Elements of gas contracts
- Oryx Energy Co., Dallas, TX (United States)
The gas marketing scene has taken on a new look from the days of the {open_quotes}Long Term{close_quotes} or {open_quotes}Life of Lease{close_quotes} Contracts. In the past natural gas was of ten sold direct from the wellhead or a producer-owned facility to a pipeline company at a flat rate price and the only parties involved were producer or seller and buyer. Today, the parties involved in the marketing process might include a gathering entity to gather gas at a central point and provide gathering, compression and/or dehydration services; multiple pipeline companies for transportation; sales representatives or marketing brokers to negotiate a sale of the available gas on a monthly basis; and purchasers or end users. New terms have also been introduced in the process such as: {open_quotes}LDC{close_quotes} (local distribution company), {open_quotes}FERC Order 636{close_quotes}, {open_quotes}Price Delivered-to-Pipeline{close_quotes} and the various {open_quotes}levels of Service{close_quotes} under Gas Sales and Purchase Agreements. Four common levels of service are: {open_quotes}Firm{close_quotes}, {open_quotes}Baseload{close_quotes}, {open_quotes}Swing{close_quotes} and {open_quotes}Baseload/Operational{close_quotes}. It is evident that current marketing plans often require a separate contract for each service or commitment. Contract contents vary greatly, but most contain the following elements.
- OSTI ID:
- 146348
- Report Number(s):
- CONF-950553-; TRN: 95:007831-0110
- Resource Relation:
- Conference: International school of hydrocarbon measurement, Oklahoma City, OK (United States), 16-18 May 1995; Other Information: PBD: 1995; Related Information: Is Part Of Proceedings of the seventieth International School of Hydrocarbon Measurement; PB: 811 p.
- Country of Publication:
- United States
- Language:
- English
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