Firm Transportation Agreement Template for India

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Key Requirements PROMPT example:

Firm Transportation Agreement

"I need a Firm Transportation Agreement for transporting natural gas from Gujarat to Maharashtra, with a capacity of 2 MMSCMD, starting from March 2025, including provisions for interconnection with local city gas distribution networks and specific quality requirements for industrial use."

Document background
A Firm Transportation Agreement is essential for businesses requiring guaranteed capacity for natural gas transportation through pipeline networks in India. This document type is particularly crucial in the regulated Indian energy market, where it provides the contractual framework for secure and reliable access to pipeline infrastructure. The agreement is used when parties need to establish long-term, guaranteed transportation arrangements, typically between pipeline operators and gas shippers or end-users. It addresses both the commercial and technical aspects of gas transportation, including capacity rights, operational parameters, and compliance with Indian regulatory requirements. The document includes specific provisions required by the Petroleum and Natural Gas Regulatory Board (PNGRB) and other relevant Indian authorities, making it a fundamental tool for energy infrastructure operations in India.
Suggested Sections

1. Parties: Identification of the transporter and shipper with full legal details

2. Background: Context of the agreement, including reference to pipeline infrastructure and transportation requirements

3. Definitions and Interpretation: Definitions of technical and legal terms, rules of interpretation

4. Term and Effectiveness: Duration of the agreement, conditions precedent, and effectiveness date

5. Transportation Services: Scope of transportation services, committed capacity, delivery points

6. Transportation Charges: Tariff structure, additional charges, taxes, and payment terms

7. Operational Requirements: Gas quality specifications, pressure requirements, measurement, and testing

8. Nominations and Scheduling: Procedures for requesting and scheduling gas transportation

9. Delivery and Redelivery: Points of delivery, redelivery obligations, and tolerances

10. Maintenance and Pipeline Operations: Maintenance schedules, operational protocols, and communication procedures

11. Force Majeure: Definition of force majeure events and consequences

12. Liability and Indemnification: Allocation of risks, limitation of liability, and indemnification obligations

13. Default and Termination: Events of default, remedies, and termination procedures

14. Dispute Resolution: Dispute resolution mechanisms, governing law, and jurisdiction

15. Confidentiality: Confidentiality obligations and permitted disclosures

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and assignment

Optional Sections

1. Security Arrangements: Required when credit support or performance security is needed from either party

2. Ship or Pay Obligations: Include when minimum volume commitments are required

3. Interconnection Provisions: Required when dealing with connection to other pipeline systems

4. Gas Trading Rights: Include when parties need rights to trade capacity or gas at virtual points

5. Electronic Data Exchange: Required when implementing specific IT systems for nominations and operations

6. Change in Law Provisions: Detailed provisions for addressing regulatory changes, particularly relevant in evolving markets

7. Carbon Emissions: Include when addressing environmental compliance and carbon footprint requirements

Suggested Schedules

1. Schedule 1 - Technical Specifications: Detailed technical parameters for gas quality, pressure, and measurement

2. Schedule 2 - Pipeline System Description: Details of pipeline route, technical specifications, and delivery points

3. Schedule 3 - Transportation Charges: Detailed tariff structure, calculations, and examples

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

5. Schedule 5 - Testing and Measurement: Detailed procedures for gas measurement and quality testing

6. Schedule 6 - Operating Procedures: Detailed day-to-day operational procedures and protocols

7. Schedule 7 - Contact Information: List of authorized representatives and contact details

8. Appendix A - Form of Bank Guarantee: Standard format for any required bank guarantees

9. Appendix B - Interconnection Agreement: Standard form of interconnection agreement if applicable

10. Appendix C - Quality Certificate: Standard format for gas quality certification

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 Infrastructure

Utilities

Industrial Manufacturing

Power Generation

Petrochemicals

Natural Resources

Transportation & Logistics

Energy Trading

Relevant Teams

Legal

Commercial

Operations

Regulatory Affairs

Business Development

Risk Management

Technical Services

Supply Chain

Trading

Infrastructure

Compliance

Finance

Relevant Roles

Commercial Director

Gas Supply Manager

Pipeline Operations Manager

Energy Trading Manager

Legal Counsel

Regulatory Compliance Officer

Business Development Manager

Contract Administrator

Risk Manager

Technical Operations Director

Commercial Contracts Manager

Infrastructure Development Manager

Supply Chain Manager

Chief Operating Officer

Industries
Indian Contract Act, 1872: Fundamental law governing contract formation, performance, and enforcement in India, essential for the basic structure and validity of the transportation agreement
Petroleum and Natural Gas Regulatory Board Act, 2006: Regulates downstream activities in petroleum and natural gas sector, including transportation and infrastructure
Petroleum and Natural Gas Regulatory Board (Authorizing Entities to Lay, Build, Operate or Expand Natural Gas Pipelines) Regulations, 2008: Specific regulations governing the operation and establishment of natural gas pipelines
Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962: Governs right of way and land use rights for pipeline transportation
Environmental Protection Act, 1986: Establishes environmental compliance requirements for transportation infrastructure and operations
Central Motor Vehicles Act, 1988: Relevant for road transportation aspects if included in the agreement
PNGRB (Technical Standards and Specifications including Safety Standards for Natural Gas Pipelines) Regulations, 2009: Establishes safety and technical standards for pipeline operations
PNGRB (Determination of Natural Gas Pipeline Tariff) Regulations, 2008: Governs tariff determination and pricing mechanisms for pipeline transportation
Goods and Services Tax (GST) Laws: Taxation framework applicable to transportation services and related charges
Competition Act, 2002: Ensures fair competition and prevents anti-competitive practices in transportation services
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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