SAMPLE GAS CONTRACT



(COMPANY NAME)
 

(RESIDENTIAL)/(NON-RESIDENTIAL) GAS SALES

AND PURCHASE AGREEMENT

 

The terms and conditions set forth in this Natural Gas Sales Agreement ("Agreement") is made and entered into this (---------------------) day of (----------------------), (--------) between (------------------------------) (seller) and (------------------------) (buyer).


Buyer Service Address:


Billing Address (if different from Service Address):
 

City/State/Zip:
 

Gas Utility/LDC Name:
 

Account Number:


Purchase Period/Term: This Agreement will be in effect for an initial term of (-------) months beginning (-----------------------) and concluding on (--------------------------). Following this initial term, it will continue in effect from year to year thereafter unless canceled in writing at least 45 days prior to the end of the term.
 

Contract Price:


SELLER:

By:
 

Name/Title:

Date:


BUYER:

By:
 

Name/Title:
 

Date:


TERMS AND CONDITIONS

1.Service- (marketer) will establish a natural gas transportation program for Buyer with its local gas distribution company (LDC) in accordance with the LDC'S procedures. This may require Buyer to enter into a transportation service agreement. If requested, (marketer) will arrange for transportation of natural gas on Buyer's behalf from the transfer point(s) to the respective LDC's City Gate. Buyer authorizes (marketer) to act as Buyer's designated agent for the arrangement for delivery and transportation of natural gas from transfer point(s) to the respective LDC's City Gate. (Marketer) will act on Buyer's behalf to provide coordination functions there under, including but not limited to nominating, scheduling and balancing.
 

2.Quantity- (Marketer) will supply Buyer's full requirements for natural gas at all facilities listed in this Agreement on a firm basis, and will be responsible for any penalties imposed by the LDC for failure to deliver. Buyer agrees to purchase all its natural gas requirements from (marketer) on a firm basis.
 

3.Billing Information:Buyer hereby authorizes(LDC)to provide Seller all necessary information regarding Buyer's natural gas requirements.
 

4.Billing and Payment:Seller shall issue monthly invoices to Buyer, stating Seller's charges for natural gas supplied to Buyer. Buyer agrees to pay the invoices within ten (10) days. Interest of (1.5%) per month shall accrue on any overdue balance. Buyer agrees to pay ($ ) per occurrence for all returned checks and to reimburse (company) for all costs reasonable incurred to collect past due amounts. If Buyer defaults on any of its obligations under this contract, Seller may, in addition to other legal remedies, suspend deliveries or terminate this contract. Seller will provide Buyer at least15 days advance notice in writing of any such cancellation of service.
 

5.Delivery Point, Title and Liability:Title to, possession of and risk of loss of the gas will pass from the Seller to the Buyer at the applicable Sales Point(s). As between the Parties, Seller will be in exclusive control of the gas and responsible for any damage, injury or loss until the gas has been delivered for Buyer's account at the Sales Point(s), after which delivery Buyer will be deemed to be in exclusive control and possession and responsible for any injury, damage or loss.
 

6.Assignment- Buyer may assign this Agreement to a third party with (marketer) prior written consent. (Marketer) may assign this Agreement to a third party with (buyer's) prior written consent or to an affiliate without (buyer's) consent . Any required consents shall not be withheld unreasonably by either Party.
 

7.Force Majeure:Performance of any obligation required by this Agreement shall be suspended if compliance is prevented by an act of God, strike, fire, war, civil disturbance, embargo, explosion, breakage or accident to machinery or lines of pipe, repairing or altering machinery or lines of pipe, freezing of wells or lines of pipe, be federal, state of local law, rule, order or regulation or by any other cause reasonably beyond the control of a party. Any party claiming such interference with the performance of its obligations hereunder shall provide notice to the other party, specifying the cause of such interference, and shall take all reasonable action necessary to end such interference; provided that a party shall not be required by this paragraph to settle a labor dispute on terms it deems unfavorable.
 

8.Consumer Information:This is the complete contract between the parties and can only be amended in a writing signed by both parties. This Contract shall be governed by and construed in accordance with the laws of the State of New York. The services provided by the utility company will continue to be protected by the State's Home Energy Fair Practices Act and the Commission's Residential and Non-residential Rules.

Should buyer have any questions or require additional information regarding this Contract, Buyer can contact seller at:

NAME:

ADDRESS:

PHONE NUMBER:


Buyer may also request information from the New York State Public Service Commission at:
 

Office of Market Retail Development, 3 Empire State Plaza, Albany, NY 12223

Toll Free 1-716-847-3418

or through their website at:http://www.dps.ny.gov
 

9.Billing Resolution:Disputes involving amounts within the jurisdictional limit of the local small claims court may be heard there. The parties shall use their best efforts to resolve the claim or dispute though good faith negotiations. Upon failure of such negotiations, but within sixty (60) days of notice to the other party of a dispute, Buyer may request the American Arbitration Association to appoint an arbitrator. The Arbitrator shall conduct a hearing and within thirty (30) days thereafter, unless such time is extended by agreement of the parties and shall notify the parties in writing of the decision. The arbitrator shall not have the power to amend or add to this Contract. The Decision of the arbitrator shall be confined to the issue(s) presented for arbitration. Subject to such limitation, the decision of the arbitrator shall be final and binding, except that any party may petition a court of competent jurisdiction for review of errors of law. The decision of the arbitrator shall determine and specify how the expense of the arbitration shall be borne.
 

Buyer's Initials:


Send your completed gas contract to: 

NYS Dept. of Public Service
Office of Consumer Services - Business & Systems Operations
3 Empire State Plaza
Albany, NY 12223-1350

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