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Oil And Gas Purchase And Sale Agreement Template for United States

A comprehensive legal agreement governed by U.S. federal and state laws that establishes the terms and conditions for the purchase and sale of oil and gas products. The agreement covers critical aspects including pricing, delivery, quality specifications, measurement, title transfer, and risk allocation, while ensuring compliance with relevant federal and state regulations, including environmental requirements and industry standards.

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What is a Oil And Gas Purchase And Sale Agreement?

The Oil And Gas Purchase And Sale Agreement is a crucial document used in the energy sector to facilitate the buying and selling of oil and gas products within the United States. This agreement is essential when parties need to establish long-term supply relationships or conduct significant one-time transactions. It incorporates federal and state regulatory requirements, industry standards, and commercial terms while addressing key aspects such as delivery obligations, quality specifications, pricing mechanisms, and risk allocation. The agreement must comply with both federal regulations (such as FERC requirements) and state-specific laws governing oil and gas transactions.

What sections should be included in a Oil And Gas Purchase And Sale Agreement?

1. Parties: Identifies the buyer and seller with full legal names and addresses

2. Background/Recitals: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement including industry-specific terminology

4. Sale and Purchase: Core transaction terms including quantity, quality, and specifications of oil and gas products

5. Price and Payment: Pricing mechanism, payment terms, invoicing requirements, and any price adjustment provisions

6. Delivery: Delivery points, scheduling, nomination procedures, and transportation arrangements

7. Quality and Measurement: Quality specifications, measurement procedures, and testing protocols

8. Title and Risk: Transfer of ownership, risk allocation, and warranties of title

9. Representations and Warranties: Standard assurances from both parties regarding authority, compliance, and operational capabilities

10. Force Majeure: Events excusing performance including industry-specific events

11. Term and Termination: Duration of agreement, renewal options, and termination rights

What sections are optional to include in a Oil And Gas Purchase And Sale Agreement?

1. Environmental Compliance: Environmental obligations, compliance requirements, and allocation of environmental liabilities

2. Transportation: Detailed transportation arrangements including pipeline access and capacity rights

3. Storage: Storage arrangements, responsibilities, and facility requirements

4. Take-or-Pay Provisions: Minimum purchase obligations and compensation mechanisms for shortfalls

5. Price Adjustment: Mechanisms for price adjustments based on market conditions or indices

What schedules should be included in a Oil And Gas Purchase And Sale Agreement?

1. Schedule A - Product Specifications: Detailed quality and technical specifications for oil and gas products

2. Schedule B - Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment formulas

3. Schedule C - Delivery Points: List and description of delivery locations and facility specifications

4. Schedule D - Measurement Procedures: Detailed measurement methodologies and equipment requirements

5. Schedule E - Testing Procedures: Quality testing protocols and standards

6. Schedule F - Transportation Schedule: Detailed logistics arrangements and pipeline specifications

7. Schedule G - Form of Notices: Standard forms for various notices and communications

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use

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