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.
West Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is a legal document that provides a detailed outline and framework for gas balancing agreements in the state of West Virginia. This agreement is designed to facilitate the efficient and fair distribution of gas resources among the parties involved in the production, transmission, and distribution of gas. The West Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4 is divided into several sections to address various aspects of gas balancing, ensuring that all parties comply with the agreed-upon terms and conditions. Key sections of this agreement include: 1. Purpose: This section outlines the main goal of the gas balancing agreement, emphasizing the need for fair distribution and adherence to regulatory requirements. 2. Definitions: It is essential to define key terms and phrases used throughout the agreement to avoid any confusion or misinterpretation. This section provides clear definitions for terms such as "producer," "transmission," "distribution," "balancing party," and more. 3. Responsibilities: This section lays out the responsibilities and obligations of each party involved in the gas balancing agreement. It addresses issues such as measurement, allocation, reporting, remedial action, and dispute resolutions. 4. Measurement and Allocation: This portion specifies the procedures and methodologies for accurately measuring and allocating gas volumes among the parties. It may include details on measurement devices, data gathering, and the use of industry-standard practices. 5. Reporting and Settlement: Parties are required to submit regular reports and settlement statements, providing transparent and comprehensive information regarding gas quantities, imbalances, prices, and other relevant data. This helps ensure accurate accounting and timely settlement of gas imbalances. 6. Remedial Actions: In the event of gas imbalances or discrepancies, this section outlines the steps that should be taken to rectify the situation, including penalties, corrective measures, and the establishment of a Gas Balancing Agreement Operating Committee. 7. Force Mature: This part addresses exceptional circumstances such as acts of nature, strikes, or unforeseen events that may impact gas balancing. It provides guidelines for handling such situations and their potential effects on the agreement. There may be different types of West Virginia Exhibit E to Operating Agreement Gas Balancing Agreement — Form 4, each tailored to specific contexts or variations within the gas industry. Some potential variations may pertain to the involvement of specific companies, varying gas sources, or specific regional regulatory requirements.
