Illinois Natural Gas Inventory Forward Sale Contract

• Category: Corporations - Public - Sales
• State: Multi-State
• Control #: US-EG-9211
• Format: Word; Rich Text

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. The Illinois Natural Gas Inventory Forward Sale Contract is a financial agreement used by natural gas market participants to hedge price risk or manage inventory levels in the state of Illinois. This contract allows buyers and sellers to secure a predetermined quantity of natural gas at a specified price, which will be delivered at a future date. The forward sale contract serves as a tool for market participants to mitigate potential fluctuations in natural gas prices, ensuring stability and reliability in supply for consumers. By entering into this agreement, both buyers and sellers can plan their respective operations with more certainty, leading to improved market efficiency. There are several types of Illinois Natural Gas Inventory Forward Sale Contracts, depending on the specific requirements and circumstances of the parties involved. These include: 1. Fixed-quantity contracts: These contracts specify a fixed quantity of natural gas to be delivered at a future date, regardless of any changes in the market conditions or inventory levels. This type of contract is commonly used when the buyer has a specific volume requirement. 2. Index-based contracts: In these contracts, the price is determined based on a specified index, such as the NYMEX (New York Mercantile Exchange) natural gas futures contract. This index-based pricing allows market participants to align the contract price with the current market conditions, providing more flexibility in managing price risk. 3. Swing contracts: Swing contracts offer an adjustable supply quantity within a specified range, allowing buyers to vary their natural gas deliveries based on their actual demand. This type of contract provides flexibility to adapt to changing market conditions and to optimize inventory management. 4. Seasonal contracts: Seasonal contracts enable market participants to secure natural gas supply for specific periods, typically high-demand seasons, such as winter. These contracts help manage the variability in natural gas demand throughout the year and ensure adequate supply during peak periods. Overall, the Illinois Natural Gas Inventory Forward Sale Contract is a valuable tool in the natural gas market, allowing buyers and sellers in Illinois to plan their operations effectively, manage price risk, and ensure a consistent supply of natural gas for consumers.

The Illinois Natural Gas Inventory Forward Sale Contract is a financial agreement used by natural gas market participants to hedge price risk or manage inventory levels in the state of Illinois. This contract allows buyers and sellers to secure a predetermined quantity of natural gas at a specified price, which will be delivered at a future date. The forward sale contract serves as a tool for market participants to mitigate potential fluctuations in natural gas prices, ensuring stability and reliability in supply for consumers. By entering into this agreement, both buyers and sellers can plan their respective operations with more certainty, leading to improved market efficiency. There are several types of Illinois Natural Gas Inventory Forward Sale Contracts, depending on the specific requirements and circumstances of the parties involved. These include: 1. Fixed-quantity contracts: These contracts specify a fixed quantity of natural gas to be delivered at a future date, regardless of any changes in the market conditions or inventory levels. This type of contract is commonly used when the buyer has a specific volume requirement. 2. Index-based contracts: In these contracts, the price is determined based on a specified index, such as the NYMEX (New York Mercantile Exchange) natural gas futures contract. This index-based pricing allows market participants to align the contract price with the current market conditions, providing more flexibility in managing price risk. 3. Swing contracts: Swing contracts offer an adjustable supply quantity within a specified range, allowing buyers to vary their natural gas deliveries based on their actual demand. This type of contract provides flexibility to adapt to changing market conditions and to optimize inventory management. 4. Seasonal contracts: Seasonal contracts enable market participants to secure natural gas supply for specific periods, typically high-demand seasons, such as winter. These contracts help manage the variability in natural gas demand throughout the year and ensure adequate supply during peak periods. Overall, the Illinois Natural Gas Inventory Forward Sale Contract is a valuable tool in the natural gas market, allowing buyers and sellers in Illinois to plan their operations effectively, manage price risk, and ensure a consistent supply of natural gas for consumers.