This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document that outlines the terms and conditions related to gas balancing in operating agreements within the state of Nevada. This exhibit serves as a reliable reference point for all parties involved in the gas balancing process, ensuring clarity and a smooth operational flow. The purpose of Nevada Exhibit E is to establish guidelines and procedures for gas balancing activities, which include the measurement and allocation of gas production and usage. It helps maintain a fair distribution of gas resources among the parties, ensuring a balanced supply throughout the operating agreement's duration. Some key components typically addressed in Nevada Exhibit E include: 1. Gas Measurement: This section specifies the preferred methodologies for measuring gas production, usually by applying industry-standard tools such as orifice meters or ultrasonic meters. It establishes the accuracy requirements for these measurement devices and outlines the responsible party for maintaining and calibrating them. 2. Allocation Method: Nevada Exhibit E defines the method used to allocate gas usage among the parties involved. Common methods include fixed percentages, pro rata based on ownership interest, or a predetermined formula agreed upon by all stakeholders. This section details the allocation formula and the specific data utilized for calculations. 3. Balancing Procedures: This portion explains the steps to be followed when a gas imbalance occurs. It outlines the notification process, timeline expectations, and corrective measures to restore balance, such as cash settlements or physical transfer arrangements. 4. Dispute Resolution: In the event of disagreements or conflicts related to gas balancing, Nevada Exhibit E provides a mechanism for resolving disputes. It may require parties to engage in negotiation, mediation, or arbitration to reach a fair and collaborative resolution. It is important to note that Nevada Exhibit E may have variations depending on the specific operating agreement or industry. For example, there might be variations for oil and gas operations, power generation facilities, or renewable energy projects. Each variation would address the unique considerations and requirements of those particular industries. In conclusion, Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document that ensures a fair and efficient gas balancing process within operating agreements in Nevada. It encompasses essential provisions related to gas measurement, allocation, balancing procedures, and dispute resolution. This exhibit plays a crucial role in maintaining a balanced and harmonious gas supply among all parties involved.Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document that outlines the terms and conditions related to gas balancing in operating agreements within the state of Nevada. This exhibit serves as a reliable reference point for all parties involved in the gas balancing process, ensuring clarity and a smooth operational flow. The purpose of Nevada Exhibit E is to establish guidelines and procedures for gas balancing activities, which include the measurement and allocation of gas production and usage. It helps maintain a fair distribution of gas resources among the parties, ensuring a balanced supply throughout the operating agreement's duration. Some key components typically addressed in Nevada Exhibit E include: 1. Gas Measurement: This section specifies the preferred methodologies for measuring gas production, usually by applying industry-standard tools such as orifice meters or ultrasonic meters. It establishes the accuracy requirements for these measurement devices and outlines the responsible party for maintaining and calibrating them. 2. Allocation Method: Nevada Exhibit E defines the method used to allocate gas usage among the parties involved. Common methods include fixed percentages, pro rata based on ownership interest, or a predetermined formula agreed upon by all stakeholders. This section details the allocation formula and the specific data utilized for calculations. 3. Balancing Procedures: This portion explains the steps to be followed when a gas imbalance occurs. It outlines the notification process, timeline expectations, and corrective measures to restore balance, such as cash settlements or physical transfer arrangements. 4. Dispute Resolution: In the event of disagreements or conflicts related to gas balancing, Nevada Exhibit E provides a mechanism for resolving disputes. It may require parties to engage in negotiation, mediation, or arbitration to reach a fair and collaborative resolution. It is important to note that Nevada Exhibit E may have variations depending on the specific operating agreement or industry. For example, there might be variations for oil and gas operations, power generation facilities, or renewable energy projects. Each variation would address the unique considerations and requirements of those particular industries. In conclusion, Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a crucial document that ensures a fair and efficient gas balancing process within operating agreements in Nevada. It encompasses essential provisions related to gas measurement, allocation, balancing procedures, and dispute resolution. This exhibit plays a crucial role in maintaining a balanced and harmonious gas supply among all parties involved.
