The Biomethane Purchase Agreement is essential for transactions involving renewable natural gas in the United States. It's used when a producer wants to sell biomethane to utilities, industrial users, or other buyers. The document addresses critical aspects including volume commitments, quality specifications, delivery points, and environmental attributes. It must comply with federal regulations like the RFS program and state-specific requirements. The agreement typically includes provisions for RIN management and may incorporate environmental credit trading.
Biomethane Purchase Agreement for the United States
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Key Requirements PROMPT example:
Biomethane Purchase Agreement
"Need a Biomethane Purchase Agreement for a 5-year supply arrangement starting March 2025, where we (a waste management facility) will supply 50,000 MMBtu annually to a local utility company, including provisions for RIN trading and flexible delivery scheduling."
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1. Parties: Identification of buyer and seller with full legal details
2. Background: Context of the agreement and parties' intentions
3. Definitions: Key terms including biomethane specifications, delivery points, measurement
4. Sale and Purchase Obligation: Core obligations including volumes, specifications, and delivery terms
5. Price and Payment: Pricing mechanism, payment terms, and invoicing requirements
6. Term and Termination: Duration of agreement and termination provisions
7. Quality and Measurement: Biomethane quality specifications and measurement procedures
8. Delivery Points: Specified points of delivery and transfer of title
1. Environmental Attributes: Treatment of RINs and environmental credits - include when environmental attributes are separately traded
2. Transportation: Pipeline transportation arrangements - include when transportation is part of the agreement
3. Market Disruption: Provisions for market disruption events - include for long-term agreements
1. Technical Specifications Schedule: Detailed biomethane quality specifications
2. Delivery Points Schedule: Technical details of delivery points
3. Pricing Mechanism Schedule: Detailed pricing calculations and adjustments
4. Form of Nomination: Standard form for volume nominations
5. Testing Procedures: Detailed quality testing protocols
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