Operational Balancing Agreement (Pipeline and Storage Operators)
Summary
This template is an operational balancing agreement used by a natural gas storage facility and a pipeline system operator to address issues arising from possible variants and imbalances of gas received and delivered to the storage facility from the pipeline. This template contains practical guidance, drafting notes, and an alternate clause. Natural gas is produced at the wellhead and transported via pipeline to processing facilities, where it is purified, with all water vapor and other elements removed. It is then transported to end users, which includes power plants and direct consumers. However, consumption is not linear throughout the year. Both power plants and individual consumers use less natural gas in the spring and fall, and more natural gas in the summer and winter. But, natural gas wells continue to produce relatively consistent amounts of natural gas each month, regardless of the season. Because of this, natural gas that is produced in times of lower demand must be stored ...