Washington Production and Storage Unit Agreement

• Category: Oil Gas and Minerals - Agreements
• State: Multi-State
• Control #: US-OG-1092
• Format: Word; Rich Text

Description

This form of Agreement may be used to create a Unit for the purposes of producing oil and gas on a pooled unit basis, from existing producing leases. Washington Production and Storage Unit Agreement (WP SUA) is a legal contract that outlines the terms and conditions between oil and gas producers and the State of Washington for the production and storage of hydrocarbon resources within the state. This agreement plays a crucial role in managing and regulating the extraction and storage activities in Washington. The WP SUA is designed to promote responsible resource development while also ensuring the protection of the environment and public safety. It serves as a comprehensive framework that aims to balance the needs of the industry with the interests of the state and its residents. Under the Washington Production and Storage Unit Agreement, producers are granted the right to extract hydrocarbon resources, such as oil and gas, from designated production units. These units are typically geographically defined areas that have been identified as having significant reserves. Producers must obtain specific permissions and authorizations from the state before commencing production activities. The agreement also encompasses storage operations, allowing producers to store extracted hydrocarbons in underground reservoirs or designated storage facilities. This aspect of the agreement is essential as it enables efficient utilization of storage capacity, ensures supply stability, and can also contribute to the overall economic viability of the state. The Washington Production and Storage Unit Agreement includes several key provisions that cover various aspects. These provisions may include, but are not limited to: 1. Authorization and Compliance: Specifies the conditions under which producers must operate, ensuring compliance with environmental regulations, safety standards, and reporting requirements. 2. Allocation of Resources: Defines the percentage of hydrocarbon resources allocated to each producer within the production unit, ensuring fair distribution and preventing overexploitation. 3. Royalty Payments: Outlines the financial obligations of producers to the state, including royalties, taxes, and other fees associated with production and storage activities. 4. Liability and Insurance: Establishes the responsibilities and liabilities of the parties involved in case of accidents, spills, or any other incidents resulting from production or storage activities. It also requires producers to maintain appropriate insurance coverage to mitigate potential risks. Different types of Washington Production and Storage Unit Agreements may exist depending on the specific characteristics of each production or storage unit. These unique agreements may include variations in resource allocation, royalty rates, or specific conditions to address the distinct geological, environmental, and logistical aspects of different areas within Washington. In conclusion, the Washington Production and Storage Unit Agreement is a comprehensive legal document that governs the production and storage of hydrocarbon resources within the state. By setting forth clear guidelines and regulations, this agreement ensures responsible resource development, protects the environment, and safeguards the interests of the state and its residents.

Washington Production and Storage Unit Agreement (WP SUA) is a legal contract that outlines the terms and conditions between oil and gas producers and the State of Washington for the production and storage of hydrocarbon resources within the state. This agreement plays a crucial role in managing and regulating the extraction and storage activities in Washington. The WP SUA is designed to promote responsible resource development while also ensuring the protection of the environment and public safety. It serves as a comprehensive framework that aims to balance the needs of the industry with the interests of the state and its residents. Under the Washington Production and Storage Unit Agreement, producers are granted the right to extract hydrocarbon resources, such as oil and gas, from designated production units. These units are typically geographically defined areas that have been identified as having significant reserves. Producers must obtain specific permissions and authorizations from the state before commencing production activities. The agreement also encompasses storage operations, allowing producers to store extracted hydrocarbons in underground reservoirs or designated storage facilities. This aspect of the agreement is essential as it enables efficient utilization of storage capacity, ensures supply stability, and can also contribute to the overall economic viability of the state. The Washington Production and Storage Unit Agreement includes several key provisions that cover various aspects. These provisions may include, but are not limited to: 1. Authorization and Compliance: Specifies the conditions under which producers must operate, ensuring compliance with environmental regulations, safety standards, and reporting requirements. 2. Allocation of Resources: Defines the percentage of hydrocarbon resources allocated to each producer within the production unit, ensuring fair distribution and preventing overexploitation. 3. Royalty Payments: Outlines the financial obligations of producers to the state, including royalties, taxes, and other fees associated with production and storage activities. 4. Liability and Insurance: Establishes the responsibilities and liabilities of the parties involved in case of accidents, spills, or any other incidents resulting from production or storage activities. It also requires producers to maintain appropriate insurance coverage to mitigate potential risks. Different types of Washington Production and Storage Unit Agreements may exist depending on the specific characteristics of each production or storage unit. These unique agreements may include variations in resource allocation, royalty rates, or specific conditions to address the distinct geological, environmental, and logistical aspects of different areas within Washington. In conclusion, the Washington Production and Storage Unit Agreement is a comprehensive legal document that governs the production and storage of hydrocarbon resources within the state. By setting forth clear guidelines and regulations, this agreement ensures responsible resource development, protects the environment, and safeguards the interests of the state and its residents.