• Linkedin
  • Twitter
  • Rss

Oil, Gas & Energy Law

Skip navigation

Oil, Gas & Energy Law

Global Energy Law & Regulation Portal

Join OGELFORUM

Oil, Gas & Energy Law

Global Energy Law & Regulation Portal

  • Sign in
  • Subscribe
  • Home
  • Sign in
  • About About
    1. Home
    2. About
    3. About OGEL
    4. About OGEL
    5. Founding Editor T.W. Wälde
    6. T.W. Wälde
    7. Editorial team
    8. Editorial team
    9. Contributing Authors
    10. Contributing Authors
    11. Subscriptions
    12. Subscriptions
  • Journal Journal
    1. Home
    2. Journal
    3. Browse Issues
    4. Browse
    5. Articles by Category
    6. By Category
    7. Articles by Author
    8. By Author
    9. Advance publication
    10. Advance publication
    11. Specials
    12. Specials
    13. Search
    14. Search
    15. Book reviews
    16. Reviews
  • Legal & Regulatory docs. L & R docs
    1. Home
    2. Legal & Regulatory docs.
    3. L&R by Country
    4. L&R by Country
    5. L&R by Category
    6. L&R by Category
    7. L&R recent additions
    8. L&R recent additions
    9. Search
    10. Search
  • OGELFORUM OGELFORUM
    1. Home
    2. OGELFORUM
    3. About OGELFORUM
    4. About OGELFORUM
    5. Browse archive
    6. Browse by date / topic
    7. Search
    8. Search
    9. Join
    10. Join
  • News & Events Events
    1. Home
    2. News & Events
    3. News
    4. News
    5. Events
    6. Events
  • OGEL Studies OGEL Studies
    1. Home
    2. OGEL Studies
    3. About OGEL Studies
    4. About OGEL Studies
  • Subscribe
Home > Journal > Advance publication

"Cash or Gas" The Quest for Balancing the Imbalance (addendum OGEL 4 (2016))

  • Sign in
  • Suggested citation
T. Lanardonne
T. Lanardonne

Published 20 December 2016

The following article has been added to OGEL 4 (2016):

"Cash or Gas" The Quest for Balancing the Imbalance
by Tomás Lanardonne

Abstract

"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) in order to (a) maintain imbalances at a minimum and gas production at a Maximum Efficient Rate, (b) protect both underbalanced and overbalanced parties by way of preventing overproducers from exacerbating their "time value of money" benefit of taking excess gas and underproducers from gaming the market in times of low prices to maximize their revenues in detriment of their partners, and ultimately, (c) make equity work in a real-life gas field. But it is not (only) about the election or combination of two balancing methods. Other (big) issues and responsibilities are at stake. The importance of a sound GBA is generally underestimated by joint venture parties. This paper identifies the risks that such an approach may have over parties.

The article can be downloaded here https://www.ogel.org/article.asp?key=3664  

To read this article you need to be a subscriber

Sign in

Forgot password?

Sign in

Subscribe

Fill in the registration form and answer a few simple questions to receive a quote.

Subscribe now

Suggested Citation

T. Lanardonne (2016, forthcoming) ""Cash or Gas" The Quest for Balancing the Imbalance (addendum OGEL 4 (2016))"
(OGEL, ISSN 1875-418X) December 2016, www.ogel.org

"Advance publication" is the name given to material that is published ahead of its appearance in a regular structured issue of our Journal. It is also possible to monitor this via RSS. Subscribers will receive update alerts via e-mail of the published articles as soon as they have been added to the website.

Other recently published material:

Corporate Tax in Oil & Gas Production. Who Must Pay It in Equatorial Guinea?

13 April 2018

Addendum OGEL 4 (2017): Enforceability of Take-or-Pay Provision in Offtake Agreements Post Cavendish

11 April 2018

Addendum OGEL 4 (2017) - US LNG Competition Evaluation and Export Prospects

1 March 2018

Adjudicating the Impact of Oil Spills in Nigeria: The Need for Black Benches in Oil Producing States

2 February 2018

Design of the Energy Community of China and Its Neighboring Countries: Legal Basis and Possible Approaches

9 January 2018

Complete listing of Advance publication.

Call for contributions

OGEL Call for Papers: Special Issue on Energy Law and Regulation in Low-carbon and Transitional Energy Markets

Prof. Raphael Heffron, Dr. Penelope Crossley, Dr. Tade Oyewunmi

  • Prof. Raphael Heffron
  • Dr. Penelope Crossley
  • Dr. Tade Oyewunmi

OGEL/TDM Call for Papers: Special Issue with ArbitralWomen on Strategic Considerations in Energy Disputes

Alison Pearsall and Marily Paralika (ArbitralWomen)

  • Alison Pearsall. Esq.
  • Marily Paralika
  • More
  • Contribute

Stay connected

Sign up for our email alerts.

  • Issues
  • Advance publication
  • News
  • Linkedin
  • Twitter
  • RSS

Join the debate

Want to join OGELFORUM, our unique platform for oil, gas and energy issues?

Simply fill in the registration form to start your trial membership.

Download the app

  1. App store
  2. Google play

The Oil, Gas & Energy Law Intelligence (OGEL, ISSN 1875-418X) Journal and OGELFORUM listserv focus on recent developments in the area of oil, gas, energy law, regulation, treaties, judicial and arbitral cases, voluntary guidelines, tax and contracting, including the oil, gas, energy geopolitics. Read our Terms & Conditions here.

About OGEL

  • Terms & Conditions
  • Contribute
  • Subscriptions
  • Contact
  • Help

Other publications

  • Transnational Dispute Management (TDM)
  • Oil & Gas Observer

© 2004 - 2018. Published by MARIS.

  • Home
  • Contribute
  • Subscriptions
  • Contact
  • Help