This operating agreement exhibit provides that each party has the right to take in kind its share of gas produced from the Contract Area and market or otherwise dispose of its gas. In the event any party is not, at any time, taking or marketing its share of gas, or has contracted to sell its share of gas produced from the Contract Area to a purchaser which does not, at any time, take the full share of gas attributable to the interest of the party, then the terms of this agreement shall automatically become operative.
Wyoming Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is an important contractual document specific to gas balancing arrangements in the state of Wyoming. This exhibit outlines the terms and conditions that govern gas balancing activities between gas producers, operators, and owners within Wyoming. The purpose of the Wyoming Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 is to establish a framework for managing the discrepancies between actual gas production and contractual obligations, ensuring fairness among the participating parties. It outlines the procedures, responsibilities, and mechanisms for gas balancing, which involves reconciling daily imbalances, gas measurement, and allocation of costs and penalties. Key provisions mentioned in Wyoming Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may include: 1. Parties: This section identifies the participating parties involved in the gas balancing agreement, including the gas producers, operators, and owners in the relevant gas fields or wells. 2. Definitions: The exhibit may define specific terms relevant to gas balancing, such as "production," "allocated quantity," "operator," and "balancing period." 3. Gas Balancing Methodology: This section explains the procedure for gas balancing, including how imbalances are calculated, reported, and adjusted. It may establish parameters for acceptable variances and guidelines for notification and resolution of imbalances. 4. Measurement and Reporting: Wyoming Exhibit E may outline standards and protocols for gas measurement, including equipment specifications, metering principles, calibration, and frequency of reporting. 5. Penalties and Washout Procedures: The document may outline penalties for imbalances exceeding specified thresholds, such as monetary charges based on the market value of gas. It may also describe washout procedures when significant imbalances remain unresolved. 6. Dispute Resolution: This section provides mechanisms for resolving disputes that arise in the context of gas balancing, including negotiation, mediation, or arbitration. It's important to note that the specific content of Wyoming Exhibit E to Operating Agreement Gas Balancing Agreement — Form 2 may vary depending on the parties involved, gas fields, and other contractual considerations. Different versions of this exhibit may exist with tailored provisions to suit specific circumstances or gas fields within Wyoming.
