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.
Title: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: A Detailed Overview and Types Keywords: Tennessee, Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2, detailed description, types Introduction: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is an important legal document that outlines the guidelines and procedures for gas balancing activities within the state of Tennessee. This agreement is a vital component of gas operations and seeks to ensure fair practices, efficient handling of gas imbalances, and coordination among the parties involved. There are various types of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2, each catering to specific circumstances to be addressed. Types of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: 1. Voluntary Balancing Agreement: This type of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is entered into voluntarily by the gas producers, shippers, and other parties involved. The agreement sets forth the terms and conditions for balancing gas imbalances, schedules, allocation procedures, and penalties for non-compliance. 2. Mandatory Balancing Agreement: These agreements are mandated by the regulatory bodies in Tennessee for gas producers and shippers. The purpose is to ensure the fair and efficient distribution of gas supplies throughout the state. This type of agreement details the legal obligations, deadlines, penalties, and enforcement mechanisms aiming for a balanced gas system. 3. Emergency Balancing Agreement: Under this type of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2, parties involved are required to address immediate or unforeseen gas imbalances. Emergency situations might arise due to sudden disruptions in supply, adverse weather conditions, or other uncontrollable events. The agreement enables fast decision-making, emergency gas diversion, and coordination to maintain the stability of the gas infrastructure. 4. Interconnected Pipeline Balancing Agreement: This specific agreement type applies when different pipelines are interconnected, and gas balancing becomes crucial. It outlines the methods, procedures, and protocols for gas balancing activities between interconnected pipelines, ensuring smooth operations, efficient utilization of resources, and avoidance of imbalances that could affect the overall gas system. Conclusion: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 serves as a critical framework for gas balancing in Tennessee. Whether voluntary, mandatory, emergency, or interconnected pipeline agreements, these agreements play a vital role in maintaining the equilibrium of the gas supply and demand. By adhering to this standardized agreement, parties involved can ensure fair practices, efficient operations, and a reliable gas infrastructure in the state of Tennessee.Title: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: A Detailed Overview and Types Keywords: Tennessee, Exhibit E, Operating Agreement, Gas Balancing Agreement, Form 2, detailed description, types Introduction: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is an important legal document that outlines the guidelines and procedures for gas balancing activities within the state of Tennessee. This agreement is a vital component of gas operations and seeks to ensure fair practices, efficient handling of gas imbalances, and coordination among the parties involved. There are various types of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2, each catering to specific circumstances to be addressed. Types of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2: 1. Voluntary Balancing Agreement: This type of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is entered into voluntarily by the gas producers, shippers, and other parties involved. The agreement sets forth the terms and conditions for balancing gas imbalances, schedules, allocation procedures, and penalties for non-compliance. 2. Mandatory Balancing Agreement: These agreements are mandated by the regulatory bodies in Tennessee for gas producers and shippers. The purpose is to ensure the fair and efficient distribution of gas supplies throughout the state. This type of agreement details the legal obligations, deadlines, penalties, and enforcement mechanisms aiming for a balanced gas system. 3. Emergency Balancing Agreement: Under this type of Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2, parties involved are required to address immediate or unforeseen gas imbalances. Emergency situations might arise due to sudden disruptions in supply, adverse weather conditions, or other uncontrollable events. The agreement enables fast decision-making, emergency gas diversion, and coordination to maintain the stability of the gas infrastructure. 4. Interconnected Pipeline Balancing Agreement: This specific agreement type applies when different pipelines are interconnected, and gas balancing becomes crucial. It outlines the methods, procedures, and protocols for gas balancing activities between interconnected pipelines, ensuring smooth operations, efficient utilization of resources, and avoidance of imbalances that could affect the overall gas system. Conclusion: Tennessee Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 serves as a critical framework for gas balancing in Tennessee. Whether voluntary, mandatory, emergency, or interconnected pipeline agreements, these agreements play a vital role in maintaining the equilibrium of the gas supply and demand. By adhering to this standardized agreement, parties involved can ensure fair practices, efficient operations, and a reliable gas infrastructure in the state of Tennessee.
