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.
Alameda, California Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 is a document that provides a detailed guideline for gas balancing operations within the Alameda, California region. This exhibit is an essential component of the operating agreement between the parties involved in gas exploration, production, and distribution. Gas balancing agreements are crucial in the energy industry to ensure a fair and equitable distribution of gas resources among the operators in a specific area. This particular exhibit focuses on the regulations and procedures specific to gas balancing in Alameda, California. The content of Alameda, California Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 covers various aspects related to gas balancing, including: 1. Purpose: This section provides an overview of the purpose of the exhibit, emphasizing the need for efficient gas balancing to maximize production and avoid imbalances that could lead to disruptions in supply. 2. Definitions: To establish a common understanding, the exhibit includes a section that defines important terms related to gas balancing, such as "operator," "balanced agreement," "gas imbalance," and "allocated volumes." 3. Gas Balancing Principles: This section outlines the fundamental principles and objectives of gas balancing in Alameda, California. It highlights the importance of accurate metering, timely reporting, and resolving imbalances efficiently. 4. Gas Balancing Procedures: Here, the exhibit elaborates on the specific procedures for measuring and reporting gas volumes, including frequency, metering devices, and formats for sharing information among operators involved in the gas balancing agreement. 5. Allocation of Gas: This section explains how gas volumes will be allocated among the operators based on metering data and other relevant factors. It includes provisions for the resolution of any disputes that may arise during the gas allocation process. 6. Imbalance Settlement: The exhibit provides a detailed description of the process for settling gas imbalances between the operators. It covers topics such as penalties for imbalances, invoicing, payment terms, and the calculation methodology for reconciling discrepancies. 7. Modification and Termination: This section outlines the procedures and requirements for modifying or terminating the gas balancing agreement. It may include provisions for notice periods, mutual agreement, or alternative dispute resolution methods. Different types of Alameda, California Exhibit E to Operating Agreement Gas Balancing Agreement — Form 1 may exist based on specific modifications or additions made to the standard template. Variations may occur to address unique regional requirements, contractual obligations, or industry standards, but the core content described above remains consistent. It is important to review the specific exhibit E within the gas balancing agreement to understand any additional details or variations particular to Alameda, California.
