New Mexico Gas Storage Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-723
• Format: Word; Rich Text

Description

This form is used when Owner owns and operates underground gas storage facilities and Customer desires storage service for natural gas to serve its Plant, and Owner is willing to render such storage services. New Mexico Gas Storage Agreement is a legal contract governing the terms and conditions for the storage of natural gas in New Mexico. This agreement is crucial for both gas storage operators and customers, ensuring a fair and transparent arrangement for the utilization and preservation of natural gas resources. The New Mexico Gas Storage Agreement typically includes several key components. It outlines the rights and obligations of both parties involved, such as the gas storage operator and the customer/participant. The agreement defines the terms of gas storage services, including the capacity, injection and withdrawal rights, and scheduling procedures. One prominent type of New Mexico Gas Storage Agreement is the Firm Storage Service Agreement. This agreement guarantees a specific storage capacity and is commonly used by customers who require reliable and uninterrupted access to their stored gas. The agreement sets out fixed rates and quantities, providing stability and priority access to stored gas for the customer. Another type of agreement is the Interruptible Storage Service Agreement. In this case, customers have non-guaranteed access to storage capacity, allowing the gas storage operator to interrupt or curtail services during periods of high demand or system constraints. This type of agreement is typically more cost-effective for customers who have flexibility and can tolerate interruptions to their gas supply. Additionally, the New Mexico Gas Storage Agreement may include provisions relating to pricing, payment terms, operational procedures, force majeure events, liability, and dispute resolution mechanisms. The aim is to ensure that both parties are protected and have a clear understanding of their rights and responsibilities throughout the agreement's duration. Key stakeholders, such as gas utilities, power plants, industrial facilities, and other energy-intensive industries, often rely on the New Mexico Gas Storage Agreement to secure their gas supply, manage operational risks, and plan for seasonal variations in demand. The agreement fosters a reliable and efficient gas storage infrastructure, contributing to the stability and sustainability of New Mexico's energy sector. In conclusion, the New Mexico Gas Storage Agreement is a critical contract for the storage and management of natural gas in New Mexico. It regulates the rights and responsibilities of both gas storage operators and customers, offering different types of agreements such as Firm Storage Service and Interruptible Storage Service. By ensuring fair and transparent arrangements, this agreement contributes to the reliable supply of natural gas and the smooth functioning of New Mexico's energy market.

New Mexico Gas Storage Agreement is a legal contract governing the terms and conditions for the storage of natural gas in New Mexico. This agreement is crucial for both gas storage operators and customers, ensuring a fair and transparent arrangement for the utilization and preservation of natural gas resources. The New Mexico Gas Storage Agreement typically includes several key components. It outlines the rights and obligations of both parties involved, such as the gas storage operator and the customer/participant. The agreement defines the terms of gas storage services, including the capacity, injection and withdrawal rights, and scheduling procedures. One prominent type of New Mexico Gas Storage Agreement is the Firm Storage Service Agreement. This agreement guarantees a specific storage capacity and is commonly used by customers who require reliable and uninterrupted access to their stored gas. The agreement sets out fixed rates and quantities, providing stability and priority access to stored gas for the customer. Another type of agreement is the Interruptible Storage Service Agreement. In this case, customers have non-guaranteed access to storage capacity, allowing the gas storage operator to interrupt or curtail services during periods of high demand or system constraints. This type of agreement is typically more cost-effective for customers who have flexibility and can tolerate interruptions to their gas supply. Additionally, the New Mexico Gas Storage Agreement may include provisions relating to pricing, payment terms, operational procedures, force majeure events, liability, and dispute resolution mechanisms. The aim is to ensure that both parties are protected and have a clear understanding of their rights and responsibilities throughout the agreement's duration. Key stakeholders, such as gas utilities, power plants, industrial facilities, and other energy-intensive industries, often rely on the New Mexico Gas Storage Agreement to secure their gas supply, manage operational risks, and plan for seasonal variations in demand. The agreement fosters a reliable and efficient gas storage infrastructure, contributing to the stability and sustainability of New Mexico's energy sector. In conclusion, the New Mexico Gas Storage Agreement is a critical contract for the storage and management of natural gas in New Mexico. It regulates the rights and responsibilities of both gas storage operators and customers, offering different types of agreements such as Firm Storage Service and Interruptible Storage Service. By ensuring fair and transparent arrangements, this agreement contributes to the reliable supply of natural gas and the smooth functioning of New Mexico's energy market.