This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document that outlines specific terms and conditions related to gas balancing agreements under the Nevada operating agreement. This detailed description will provide insights into the purpose, contents, and significance of this agreement, highlighting its relevance to the energy industry in Nevada. Gas balancing agreements play a crucial role in the efficient management and distribution of natural gas resources. These agreements help maintain the stability of gas supply, streamline operations, and ensure fair allocation of resources among various parties involved in gas production, transportation, and distribution. Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 encompasses several key aspects that need to be carefully reviewed and understood by the parties involved. The following are important factors covered in this agreement: 1. Purpose and Scope: This section of the agreement provides a clear understanding of its purpose, which is to establish a fair and practical mechanism for balancing gas supply and demand in accordance with the Nevada operating agreement. 2. Definitions: To avoid any ambiguity or confusion, this agreement provides definitions for important terms related to gas balancing, such as "balancing period," "daily balance," "imbalances," "operator," and "party." These definitions ensure that all parties have a common understanding of the terms used throughout the document. 3. Balancing Period and Measurements: This section outlines the duration of the balancing period, typically on a monthly basis, during which gas imbalances will be calculated and addressed. It also specifies the methods and instruments used for measuring gas volume, pressure, and quality. 4. Imbalance Management: Gas imbalances occur when the actual gas delivered or received by a party exceeds or falls short of the agreed-upon contractual quantities. This section establishes guidelines for managing these imbalances, including reporting requirements, calculation methods, and the responsibilities of each party to correct and reconcile any discrepancies. 5. Balancing Charges and Penalties: In order to encourage compliance and discourage imbalances, this section outlines the charges and penalties that may be imposed on the party responsible for imbalances. These charges might include fees based on the volume difference, in addition to interest on overdue amounts. 6. Dispute Resolution: In the event of any disputes arising from the gas balancing agreement, this section provides a mechanism to resolve such issues, such as through negotiation, mediation, or arbitration. It ensures that conflicts are addressed promptly, thereby maintaining smooth operations. Different types of Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 might exist, depending on the specific gas project or company involved. Each type will have unique provisions tailored to the circumstances and requirements of the parties. In conclusion, Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a critical document in the gas industry, serving as a foundation for fair and efficient gas supply management. Its detailed provisions, including definitions, balancing period guidelines, imbalance management, charges, penalties, and dispute resolution mechanisms, ensure transparency, accountability, and smooth operations among the parties involved.Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document that outlines specific terms and conditions related to gas balancing agreements under the Nevada operating agreement. This detailed description will provide insights into the purpose, contents, and significance of this agreement, highlighting its relevance to the energy industry in Nevada. Gas balancing agreements play a crucial role in the efficient management and distribution of natural gas resources. These agreements help maintain the stability of gas supply, streamline operations, and ensure fair allocation of resources among various parties involved in gas production, transportation, and distribution. Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 encompasses several key aspects that need to be carefully reviewed and understood by the parties involved. The following are important factors covered in this agreement: 1. Purpose and Scope: This section of the agreement provides a clear understanding of its purpose, which is to establish a fair and practical mechanism for balancing gas supply and demand in accordance with the Nevada operating agreement. 2. Definitions: To avoid any ambiguity or confusion, this agreement provides definitions for important terms related to gas balancing, such as "balancing period," "daily balance," "imbalances," "operator," and "party." These definitions ensure that all parties have a common understanding of the terms used throughout the document. 3. Balancing Period and Measurements: This section outlines the duration of the balancing period, typically on a monthly basis, during which gas imbalances will be calculated and addressed. It also specifies the methods and instruments used for measuring gas volume, pressure, and quality. 4. Imbalance Management: Gas imbalances occur when the actual gas delivered or received by a party exceeds or falls short of the agreed-upon contractual quantities. This section establishes guidelines for managing these imbalances, including reporting requirements, calculation methods, and the responsibilities of each party to correct and reconcile any discrepancies. 5. Balancing Charges and Penalties: In order to encourage compliance and discourage imbalances, this section outlines the charges and penalties that may be imposed on the party responsible for imbalances. These charges might include fees based on the volume difference, in addition to interest on overdue amounts. 6. Dispute Resolution: In the event of any disputes arising from the gas balancing agreement, this section provides a mechanism to resolve such issues, such as through negotiation, mediation, or arbitration. It ensures that conflicts are addressed promptly, thereby maintaining smooth operations. Different types of Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 might exist, depending on the specific gas project or company involved. Each type will have unique provisions tailored to the circumstances and requirements of the parties. In conclusion, Nevada Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a critical document in the gas industry, serving as a foundation for fair and efficient gas supply management. Its detailed provisions, including definitions, balancing period guidelines, imbalance management, charges, penalties, and dispute resolution mechanisms, ensure transparency, accountability, and smooth operations among the parties involved.
