This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that pertains to gas balancing agreements in the state of North Dakota. This specific exhibit outlines the terms and conditions related to gas balancing activities within the operating agreement. Gas balancing agreements are crucial in the oil and gas industry as they ensure the proper allocation and accounting of gas quantities produced and transported by different parties involved in the production process. These agreements help maintain fairness and transparency among the participating entities. Key features of the North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 include: 1. Gas Measurement and Reporting: This section establishes the guidelines for gas measurement and reporting, including the measurement units to be used, frequency of measurements, and the reporting methods to be followed. 2. Gas Balancing Procedures: This section outlines the procedures to be followed for gas balancing activities, including the calculation of imbalances, treatment of imbalances, and the resolution of disputes related to gas imbalances. 3. Allocation Methodology: The exhibit defines the methodology for allocating gas production among the different parties involved, based on their respective ownership interests or contractual agreements. 4. Account Structure: It specifies the account structure to be used for tracking gas quantities and imbalances, which may include separate accounts for production, transportation, storage, and balancing. 5. Balancing Agreement Term: The exhibit states the duration of the gas balancing agreement, including the start date and any renewal or termination clauses. Different types or versions of the North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may exist, typically categorized by their effective dates. As gas industry practices and regulations evolve, updates and revisions to this exhibit may be necessary to comply with state regulations and account for technological advancements in gas measurement and reporting. In conclusion, the North Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a critical component of gas balancing agreements in North Dakota. It ensures accurate measurement, allocation, and reporting of gas quantities, promoting fairness and transparency among the parties involved in the production and transportation of natural gas.
