Gathering Agreement
Gridlync land and infrastructure glossary.
A gathering agreement is a midstream contract under which a gatherer collects and moves a producer’s oil, gas, or water from the wellhead to processing or transmission, for a fee. It sits on top of the land rights that carry the gathering lines. The gatherer moves a producer’s output for a per-unit fee, often with minimum volume commitments, and the commercial deal rides on the gathering-line easements that physically carry the product.
Gathering agreements and the easements beneath the lines go hand in hand. Gridlync keeps the land rights organized so the system behind each agreement is documented.
Example
Producer Lone Pine Resources signs a gathering agreement with Basin Gathering to move its gas from 20 wells at $0.45 per Mcf with a minimum volume commitment, while Basin relies on its easements across the Tillman and Cortez farms to carry the lines.