Biomethane Purchase Agreement Template for United States

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Key Requirements PROMPT example:

Biomethane Purchase Agreement

"Need a Biomethane Purchase Agreement for a 5-year supply arrangement starting March 2025, where we (a waste management facility) will supply 50,000 MMBtu annually to a local utility company, including provisions for RIN trading and flexible delivery scheduling."

Document background
The Biomethane Purchase Agreement is essential for transactions involving renewable natural gas in the United States. It's used when a producer wants to sell biomethane to utilities, industrial users, or other buyers. The document addresses critical aspects including volume commitments, quality specifications, delivery points, and environmental attributes. It must comply with federal regulations like the RFS program and state-specific requirements. The agreement typically includes provisions for RIN management and may incorporate environmental credit trading.
Suggested Sections

1. Parties: Identification of buyer and seller with full legal details

2. Background: Context of the agreement and parties' intentions

3. Definitions: Key terms including biomethane specifications, delivery points, measurement

4. Sale and Purchase Obligation: Core obligations including volumes, specifications, and delivery terms

5. Price and Payment: Pricing mechanism, payment terms, and invoicing requirements

6. Term and Termination: Duration of agreement and termination provisions

7. Quality and Measurement: Biomethane quality specifications and measurement procedures

8. Delivery Points: Specified points of delivery and transfer of title

Optional Sections

1. Environmental Attributes: Treatment of RINs and environmental credits - include when environmental attributes are separately traded

2. Transportation: Pipeline transportation arrangements - include when transportation is part of the agreement

3. Market Disruption: Provisions for market disruption events - include for long-term agreements

Suggested Schedules

1. Technical Specifications Schedule: Detailed biomethane quality specifications

2. Delivery Points Schedule: Technical details of delivery points

3. Pricing Mechanism Schedule: Detailed pricing calculations and adjustments

4. Form of Nomination: Standard form for volume nominations

5. Testing Procedures: Detailed quality testing protocols

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
Industries

Renewable Fuel Standard (RFS) Program: Federal program under Clean Air Act Section 211(o) establishing requirements for renewable fuels, including EPA regulations for renewable identification numbers (RINs) and qualification criteria for renewable natural gas

Pipeline Safety Regulations: Federal framework including Natural Gas Pipeline Safety Act, Department of Transportation (DOT) regulations, and FERC regulations governing interstate pipeline transportation

Federal Environmental Regulations: Includes Clean Air Act, EPA standards, and Greenhouse Gas Reporting requirements that govern environmental aspects of biomethane production and distribution

State Renewable Portfolio Standards: State-specific requirements and targets for renewable energy integration, varying by jurisdiction

State Pipeline Regulations: State-level rules governing intrastate pipeline operations, safety standards, and transportation requirements

State Environmental Protection Laws: State-specific environmental regulations that may impose additional requirements beyond federal standards

State Utility Commission Rules: Regulations from state public utility commissions governing gas utility operations and biomethane injection into natural gas networks

State Incentive Programs: State-specific financial incentives and support mechanisms for renewable gas production and distribution

UCC Article 2: Uniform Commercial Code provisions governing sale of goods, applicable to biomethane trading contracts

Common Law Contract Principles: Fundamental contract law principles including formation, consideration, performance, and remedies

ISDA-style Trading Provisions: Standardized trading terms and conditions adapted from International Swaps and Derivatives Association frameworks

Local Zoning and Permitting: Municipal and local government requirements for facility siting, operation, and maintenance

Renewable Energy Tax Legislation: Federal and state tax provisions governing renewable energy credits and incentives

NAESB Base Contract: North American Energy Standards Board standardized contract terms and conditions for natural gas trading

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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