This operating agreement exhibit states the intent of the Parties that each Party shall have the right to take in kind and separately dispose of its proportionate share of gas (including casinghead gas) produced from each formation in each well located on the acreage (the "Contract Area") covered by the Operating Agreement.
Cook Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a contractual document that specifically pertains to gas balancing agreements in the context of an operating agreement. It serves as an exhibit to the main operating agreement and outlines the terms and conditions for gas balancing between parties involved in the agreement. The purpose of Cook Illinois Exhibit E is to ensure proper allocation and reconciliation of gas quantities exchanged or transported within the operating agreement. Gas balancing is crucial to maintain the integrity and efficiency of the overall gas operations and to address any discrepancies that may arise during the course of gas transport and consumption. The key components typically covered in Cook Illinois Exhibit E include: 1. Gas Measurement and Calculation: This section establishes the methods and standards for measuring and calculating gas quantities. It specifies the equipment, procedures, and units of measurement that will be used to determine the gas volumes involved. 2. Gas Imbalances and Tolerances: Here, the agreement defines the acceptable tolerances for gas imbalances between the parties. It sets forth the threshold levels or deviation limits that are deemed reasonable for gas imbalances and requires the parties to account for and rectify any gas imbalances exceeding these limits. 3. Gas Balancing Procedures: This section outlines the specific steps and procedures to be followed for gas balancing. It covers reporting requirements, submission timelines, and the steps to be taken if gas imbalances are detected. It may also include provisions for audits, investigations, and dispute resolution mechanisms. 4. Reconciliation and Settlement: This part of the agreement details the reconciliation and settlement process for gas imbalances. It establishes the timeline and format for reconciliation statements, the methods for calculating and allocating costs associated with the imbalances, and the frequency of settlements. While there may not be different types of Cook Illinois Exhibit E, the contents and provisions can vary depending on the specific gas balancing agreement and the parties involved. The exact language and clauses may be customized to meet the unique requirements of the operating agreement and the gas operations being considered. In conclusion, Cook Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is an essential component of an operating agreement that governs the gas balancing process. It ensures the accurate measurement, reconciliation, and settlement of gas quantities exchanged or transported, thereby promoting transparency and fairness among the parties involved.Cook Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a contractual document that specifically pertains to gas balancing agreements in the context of an operating agreement. It serves as an exhibit to the main operating agreement and outlines the terms and conditions for gas balancing between parties involved in the agreement. The purpose of Cook Illinois Exhibit E is to ensure proper allocation and reconciliation of gas quantities exchanged or transported within the operating agreement. Gas balancing is crucial to maintain the integrity and efficiency of the overall gas operations and to address any discrepancies that may arise during the course of gas transport and consumption. The key components typically covered in Cook Illinois Exhibit E include: 1. Gas Measurement and Calculation: This section establishes the methods and standards for measuring and calculating gas quantities. It specifies the equipment, procedures, and units of measurement that will be used to determine the gas volumes involved. 2. Gas Imbalances and Tolerances: Here, the agreement defines the acceptable tolerances for gas imbalances between the parties. It sets forth the threshold levels or deviation limits that are deemed reasonable for gas imbalances and requires the parties to account for and rectify any gas imbalances exceeding these limits. 3. Gas Balancing Procedures: This section outlines the specific steps and procedures to be followed for gas balancing. It covers reporting requirements, submission timelines, and the steps to be taken if gas imbalances are detected. It may also include provisions for audits, investigations, and dispute resolution mechanisms. 4. Reconciliation and Settlement: This part of the agreement details the reconciliation and settlement process for gas imbalances. It establishes the timeline and format for reconciliation statements, the methods for calculating and allocating costs associated with the imbalances, and the frequency of settlements. While there may not be different types of Cook Illinois Exhibit E, the contents and provisions can vary depending on the specific gas balancing agreement and the parties involved. The exact language and clauses may be customized to meet the unique requirements of the operating agreement and the gas operations being considered. In conclusion, Cook Illinois Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is an essential component of an operating agreement that governs the gas balancing process. It ensures the accurate measurement, reconciliation, and settlement of gas quantities exchanged or transported, thereby promoting transparency and fairness among the parties involved.
