National Energy Board Act Part VI (Oil and Gas) Regulations (SOR/96-244)

1 Canadian Seller:

• (a) indicate the full corporate name.

2 U.S. Buyer:

• (a) indicate the full corporate name.

3 Third-party Resale Agreements:

• (a) indicate if the third-party resale agreement mirrors the international export sales contract and vice versa; and

• (b) if it does not, include a summary of the third-party resale agreement.

4 Conditions Precedent:

• (a) provide any conditions precedent, including the dates by which the conditions must be met.

5 Term:

Indicate

• (a) the length of initial contract term;

• (b) the commencement date;

• (c) the expiration date; and

• (d) any renewal or termination rights.

6 Delivery point:

Indicate

• (a) the point at which the Canadian seller sells to the U.S. buyer; and

• (b) the point at which the gas crosses the international boundary, if different from the point referred to in paragraph (a).

7 Contract Quantity

Indicate

• (a) in both metric and imperial units,

  • (i) the maximum daily quantity (MDQ),

  • (ii) the daily contract quantity (DCQ),

  • (iii) the monthly contract quantity (MCQ),

  • (iv) the annual contract quantity (ACQ), and

  • (v) the summer and winter quantities, and

• (b) the right to increase or decrease the contract quantity.

8 Pricing Provisions:

Provide, using the dollars and units of measurement used in the contract,

• (a) a general description of the pricing provisions (for example, a two-part price consisting of a demand charge and a commodity charge);

• (b) a description of the various components of the demand charge, the payment provisions, the adjustment provisions, and associated renegotiation or arbitration provisions;

• (c) a description of the commodity charge, including the base or reference price, pricing indices, fuel costs, the Gas Inventory Charge (GIC), any reservation or stand-by fees, any provision for multi-tier or incentive prices, and any associated renegotiation or arbitration provisions; and

• (d) other pricing provisions not included in paragraphs (a) to (c).

9 Take Provisions:

Indicate

• (a) the seller’s obligations, including a description of monetary or volumetric penalties for non-performance, any provision for alternate sales rights, and any associated renegotiation or arbitration provisions; and

• (b) the buyer’s obligations, including any provision for minimum daily, monthly, seasonal or annual takes, the pro-rata take provisions, the volumetric reduction provisions, the minimum bill provisions, the associated make-up rights, and any associated renegotiation or arbitration provisions.

10 Supply Security:

• (a) indicate whether there is a requirement on the part of the seller to provide audited financial statements and regular reports on reserve and deliverability data.

11 Force Majeure:

• (a) indicate the force majeure relief available to the seller and the buyer.