Email Document Reference

Enter your email address below and the reference for this document will be sent to shortly from webmaster@ceesi.com.

Title: Status Of Fercs Blanket Certificate And Special Marketing Transportation Program In Light Of D.C. Circuit Court Opinions
Author: Don S. Smith
Source: American Gas Association 1985
Year Published: 1985
Abstract: My original topic was to comment on the impact of decontrol on January 1, 1985, as mandated by the NGPA, on the producer sales contracts. 1/1/85 has aptly been called the greatest non-event in the history of gas regulation. What is significant is that nothing happened. There were no fly-ups, no uncontrollable price increases, no dislocations, no distortions. Such an event provides less than ideal material for the lengthy address originally contemplated. 1 propose, instead, to list briefly the trends in producer contracts that have been detected in producer contracts leading to and following 1/1/85. The most important trend is the shortening of the price regime. While the gas contracts themselves may be of 10 to 15 years duration, new contracts typically allow price adjustments at very short intervals, as short as six months, rarely longer than three to five years. The second trend is the price flexibility included in these contracts. In some instances, that is accomplished through a periodic renegotiation. In other instances there are attempts to provide market responsiveness through a formula tying the contract price to oil, electric, or some other alternate fuel, or even to the wholesale price index, as an example. Some of these formulas have already been deferred where implementing them would clearly price the gas subject to the contract above the zone of marketability. In fact, experience has taught that the formula approach has frequently not resulted in creating the flexible, market responsive, price intended. Even in circumstances where the alternate fuel with which gas must compete is identifiable and historically stable, gas-on-gas competition can change the picture abruptly.

In order to prevent spam and automated file downloads for documents within the Measurement Library, please follow the instructions below and then you will be able to email a reference to this article.