators within the state. Key elements often included in the North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may encompass the following: 1. Allocation of Responsibilities: This section outlines the roles and responsibilities of each party involved in the gas balancing agreement. It clarifies the duties of the pipeline operator, the entity responsible for gas supply, and any other relevant stakeholders. 2. Measurement and Reporting: This clause establishes the procedures for accurate measurement and reporting of gas quantities at various points within the pipeline system. It ensures transparency and facilitates effective management of gas balancing activities. 3. Imbalance Charges and Penalties: This segment addresses the consequences of imbalances, including any financial penalties associated with over or under-delivery of natural gas. It sets forth the methodology for calculating such charges and outlines the process for resolving disputes related to imbalances. 4. Flexibility and Curtailment: This section covers provisions pertaining to curtailing gas supplies during times of system constraints or emergencies. It outlines the procedures for notifying affected parties and details the potential implications for interrupted gas deliveries. 5. Force Mature: This clause accounts for unforeseen events or circumstances that could impact the execution of the gas balancing agreement. It defines force majeure events and outlines the actions to be taken by the parties involved to mitigate any adverse effects. Variations or subtypes of the North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 may exist depending on specific industry practices, contractual arrangements, or the involvement of additional parties. However, the core purpose of these agreements remains the same: ensuring the efficient and reliable transmission and distribution of natural gas within the state. By implementing the North Carolina Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, stakeholders in the natural gas industry can establish clear guidelines, minimize imbalances, enhance system stability, and harmonize operations to benefit both producers and consumers of natural gas in the state of North Carolina.
