This form is a gas processing rights agreement.
The Tennessee Gas Processing Rights Agreement is a legal contract that governs the rights and obligations of parties involved in the processing and transportation of natural gas within the Tennessee Gas Pipeline system. This agreement establishes the terms and conditions for the processing of natural gas extracted from various sources, including production wells, fields, and exploration sites. Key Terms: 1. Gas Processing: The Tennessee Gas Processing Rights Agreement mainly focuses on the processing of natural gas. It involves the removal of impurities such as water, carbon dioxide, and sulfur compounds from the raw gas to meet the required specifications for transportation and distribution. 2. Transportation: The agreement covers the transportation of processed natural gas through the Tennessee Gas Pipeline system, a vast network of pipelines spanning various states and regions. 3. Rights and Obligations: The agreement defines the rights and obligations of both the owner(s) of the natural gas and the gas processing company. It outlines the responsibilities related to the ownership, processing, and transportation of the natural gas, ensuring a fair and equitable arrangement. 4. Ownership and Allocation: The contract specifies the ownership and allocation of processed natural gas, including the respective shares of the parties involved. This ensures that the parties are aware of their entitlements and sets the stage for the appropriate distribution of revenue or gas volumes. Types of Tennessee Gas Processing Rights Agreements: 1. Producer-Processor Agreement: This type of agreement outlines the relationship between the natural gas producer and the gas processing company. It establishes the terms for processing the gas and generally involves the payment of processing fees or a share of the processed gas as compensation. 2. Pipeline-Gas Processor Agreement: In this agreement, the pipeline operator and the gas processing company define their roles and responsibilities regarding the transportation and processing of natural gas. It addresses issues such as quality specifications, deliverability, and capacity allocation. 3. Master Gathering Agreement: This agreement focuses on the collection and transportation of natural gas from multiple wells or fields to a gas processing facility. It establishes the operational and commercial terms for gathering services. 4. Fractionization Agreement: This specific agreement pertains to the separation of natural gas liquids (GLS) into their individual components, such as ethane, propane, and butane. It covers the processing, storage, and transportation of these NFL components. Overall, the Tennessee Gas Processing Rights Agreement is a crucial document that ensures a clear understanding of the rights, responsibilities, and obligations between parties involved in the processing and transportation of natural gas within the Tennessee Gas Pipeline system. These agreements play a vital role in maintaining efficiency and transparency in the gas processing industry.
The Tennessee Gas Processing Rights Agreement is a legal contract that governs the rights and obligations of parties involved in the processing and transportation of natural gas within the Tennessee Gas Pipeline system. This agreement establishes the terms and conditions for the processing of natural gas extracted from various sources, including production wells, fields, and exploration sites. Key Terms: 1. Gas Processing: The Tennessee Gas Processing Rights Agreement mainly focuses on the processing of natural gas. It involves the removal of impurities such as water, carbon dioxide, and sulfur compounds from the raw gas to meet the required specifications for transportation and distribution. 2. Transportation: The agreement covers the transportation of processed natural gas through the Tennessee Gas Pipeline system, a vast network of pipelines spanning various states and regions. 3. Rights and Obligations: The agreement defines the rights and obligations of both the owner(s) of the natural gas and the gas processing company. It outlines the responsibilities related to the ownership, processing, and transportation of the natural gas, ensuring a fair and equitable arrangement. 4. Ownership and Allocation: The contract specifies the ownership and allocation of processed natural gas, including the respective shares of the parties involved. This ensures that the parties are aware of their entitlements and sets the stage for the appropriate distribution of revenue or gas volumes. Types of Tennessee Gas Processing Rights Agreements: 1. Producer-Processor Agreement: This type of agreement outlines the relationship between the natural gas producer and the gas processing company. It establishes the terms for processing the gas and generally involves the payment of processing fees or a share of the processed gas as compensation. 2. Pipeline-Gas Processor Agreement: In this agreement, the pipeline operator and the gas processing company define their roles and responsibilities regarding the transportation and processing of natural gas. It addresses issues such as quality specifications, deliverability, and capacity allocation. 3. Master Gathering Agreement: This agreement focuses on the collection and transportation of natural gas from multiple wells or fields to a gas processing facility. It establishes the operational and commercial terms for gathering services. 4. Fractionization Agreement: This specific agreement pertains to the separation of natural gas liquids (GLS) into their individual components, such as ethane, propane, and butane. It covers the processing, storage, and transportation of these NFL components. Overall, the Tennessee Gas Processing Rights Agreement is a crucial document that ensures a clear understanding of the rights, responsibilities, and obligations between parties involved in the processing and transportation of natural gas within the Tennessee Gas Pipeline system. These agreements play a vital role in maintaining efficiency and transparency in the gas processing industry.