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U.S. Department of Energy
Office of Scientific and Technical Information

Natural gas pipeline/producer contracts: a preliminary analysis

Technical Report ·
OSTI ID:6539511
This study was undertaken to obtain a preliminary assessment of current natural gas contract provisions in the event of the deregulation of natural gas prices. The principal focus of the study is interstae natural gas contracts in force prior to the Natural Gas Policy Act (NGPA). Also included in the study are pre-NGPA contracts in the intrastate markets, post-NGPA offshore contracts on file at the Federal Energy Regulatory Commission (FERC), and some post-NGPA onshore interstate contracts. For pre-NGPA interstate contracts, a stratified random sample of large producer contracts was taken from filings at FERC. From the contracts reviewed, the estimated percent of total volumes for certain clauses revealed: 66% had deregulation provisions; 51% (of the total) had the redetermined price under deregulation prespecified, and 15% required renegotiation frequently specifying the factors to be considered; almost all contracts with deregulation provisions had favored-nation clauses; and only 4% had buyer protection clauses. For post-NGPA offshore contracts, a random sample of 56 of approximately 1500 wells was drawn from the FERC Well Determination Filings, and the associated contracts were reviewed.
Research Organization:
USDOE Energy Information Administration, Washington, DC. Office of Oil and Gas
OSTI ID:
6539511
Report Number(s):
DOE/EIA-0312; ON: DE83006451
Country of Publication:
United States
Language:
English