An analysis of natural gas contracts: Volume 3, Contract provisions covering production of new gas. [New gas]

Technical Report · Mon May 11 04:00:00 EDT 1987

OSTI ID:6565613

This report examines contracts for gas flowing under Natural Gas Policy Act (NGPA) Sections 102, 103, 107, and 108 (defined as ''new'' natural gas from post-NGPA wells) as the contracts existed in 1984 and the first half of 1985. The form EIA-758(A), ''Natural Gas Well Producer/Purchaser Contract Report,'' is the principal data source for the analysis. Interstate contracts for new natural gas need not be filed at FERC, and there is no central source for information on intrastate contracts covering new natural gas. Thus, this survey is the only comprehensive source of information on contract terms in effect from 1982 to 1985. This survey was based on a stratified sample of 1086 post-NGPA wells. Some of the issues addressed in the report are: why new-gas prices have been slow in adjusting to the gas surplus; how contracts are being structured now in the move to a deregulated environment; and the downward flexibility of new-gas contracts in light of the recent sharp decline in oil price. The remainder of this report consists of the following sections: Chapter 2 discusses the rationale for long-term contracting and describes basic contract terms and relevant historical events since the NGPA; Chapter 3 describes the regulatory history covering new natural gas; Chapter 4 describes the contract structure in place in 1985, reporting the frequency of specific price terms for different types of gas; Chapter 5 describes the mechanisms used to price the gas in 1985 and how much price flexibility was evident in different types of contracts; and Chapter 6 summarizes the conclusions. 14 refs., 5 figs., 13 tabs.

• Research Organization: USDOE Energy Information Administration, Washington, DC. Office of Oil and Gas
• OSTI ID: 6565613
• Report Number(s): DOE/EIA-0505; ON: DE87009811
• Country of Publication: United States
• Language: English

Related Subjects

03 NATURAL GAS
030600 -- Natural Gas-- Economic
Industrial
& Business Aspects
031000* -- Natural Gas-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294003 -- Energy Planning & Policy-- Natural Gas
CONTRACTS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
HISTORICAL ASPECTS
LAWS
MARKET
NATIONAL ENERGY ACT
NATURAL GAS
NATURAL GAS POLICY ACT
PRICES
PRICING REGULATIONS
PRODUCTION
REGULATIONS
REPORTING REQUIREMENTS