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New marketing opportunities: for natural gas producers

Journal Article · · Natural Resources and Environment; (United States)
OSTI ID:6417188

Even those who opposed the deregulation of natural gas for fear of a fly-up of prices agree that there was no immediate price impact. What is more important is the marketing and structural revolution sweeping the industry as surplus gas provides the stimulus for producers to look at new marketing opportunities. As a result of the gas bubble, there have been pressures to change the take-or-pay and other limitations on pipeline sales contracts to allow direct sales and special marketing programs. When a producer or end user is contemplating a direct sale arrangement, critical factors to consider include jurisdiction issues, price restrictions, and purchaser limitations. The author reviews the legal background of these issues, and concludes that direct producer sales can be very attractive for both parties if the transactions have the proper structure.

Research Organization:
Davis, Graham and Stubbs, Denver, CO
OSTI ID:
6417188
Journal Information:
Natural Resources and Environment; (United States), Journal Name: Natural Resources and Environment; (United States) Vol. 1:2
Country of Publication:
United States
Language:
English