Natural Gas. 21.1 Subject to Article 21.2, the Indian domestic market shall have the first call on the utilisation of Natural Gas discovered and produced from the Contract Area. Accordingly, any proposal by the Contractor relating to Discovery and production of Natural Gas from the Contract Area shall be made in the context of the Government's policy for the utilisation of Natural Gas and shall take into account the objectives of the Government to develop its resources in the most efficient manner and to promote conservation measures.
21.2 The Contractor shall have the right to use Natural Gas produced from the Contract Area for the purpose of Petroleum Operations including reinjection for pressure maintenance in Oil Fields, gas lifting and captive power generation required for Petroleum Operations.
21.3 For the purpose of sales in the domestic market pursuant to this Article 21, the Contractor shall have freedom to market the Gas and sell its entitlement.
Natural Gas. (1) Where Natural Gas is discovered and the Contractor and the Minister agree that it may be economically processed and utilised other than in secondary recovery operations, that processing and utilisation shall follow a Development Plan approved in accordance with clause 20.
(2) The Contractor shall return associated Natural Gas, not required for use in Petroleum Operations or sold, to the subsurface structure, but if such Natural Gas cannot be economically used or sold or returned to the subsurface structure, the Contractor shall, after expiry of sixty (60) days' notice to the Minister giving reasons why such Natural Gas cannot be economically used or sold or returned to the subsurface structure, be entitled to flare such associated Natural Gas in accordance to good international petroleum industry practice. Notwithstanding anything in this clause to the contrary Natural Gas may be flared at any time if necessary for the conducting of well and production tests and during any emergency. Production Sharing Contract Block L16 Ministry of Energy Page 32
(3) Where the Contractor does not consider that it is economical to process and utilise associated Natural Gas and where that Natural Gas is not required for use in Petroleum Operations, the Minister may at the field separator, process and utilise that Natural Gas without compensation but the Government shall pay for all costs and expenses related thereto which shall include, but not be limited to, any engineering studies, new fixtures, equipment and installations required for the gathering, transport, processing and utilisation thereof and the operation and maintenance of same shall be at the sole risk, cost and expense of the Government.
(4) Where the Contractor considers that it is economical to produce Natural Gas, the Contractor agrees to sell Natural Gas to the Government to the volume calculated in accordance with sub-clause 29(6) below with other terms of sale, including price, to be agreed.
Natural Gas. 23.1 If the Contractor discovers a commercially viable quantity of Natural Gas, the Contractor shall have the right to develop, commercialize, recover the costs and share in the profits of a development of such Natural Gas under this Contract on terms to be mutually agreed. Such terms when agreed shall become an integral part of this Contract.
23.2 Notwithstanding Clause 23.1, the Contractor may utilize, at no cost, Natural Gas required as fuel for Petroleum Operations such as gas recycling, gas injection, gas lift or any other Crude Oil enhancing recovery schemes, stimulation of xxxxx necessary for maximum Crude Oil recovery in the field discovered and developed by the Contractor and such usage shall be with prior written consent of the National Petroleum Agency, which consent shall not be unreasonably withheld. This shall be included in a Field Development Program.
23.3 The attainment of recovery of Crude Oil through an efficient, economic and technically acceptable method shall always be paramount in all decisions regarding Associated Natural Gas. However, prior to the commencement of Production of Crude Oil from the Contract Area, the Contractor shall submit to the National Petroleum Agency, a program for the utilization of any Associated Natural Gas that has been discovered in the Contract Area, which shall be subject to the approval of the National Petroleum Agency.
23.4 If the Contractor discovers sufficient volumes of Unassociated Natural Gas that could justify commercial development, the Contractor shall immediately report the volume of potentially recoverable Natural Gas to the National Petroleum Agency and shall promptly investigate and submit proposals to the National Petroleum Agency for the commercial development of such Natural Gas taking in consideration local strategic needs as may be identified by the National Petroleum Agency, within two (2) years of the date of the relevant discovery. Any cost in respect of such proposals or investigation presented by the Contractor to the National Petroleum Agency shall be included in Operating Costs. The Contractor and the National Petroleum Agency will determine the plan and time needed, which shall be no more than five (5) years, unless otherwise agreed by the National Petroleum Agency, to progress a commercial development project, which shall include the terms for recovery of Operating Costs and sharing of Natural Gas production, which terms when agreed shall form an integral part of this Contract....
Natural Gas. 30.1 Contractor will have priority right to use freely and without charge, in order to make “gas lift” or reinjection, the quantities of Natural Gas needed by it to improve the recovery of the reserves of the Crude Oil from the fields operated by it in the Delimited Zone. To allow for this use, Contractor will provide to the Administration all information for a detailed examination of the data of the deposit discovered, as well as those explaining the needs of gas of the fields concerned. If, for the same reasons, Contractor wishes to use certain quantities of Natural Gas for the fields operated by it outside the Delimited Zone, it must send a request in this sense to the State. If the State approves the request, the Parties will meet to agree on the modalities of this use.
30.2 The Parties recognize that the contractual conditions necessary to assure the marketing of a discovery of Natural Gas are directly related to the types of development and outlets considered, which parameters are not known today and, therefore, it is not possible to establish the applicable contractual conditions in this Contract. However, if, after making appropriate studies and after agreement with the Administration, Contractor considers that a discovery of Natural Gas, after meeting the priority needs described in Article 30.1 above, may give rise to commercial exploitation, the Parties agree:
i. to discuss as soon as possible to define the legal, financial and tax conditions for the quick development of this discovery under satisfactory economic conditions allowing Contractor to obtain a profit on its investment as generally required for this type of project in the oil industry. To do so, the Administration may allow Contractor specific conditions concerning especially the recovery of the Oil Costs related to Natural Gas, production sharing and tax modalities.
ii. in order to evaluate the marketability of a discovery of Natural Gas, Contractor will receive at its request an extension of the ongoing exploration period for the time necessary to carry out the evaluation work and for a joint evaluation by the parties of the possible outlets for such discovery, both in the local market and for export, as well as the means necessary for marketing, especially concerning the incentives mentioned in paragraph (i) above. This extension, which may not, however, exceed ten years, will be granted by the Departments Responsible for Hydrocarbons free of charge, without application of the prov...
Natural Gas. Notwithstanding the provisions of clause 8 of this Agreement, the following provisions shall apply to any Discovery of Natural Gas within the Licence Area.
Natural Gas. The State will ensure that regard will be given to the Company’s reasonable requirements for natural gas in any future supply system developed and controlled by the State provided that:
(i) the supply authority has (having due regard to the supply of gas available from the gas reserves) allocated a proportion of the reserves for uses such as that proposed by the Company;
(ii) the supply authority is satisfied that the construction of a pipeline passing within reasonable proximity of the factory is warranted and has received reasonable notice of the Company’s requirements to ensure such pipeline has adequate capacity to supply the Company;
(iii) the Company pays for gas supplied to it by the supply authority in accordance with the supply authority’s standard tariffs and conditions.
Natural Gas. The production of the first 300 million cubic meters from an Exploitation Concession is exempt from the payment of royalty. Any production in excess of 300 million cubic meters from an Exploitation Concession shall be subject to royalty at the rate of five percent (5%).
Natural Gas. A mixture of hydrocarbons found in a gaseous state or in solution with oil under initial reservoir conditions. Includes Associated Natural Gas and Non-associated Natural Gas.
Natural Gas. (i) Natural gas delivered for use in the Unit shall be metered on a continuous real-time basis by Utility’s Gas Metering Equipment. Measurement of natural gas for the purpose of determining inputs to the Variable Fuel Cost, BTGP and the AHR of the Unit shall be measured by the Gas Metering Equipment. Measurement of natural gas for the purpose of determining the amount of gas delivered by the gas transporter and for determining imbalances, and other charges that are assessed by the gas transporter or gas supplier will be measured by the Gas Metering Equipment.
(ii) As between the Parties, Seller shall be responsible for performing, or causing to be performed, and shall bear all costs and expenses of the installation, maintenance, repair, testing and initial calibration of the Gas Metering Equipment (to the extent not otherwise installed, maintained, tested and calibrated by the delivering pipeline(s) or supplier of natural gas to the Unit).
Natural Gas. Refinery Company is a party to a “Sales and Transportation Service Agreement” dated August 27, 1992 with United Cities Gas Company (now Atmos Energy), and the City of Coffeyville (“Gas Contract”) pursuant to which natural gas is transported to the Refinery and the Fertilizer Plant. Refinery Company will nominate and purchase natural gas transportation and natural gas supplies for the Fertilizer Company and Fertilizer Company agrees to coordinate with Refinery Company with respect to such nominations and to provide Refinery Company timely information regarding Fertilizer Company’s requirements for natural gas transportation and natural gas supplies. Refinery Company shall provide Fertilizer Company with an invoice for natural gas supply and transportation services received by Fertilizer Company promptly following Refinery Company’s receipt of invoices from Atmos Energy (or Refinery Company’s then-current natural gas transportation provider(s)), any relevant interstate natural gas pipeline and the then current natural gas supplier(s). At the request of either Fertilizer Company or Refinery Company, the Parties agree to use their commercially reasonable efforts to (i) add Fertilizer Company as a party to the Gas Contract or to reach some other mutually acceptable accommodation with Atmos (including, but not limited to separate natural gas transportation agreements) whereby both Refinery Company and Fertilizer Company would each be able to receive, on an individual basis, natural gas transportation service from Atmos on similar terms and conditions as are currently set forth in the Gas Contract; and (ii) separate natural gas purchasing so that the Refinery Company and Fertilizer Company would each purchase for their own account the natural gas supplies to be delivered to the Refinery and Fertilizer Plant respectively.
