Current issues in regulation: gas purchase contracts
Major controversies in regulatory and legislative forums involve gas purchase contracts. There is remarkable variation in the important provisions of gas purchase contracts. At one extreme there is the fixed price contract with no price-escalation clause, or take-or-pay clause. At the other extreme there is the contract for deregulated gas at prices of $10 or more per Mcf with multiple indefinite escalator clauses, a take or pay obligation as high as 95% of contract quantity, and no market-out clause. The range of provisions in gas purchase contracts and the troublesome nature of some of those provisions are traced to 3 sources: general characteristics of the gas market; unusual characteristics of specific gas markets at particular times and places; and bizarre regulatory schemes that have distorted contracting incentives.
- OSTI ID:
- 6266983
- Journal Information:
- Kansas University Tertiary Oil Recovery Conference; (United States), Journal Name: Kansas University Tertiary Oil Recovery Conference; (United States) Vol. 7
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
030600* -- Natural Gas-- Economic
Industrial
& Business Aspects
031000 -- Natural Gas-- Legislation & Regulations
CONTRACTS
DEREGULATION
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
MARKETING
NATURAL GAS
NATURAL GAS INDUSTRY
PRICES
PRICING REGULATIONS
REGULATIONS