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Biomethane Purchase Agreement
"I need a Biomethane Purchase Agreement for a 5-year term starting March 1, 2025, where my company will purchase 50,000 GJ annually from a producer in Gauteng province, with monthly delivery and payment terms, including carbon credit provisions."
1. Parties: Identification of the seller and buyer, including registration details and addresses
2. Background: Context of the agreement, including seller's production facility details and buyer's requirements
3. Definitions and Interpretation: Definitions of technical and commercial terms, and rules of interpretation
4. Sale and Purchase Obligation: Core obligations including supply commitments, take-or-pay provisions, and exclusivity terms
5. Term and Termination: Duration of the agreement, renewal options, and termination rights
6. Quality Specifications: Required biomethane quality standards, testing procedures, and consequences of off-spec gas
7. Delivery Point and Title: Specification of delivery point(s) and transfer of title and risk
8. Measurement and Testing: Procedures for measuring quantity and quality of delivered biomethane
9. Price and Payment: Pricing formula, payment terms, invoicing, and disputed payments
10. Environmental Attributes: Ownership and trading of environmental credits and certificates
11. Force Majeure: Definition of force majeure events and consequences
12. Liabilities and Indemnities: Allocation of risks and liabilities between parties
13. Insurance: Required insurance coverage for both parties
14. Compliance with Laws: Obligations regarding regulatory compliance and permits
15. Confidentiality: Protection of confidential information
16. Dispute Resolution: Procedures for resolving disputes
17. General Provisions: Standard boilerplate clauses including notices, amendments, and governing law
1. Transportation: Include when seller is responsible for transportation arrangements beyond the delivery point
2. Storage: Include when agreement includes storage facilities or services
3. Carbon Credit Trading: Detailed provisions when parties agree to specific carbon credit trading arrangements
4. Facility Construction: Include when agreement covers yet-to-be-constructed production facilities
5. Third Party Access: Include when delivery involves third-party pipeline or facility access
6. Minimum Take Obligations: Detailed take-or-pay provisions when buyer commits to minimum volumes
7. Security Arrangements: Include when parties require specific performance security or guarantees
8. Change in Law Provisions: Detailed provisions for handling regulatory changes affecting biomethane production or trade
1. Technical Specifications: Detailed biomethane quality specifications and testing methods
2. Pricing Formula: Detailed calculation of price including adjustments and indices
3. Delivery Points: Technical specifications and drawings of delivery points
4. Measurement Equipment: Specifications of measurement and testing equipment
5. Production Facility Details: Technical description of the production facility
6. Operating Procedures: Detailed procedures for nomination, delivery, and measurement
7. Form of Performance Security: Template for any required performance bonds or guarantees
8. Environmental Certificates: Details of environmental attributes and certification requirements
9. Contact Details: List of key contacts and authorized representatives
10. Annual Delivery Program: Template for annual delivery scheduling
Authors
Renewable Energy
Waste Management
Agriculture
Manufacturing
Energy Trading
Utilities
Transportation
Environmental Services
Industrial Gas
Municipal Services
Legal
Commercial
Operations
Environmental Compliance
Procurement
Risk Management
Finance
Regulatory Affairs
Business Development
Sustainability
Technical Operations
Trading
Contract Management
Energy Trading Manager
Commercial Director
Environmental Compliance Officer
Operations Manager
Legal Counsel
Sustainability Manager
Procurement Manager
Business Development Director
Risk Manager
Technical Operations Director
Regulatory Affairs Manager
Contract Administrator
Chief Financial Officer
Environmental Standards Officer
Energy Portfolio Manager
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