This operating agreement exhibit takes effect if any party takes and disposes of less than its percentage interest share of gas (including casinghead gas) produced and saved during any calendar month. The volume not taken by that party may be taken by any other party or parties.
Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document commonly used in the oil and gas industry. This agreement is instrumental in maintaining a fair and efficient gas balancing system between different parties involved in the production and distribution of natural gas. The purpose of this agreement is to outline the procedures and protocols for gas balancing among the signatories of the operating agreement. Gas balancing refers to the process of equalizing and adjusting the quantities of natural gas produced, consumed, and transported to prevent any imbalances in the system. The Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 includes several key components and provisions. These may vary depending on the specific agreement and the parties involved. Some key elements commonly found within this document include: 1. Definitions: This section establishes the meaning of important terms and phrases used throughout the agreement. It ensures clarity and common understanding between all parties. 2. Appointment of Operator: This clause identifies the operator responsible for the implementation and enforcement of the gas balancing system. It outlines their role, responsibilities, and authority in managing the process. 3. Gas Balancing Procedures: This section outlines the specific procedures for gas balancing. It includes details on measurement, calculation methods, reporting requirements, and timelines. 4. Imbalance Charges: This provision explains the consequences and financial implications of imbalances in the gas system. It specifies the methodology for calculating and settling any monetary imbalances between the parties. 5. Dispute Resolution: This section addresses the process for resolving disagreements or disputes related to gas balancing. It identifies the methods of mediation, arbitration, or litigation available to the parties. 6. Confidentiality and Non-Disclosure: This clause ensures that all information pertaining to the gas balancing system and operations remains confidential and is not disclosed to third parties. It is also worth noting that there may be variations of Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 specific to different regions within Texas or different agreement models used by various industry players. However, the general purpose and structure of the agreement remain consistent. In summary, Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is an essential legal document that establishes the framework for gas balancing operations in the oil and gas industry. Its purpose is to ensure fairness, accuracy, and efficiency in the distribution and utilization of natural gas resources among multiple parties.Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document commonly used in the oil and gas industry. This agreement is instrumental in maintaining a fair and efficient gas balancing system between different parties involved in the production and distribution of natural gas. The purpose of this agreement is to outline the procedures and protocols for gas balancing among the signatories of the operating agreement. Gas balancing refers to the process of equalizing and adjusting the quantities of natural gas produced, consumed, and transported to prevent any imbalances in the system. The Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 includes several key components and provisions. These may vary depending on the specific agreement and the parties involved. Some key elements commonly found within this document include: 1. Definitions: This section establishes the meaning of important terms and phrases used throughout the agreement. It ensures clarity and common understanding between all parties. 2. Appointment of Operator: This clause identifies the operator responsible for the implementation and enforcement of the gas balancing system. It outlines their role, responsibilities, and authority in managing the process. 3. Gas Balancing Procedures: This section outlines the specific procedures for gas balancing. It includes details on measurement, calculation methods, reporting requirements, and timelines. 4. Imbalance Charges: This provision explains the consequences and financial implications of imbalances in the gas system. It specifies the methodology for calculating and settling any monetary imbalances between the parties. 5. Dispute Resolution: This section addresses the process for resolving disagreements or disputes related to gas balancing. It identifies the methods of mediation, arbitration, or litigation available to the parties. 6. Confidentiality and Non-Disclosure: This clause ensures that all information pertaining to the gas balancing system and operations remains confidential and is not disclosed to third parties. It is also worth noting that there may be variations of Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 specific to different regions within Texas or different agreement models used by various industry players. However, the general purpose and structure of the agreement remain consistent. In summary, Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is an essential legal document that establishes the framework for gas balancing operations in the oil and gas industry. Its purpose is to ensure fairness, accuracy, and efficiency in the distribution and utilization of natural gas resources among multiple parties.
