GAS-BALANCING AGREEMENT

gas-balancing agreement.Oil & gas. A contract among owners of the production of a gas well

to balance pro-duction if one owner sells more of the gas stream than the other owners do.

“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). [Blacks Law 8^th]