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Biomethane Purchase Agreement
"I need a Biomethane Purchase Agreement for a waste management company selling biomethane directly to an industrial end-user, with a minimum annual volume of 500,000 cubic meters and delivery starting March 2025."
1. Parties: Identification of the seller and buyer, including registered addresses and company details
2. Background: Context of the agreement, including brief description of parties' businesses and purpose of the agreement
3. Definitions: Definitions of technical and commercial terms used throughout the agreement
4. Sale and Purchase Obligation: Core obligations regarding the sale and purchase of biomethane, including exclusivity provisions if applicable
5. Delivery Terms: Specifications for delivery point, method of delivery, and transfer of title and risk
6. Quality Specifications: Required quality standards for the biomethane, testing procedures, and consequences of off-spec gas
7. Volume and Nomination: Agreed volumes, flexibility mechanisms, nomination procedures, and take-or-pay provisions
8. Price and Payment: Price calculation methodology, payment terms, invoicing, and price review mechanisms
9. Term and Termination: Duration of agreement, renewal provisions, and termination rights
10. Force Majeure: Definition of force majeure events and consequences
11. Warranties and Indemnities: Parties' warranties regarding capacity, authority, and product quality; indemnification provisions
12. Compliance with Laws: Obligations to comply with relevant regulations and maintain necessary permits
13. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
14. Confidentiality: Protection of confidential information and permitted disclosures
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Sustainability Certification: Required when biomethane needs to meet specific sustainability criteria or certification requirements
2. Grid Injection Requirements: Included when biomethane is to be injected into the natural gas grid
3. Production Facility Requirements: Used when seller is also the producer, covering facility maintenance and operation
4. Carbon Credits and Environmental Attributes: Included when addressing ownership and trading of associated environmental benefits
5. Transportation Arrangements: Required for direct supply arrangements not using the grid
6. Development and Construction: Included when agreement covers biomethane from facilities yet to be constructed
7. Metering and Measurement: Detailed provisions when specific metering arrangements need to be established
8. Security Requirements: Used when credit support or performance security is required
1. Technical Specifications: Detailed quality specifications and testing procedures for biomethane
2. Pricing Mechanism: Detailed price calculation formulae and adjustment mechanisms
3. Delivery Point Specifications: Technical details of delivery point and associated facilities
4. Nomination Procedures: Detailed procedures for volume nominations and scheduling
5. Measurement and Testing: Specific procedures for quantity and quality measurement
6. Form of Guarantees: Templates for any required parent company or performance guarantees
7. Sustainability Requirements: Detailed sustainability criteria and certification requirements
8. Operating Procedures: Day-to-day operational procedures and communication protocols
9. Facility Description: Technical description of production facility and key equipment
Authors
Renewable Energy
Agriculture
Waste Management
Utilities
Industrial Manufacturing
Food and Beverage
Transportation
Environmental Services
Chemical Industry
Gas Distribution
Legal
Commercial
Operations
Procurement
Environmental Compliance
Risk Management
Business Development
Sustainability
Technical Operations
Regulatory Affairs
Energy Procurement Manager
Renewable Energy Director
Commercial Manager
Legal Counsel
Environmental Compliance Officer
Operations Manager
Business Development Manager
Sustainability Manager
Technical Director
Risk Manager
Contract Manager
Energy Trading Manager
Plant Manager
Regulatory Affairs Manager
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