Gas Lifting And Balancing Agreement

Selling gas in the current natural gas marketing environment can unbalance owners of working interests with the reserve of their share of gas in a production reservoir. To remedy this situation, several gas balance agreements have been drafted and are currently being used in the sector; However, many of these agreements do not adequately address the practical technical problems associated with gas accounting, practical technical problems that arise in the production of process gas. Among these problems is the compensation of condensate production. These problems include offsetting condensate production versus offsetting gas production, owner production versus offsetting gas production, owner imbalance at the time of acquisition or sale, and appointment and allocation to pipelines and buyers. This paper discusses these compensation issues and proposes practical solutions that can be included in a standard gas compensation agreement. A model agreement is contained in Appendix A. There may be different types of gas imbalances, for example. B between owners of labour interests and pipelines and buyers. This article only deals with gas imbalances that occur between owners working on a producing property. Property. Introduction The Joint Operating Agreement (JOA) contains a number of important trade provisions. Gas imbalances occur when a homeowner does not receive his proportional share of gas production relative to his proportional share in gas production relative to his interest.

An overproduced owner is an owner of interest who has sold more of his proportional share in gas production; Whereas a part too little produced has sold less of its proportional share in production. Suppose, for example, that the owners of the labour interests, A and B, each hold a 50% stake in a property. Owner A does not have a gas contract and B sells all the gas produced by the property. Owner A is by-product and Owner B is property. Owner A is by-product and Owner B is over-produced. Currently, gas imbalances between workers` owners are common in the oil and gas industry. .