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Disclaimer
ubrg bouncing nicely up 69%
The general terms and conditions upon which we currently operate in the acquisition of our customers, obtaining gas supplies and contracts are presented as follows;
Natural Gas Pricing
Our gas is purchased based on an Index Price from the “Inside FERC Gas Market Report”, first of the month posted index price or “Gas Daily” Midpoint as published by PLATTS. The index pricing of the gas is based on the New York Mercantile Exchange (“NYMEX”), or the Henry Hub index price, at the Sabine Pipe Line Co.’s, Henry Hub connection point in Louisiana, which is used as the standard in the gas industry.
Purchase Agreement
We generally enter into a purchase or sales agreement with the customer and/or supplier, using the North American Energy Standards Board (“NAESB”), “Base Contract for Sale and Purchase of Natural Gas”, which is the standard agreement used in use the natural gas industry.
Gas Inventory, Title and Warranty
Pursuant to the terms of the NAESB contract regarding title to the gas we purchase, it states "Seller warrants that it will have the right to convey and will transfer good merchantable title to all Gas sold hereunder delivered to Buyer, free and clear of all liens, encumbrances and claims." This means the gas that is sold to Universal and NDR Energy by the suppliers has no claims or liens, from either the Suppliers own oil/gas wells, and/or from other producers that they procure it from. After we purchase the gas, we own it, and it becomes part of our inventory until we deliver it to our customer.
