Oakland Michigan Natural Gas Inventory Forward Sale Contract

• Category: Corporations - Public - Sales
• State: Multi-State
• County: Oakland
• 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. Oakland Michigan Natural Gas Inventory Forward Sale Contract is a financial agreement used in the energy industry to buy or sell natural gas reserves in Oakland, Michigan, at a future date. This contract allows market participants to lock in the price of natural gas and secure their supply ahead of time, mitigating the risks associated with price volatility. The Oakland Michigan Natural Gas Inventory Forward Sale Contract is commonly used by energy companies, utilities, and industrial consumers, such as power plants, to ensure a stable and reliable supply of natural gas. It offers flexibility and enables participants to plan their energy procurement strategies effectively. Different types of Oakland Michigan Natural Gas Inventory Forward Sale Contracts include: 1. Fixed-Price Contracts: This type of contract allows buyers and sellers to agree on a predetermined price for the natural gas. It provides price certainty and protects participants from price fluctuations in the market. 2. Index-based Contracts: In this type of contract, the price of natural gas is determined by an index, such as the Henry Hub price or a regional natural gas spot index. The contract settles based on the index price at the contract's delivery or expiration date. 3. Swing Contracts: A swing contract provides flexibility by allowing participants to vary the quantity of natural gas purchased or sold within a specified range during the contract period. This helps adapt to changing energy demand or unforeseen circumstances. 4. Basis Contracts: Basis contracts are used to manage price differentials between the Oakland Michigan natural gas market and a reference index, such as the NYMEX (New York Mercantile Exchange). This contract type allows participants to mitigate basis risk and optimize their pricing strategies. 5. Calendar Contracts: Calendar contracts specify the month or period in which the natural gas will be delivered, allowing participants to manage their inventory and plan operations accordingly. These different types of contracts offer participants the opportunity to tailor their natural gas procurement strategies according to their specific needs and risk tolerance. By utilizing Oakland Michigan Natural Gas Inventory Forward Sale Contracts, market participants can effectively manage price risks, secure their supply, and ensure a smooth and uninterrupted flow of natural gas for their operations.

Oakland Michigan Natural Gas Inventory Forward Sale Contract is a financial agreement used in the energy industry to buy or sell natural gas reserves in Oakland, Michigan, at a future date. This contract allows market participants to lock in the price of natural gas and secure their supply ahead of time, mitigating the risks associated with price volatility. The Oakland Michigan Natural Gas Inventory Forward Sale Contract is commonly used by energy companies, utilities, and industrial consumers, such as power plants, to ensure a stable and reliable supply of natural gas. It offers flexibility and enables participants to plan their energy procurement strategies effectively. Different types of Oakland Michigan Natural Gas Inventory Forward Sale Contracts include: 1. Fixed-Price Contracts: This type of contract allows buyers and sellers to agree on a predetermined price for the natural gas. It provides price certainty and protects participants from price fluctuations in the market. 2. Index-based Contracts: In this type of contract, the price of natural gas is determined by an index, such as the Henry Hub price or a regional natural gas spot index. The contract settles based on the index price at the contract's delivery or expiration date. 3. Swing Contracts: A swing contract provides flexibility by allowing participants to vary the quantity of natural gas purchased or sold within a specified range during the contract period. This helps adapt to changing energy demand or unforeseen circumstances. 4. Basis Contracts: Basis contracts are used to manage price differentials between the Oakland Michigan natural gas market and a reference index, such as the NYMEX (New York Mercantile Exchange). This contract type allows participants to mitigate basis risk and optimize their pricing strategies. 5. Calendar Contracts: Calendar contracts specify the month or period in which the natural gas will be delivered, allowing participants to manage their inventory and plan operations accordingly. These different types of contracts offer participants the opportunity to tailor their natural gas procurement strategies according to their specific needs and risk tolerance. By utilizing Oakland Michigan Natural Gas Inventory Forward Sale Contracts, market participants can effectively manage price risks, secure their supply, and ensure a smooth and uninterrupted flow of natural gas for their operations.