"Cash or Gas" The Quest for Balancing the Imbalance
Article from: OGEL 4 (2016), in Contract Management, International Petroleum Contracts
"Cash-or-Gas, the quest for balancing the imbalance" is a journey through Gas Balancing Agreements (or GBAs) and the two classic in-kind or cash balancing remedies used between co-owners of a gas field. In kind balancing allows an underproduced party to take a designated percentage of the overproduced parties' gas until a balance is reached. Cash balancing requires the overproduced party to compensate the underproduced party in cash to effectuate a balance. A well-designed GBA should be sufficiently flexible to interplay the two principal balancing methods (in-kind and cash) ...