Nassau New York Natural Gas Inventory Forward Sale Contract

• Category: Corporations - Public - Sales
• State: Multi-State
• County: Nassau
• 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 Nassau New York Natural Gas Inventory Forward Sale Contract is a financial agreement that allows individuals or entities to buy or sell natural gas supplies in the future within the Nassau region of New York. This contract is widely used by participants in the natural gas industry, including producers, consumers, and traders, to manage their exposure to price fluctuations and ensure a steady supply of natural gas. This type of contract is typically entered into between a buyer and a seller, where the buyer agrees to purchase a specific quantity of natural gas at a predetermined price and delivery date. The purpose of this forward sale contract is to lock in prices and quantities in advance, offering stability to both parties involved. There are several types of Nassau New York Natural Gas Inventory Forward Sale Contracts, each catering to specific needs and circumstances. Some common variants include: 1. Fixed Quantity Forward Sale Contract: In this contract, the buyer and seller agree upon a fixed volume of natural gas to be delivered at a specific date in the future. The price is also determined in advance, providing certainty to both parties. 2. Index-Based Forward Sale Contract: This type of contract relies on an agreed-upon index, such as the New York Mercantile Exchange (NYMEX) natural gas futures price, as the basis for determining the price. The buyer and seller will choose a future date for the sale while referencing the index price on that day to calculate the contract price. 3. Swap Contracts: Swap contracts involve the exchange of cash flows based on the difference between the agreed-upon contract price and the prevailing market price at the time of settlement. This allows participants to manage their exposure to price fluctuations without physically exchanging the commodity. 4. Call and Put Options: These contracts provide the buyer with the right, but not the obligation, to buy (call option) or sell (put option) a specific quantity of natural gas at a predetermined price and within a specified time frame. Options offer flexibility to market participants but come with associated premiums. Nassau New York Natural Gas Inventory Forward Sale Contracts provide market participants with an effective tool to hedge against price volatility, secure future supply, and manage risk. These contracts contribute to a well-functioning natural gas market by promoting transparency, stability, and liquidity.

The Nassau New York Natural Gas Inventory Forward Sale Contract is a financial agreement that allows individuals or entities to buy or sell natural gas supplies in the future within the Nassau region of New York. This contract is widely used by participants in the natural gas industry, including producers, consumers, and traders, to manage their exposure to price fluctuations and ensure a steady supply of natural gas. This type of contract is typically entered into between a buyer and a seller, where the buyer agrees to purchase a specific quantity of natural gas at a predetermined price and delivery date. The purpose of this forward sale contract is to lock in prices and quantities in advance, offering stability to both parties involved. There are several types of Nassau New York Natural Gas Inventory Forward Sale Contracts, each catering to specific needs and circumstances. Some common variants include: 1. Fixed Quantity Forward Sale Contract: In this contract, the buyer and seller agree upon a fixed volume of natural gas to be delivered at a specific date in the future. The price is also determined in advance, providing certainty to both parties. 2. Index-Based Forward Sale Contract: This type of contract relies on an agreed-upon index, such as the New York Mercantile Exchange (NYMEX) natural gas futures price, as the basis for determining the price. The buyer and seller will choose a future date for the sale while referencing the index price on that day to calculate the contract price. 3. Swap Contracts: Swap contracts involve the exchange of cash flows based on the difference between the agreed-upon contract price and the prevailing market price at the time of settlement. This allows participants to manage their exposure to price fluctuations without physically exchanging the commodity. 4. Call and Put Options: These contracts provide the buyer with the right, but not the obligation, to buy (call option) or sell (put option) a specific quantity of natural gas at a predetermined price and within a specified time frame. Options offer flexibility to market participants but come with associated premiums. Nassau New York Natural Gas Inventory Forward Sale Contracts provide market participants with an effective tool to hedge against price volatility, secure future supply, and manage risk. These contracts contribute to a well-functioning natural gas market by promoting transparency, stability, and liquidity.