This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
The New Mexico Gas Storage and Secondary Recovery Unit Agreement is a legal document that governs the relationship between parties involved in gas storage and secondary recovery activities in the state of New Mexico. This agreement outlines the terms and conditions under which the gas storage and secondary recovery operations are conducted, including rights, responsibilities, liabilities, and compensation. This agreement is particularly relevant for companies or individuals engaged in gas storage and secondary recovery activities in New Mexico, such as gas storage operators, gas producers, gas purchasers, and landowners. It provides a framework for the efficient utilization of underground natural gas storage reservoirs and the extraction of gas using secondary recovery methods. Key aspects covered in the New Mexico Gas Storage and Secondary Recovery Unit Agreement may include: 1. Definitions: Clearly defining key terms and concepts related to gas storage and secondary recovery operations, ensuring that all parties involved share a common understanding. 2. Unitization: Identifying the unit area for gas storage or secondary recovery operations, determining the boundaries, and specifying the participating interests of the parties involved. 3. Storage Operations: Outlining the technical specifications, procedures, and plans for gas storage, including injection and withdrawal rates, storage capacity limits, and operating standards. 4. Secondary Recovery Operations: Detailing the methods and techniques to enhance gas recovery from reservoirs, such as water or gas injection, gas cycling, or enhanced oil recovery (FOR) techniques. 5. Gas Handling and Marketing: Addressing the handling, measurement, and quality specifications of the gas extracted, as well as the marketing and pricing of the produced gas. 6. Operational Expenses: Defining the responsibilities and cost-sharing mechanisms for operating and maintaining the storage and recovery facilities, including well drilling, maintenance, and facility upgrades. 7. Environmental and Regulatory Compliance: Ensuring compliance with environmental laws, regulations, permits, and safety standards throughout the gas storage and secondary recovery operations. 8. Duration and Termination: Specifying the duration of the agreement, any renewal provisions, and conditions for termination or default by either party. Different types of New Mexico Gas Storage and Secondary Recovery Unit Agreement can vary based on the specific gas storage reservoirs, secondary recovery methods employed, and the participating interests of parties involved. Some examples include agreements focused on aquifer storage and recovery (ASR), gas storage in depleted oil and gas reservoirs, or agreements specific to carbon capture and storage (CCS) projects. Overall, the New Mexico Gas Storage and Secondary Recovery Unit Agreement serves as a comprehensive legal framework, ensuring the efficient and sustainable utilization of gas storage reservoirs and the implementation of secondary recovery methods, while balancing the rights and responsibilities of all parties involved.The New Mexico Gas Storage and Secondary Recovery Unit Agreement is a legal document that governs the relationship between parties involved in gas storage and secondary recovery activities in the state of New Mexico. This agreement outlines the terms and conditions under which the gas storage and secondary recovery operations are conducted, including rights, responsibilities, liabilities, and compensation. This agreement is particularly relevant for companies or individuals engaged in gas storage and secondary recovery activities in New Mexico, such as gas storage operators, gas producers, gas purchasers, and landowners. It provides a framework for the efficient utilization of underground natural gas storage reservoirs and the extraction of gas using secondary recovery methods. Key aspects covered in the New Mexico Gas Storage and Secondary Recovery Unit Agreement may include: 1. Definitions: Clearly defining key terms and concepts related to gas storage and secondary recovery operations, ensuring that all parties involved share a common understanding. 2. Unitization: Identifying the unit area for gas storage or secondary recovery operations, determining the boundaries, and specifying the participating interests of the parties involved. 3. Storage Operations: Outlining the technical specifications, procedures, and plans for gas storage, including injection and withdrawal rates, storage capacity limits, and operating standards. 4. Secondary Recovery Operations: Detailing the methods and techniques to enhance gas recovery from reservoirs, such as water or gas injection, gas cycling, or enhanced oil recovery (FOR) techniques. 5. Gas Handling and Marketing: Addressing the handling, measurement, and quality specifications of the gas extracted, as well as the marketing and pricing of the produced gas. 6. Operational Expenses: Defining the responsibilities and cost-sharing mechanisms for operating and maintaining the storage and recovery facilities, including well drilling, maintenance, and facility upgrades. 7. Environmental and Regulatory Compliance: Ensuring compliance with environmental laws, regulations, permits, and safety standards throughout the gas storage and secondary recovery operations. 8. Duration and Termination: Specifying the duration of the agreement, any renewal provisions, and conditions for termination or default by either party. Different types of New Mexico Gas Storage and Secondary Recovery Unit Agreement can vary based on the specific gas storage reservoirs, secondary recovery methods employed, and the participating interests of parties involved. Some examples include agreements focused on aquifer storage and recovery (ASR), gas storage in depleted oil and gas reservoirs, or agreements specific to carbon capture and storage (CCS) projects. Overall, the New Mexico Gas Storage and Secondary Recovery Unit Agreement serves as a comprehensive legal framework, ensuring the efficient and sustainable utilization of gas storage reservoirs and the implementation of secondary recovery methods, while balancing the rights and responsibilities of all parties involved.
