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.
King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document used in the energy industry to outline the terms and conditions of gas balancing agreements. This agreement is an essential part of maintaining the balance between gas supply contracts and actual gas deliveries. The purpose of King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is to provide a framework for the parties involved in gas balancing activities. It specifies the roles and responsibilities of each party, ensuring that gas deliveries and obligations are met effectively. There are different types of King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, which can be customized based on specific requirements and circumstances. Some variations of this agreement might include: 1. Fixed Quantity Balancing Agreement: This type of agreement is suitable when the gas supplier and the consumer have a fixed quantity of gas to be exchanged. Both parties agree on specific quantities to be delivered and consumed, ensuring a balanced supply and demand. 2. Swing Quantity Balancing Agreement: In this type of agreement, the gas supplier and the consumer agree on a range or "swing quantity" that allows flexibility in gas deliveries. This accommodates fluctuations in demand or supply, ensuring that both parties can adjust their gas quantities accordingly. 3. Imbalance Cash-out Agreement: This agreement is invoked when there is an imbalance in gas deliveries compared to the agreed quantities. It determines the financial compensation or penalties for the party responsible for the imbalance. The agreement may include provisions for gas exchanges or monetary settlements. 4. Take-or-Pay Balancing Agreement: This type of agreement obligates the consumer to pay for a minimum quantity of gas, regardless of actual consumption. It aims to ensure a constant revenue stream for the gas supplier, even during periods of low demand. King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 contains several important sections, including: — Definitions: This section provides clear and concise definitions of key terms used throughout the agreement, ensuring mutual understanding between the parties. — Gas Balancing Obligations: This section outlines each party's obligations in maintaining gas balance, including delivery schedules, measurement methods, and dispute resolutions. — Measurement and Verification: This section describes the procedures for measuring and verifying gas quantities, ensuring accurate balancing calculations. — Imbalance Charges and Settlements: This section covers the financial aspects of any imbalances and provides guidelines for determining penalties or compensations. — Term and Termination: This section specifies the duration of the agreement and the conditions under which it can be terminated. In conclusion, the King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a critical legal document that establishes the terms and conditions for gas balancing activities. Its variations include fixed quantity, swing quantity, imbalance cash-out, or take-or-pay agreements, each designed to address specific requirements and circumstances in the energy industry.King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a legal document used in the energy industry to outline the terms and conditions of gas balancing agreements. This agreement is an essential part of maintaining the balance between gas supply contracts and actual gas deliveries. The purpose of King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is to provide a framework for the parties involved in gas balancing activities. It specifies the roles and responsibilities of each party, ensuring that gas deliveries and obligations are met effectively. There are different types of King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3, which can be customized based on specific requirements and circumstances. Some variations of this agreement might include: 1. Fixed Quantity Balancing Agreement: This type of agreement is suitable when the gas supplier and the consumer have a fixed quantity of gas to be exchanged. Both parties agree on specific quantities to be delivered and consumed, ensuring a balanced supply and demand. 2. Swing Quantity Balancing Agreement: In this type of agreement, the gas supplier and the consumer agree on a range or "swing quantity" that allows flexibility in gas deliveries. This accommodates fluctuations in demand or supply, ensuring that both parties can adjust their gas quantities accordingly. 3. Imbalance Cash-out Agreement: This agreement is invoked when there is an imbalance in gas deliveries compared to the agreed quantities. It determines the financial compensation or penalties for the party responsible for the imbalance. The agreement may include provisions for gas exchanges or monetary settlements. 4. Take-or-Pay Balancing Agreement: This type of agreement obligates the consumer to pay for a minimum quantity of gas, regardless of actual consumption. It aims to ensure a constant revenue stream for the gas supplier, even during periods of low demand. King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 contains several important sections, including: — Definitions: This section provides clear and concise definitions of key terms used throughout the agreement, ensuring mutual understanding between the parties. — Gas Balancing Obligations: This section outlines each party's obligations in maintaining gas balance, including delivery schedules, measurement methods, and dispute resolutions. — Measurement and Verification: This section describes the procedures for measuring and verifying gas quantities, ensuring accurate balancing calculations. — Imbalance Charges and Settlements: This section covers the financial aspects of any imbalances and provides guidelines for determining penalties or compensations. — Term and Termination: This section specifies the duration of the agreement and the conditions under which it can be terminated. In conclusion, the King Washington Exhibit E to Operating Agreement Gas Balancing Agreement — Form 3 is a critical legal document that establishes the terms and conditions for gas balancing activities. Its variations include fixed quantity, swing quantity, imbalance cash-out, or take-or-pay agreements, each designed to address specific requirements and circumstances in the energy industry.
