Arizona Natural Gas Inventory Forward Sale Contract

State:
Multi-State
Control #:
US-EG-9211
Format:
Word; 
Rich Text
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Description

Natural Gas Inventory Forward Sale Contract between EEX Operating, LLC, E&P Company, LP and Bob West Treasure, LLC regarding the sale and purchase of natural gas dated December 17, 1999. 31 pages.
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FAQ

?interruptible capacity?: an extreme form non-firm capacity whose availability is not guaranteed in any way by the natural gas undertaking. ?available firm capacity?: the part of the technical capacity that is not allocated and is still available to the system users at that moment.

Under interruptible contracts, customers are not required to pay any fixed minimum amounts, but are instead billed based on actual volume of service provided for any given period. Payment for services under these contracts are typically due the month after the services have been performed.

Under these contracts, the flow of natural gas to a power plant may be stopped or curtailed if firm contract holders use the available capacity or if other interruptible customers outbid the power plant. These contracts are generally set up for short periods, often for next-day delivery.

In the first quarter of 2024, we expect natural gas prices to increase, then drop below 2023 prices.

Henry Hub Natural Gas Spot Price is at a current level of 2.63, up from 2.49 the previous market day and down from 6.23 one year ago. This is a change of 5.62% from the previous market day and -57.78% from one year ago.

Firm Gas means Natural Gas purchased by Owner on behalf of the Project (with the consent of Millennium) under contracts where the supply and delivery of Natural Gas is on an uninterruptible basis.

Firm Transportation means the provision of natural gas pipeline transportation that is not subject to a prior claim by another pipeline customer or another class of transportation service and cannot be interrupted except in a situation of force majeure.

Firm contracts and interruptible contracts are two broad types of contracts for purchasing natural gas, although the legal obligations for delivering natural gas between a fuel supplier and a natural gas-fired power plant can vary, depending on their specific agreements.

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Arizona Natural Gas Inventory Forward Sale Contract