Gas Sale Agreement Template for Australia

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Key Requirements PROMPT example:

Gas Sale Agreement

"I need a Gas Sale Agreement for a wholesale arrangement between our gas production company and a large industrial customer in Western Australia, with annual supply of 500,000 GJ starting March 2025, including take-or-pay provisions and quarterly price reviews."

Document background
A Gas Sale Agreement is a fundamental commercial contract used in the Australian energy market to establish a binding arrangement between a gas supplier and purchaser. This document is essential when parties wish to enter into a long-term gas supply arrangement, typically ranging from 1 to 10 years. It includes detailed provisions for gas quantities, pricing mechanisms, delivery specifications, and operational requirements, all structured within the Australian regulatory framework. The agreement should comply with the National Gas Law, relevant state legislation, and industry standards while addressing commercial risks and operational practicalities. It's particularly important for ensuring security of supply in the Australian gas market and managing the commercial relationships between producers, wholesalers, retailers, and large industrial users.
Suggested Sections

1. Parties: Identification of seller and buyer entities, including ABN/ACN

2. Background: Context of the agreement, including seller's right to sell gas and buyer's purpose for purchase

3. Definitions and Interpretation: Defined terms, interpretation rules, and hierarchy of documents

4. Term and Commencement: Duration of agreement, conditions precedent, and commencement date

5. Gas Supply Obligations: Core supply obligations, including ACQ (Annual Contract Quantity) and DCQ (Daily Contract Quantity)

6. Delivery Point and Title: Specification of delivery point(s) and transfer of title and risk

7. Gas Specifications: Required quality and pressure specifications for delivered gas

8. Measurement and Testing: Requirements for measuring gas quantity and quality

9. Price and Payment: Gas price, payment terms, invoicing, and price review mechanisms

10. Nominations and Scheduling: Process for nominating gas quantities and scheduling delivery

11. Take-or-Pay Obligations: Minimum payment obligations regardless of actual gas taken

12. Transportation: Responsibilities for gas transportation and associated costs

13. Force Majeure: Events excusing performance and associated procedures

14. Default and Termination: Events of default, termination rights, and consequences

15. Dispute Resolution: Process for resolving disputes between parties

16. Confidentiality: Protection of confidential information

17. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Maintenance and Outages: Used when seller operates production facilities, covering planned and unplanned maintenance

2. Make-up Gas: Include when offering flexibility to take previously paid-for gas in later periods

3. Carbon Costs: Include when carbon pricing or emissions trading schemes affect the contract

4. Gas Trading Rights: Used when allowing on-selling or trading of contracted gas

5. Security Requirements: Include when credit support or performance security is required

6. Gas Banking: Used when allowing carry-forward of unused gas quantities

7. Interruptible Supply: Include when offering additional gas supply on interruptible basis

8. Change in Law: Detailed provisions for handling regulatory changes when significant regulatory uncertainty exists

Suggested Schedules

1. Schedule 1 - Contract Details: Key commercial terms, contact details, and notice addresses

2. Schedule 2 - Gas Specification: Detailed technical specifications for gas quality and pressure

3. Schedule 3 - Measurement Procedures: Detailed procedures for gas measurement and testing

4. Schedule 4 - Nomination Procedures: Detailed procedures for gas nominations and scheduling

5. Schedule 5 - Price Calculation: Detailed price calculations, adjustments, and review mechanisms

6. Schedule 6 - Delivery Points: Technical details and drawings of delivery points

7. Schedule 7 - Form of Bank Guarantee: Template for any required security documentation

8. Appendix A - Transportation Arrangements: Details of gas transportation arrangements and responsibilities

9. Appendix B - Communication Procedures: Operating communications and emergency contact procedures

Authors

Alex Denne

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

Relevant legal definitions
Clauses
Relevant Industries

Oil & Gas

Energy

Utilities

Mining

Manufacturing

Power Generation

Industrial Processing

Chemical Manufacturing

Energy Trading

Infrastructure

Relevant Teams

Legal

Commercial

Operations

Trading

Risk Management

Business Development

Regulatory Compliance

Technical Services

Contract Administration

Supply Chain

Procurement

Sales

Finance

Relevant Roles

Commercial Manager

Energy Trading Manager

Gas Supply Manager

Contract Administrator

Legal Counsel

Operations Manager

Business Development Manager

Risk Manager

Technical Manager

Regulatory Compliance Officer

Commercial Director

Energy Procurement Manager

Chief Operating Officer

Sales Director

General Counsel

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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