South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property)

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1016
• Format: Word; Rich Text

Description

This is an agreement to establish a gas storage unit on depleted producing property. The South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) is a legal contract that governs the establishment of a gas storage unit on a depleted producing property in South Dakota. This agreement outlines the terms and conditions between the operator and the participating interest owners, providing a framework for the storage and withdrawal of natural gas within the unit. Key terms in the South Dakota Gas Storage Unit Agreement include: 1. Depleted Producing Property: A natural gas field or reservoir that has been exhausted of its commercial production potential but is suitable for conversion into a gas storage facility. These properties serve as the location for the gas storage unit. 2. Operator: The entity responsible for managing the day-to-day operations of the gas storage unit. The operator is typically a company with expertise in gas storage and has the necessary resources to undertake the storage activities. 3. Participating Interest Owners: The stakeholders who hold ownership rights in the depleted producing property and have agreed to participate in the gas storage unit. These owners may include oil and gas exploration companies, independent producers, or other entities with an interest in the property. 4. Storage Capacity: The maximum volume of natural gas that the gas storage unit can hold. This is an essential factor in determining the economic viability of the unit and plays a crucial role in meeting natural gas demand during peak periods or supply disruptions. 5. Injection and Withdrawal Rates: The rates at which natural gas can be injected into and withdrawn from the storage unit. These rates are crucial for maintaining a balance between supply and demand and ensuring efficient utilization of the storage capacity. 6. Operating Expenses: The costs associated with operating the gas storage unit, including maintenance, personnel, insurance, and other overhead expenses. These expenses are typically allocated among the participating interest owners based on their proportionate interests. Different types of South Dakota Gas Storage Unit Agreements may include variations in the duration of the agreement, specific terms regarding cost-sharing arrangements, mechanisms for resolving disputes among the participating interest owners, and provisions for environmental compliance. In conclusion, the South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) establishes the legal framework for operating a gas storage unit on a depleted producing property in South Dakota. This agreement outlines the roles and responsibilities of the operator and participating interest owners, as well as the terms governing storage capacity, injection and withdrawal rates, and cost-sharing arrangements. By allowing for the conversion of depleted producing properties into gas storage facilities, South Dakota can enhance energy security, stabilize natural gas prices, and ensure a reliable supply of natural gas to meet demand fluctuations.

The South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) is a legal contract that governs the establishment of a gas storage unit on a depleted producing property in South Dakota. This agreement outlines the terms and conditions between the operator and the participating interest owners, providing a framework for the storage and withdrawal of natural gas within the unit. Key terms in the South Dakota Gas Storage Unit Agreement include: 1. Depleted Producing Property: A natural gas field or reservoir that has been exhausted of its commercial production potential but is suitable for conversion into a gas storage facility. These properties serve as the location for the gas storage unit. 2. Operator: The entity responsible for managing the day-to-day operations of the gas storage unit. The operator is typically a company with expertise in gas storage and has the necessary resources to undertake the storage activities. 3. Participating Interest Owners: The stakeholders who hold ownership rights in the depleted producing property and have agreed to participate in the gas storage unit. These owners may include oil and gas exploration companies, independent producers, or other entities with an interest in the property. 4. Storage Capacity: The maximum volume of natural gas that the gas storage unit can hold. This is an essential factor in determining the economic viability of the unit and plays a crucial role in meeting natural gas demand during peak periods or supply disruptions. 5. Injection and Withdrawal Rates: The rates at which natural gas can be injected into and withdrawn from the storage unit. These rates are crucial for maintaining a balance between supply and demand and ensuring efficient utilization of the storage capacity. 6. Operating Expenses: The costs associated with operating the gas storage unit, including maintenance, personnel, insurance, and other overhead expenses. These expenses are typically allocated among the participating interest owners based on their proportionate interests. Different types of South Dakota Gas Storage Unit Agreements may include variations in the duration of the agreement, specific terms regarding cost-sharing arrangements, mechanisms for resolving disputes among the participating interest owners, and provisions for environmental compliance. In conclusion, the South Dakota Gas Storage Unit Agreement (Establish Unit on Depleted Producing Property) establishes the legal framework for operating a gas storage unit on a depleted producing property in South Dakota. This agreement outlines the roles and responsibilities of the operator and participating interest owners, as well as the terms governing storage capacity, injection and withdrawal rates, and cost-sharing arrangements. By allowing for the conversion of depleted producing properties into gas storage facilities, South Dakota can enhance energy security, stabilize natural gas prices, and ensure a reliable supply of natural gas to meet demand fluctuations.