This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that specifically addresses the gas balancing agreement within the context of operating agreements in Pennsylvania. This comprehensive document outlines the terms and conditions under which gas balancing activities occur, ensuring efficient and equitable usage of natural gas resources. The Gas Balancing Agreement — Form 1 is an essential component of operating agreements in Pennsylvania, designed to regulate the gas distribution and handling procedures among multiple parties involved in the production, transportation, and distribution of natural gas. It establishes guidelines for gas imbalances, measurement, and settlement processes to maintain operational stability and fair treatment for all parties involved. Some key components covered in Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may include: 1. Purpose and Scope: This section clarifies the intent and scope of the gas balancing agreement, outlining the obligations and responsibilities of the parties involved. It establishes the basis for gas imbalances and the purpose of the agreement, ensuring smooth operations. 2. Definitions: Clear definitions of important terms used throughout the agreement are provided to avoid confusion or dispute, such as production quantities, measurement units, entitlement, and imbalances. This section establishes a common understanding among all parties involved. 3. Measurement: Guidelines for accurate and reliable measurement of gas quantities are specified in this section. It covers measurement techniques, equipment specifications, calibration requirements, and procedures for resolving measurement discrepancies. 4. Balancing Procedures: This section details the gas balancing procedures, including allocation methodologies, monitoring, and reporting requirements to track and rectify imbalances. It establishes protocols for minimizing contractual deviations and ensuring fairness in allocations. 5. Imbalance Charges and Settlement: This part outlines the calculation of imbalance charges based on the prevailing market rates or predetermined pricing mechanisms. It includes provisions for settlement, invoicing, and dispute resolution related to imbalance charges. 6. Force Mature and Remedies: This section addresses unforeseen events or circumstances beyond the control of the parties, such as natural disasters, strikes, or governmental actions. It details the procedures for handling force majeure events and the corresponding remedies or relief available to affected parties. 7. Termination and Amendment: The process for terminating or amending the gas balancing agreement is defined, including the necessary notifications, timing, and consent requirements. This ensures flexibility and adaptability to changing circumstances or evolving business needs. It's important to note that while the base structure and content of Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may be similar across agreements, specific provisions and language may vary depending on the parties involved, regional requirements, or individual contractual arrangements. It is advisable to consult legal professionals with expertise in Pennsylvania gas regulatory frameworks to ensure compliance and a thorough understanding of the agreement's implications.Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a legal document that specifically addresses the gas balancing agreement within the context of operating agreements in Pennsylvania. This comprehensive document outlines the terms and conditions under which gas balancing activities occur, ensuring efficient and equitable usage of natural gas resources. The Gas Balancing Agreement — Form 1 is an essential component of operating agreements in Pennsylvania, designed to regulate the gas distribution and handling procedures among multiple parties involved in the production, transportation, and distribution of natural gas. It establishes guidelines for gas imbalances, measurement, and settlement processes to maintain operational stability and fair treatment for all parties involved. Some key components covered in Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may include: 1. Purpose and Scope: This section clarifies the intent and scope of the gas balancing agreement, outlining the obligations and responsibilities of the parties involved. It establishes the basis for gas imbalances and the purpose of the agreement, ensuring smooth operations. 2. Definitions: Clear definitions of important terms used throughout the agreement are provided to avoid confusion or dispute, such as production quantities, measurement units, entitlement, and imbalances. This section establishes a common understanding among all parties involved. 3. Measurement: Guidelines for accurate and reliable measurement of gas quantities are specified in this section. It covers measurement techniques, equipment specifications, calibration requirements, and procedures for resolving measurement discrepancies. 4. Balancing Procedures: This section details the gas balancing procedures, including allocation methodologies, monitoring, and reporting requirements to track and rectify imbalances. It establishes protocols for minimizing contractual deviations and ensuring fairness in allocations. 5. Imbalance Charges and Settlement: This part outlines the calculation of imbalance charges based on the prevailing market rates or predetermined pricing mechanisms. It includes provisions for settlement, invoicing, and dispute resolution related to imbalance charges. 6. Force Mature and Remedies: This section addresses unforeseen events or circumstances beyond the control of the parties, such as natural disasters, strikes, or governmental actions. It details the procedures for handling force majeure events and the corresponding remedies or relief available to affected parties. 7. Termination and Amendment: The process for terminating or amending the gas balancing agreement is defined, including the necessary notifications, timing, and consent requirements. This ensures flexibility and adaptability to changing circumstances or evolving business needs. It's important to note that while the base structure and content of Pennsylvania Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may be similar across agreements, specific provisions and language may vary depending on the parties involved, regional requirements, or individual contractual arrangements. It is advisable to consult legal professionals with expertise in Pennsylvania gas regulatory frameworks to ensure compliance and a thorough understanding of the agreement's implications.
