This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
South Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a legal document that pertains to gas balancing agreements within the state of South Dakota. This agreement is an important aspect of the overall operating agreement between parties involved in the gas industry. The purpose of the South Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is to outline the specific terms and conditions related to gas balancing in South Dakota. Gas balancing refers to the process of rectifying any imbalances that may occur in the delivery and consumption of natural gas. This exhibit provides a detailed description of the rights and responsibilities of each party involved in the gas balancing agreement. It establishes the procedures for measuring, tracking, and adjusting gas imbalances in South Dakota. The agreement also outlines the penalties or charges that may be imposed for any breach of the gas balancing terms. The South Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may vary depending on the specific gas operations and agreements involved. Some potential variations of this exhibit may include: 1. Residential Gas Balancing Agreement — This agreement specifically caters to the gas balancing needs of residential properties in South Dakota. It may include provisions for individual metering, billing, and resolution of gas imbalances for residential gas consumers. 2. Commercial and Industrial Gas Balancing Agreement — This type of exhibit focuses on gas balancing requirements for commercial and industrial establishments in South Dakota. It addresses the unique needs and considerations of these sectors, such as larger gas consumption volumes and specific metering arrangements. 3. Inter-State Gas Balancing Agreement — If the gas operations span beyond South Dakota's borders, an inter-state gas balancing agreement may be included in the exhibit. This section outlines the processes and procedures for balancing gas flows between different states and ensures compliance with interstate gas regulations. In conclusion, the South Dakota Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is a vital legal document that defines the gas balancing processes and responsibilities within the state. It ensures efficient and fair distribution of natural gas while protecting the rights and interests of all parties involved.
