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National Energy Board Act Part VI (Oil and Gas) Regulations (SOR/96-244)

Regulations are current to 2020-03-05 and last amended on 2015-07-31. Previous Versions

SCHEDULE I(Clause 12(c)(i)(B))Summary of Contract Terms and Conditions

  • 1 Canadian Seller:

    • (a) indicate the full corporate name.

  • 2 U.S. Buyer:

    • (a) indicate the full corporate name.

  • 3 Third-party Resale Agreements:

    • (a) indicate if the third-party resale agreement mirrors the international export sales contract and vice versa; and

    • (b) if it does not, include a summary of the third-party resale agreement.

  • 4 Conditions Precedent:

    • (a) provide any conditions precedent, including the dates by which the conditions must be met.

  • 5 Term:

    Indicate

    • (a) the length of initial contract term;

    • (b) the commencement date;

    • (c) the expiration date; and

    • (d) any renewal or termination rights.

  • 6 Delivery point:

    Indicate

    • (a) the point at which the Canadian seller sells to the U.S. buyer; and

    • (b) the point at which the gas crosses the international boundary, if different from the point referred to in paragraph (a).

  • 7 Contract Quantity

    Indicate

    • (a) in both metric and imperial units,

      • (i) the maximum daily quantity (MDQ),

      • (ii) the daily contract quantity (DCQ),

      • (iii) the monthly contract quantity (MCQ),

      • (iv) the annual contract quantity (ACQ), and

      • (v) the summer and winter quantities, and

    • (b) the right to increase or decrease the contract quantity.

  • 8 Pricing Provisions:

    Provide, using the dollars and units of measurement used in the contract,

    • (a) a general description of the pricing provisions (for example, a two-part price consisting of a demand charge and a commodity charge);

    • (b) a description of the various components of the demand charge, the payment provisions, the adjustment provisions, and associated renegotiation or arbitration provisions;

    • (c) a description of the commodity charge, including the base or reference price, pricing indices, fuel costs, the Gas Inventory Charge (GIC), any reservation or stand-by fees, any provision for multi-tier or incentive prices, and any associated renegotiation or arbitration provisions; and

    • (d) other pricing provisions not included in paragraphs (a) to (c).

  • 9 Take Provisions:

    Indicate

    • (a) the seller’s obligations, including a description of monetary or volumetric penalties for non-performance, any provision for alternate sales rights, and any associated renegotiation or arbitration provisions; and

    • (b) the buyer’s obligations, including any provision for minimum daily, monthly, seasonal or annual takes, the pro-rata take provisions, the volumetric reduction provisions, the minimum bill provisions, the associated make-up rights, and any associated renegotiation or arbitration provisions.

  • 10 Supply Security:

    • (a) indicate whether there is a requirement on the part of the seller to provide audited financial statements and regular reports on reserve and deliverability data.

  • 11 Force Majeure:

    • (a) indicate the force majeure relief available to the seller and the buyer.

 
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