What Is An Operational Balancing Agreement
The term “Operational Balancing Agreement” (OBA) is an agreement whereby a party whose facilities connect to Texas Gas assumes responsibility for any difference between appointments and actual physical flow when connecting with Texas Gas. Less obvious situations, which must be assessed by engineering test results, include ownership of overproduction/underproduction at the time of acquisition, suspension of the sale of overproduce parts as soon as it has provided its share of reserves, allocation of facility fluids when all parties do not sell gas, compensation price paid in cash, and obligations of operators and non-operators. In this document, the engineer will understand the current situation of gas compensation by identifying some of the unbalanced problems and proposing practical solutions. In addition, federal regulations, what a practical solution. In addition, federal regulations that contributed to the creation of the current gas marketing environment and contributed to the balance sheet are briefly reviewed. Finally, the current clearing problems are examined and a proposed standard gas compensation agreement (MCC) is presented in Schedule A. SCHEDULE 3:Gas Balancing GeneralSection A of this schedule sets the gas offsetting by an Operational Compensation Agreement (OBA) and Section B of This Schedule 3 includes gas compensation without a commercial agreement. The sale of gas in the current natural gas sales environment can result in an imbalance between the owners of the interests of the work and their share of gas in a cheap tank. To combat this phenomenon, several gas equalization agreements, currently in operation in the industry, have been developed; However, many of these agreements do not adequately address practical technical problems to address practical technical problems related to gas production compensation.
Among these problems is the balancing of condensate production. These problems include offsetting condensate production through gas production, self-production and production of countervailing gases, landlord imbalance at the time of acquisition or sale, and the designation and allocation of pipelines and buyers.