Legal Dictionary of Pakistan

gas-balancing agreement

Oil & gas. A contract between owners of a producing gas well setting forth how production will be apportioned among them if one owner sells more gas than the other owners "Gas balancing agreements address the problem of imbalances in production from a gas well or field. Co-owners frequently sell their share of production to different purchasers .... Even when co-owners sell to the same purchaser, their contracts are likely to be signed at different times and to have different price and take provisions. Thus, imbalances are inevitable." John S. Lowe, Oil and Gas Law in a Nutshell 385 (3d ed. 1995).