Salt Lake Utah Natural Gas Inventory Forward Sale Contract

• Category: Corporations - Public - Sales
• State: Multi-State
• County: Salt Lake
• 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. Salt Lake Utah Natural Gas Inventory Forward Sale Contract is a financial agreement designed specifically for the trade of natural gas in the Salt Lake region of Utah. It allows buyers and sellers to lock in future prices and quantities of natural gas, providing stability and transparency in the volatile energy market. By entering into this contract, both parties mitigate the risk associated with fluctuating natural gas prices. This type of contract provides a forward sale agreement, meaning that the delivery and payment for the natural gas will occur at a specified future date. It is generally used by natural gas producers, industrial companies, utilities, and other market participants who seek to manage their exposure to price movements. The Salt Lake Utah Natural Gas Inventory Forward Sale Contract offers various types, depending on the specific needs and requirements of the buyer and seller. Some different types include: 1. Fixed Price Forward Contract: This type guarantees a fixed sale price for the agreed-upon quantity of natural gas. It provides certainty to the buyer and allows them to plan their budget accordingly, regardless of any price fluctuations in the market. 2. Index-based Forward Contract: This contract's price is tied to an established natural gas index, such as the Henry Hub or the Western United States Spot Price Index. The buyer and seller agree on a margin above or below the index price, ensuring that the contract remains in line with the current market conditions. 3. Swing Contract: A swing contract allows the seller to vary the quantity of natural gas to be delivered within specific defined limits. This contract type allows the seller to adjust the delivery based on market demand, operational constraints, or other factors. 4. Option Contracts: Option contracts provide the buyer with the right, but not the obligation, to buy or sell natural gas at a predetermined price within a specified period. It offers flexibility for buyers to exercise their option based on market conditions, making it suitable for risk management strategies. In conclusion, the Salt Lake Utah Natural Gas Inventory Forward Sale Contract is a versatile tool that allows participants in the natural gas market to mitigate risks, stabilize prices, and plan for future energy needs. The different types of contracts offered cater to the unique requirements of buyers and sellers, providing flexibility and certainty in an ever-changing energy landscape.

Salt Lake Utah Natural Gas Inventory Forward Sale Contract is a financial agreement designed specifically for the trade of natural gas in the Salt Lake region of Utah. It allows buyers and sellers to lock in future prices and quantities of natural gas, providing stability and transparency in the volatile energy market. By entering into this contract, both parties mitigate the risk associated with fluctuating natural gas prices. This type of contract provides a forward sale agreement, meaning that the delivery and payment for the natural gas will occur at a specified future date. It is generally used by natural gas producers, industrial companies, utilities, and other market participants who seek to manage their exposure to price movements. The Salt Lake Utah Natural Gas Inventory Forward Sale Contract offers various types, depending on the specific needs and requirements of the buyer and seller. Some different types include: 1. Fixed Price Forward Contract: This type guarantees a fixed sale price for the agreed-upon quantity of natural gas. It provides certainty to the buyer and allows them to plan their budget accordingly, regardless of any price fluctuations in the market. 2. Index-based Forward Contract: This contract's price is tied to an established natural gas index, such as the Henry Hub or the Western United States Spot Price Index. The buyer and seller agree on a margin above or below the index price, ensuring that the contract remains in line with the current market conditions. 3. Swing Contract: A swing contract allows the seller to vary the quantity of natural gas to be delivered within specific defined limits. This contract type allows the seller to adjust the delivery based on market demand, operational constraints, or other factors. 4. Option Contracts: Option contracts provide the buyer with the right, but not the obligation, to buy or sell natural gas at a predetermined price within a specified period. It offers flexibility for buyers to exercise their option based on market conditions, making it suitable for risk management strategies. In conclusion, the Salt Lake Utah Natural Gas Inventory Forward Sale Contract is a versatile tool that allows participants in the natural gas market to mitigate risks, stabilize prices, and plan for future energy needs. The different types of contracts offered cater to the unique requirements of buyers and sellers, providing flexibility and certainty in an ever-changing energy landscape.