Utah Gas Storage Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-723
• Format: Word; Rich Text

Description

This form is used when Owner owns and operates underground gas storage facilities and Customer desires storage service for natural gas to serve its Plant, and Owner is willing to render such storage services. Utah Gas Storage Agreement is a legally binding contract that outlines the terms and conditions for storing natural gas in designated storage facilities located in Utah, United States. This agreement ensures a smooth and efficient process for gas storage, providing a framework for rights, obligations, and responsibilities of both the storage facility operator and the gas owner. Key Terms: 1. Gas Storage Facility: These facilities are specifically designed to store large quantities of natural gas underground, utilizing depleted reservoirs, salt caverns, or aquifers. 2. Natural Gas: Refers to a mixture of hydrocarbon gases primarily composed of methane (CH4) extracted from underground reservoirs, usually found alongside oil wells or in standalone gas fields. 3. Capacity: The maximum volume of natural gas that the storage facility can store or accommodate. This is usually given in units such as a million cubic feet (MCF) or a billion cubic feet (BCF). 4. Injection/Delivery Rates: The agreed-upon rates at which natural gas can be injected into or withdrawn from the storage facility per unit of time. It ensures a balanced supply-demand flow and operational flexibility. 5. Storage Duration: The period for which gas can be stored in the facility. This can range from short-term contracts (few days or months) to long-term contracts (multiple years). 6. Inventory Management: The process of tracking, monitoring, and managing the gas quantity stored in the facility. It involves forecasting supply-demand trends, inventory levels, and maintaining operational integrity. Types of Utah Gas Storage Agreements: 1. Firm Storage Agreement: This type of agreement guarantees the customer reliable and uninterrupted access to the contracted storage capacity. The gas owner pays a fixed fee, typically on a monthly or annual basis, to reserve a certain portion of storage capacity for their exclusive use. 2. Interruptible Storage Agreement: This agreement allows the storage facility operator to interrupt or curtail the customer's access to storage capacity during peak demand periods or unforeseen circumstances. In return, the gas owner pays a lower fee compared to a firm storage agreement. It offers reduced costs but less certainty regarding gas availability. 3. Seasonal Storage Agreement: This agreement is designed to meet the seasonal demand fluctuations in the natural gas market. The gas owner usually leases storage capacity for a specific time period, typically during high-demand seasons such as winter, when gas prices and demand are higher. Utah Gas Storage Agreements are crucial for the effective management of natural gas supplies, ensuring reliable energy availability and supporting market stability. Gas storage facilities provide a strategic reserve to handle supply disruptions, enable price stabilization, and meet the varying demands throughout the year. By clearly defining the rights and responsibilities of the parties involved, these agreements facilitate efficient and transparent gas storage operations in Utah.

Utah Gas Storage Agreement is a legally binding contract that outlines the terms and conditions for storing natural gas in designated storage facilities located in Utah, United States. This agreement ensures a smooth and efficient process for gas storage, providing a framework for rights, obligations, and responsibilities of both the storage facility operator and the gas owner. Key Terms: 1. Gas Storage Facility: These facilities are specifically designed to store large quantities of natural gas underground, utilizing depleted reservoirs, salt caverns, or aquifers. 2. Natural Gas: Refers to a mixture of hydrocarbon gases primarily composed of methane (CH4) extracted from underground reservoirs, usually found alongside oil wells or in standalone gas fields. 3. Capacity: The maximum volume of natural gas that the storage facility can store or accommodate. This is usually given in units such as a million cubic feet (MCF) or a billion cubic feet (BCF). 4. Injection/Delivery Rates: The agreed-upon rates at which natural gas can be injected into or withdrawn from the storage facility per unit of time. It ensures a balanced supply-demand flow and operational flexibility. 5. Storage Duration: The period for which gas can be stored in the facility. This can range from short-term contracts (few days or months) to long-term contracts (multiple years). 6. Inventory Management: The process of tracking, monitoring, and managing the gas quantity stored in the facility. It involves forecasting supply-demand trends, inventory levels, and maintaining operational integrity. Types of Utah Gas Storage Agreements: 1. Firm Storage Agreement: This type of agreement guarantees the customer reliable and uninterrupted access to the contracted storage capacity. The gas owner pays a fixed fee, typically on a monthly or annual basis, to reserve a certain portion of storage capacity for their exclusive use. 2. Interruptible Storage Agreement: This agreement allows the storage facility operator to interrupt or curtail the customer's access to storage capacity during peak demand periods or unforeseen circumstances. In return, the gas owner pays a lower fee compared to a firm storage agreement. It offers reduced costs but less certainty regarding gas availability. 3. Seasonal Storage Agreement: This agreement is designed to meet the seasonal demand fluctuations in the natural gas market. The gas owner usually leases storage capacity for a specific time period, typically during high-demand seasons such as winter, when gas prices and demand are higher. Utah Gas Storage Agreements are crucial for the effective management of natural gas supplies, ensuring reliable energy availability and supporting market stability. Gas storage facilities provide a strategic reserve to handle supply disruptions, enable price stabilization, and meet the varying demands throughout the year. By clearly defining the rights and responsibilities of the parties involved, these agreements facilitate efficient and transparent gas storage operations in Utah.