This operating agreement exhibit is used in the event any party is not able to take its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which is unable at any time while the Operating Agreement is in effect to take the share of gas attributable to the interest of the party.
Virgin Islands Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is an essential document that plays a crucial role in the oil and gas industry. It outlines the terms and conditions regarding gas balancing agreements within the Virgin Islands. This agreement ensures fair and efficient distribution and tracking of gas resources among various parties involved. This document assists in maintaining a balanced gas supply and demand, preventing imbalances that may occur during gas extraction, transportation, and distribution processes. It serves as a legally binding agreement between the parties involved, highlighting their respective rights, obligations, and responsibilities. There are multiple types of the Virgin Islands Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1, including: 1. Traditional Gas Balancing Agreement: This type of agreement is designed for conventional gas reservoirs and follows the standard procedures for gas balancing. It addresses issues related to gas quality, volume, and pressure adjustments to ensure optimal utilization of gas resources. 2. Enhanced Gas Recovery Balancing Agreement: In certain cases, gas extraction methods involve enhanced recovery techniques such as water or gas injection. This type of Exhibit E agreement focuses on balancing gas production and injection rates to maintain reservoir pressure and maximize gas recovery. 3. Offshore Gas Balancing Agreement: Specific to offshore gas fields, this agreement takes into account unique challenges related to deep-water drilling, offshore infrastructure, and transportation logistics. It emphasizes safety measures, emergency response protocols, and coordination between operators to ensure smooth gas balancing operations. 4. Liquefied Natural Gas (LNG) Balancing Agreement: As LNG becomes an increasingly important component of the global energy mix, this type of agreement governs the balancing of gas supply and demand in LNG terminals and liquefaction facilities. It addresses issues like gas quality specifications, storage capacity allocations, and maintenance of equilibrium between exports and domestic consumption. Overall, the Virgin Islands Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 provides a comprehensive framework for efficient gas balancing operations. It helps prevent economic losses, maximizes gas recovery, and promotes fair distribution of resources. Operators, producers, and other parties involved rely on this agreement to ensure smooth operations and long-term sustainability in the Virgin Islands' oil and gas sector.
