Pennsylvania 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. The Pennsylvania Gas Storage Agreement is a legally binding contract that governs the terms and conditions between a gas storage provider and the entity or individual seeking to store natural gas in Pennsylvania. This agreement outlines the rights, responsibilities, and obligations of both parties involved in the storage arrangement. There are several types of Pennsylvania Gas Storage Agreements, including: 1. Firm Storage Agreement: This type of agreement guarantees the storage capacity for a specific quantity of natural gas to the customer. The storage provider commits to keep the allocated space available, ensuring that the stored gas can be withdrawn at any time without interruption. 2. Interruptible Storage Agreement: Unlike the Firm Storage Agreement, this agreement provides storage capacity on a non-guaranteed basis. The customer is allowed to store gas, but the storage provider reserves the right to interrupt or curtail the withdrawal of gas during high-demand periods. This type of agreement offers more flexibility but carries a higher level of risk for the customer. 3. Capacity Release Agreement: This agreement allows the original capacity holder to lease or release a portion or all of their storage capacity to a third party. The capacity holder negotiates the terms and conditions with the storage provider and then subleases the storage rights to another entity. The Pennsylvania Gas Storage Agreement covers various crucial elements, which typically include: 1. Quantity of Storage: This specifies the volume or capacity of natural gas that can be stored by the customer within the designated storage facility. 2. Term and Renewal: The agreement specifies the duration of the storage contract, including any renewal or extension options available to the customer. 3. Storage Fees: The agreement outlines the charges associated with utilizing the storage facility, including monthly storage fees, injection and withdrawal fees, as well as any additional maintenance or administrative costs. 4. Operational Procedures: The agreement details the procedures and protocols for gas injection, withdrawal, scheduling, and communication between the storage provider and the customer, ensuring smooth operations. 5. Force Mature: This clause outlines circumstances under which either party may be relieved from their contractual obligations due to unexpected events or circumstances beyond their control, such as acts of God, natural disasters, or governmental actions. 6. Indemnification: The agreement establishes liability and indemnification provisions, ensuring that each party bears the appropriate responsibility for any damages, losses, or legal claims arising from their actions or omissions related to the gas storage arrangements. In summary, the Pennsylvania Gas Storage Agreement is a comprehensive contract that governs the terms and conditions of natural gas storage in Pennsylvania. Whether it is a Firm Storage Agreement, Interruptible Storage Agreement, or Capacity Release Agreement, this legally binding document ensures a transparent, fair, and efficient storage arrangement between the storage provider and the customer.

The Pennsylvania Gas Storage Agreement is a legally binding contract that governs the terms and conditions between a gas storage provider and the entity or individual seeking to store natural gas in Pennsylvania. This agreement outlines the rights, responsibilities, and obligations of both parties involved in the storage arrangement. There are several types of Pennsylvania Gas Storage Agreements, including: 1. Firm Storage Agreement: This type of agreement guarantees the storage capacity for a specific quantity of natural gas to the customer. The storage provider commits to keep the allocated space available, ensuring that the stored gas can be withdrawn at any time without interruption. 2. Interruptible Storage Agreement: Unlike the Firm Storage Agreement, this agreement provides storage capacity on a non-guaranteed basis. The customer is allowed to store gas, but the storage provider reserves the right to interrupt or curtail the withdrawal of gas during high-demand periods. This type of agreement offers more flexibility but carries a higher level of risk for the customer. 3. Capacity Release Agreement: This agreement allows the original capacity holder to lease or release a portion or all of their storage capacity to a third party. The capacity holder negotiates the terms and conditions with the storage provider and then subleases the storage rights to another entity. The Pennsylvania Gas Storage Agreement covers various crucial elements, which typically include: 1. Quantity of Storage: This specifies the volume or capacity of natural gas that can be stored by the customer within the designated storage facility. 2. Term and Renewal: The agreement specifies the duration of the storage contract, including any renewal or extension options available to the customer. 3. Storage Fees: The agreement outlines the charges associated with utilizing the storage facility, including monthly storage fees, injection and withdrawal fees, as well as any additional maintenance or administrative costs. 4. Operational Procedures: The agreement details the procedures and protocols for gas injection, withdrawal, scheduling, and communication between the storage provider and the customer, ensuring smooth operations. 5. Force Mature: This clause outlines circumstances under which either party may be relieved from their contractual obligations due to unexpected events or circumstances beyond their control, such as acts of God, natural disasters, or governmental actions. 6. Indemnification: The agreement establishes liability and indemnification provisions, ensuring that each party bears the appropriate responsibility for any damages, losses, or legal claims arising from their actions or omissions related to the gas storage arrangements. In summary, the Pennsylvania Gas Storage Agreement is a comprehensive contract that governs the terms and conditions of natural gas storage in Pennsylvania. Whether it is a Firm Storage Agreement, Interruptible Storage Agreement, or Capacity Release Agreement, this legally binding document ensures a transparent, fair, and efficient storage arrangement between the storage provider and the customer.