Gas Balancing Agreement

Gas Balancing Agreement means:
a standard attachment to most common forms of joint operating agreements in the gas industry setting forth the owners' agreement for the balancing of production in the event that one owner is able to sell more gas than the other owners, thereby creating imbalances. There are several conflicting theories as to the tax treatment of the parties to these agreements. See Former U.S. Treasury Department Proposed Regulation (check if this Prop. Reg. is current here) §1.761.2.