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.
Delaware Natural Gas Inventory Forward Sale Contract is an agreement wherein participants engage in the buying and selling of natural gas inventory in the state of Delaware, USA. These contracts allow market participants to secure future deliveries of natural gas, ensuring a stable supply and managing price risks associated with this energy commodity. The Delaware Natural Gas Inventory Forward Sale Contract is designed to cater to the specific needs of Delaware's natural gas market and participants. It serves as a vital tool for industries, utilities, and other market players to mitigate supply uncertainties and fluctuations in natural gas prices. These contracts enable participants to anticipate and plan for future natural gas demand and supply, establishing a more stable market environment. The Delaware Natural Gas Inventory Forward Sale Contract operates with various types, each addressing specific requirements and objectives: 1. Standard Forward Sale Contract: This type allows market participants to buy or sell natural gas inventory at a predetermined price for a future delivery period. It assures participants of a fixed price, shielding them from price fluctuations. 2. Indexed Forward Sale Contract: In this type, natural gas prices are indexed to a reference point such as the Henry Hub index. Participants agree to a price calculation methodology based on this reference, balancing their exposure to market price movements. 3. Swing Forward Sale Contract: A swing contract offers flexibility to buyers and sellers, allowing them to adjust the quantity of natural gas delivered within predefined limits. This helps manage and accommodate changes in demand or supply requirements. 4. Storage Inventory Forward Sale Contract: These contracts involve the sale and purchase of natural gas inventory based on storage availability. They are particularly relevant for market participants looking to optimize their supply chain by utilizing storage facilities to balance seasonal demand fluctuations. Delaware Natural Gas Inventory Forward Sale Contracts are regulated by state and federal bodies to ensure fair and transparent trading practices. Market participants, including industrial consumers, producers, utilities, and financial institutions, actively engage in these contracts to establish a predictable, efficient, and secure natural gas market in Delaware. By utilizing these contracts, participants can effectively manage risks associated with natural gas price volatility and maintain a reliable supply chain.
Delaware Natural Gas Inventory Forward Sale Contract is an agreement wherein participants engage in the buying and selling of natural gas inventory in the state of Delaware, USA. These contracts allow market participants to secure future deliveries of natural gas, ensuring a stable supply and managing price risks associated with this energy commodity. The Delaware Natural Gas Inventory Forward Sale Contract is designed to cater to the specific needs of Delaware's natural gas market and participants. It serves as a vital tool for industries, utilities, and other market players to mitigate supply uncertainties and fluctuations in natural gas prices. These contracts enable participants to anticipate and plan for future natural gas demand and supply, establishing a more stable market environment. The Delaware Natural Gas Inventory Forward Sale Contract operates with various types, each addressing specific requirements and objectives: 1. Standard Forward Sale Contract: This type allows market participants to buy or sell natural gas inventory at a predetermined price for a future delivery period. It assures participants of a fixed price, shielding them from price fluctuations. 2. Indexed Forward Sale Contract: In this type, natural gas prices are indexed to a reference point such as the Henry Hub index. Participants agree to a price calculation methodology based on this reference, balancing their exposure to market price movements. 3. Swing Forward Sale Contract: A swing contract offers flexibility to buyers and sellers, allowing them to adjust the quantity of natural gas delivered within predefined limits. This helps manage and accommodate changes in demand or supply requirements. 4. Storage Inventory Forward Sale Contract: These contracts involve the sale and purchase of natural gas inventory based on storage availability. They are particularly relevant for market participants looking to optimize their supply chain by utilizing storage facilities to balance seasonal demand fluctuations. Delaware Natural Gas Inventory Forward Sale Contracts are regulated by state and federal bodies to ensure fair and transparent trading practices. Market participants, including industrial consumers, producers, utilities, and financial institutions, actively engage in these contracts to establish a predictable, efficient, and secure natural gas market in Delaware. By utilizing these contracts, participants can effectively manage risks associated with natural gas price volatility and maintain a reliable supply chain.