A Gas Sale Agreement is a fundamental commercial contract used in the Philippine energy sector for establishing a binding arrangement between gas suppliers and purchasers. This document is essential when parties wish to enter into a long-term gas supply relationship, typically used by power generators, industrial users, or gas distributors sourcing gas from producers or wholesalers. The agreement must comply with Philippine energy regulations, including DOE Circular No. DC2017-11-0012 (Philippine Downstream Natural Gas Industry Policy Framework) and related environmental legislation. It contains detailed provisions on gas specifications, delivery terms, pricing mechanisms, operational procedures, and risk allocation, while incorporating specific requirements of Philippine law regarding energy trading, safety standards, and environmental protection.
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1. Parties: Identification of the seller and buyer, including their legal status and authority to enter into the agreement
2. Background: Context of the agreement, including relevant licenses and permits held by parties
3. Definitions: Detailed definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligations regarding gas sale and purchase, including take-or-pay provisions
5. Quality Specifications: Detailed specifications of the gas to be supplied
6. Delivery Point and Title: Specification of the delivery point and transfer of title and risk
7. Nomination and Scheduling: Procedures for requesting and scheduling gas deliveries
8. Measurement: Methods and standards for measuring gas quantity and quality
9. Price and Payment: Pricing mechanism, payment terms, and invoicing procedures
10. Term and Termination: Duration of the agreement and termination rights
11. Force Majeure: Definition and consequences of force majeure events
12. Representations and Warranties: Standard and specific warranties from both parties
13. Liability and Indemnity: Allocation of risks and liabilities between parties
14. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
15. Confidentiality: Obligations regarding confidential information
16. Notices: Communication procedures between parties
17. General Provisions: Standard boilerplate clauses including assignment, amendments, and severability
1. Transportation: Include when seller is responsible for gas transportation beyond delivery point
2. Minimum Take Obligations: Include when specific minimum purchase obligations are required
3. Make-up Gas: Include when make-up rights for take-or-pay shortfalls are offered
4. Carbon Credits: Include when parties agree to allocate carbon credits or environmental attributes
5. Government Approvals: Include when specific government approvals are pending or required
6. Security Arrangements: Include when credit support or performance security is required
7. Change in Law: Include when specific provisions for regulatory changes are needed
8. Indigenous Peoples Rights: Include when operations affect areas covered by Indigenous Peoples Rights Act
1. Technical Specifications: Detailed gas quality specifications and testing methods
2. Pricing Formula: Detailed pricing calculations and adjustment mechanisms
3. Delivery Point Specifications: Technical details of delivery point facilities
4. Measurement Procedures: Detailed procedures for gas measurement and testing
5. Form of Nominations: Standard forms for gas nominations and scheduling
6. Contact Details: List of authorized representatives and contact information
7. Performance Security: Forms of required security or guarantees
8. Operating Procedures: Detailed operational procedures and protocols
9. Permits and Licenses: Copies of relevant permits and licenses
10. Safety Procedures: Safety protocols and emergency procedures
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