That definitely helps. I think in my first read, I had took
"Each Moon Sheet has room for 10 Sentences, but it begins empty, except for the Impulse created by the GM." literally, not thinking about prepped sentences just not being on the sheet yet, in sort of hidden state.
So, I was going to not have any moon sentences, but have local stuff as factions or a bundle of npcs. Reading the faction sentences it's clear that local stuff isn't intended there, but is instead for bigger global/interstellar powers players have less ability to write.
I think I have a good understanding of them now.
Best of luck with everything. I appreciate the clarification and write up.