This form is used for the purposes of more effectively developing, producing, and operating the Unit Area in order to prevent surface and underground waste, and obtain the greatest ultimate recovery of production of oil and gas, promote conservation, and to afford each of the Parties the right to recover their fair and equitable share of the production to be obtained from the Unit Area, or to receive the attributable proceeds of such production.
Texas Gas Storage and Secondary Recovery Unit Agreement (TGS SRU Agreement) is a legally binding contract that governs the terms and conditions of the partnership between Texas gas storage operators and secondary recovery unit operators. This agreement outlines the roles, responsibilities, and rights of both parties involved in the storage and recovery of natural gas within the state of Texas. In essence, this agreement allows for the efficient utilization of natural gas storage facilities and enhances the capacity of secondary recovery units to extract additional gas resources from depleted reservoirs. By collaborating, gas storage operators and secondary recovery unit operators can maximize the potential of existing resources, ensuring a steady supply of natural gas and promoting sustainability. The TGS SRU Agreement typically consists of various key components, including: 1. Scope: This section defines the geographical area where the agreement applies, typically within the boundaries of the state of Texas. 2. Parties involved: The agreement identifies the gas storage operator and the secondary recovery unit operator who are entering into the partnership. This can include public or private entities or a combination thereof. 3. Purpose: The agreement outlines the primary objectives and goals of the partnership, such as optimizing gas storage facility usage, increasing gas recovery rates, and promoting economic benefits for all parties involved. 4. Storage terms: This section specifies the terms related to gas storage arrangements, including the capacity allocated to the secondary recovery unit operator, the duration of storage, and any associated fees or rental charges. 5. Recovery operations: The agreement defines the rights and obligations of the secondary recovery unit operator regarding the extraction of gas from the storage facility. It may include the required infrastructure, technology, and procedures for conducting successful recovery operations. 6. Resource management: This segment addresses the management of the gas resources, ensuring responsible extraction practices, and collaboration in monitoring and maintaining the storage and recovery operations. It also covers issues such as well integrity, reservoir pressure, and gas composition. 7. Financial aspects: The agreement establishes the financial terms, including any compensation mechanisms, revenue sharing models, or cost allocations between the gas storage operator and the secondary recovery unit operator. 8. Duration and termination: This section outlines the duration of the agreement, including any renewal options, termination conditions, and dispute resolution mechanisms. There are no specific types of Texas Gas Storage and Secondary Recovery Unit Agreements, as each agreement may vary based on the specific parties involved and the nature of the collaboration. However, variations can arise depending on factors such as the size of the gas storage facility, the intended timeframe for recovery operations, and the unique criteria set by the governing authorities. In conclusion, the Texas Gas Storage and Secondary Recovery Unit Agreement facilitates a synergistic relationship between gas storage operators and secondary recovery unit operators, enhancing the efficiency and sustainability of natural gas extraction and storage in Texas.Texas Gas Storage and Secondary Recovery Unit Agreement (TGS SRU Agreement) is a legally binding contract that governs the terms and conditions of the partnership between Texas gas storage operators and secondary recovery unit operators. This agreement outlines the roles, responsibilities, and rights of both parties involved in the storage and recovery of natural gas within the state of Texas. In essence, this agreement allows for the efficient utilization of natural gas storage facilities and enhances the capacity of secondary recovery units to extract additional gas resources from depleted reservoirs. By collaborating, gas storage operators and secondary recovery unit operators can maximize the potential of existing resources, ensuring a steady supply of natural gas and promoting sustainability. The TGS SRU Agreement typically consists of various key components, including: 1. Scope: This section defines the geographical area where the agreement applies, typically within the boundaries of the state of Texas. 2. Parties involved: The agreement identifies the gas storage operator and the secondary recovery unit operator who are entering into the partnership. This can include public or private entities or a combination thereof. 3. Purpose: The agreement outlines the primary objectives and goals of the partnership, such as optimizing gas storage facility usage, increasing gas recovery rates, and promoting economic benefits for all parties involved. 4. Storage terms: This section specifies the terms related to gas storage arrangements, including the capacity allocated to the secondary recovery unit operator, the duration of storage, and any associated fees or rental charges. 5. Recovery operations: The agreement defines the rights and obligations of the secondary recovery unit operator regarding the extraction of gas from the storage facility. It may include the required infrastructure, technology, and procedures for conducting successful recovery operations. 6. Resource management: This segment addresses the management of the gas resources, ensuring responsible extraction practices, and collaboration in monitoring and maintaining the storage and recovery operations. It also covers issues such as well integrity, reservoir pressure, and gas composition. 7. Financial aspects: The agreement establishes the financial terms, including any compensation mechanisms, revenue sharing models, or cost allocations between the gas storage operator and the secondary recovery unit operator. 8. Duration and termination: This section outlines the duration of the agreement, including any renewal options, termination conditions, and dispute resolution mechanisms. There are no specific types of Texas Gas Storage and Secondary Recovery Unit Agreements, as each agreement may vary based on the specific parties involved and the nature of the collaboration. However, variations can arise depending on factors such as the size of the gas storage facility, the intended timeframe for recovery operations, and the unique criteria set by the governing authorities. In conclusion, the Texas Gas Storage and Secondary Recovery Unit Agreement facilitates a synergistic relationship between gas storage operators and secondary recovery unit operators, enhancing the efficiency and sustainability of natural gas extraction and storage in Texas.
