Oregon 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.

Oregon Gas Storage Agreement refers to a legal contract entered into between a gas storage service provider and a gas customer or trader in the state of Oregon, United States. It outlines the terms and conditions under which gas storage services will be provided, including the rights, responsibilities, and obligations of both parties involved. The agreement typically includes key components such as storage capacity, injection and withdrawal rates, tariff rates, billing and payment terms, gas quality specifications, and operational restrictions. It serves as a binding document that governs the storage of natural gas or other forms of gas in designated storage facilities within Oregon. There are several types of Oregon Gas Storage Agreements that may be entered into, depending on the specific needs and requirements of the customer. Some common types include: 1. Firm Storage Agreement: This type of agreement guarantees the customer's access to a fixed storage capacity for a specified period. The customer pays a predetermined fee for the reserved storage capacity, which ensures availability regardless of market conditions or other customer demands. Firm storage agreements are beneficial for those who require consistent and uninterrupted access to stored gas for their operational needs. 2. Interruptible Storage Agreement: In contrast to firm storage agreements, this type of agreement provides non-guaranteed storage capacity. It allows customers to store gas on a best-effort basis, subject to availability and the service provider's operational constraints. The tariff rates for interruptible storage agreements are generally lower than firm agreements, but the customer may be subjected to curtailment or temporary suspension of services during times of high demand or operational emergencies. 3. Seasonal Storage Agreement: This agreement is typically utilized by customers who have fluctuating gas storage needs throughout the year. It allows the customer to secure storage capacity for only a part of the year, typically during periods of high demand or when gas prices are expected to increase. Seasonal storage agreements offer flexibility and cost savings by avoiding the need to maintain continuous storage capacity for the entire year. 4. Hub Services Agreement: This type of agreement is specific to gas storage facilities that act as natural gas hubs, where multiple pipelines intersect and distribute gas to various markets. The hub services agreement allows customers to access storage capacity within the hub and utilize it as a trading hub or distribution point for gas supplies. These agreements often have provisions for gas balancing, as well as injection and withdrawal rights that align with the hub's operational dynamics. In conclusion, Oregon Gas Storage Agreements are vital legal documents that govern the provision and utilization of gas storage services in Oregon. These agreements come in different types to cater to the diverse needs of customers, including firm storage, interruptible storage, seasonal storage, and hub services agreement. It is essential for customers and service providers to fully understand the terms and conditions outlined in the agreement to ensure efficient and effective gas storage operations.