New Mexico Gas Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1015
• Format: Word; Rich Text

Description

This is an agreement for a gas storage unit. New Mexico Gas Storage Unit Agreement is a legal contract that establishes the terms and conditions between a gas storage facility operator and a customer for the leasing and utilization of gas storage space in New Mexico. This agreement is crucial for both parties involved to effectively manage the storage and withdrawal of natural gas to meet demand fluctuations, ensure supply reliability, and optimize operational efficiency. The primary objective of the New Mexico Gas Storage Unit Agreement is to outline the responsibilities, rights, and obligations of the storage facility operator and the customer. It covers key aspects such as gas storage capacity, injection and withdrawal rates, operational procedures, insurance requirements, pricing mechanisms, and payment terms. The agreement ensures that both parties have a clear understanding of the terms under which the storage facility will be used. There are typically two main types of New Mexico Gas Storage Unit Agreements: 1. Base Gas and Working Gas Agreement: This type of agreement involves the leasing of gas storage capacity, divided into two components: base gas and working gas. Base gas is the volume of natural gas required to maintain adequate pressure in the storage reservoir, while working gas refers to the volume available for injection and withdrawal by the customer. This agreement specifies the terms for the allocation of base gas and working gas, storage cycles, and replenishment requirements. 2. Interruptible Gas Storage Agreement: This type of agreement allows customers to access gas storage capacity on a non-guaranteed basis. It is typically used by customers with more flexible storage needs, as it provides lower-cost options with the understanding that the facility operator may interrupt or curtail their storage service during periods of high demand or operational constraints. In summary, the New Mexico Gas Storage Unit Agreement is a vital contractual framework that effectively regulates the utilization of gas storage space in New Mexico. Whether it involves a base gas and working gas agreement or an interruptible gas storage agreement, this agreement ensures that the interests of both the storage facility operator and customer are safeguarded while enabling the efficient management of natural gas storage and retrieval operations.

New Mexico Gas Storage Unit Agreement is a legal contract that establishes the terms and conditions between a gas storage facility operator and a customer for the leasing and utilization of gas storage space in New Mexico. This agreement is crucial for both parties involved to effectively manage the storage and withdrawal of natural gas to meet demand fluctuations, ensure supply reliability, and optimize operational efficiency. The primary objective of the New Mexico Gas Storage Unit Agreement is to outline the responsibilities, rights, and obligations of the storage facility operator and the customer. It covers key aspects such as gas storage capacity, injection and withdrawal rates, operational procedures, insurance requirements, pricing mechanisms, and payment terms. The agreement ensures that both parties have a clear understanding of the terms under which the storage facility will be used. There are typically two main types of New Mexico Gas Storage Unit Agreements: 1. Base Gas and Working Gas Agreement: This type of agreement involves the leasing of gas storage capacity, divided into two components: base gas and working gas. Base gas is the volume of natural gas required to maintain adequate pressure in the storage reservoir, while working gas refers to the volume available for injection and withdrawal by the customer. This agreement specifies the terms for the allocation of base gas and working gas, storage cycles, and replenishment requirements. 2. Interruptible Gas Storage Agreement: This type of agreement allows customers to access gas storage capacity on a non-guaranteed basis. It is typically used by customers with more flexible storage needs, as it provides lower-cost options with the understanding that the facility operator may interrupt or curtail their storage service during periods of high demand or operational constraints. In summary, the New Mexico Gas Storage Unit Agreement is a vital contractual framework that effectively regulates the utilization of gas storage space in New Mexico. Whether it involves a base gas and working gas agreement or an interruptible gas storage agreement, this agreement ensures that the interests of both the storage facility operator and customer are safeguarded while enabling the efficient management of natural gas storage and retrieval operations.