Practical Law Glossary Item 2-525-5066 (Approx. 2 pages)
Glossary
Gas Imbalance
In the context of the oil and gas industry, this occurs when there is a discrepancy between the volume of gas received and delivered. There are three kinds of imbalances:
Producer and Producer. When a producer sells or uses a volume of natural gas in excess of its gross working interest.
Pipeline and Pipeline. When a pipeline receives a volume of natural gas and redelivers a larger or smaller volume of natural gas under the terms of a transportation agreement.
Producer and Pipeline. When a producer delivers a volume of natural gas that is larger or smaller than the volume of natural gas that the pipeline redelivers for the producer's account to another party.