This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document commonly used in the oil and gas industry in New Mexico. It is an essential part of the operating agreement that outlines the policies and procedures for gas balancing within a particular operation. This agreement ensures that production and distribution of the natural gas are carried out efficiently and fairly among all parties involved. The main purpose of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is to establish a framework for gas balancing, which involves the measurement, accounting, and reconciliation of gas volumes produced, sold, and delivered. It provides guidance on how imbalances in gas production and delivery will be managed to prevent any unfair advantages or losses among the parties. There may be different types of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1, depending on the specific terms and conditions agreed upon by the contracting parties. Some key variations include: 1. Proportional Balancing Agreement: This type of agreement establishes a proportional allocation of gas volumes among the parties based on their respective ownership percentages. Each party receives a share of the gas production and is responsible for balancing their allocated share accordingly. 2. Netting Balancing Agreement: In this type of agreement, the imbalances are netted out among the parties involved. Instead of each party individually balancing their share, the net gas imbalances are calculated, and the party with the greatest imbalance will either pay or receive compensation from the other parties to account for the difference. 3. Carry forward Balancing Agreement: This agreement allows parties to carry forward imbalances into subsequent periods. The parties agree on how these imbalances will be resolved in the future, ensuring fairness over time and avoiding immediate financial settlements. 4. Cash-out Balancing Agreement: This type of agreement involves cash settlements for imbalances in gas production and delivery. If a party has a gas imbalance, they will either pay or receive compensation from the other parties in cash, based on the prevailing gas prices. It is crucial for all parties involved in the oil and gas operations in New Mexico to carefully review and understand the specific provisions and types of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 they are entering into. Consulting legal professionals with expertise in the oil and gas industry can ensure compliance with state regulations and protect the rights and interests of all parties involved.New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document commonly used in the oil and gas industry in New Mexico. It is an essential part of the operating agreement that outlines the policies and procedures for gas balancing within a particular operation. This agreement ensures that production and distribution of the natural gas are carried out efficiently and fairly among all parties involved. The main purpose of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is to establish a framework for gas balancing, which involves the measurement, accounting, and reconciliation of gas volumes produced, sold, and delivered. It provides guidance on how imbalances in gas production and delivery will be managed to prevent any unfair advantages or losses among the parties. There may be different types of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1, depending on the specific terms and conditions agreed upon by the contracting parties. Some key variations include: 1. Proportional Balancing Agreement: This type of agreement establishes a proportional allocation of gas volumes among the parties based on their respective ownership percentages. Each party receives a share of the gas production and is responsible for balancing their allocated share accordingly. 2. Netting Balancing Agreement: In this type of agreement, the imbalances are netted out among the parties involved. Instead of each party individually balancing their share, the net gas imbalances are calculated, and the party with the greatest imbalance will either pay or receive compensation from the other parties to account for the difference. 3. Carry forward Balancing Agreement: This agreement allows parties to carry forward imbalances into subsequent periods. The parties agree on how these imbalances will be resolved in the future, ensuring fairness over time and avoiding immediate financial settlements. 4. Cash-out Balancing Agreement: This type of agreement involves cash settlements for imbalances in gas production and delivery. If a party has a gas imbalance, they will either pay or receive compensation from the other parties in cash, based on the prevailing gas prices. It is crucial for all parties involved in the oil and gas operations in New Mexico to carefully review and understand the specific provisions and types of New Mexico Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 they are entering into. Consulting legal professionals with expertise in the oil and gas industry can ensure compliance with state regulations and protect the rights and interests of all parties involved.
