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.
Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document that pertains to the gas balancing agreement between parties involved in the oil and gas industry in Harris County, Texas. This agreement outlines the terms and conditions for the balancing of natural gas production and consumption among the involved parties. The purpose of Exhibit E is to provide a structured framework for gas balancing operations, ensuring fair distribution of gas among the parties involved. The agreement helps prevent imbalances in the gas supply, optimizing production schedules, and maintaining stability in gas operations. Key components of Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 include: 1. Gas Balancing Mechanism: This section describes the procedures and methodologies used for gas balancing, including tracking and reporting gas quantities, measuring imbalances, and enforcing penalties for imbalances. 2. Allocation and Accounting: The agreement defines the method for allocating gas production and consumption among the parties. It outlines the accounting procedures for tracking gas volumes, including measurement, reporting, and audits to ensure accurate allocation. 3. Balancing Responsibilities: This section outlines the responsibilities of each party involved in the gas balancing agreement. It specifies obligations related to timely nominations, measurement, reporting, and payment of gas imbalances. 4. Imbalance Settlement: The agreement establishes a process for settling gas imbalances between the parties. It addresses the financial consequences of imbalances, such as penalties, credits, or payments to be made by the imbalanced party. 5. Dispute Resolution: In case of disputes arising from gas balancing issues under the agreement, this section provides guidelines for resolution through negotiation, mediation, or arbitration. It is important to note that there may be variations or different versions of Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, such as updated editions or modifications specific to certain gas fields or contracts. These variations may address specific regional regulations or industry practices while still maintaining the underlying principles of gas balancing.Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document that pertains to the gas balancing agreement between parties involved in the oil and gas industry in Harris County, Texas. This agreement outlines the terms and conditions for the balancing of natural gas production and consumption among the involved parties. The purpose of Exhibit E is to provide a structured framework for gas balancing operations, ensuring fair distribution of gas among the parties involved. The agreement helps prevent imbalances in the gas supply, optimizing production schedules, and maintaining stability in gas operations. Key components of Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 include: 1. Gas Balancing Mechanism: This section describes the procedures and methodologies used for gas balancing, including tracking and reporting gas quantities, measuring imbalances, and enforcing penalties for imbalances. 2. Allocation and Accounting: The agreement defines the method for allocating gas production and consumption among the parties. It outlines the accounting procedures for tracking gas volumes, including measurement, reporting, and audits to ensure accurate allocation. 3. Balancing Responsibilities: This section outlines the responsibilities of each party involved in the gas balancing agreement. It specifies obligations related to timely nominations, measurement, reporting, and payment of gas imbalances. 4. Imbalance Settlement: The agreement establishes a process for settling gas imbalances between the parties. It addresses the financial consequences of imbalances, such as penalties, credits, or payments to be made by the imbalanced party. 5. Dispute Resolution: In case of disputes arising from gas balancing issues under the agreement, this section provides guidelines for resolution through negotiation, mediation, or arbitration. It is important to note that there may be variations or different versions of Harris Texas Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, such as updated editions or modifications specific to certain gas fields or contracts. These variations may address specific regional regulations or industry practices while still maintaining the underlying principles of gas balancing.
