Oklahoma 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. Oklahoma Gas Storage Agreement is a legally binding contract established between a gas owner/producer and a storage operator in the state of Oklahoma. This agreement governs the terms and conditions under which the gas owner can store their natural gas in a designated storage facility. The primary purpose of the Oklahoma Gas Storage Agreement is to provide a secure and reliable storage solution for natural gas, allowing owners to keep excess supply during periods of low demand or seasonal fluctuations. It offers flexibility in managing gas reserves, ensuring a steady supply throughout the year. Key provisions of the agreement typically include: 1. Gas Storage Rate: This outlines the fees and charges associated with storing gas in the facility. It may be based on the volume of the gas stored or a fixed amount per month. 2. Injection and Withdrawal Arrangements: The agreement defines the procedures for injecting natural gas into the storage facility and withdrawing it when needed. It includes guidelines for volume limits, notification periods, and priority rights. 3. Storage Capacity Reservation: This specifies the amount of storage capacity allocated to the gas owner, ensuring they have dedicated space in the facility. The reservation may be for a fixed volume or a percentage of the total storage capacity. 4. Duration of Agreement: The contract specifies the length of time the agreement remains in effect. It may be short-term, typically spanning one or two years, or long-term, lasting several years or more. 5. Force Mature: This section addresses unforeseen circumstances or events that may prevent the storage operator from fulfilling its obligations. It outlines the rights, responsibilities, and remedies available to both parties in such situations. Different types of Oklahoma Gas Storage Agreements can be categorized based on their duration, flexibility, and pricing structures. Some variations include: 1. Short-Term Agreements: Designed for temporary storage needs, these agreements typically span one or two years. They offer flexibility in adjusting storage volumes and may be suitable for seasonal gas supply fluctuations. 2. Long-Term Agreements: These contracts are established for extended periods, often spanning multiple years, providing gas owners with long-term storage solutions. They offer more stable pricing structures and securing storage capacity for the long haul. 3. Interruptible Agreements: These agreements grant the storage operator the right to interrupt the gas owner's access to storage during periods of high demand. In return, gas owners receive reduced storage fees, offering cost savings but with decreased reliability. 4. Firm Agreements: Unlike interruptible agreements, firm agreements ensure uninterrupted access to storage capacity, even during peak demand. These provide more consistency and reliability but often come at a higher cost. In conclusion, an Oklahoma Gas Storage Agreement is a comprehensive contract that allows gas owners to store natural gas in designated facilities in Oklahoma. It defines the terms for gas storage, including rates, injection, and withdrawal arrangements, capacity reservations, and the duration of the agreement. Various types of agreements exist, including short-term, long-term, interruptible, and firm agreements, each catering to specific storage needs and priorities.

Oklahoma Gas Storage Agreement is a legally binding contract established between a gas owner/producer and a storage operator in the state of Oklahoma. This agreement governs the terms and conditions under which the gas owner can store their natural gas in a designated storage facility. The primary purpose of the Oklahoma Gas Storage Agreement is to provide a secure and reliable storage solution for natural gas, allowing owners to keep excess supply during periods of low demand or seasonal fluctuations. It offers flexibility in managing gas reserves, ensuring a steady supply throughout the year. Key provisions of the agreement typically include: 1. Gas Storage Rate: This outlines the fees and charges associated with storing gas in the facility. It may be based on the volume of the gas stored or a fixed amount per month. 2. Injection and Withdrawal Arrangements: The agreement defines the procedures for injecting natural gas into the storage facility and withdrawing it when needed. It includes guidelines for volume limits, notification periods, and priority rights. 3. Storage Capacity Reservation: This specifies the amount of storage capacity allocated to the gas owner, ensuring they have dedicated space in the facility. The reservation may be for a fixed volume or a percentage of the total storage capacity. 4. Duration of Agreement: The contract specifies the length of time the agreement remains in effect. It may be short-term, typically spanning one or two years, or long-term, lasting several years or more. 5. Force Mature: This section addresses unforeseen circumstances or events that may prevent the storage operator from fulfilling its obligations. It outlines the rights, responsibilities, and remedies available to both parties in such situations. Different types of Oklahoma Gas Storage Agreements can be categorized based on their duration, flexibility, and pricing structures. Some variations include: 1. Short-Term Agreements: Designed for temporary storage needs, these agreements typically span one or two years. They offer flexibility in adjusting storage volumes and may be suitable for seasonal gas supply fluctuations. 2. Long-Term Agreements: These contracts are established for extended periods, often spanning multiple years, providing gas owners with long-term storage solutions. They offer more stable pricing structures and securing storage capacity for the long haul. 3. Interruptible Agreements: These agreements grant the storage operator the right to interrupt the gas owner's access to storage during periods of high demand. In return, gas owners receive reduced storage fees, offering cost savings but with decreased reliability. 4. Firm Agreements: Unlike interruptible agreements, firm agreements ensure uninterrupted access to storage capacity, even during peak demand. These provide more consistency and reliability but often come at a higher cost. In conclusion, an Oklahoma Gas Storage Agreement is a comprehensive contract that allows gas owners to store natural gas in designated facilities in Oklahoma. It defines the terms for gas storage, including rates, injection, and withdrawal arrangements, capacity reservations, and the duration of the agreement. Various types of agreements exist, including short-term, long-term, interruptible, and firm agreements, each catering to specific storage needs and priorities.