𝔖 Bobbio Scriptorium
✦   LIBER   ✦

Quantity Provisions in Today's Contracts

✍ Scribed by Whitcomb, M. Glenn


Publisher
John Wiley and Sons
Year
2007
Weight
222 KB
Volume
4
Category
Article
ISSN
0743-5665

No coin nor oath required. For personal study only.

✦ Synopsis


In the first two columns I outlined provisions in a typical long-term natural gas sales contract and explained the important features of the commitment provision. This article is about the quantity provisions-including the famous (or infamous, depending on your point of view) take-or-pay provision.

CASINGHEAD GAS

Because the value of crude oil produced from an oil well greatly exceeds the value of the casinghead gas associated with it, the industry practice is for all casinghead gas produced to be purchased by the gas purchaser. In the rest of this column, I'll be describing provisions that app1.y to gas from gas wells.


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