The Biomethane Purchase Agreement is a specialized commercial contract used in the Australian renewable gas market to facilitate the sale and purchase of biomethane between producers and buyers. This document becomes necessary when parties seek to establish a long-term commercial relationship for biomethane supply, typically involving injection into the gas network or direct supply to industrial consumers. The agreement must navigate the complex regulatory landscape of Australian gas markets, environmental regulations, and renewable energy schemes. It includes detailed provisions for gas quality specifications, delivery obligations, pricing mechanisms, environmental attributes, and technical compliance requirements. The document is particularly relevant in the context of Australia's growing renewable gas sector and the increasing focus on decarbonization of the gas network.
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1. Parties: Identification of the seller (biomethane producer) and buyer, including full legal names and addresses
2. Background: Context of the agreement, including facility description, purpose, and any relevant regulatory framework
3. Definitions: Defined terms used throughout the agreement, including technical, commercial, and legal terminology specific to biomethane trading
4. Term and Conditions Precedent: Duration of the agreement and any conditions that must be satisfied before the agreement becomes effective
5. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of biomethane, including exclusivity provisions if applicable
6. Quantity and Nominations: Specified quantities, minimum/maximum takes, nomination procedures, and flexibility mechanisms
7. Quality Specifications: Required biomethane quality standards, testing procedures, and consequences of off-spec gas
8. Delivery Point and Title: Specification of delivery point(s) and transfer of title and risk
9. Measurement and Testing: Procedures for measuring quantity and quality of delivered biomethane
10. Price and Payment: Price structure, payment terms, invoicing, and any price adjustment mechanisms
11. Environmental Attributes: Ownership and trading of environmental certificates and credits
12. Seller's Obligations: Key obligations including production, delivery, and compliance requirements
13. Buyer's Obligations: Key obligations including acceptance, payment, and infrastructure requirements
14. Force Majeure: Definition of force majeure events and consequences
15. Default and Termination: Events of default, remedies, and termination rights
16. Liability and Indemnities: Risk allocation, limitations of liability, and indemnification provisions
17. Dispute Resolution: Procedures for resolving disputes between parties
18. Confidentiality: Protection of confidential information and permitted disclosures
19. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Transportation: Include when the seller is responsible for arranging transportation through third-party pipelines
2. Storage: Include when the agreement involves storage facilities or services
3. Development and Construction: Include when the facility is not yet operational and development obligations need to be specified
4. Feedstock Supply: Include when the agreement needs to address feedstock sources and sustainability requirements
5. Carbon Credits and Incentives: Include when specific arrangements for carbon credits or renewable incentives need to be detailed
6. Local Community Benefits: Include when the project involves specific commitments to local communities
7. Change in Law Provisions: Include when specific allocation of regulatory change risks is required
8. Interface Obligations: Include when coordination with other facilities or infrastructure is required
1. Technical Specifications: Detailed specifications for biomethane quality and measurement
2. Pricing Mechanism: Detailed price calculations, adjustments, and examples
3. Delivery Point Specifications: Technical details of delivery point(s) and associated infrastructure
4. Testing and Measurement Procedures: Detailed procedures for quality testing and quantity measurement
5. Nomination Procedures: Detailed procedures for gas nominations and scheduling
6. Form of Performance Security: Template for any required performance bonds or guarantees
7. Environmental Compliance Requirements: Detailed environmental compliance obligations and reporting requirements
8. Operating Procedures: Day-to-day operational procedures and communications
9. Form of Environmental Certificates: Templates for environmental attributes documentation
10. Planned Maintenance Schedule: Schedule of planned maintenance periods and procedures
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