Geothermal sales contracts

Journal Article · Fri Jan 01 04:00:00 EST 1982 · Nat. Resour. Lawyer; (United States)

OSTI ID:5244946

Humphrey, R L ^[1]; Parr, C J

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1. Union Oil Co., Los Angeles, CA

This paper discusses fundamental concepts to be considered in negotiating contracts for the sale and purchase of high temperature geothermal steam utilized for the generation of electric power. Although similar in some respects to natural gas sales contracts, contracts for the sale of geothermal energy are unique in many ways. In particular, the staged development of distinct power-generating units near supplying wells requires contractual mechanisms to permit buyer and seller to determine collectively how and when field expansion should occur. The possibility of premature reservoir depletion and technological difficulties necessitates carefully drawn escape provisions. Responsibility for high-cost gathering systems and reinjection facilities must be determined. Complex pricing formulas may reflect distributions of risks between buyer and seller. In the face of such difficult drafting problems, little precedent is available to assist the negotiator or the draftsman.

• OSTI ID: 5244946
• Journal Information: Nat. Resour. Lawyer; (United States), Journal Name: Nat. Resour. Lawyer; (United States) Vol. 14:4; ISSN NRLAD
• Country of Publication: United States
• Language: English

Related Subjects

15 GEOTHERMAL ENERGY
150400* -- Geothermal Energy-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
299002 -- Energy Planning & Policy-- Geothermal-- (-1989)
CONTRACTS
ECONOMICS
ENERGY
ENERGY SOURCES
GEOTHERMAL ENERGY
GEOTHERMAL POWER PLANTS
LEGAL ASPECTS
POWER PLANTS
PRICING REGULATIONS
REGULATIONS
RENEWABLE ENERGY SOURCES
THERMAL POWER PLANTS