Abstract
Selling gas in today’s natural gas marketing environment can result in working interest owners becoming imbalanced with respect to their share of gas in a producing reservoir. To combat this, several gas balancing agreements have been written and are currently in use in the industry; however, many of these agreements fail to adequately address practical engineering problems encountered in balancing gas production. These problems include balancing of condensate production versus balancing of gas production, owner’s imbalance at the time of acquisition or sale, and nomination and allocation to pipelines and purchasers. This paper discusses these balancing problems and proposes practical solutions that can be incorporated in a standard Gas Balancing Agreement. A sample agreement is included as Appendix A.
Several types of gas imbalances, such as those between working interest owners, and pipelines and purchasers, can exist. This article only addresses the gas imbalances which occur between the working interest owners in a producing property.
