Common use of Delivery of Offset Transactions Clause in Contracts

Delivery of Offset Transactions. (a) For each relevant Gas Day, the delivery or receipt obligations of each party to a relevant Transaction (other than the Defaulting Participant), as adjusted under clause 20.5.3 or 20.5.4, are to be included in Delivery Netting where it applies to the relevant Transaction. (b) Where Delivery Netting does not apply to a relevant Transaction, or the Operator does not complete Delivery Netting for the applicable Trading Location and Gas Day, the Operator must determine an offset delivery schedule to provide for delivery of the Offset Quantity at each Trading Location, in accordance with the following principles: (i) the Operator will determine a set of delivery pairs, each comprising one Seller and one Buyer, and will allocate a portion of the Offset Quantity to each delivery pair; (ii) the Transaction Quantity in a relevant Transaction can be allocated across more than one delivery pair; (iii) the quantity allocated to each delivery pair (the Offset Transaction Quantity) must be to the nearest whole GJ; and (iv) the offset delivery schedule should not require any Trading Participant to deliver, or accept delivery of, a quantity of gas at a Trading Location on any Gas Day that is greater than the quantity that (but for offset and close out) it would otherwise have been required to deliver or accept. (c) As soon as reasonably practicable after determining an offset delivery schedule for a relevant Gas Day at a Trading Location, the Operator must notify the following information to each Trading Participant (other than the Defaulting Participant) that is a party to a relevant Transaction: (i) the delivery pairs to which the Trading Participant has been allocated as Buyer or Seller; (ii) the identity of the other Trading Participant in each such delivery pair; (iii) for each delivery pair, the Offset Transaction Quantity and the Delivery Point (d) Where the Operator has notified a Trading Participant that it is part of a delivery pair, that Trading Participant must make the Offset Transaction Quantity available for delivery, or accept delivery of that quantity (as applicable) in accordance with clauses 14 and 15 of this agreement, and for those purposes: (i) the Offset Transaction Quantity is taken to be the Delivery Quantity; (ii) the Seller in a delivery pair is taken to be the Delivering Participant; and (iii) the Buyer in a delivery pair is taken to be the Receiving Participant.

Delivery of Offset Transactions. (a) For each relevant Gas Day, the delivery or receipt obligations of each party to a relevant Transaction (other than the Defaulting Participant), as adjusted under clause 20.5.3 or 20.5.4, are to be included in Delivery Netting where it applies to the relevant Transaction. (b) . Where Delivery Netting does not apply to a relevant Transaction, or the Operator does not complete Delivery Netting for the applicable Trading Location and Gas Day, the Operator must determine an offset delivery schedule to provide for delivery of the Offset Quantity at each Trading Location, in accordance with the following principles: (i) : the Operator will determine a set of delivery pairs, each comprising one Seller and one Buyer, and will allocate a portion of the Offset Quantity to each delivery pair; (ii) ; the Transaction Quantity in a relevant Transaction can be allocated across more than one delivery pair; (iii) ; the quantity allocated to each delivery pair (the Offset Transaction Quantity) must be to the nearest whole GJ; and (iv) and the offset delivery schedule should not require any Trading Participant to deliver, or accept delivery of, a quantity of gas at a Trading Location on any Gas Day that is greater than the quantity that (but for offset and close out) it would otherwise have been required to deliver or accept. (c) . As soon as reasonably practicable after determining an offset delivery schedule for a relevant Gas Day at a Trading Location, the Operator must notify the following information to each Trading Participant (other than the Defaulting Participant) that is a party to a relevant Transaction: (i) : the delivery pairs to which the Trading Participant has been allocated as Buyer or Seller; (ii) ; the identity of the other Trading Participant in each such delivery pair; (iii) ; for each delivery pair, the Offset Transaction Quantity and the Delivery Point (d) Point Where the Operator has notified a Trading Participant that it is part of a delivery pair, that Trading Participant must make the Offset Transaction Quantity available for delivery, or accept delivery of that quantity (as applicable) in accordance with clauses 14 and 15 of this agreement, and for those purposes: (i) : the Offset Transaction Quantity is taken to be the Delivery Quantity; (ii) ; the Seller in a delivery pair is taken to be the Delivering Participant; and (iii) and the Buyer in a delivery pair is taken to be the Receiving Participant.

Delivery of Offset Transactions. (a) For each relevant Gas Day, the delivery or receipt obligations of each party to a relevant Transaction (other than the Defaulting Participant), as adjusted under clause 20.5.3 or 20.5.4, are to be included in Delivery Netting where it applies to the relevant Transaction. (b) . Where Delivery Netting does not apply to a relevant Transaction, or the Operator does not complete Delivery Netting for the applicable Trading Location and Gas Day, the Operator must determine an offset delivery schedule to provide for delivery of the Offset Quantity at each Trading Location, in accordance with the following principles: (i) : the Operator will determine a set of delivery pairs, each comprising one Seller and one Buyer, and will allocate a portion of the Offset Quantity to each delivery pair; (ii) ; the Transaction Quantity in a relevant Transaction can be allocated across more than one delivery pair; (iii) ; the quantity allocated to each delivery pair (the Offset Transaction Quantity) must be to the nearest whole GJ; and (iv) and the offset delivery schedule should not require any Trading Participant to deliver, or accept delivery of, a quantity of gas at a Trading Location on any Gas Day that is greater than the quantity that (but for offset and close out) it would otherwise have been required to deliver or accept. (c) . As soon as reasonably practicable after determining an offset delivery schedule for a relevant Gas Day at a Trading Location, the Operator must notify the following information to each Trading Participant (other than the Defaulting Participant) that is a party to a relevant Transaction: (i) : the delivery pairs to which the Trading Participant has been allocated as Buyer or Seller; (ii) ; the identity of the other Trading Participant in each such delivery pair; (iii) ; for each delivery pair, the Offset Transaction Quantity and the Delivery Point (d) Point Where the Operator has notified a Trading Participant that it is part of a delivery pair, that Trading Participant must make the Offset Transaction Quantity available for delivery, or accept delivery of that quantity (as applicable) in accordance with clauses 14 and 15 of this agreement, and for those purposes: (i) : the Offset Transaction Quantity is taken to be the Delivery Quantity; (ii) ; the Seller in a delivery pair is taken to be the Delivering Participant; and (iii) and the Buyer in a delivery pair is taken to be the Receiving Participant. Worked example of close out and offset M is in default. Gas Day D+2 is determined to be the Close Out Effective Date. For that Gas Day the Operator identifies the following transactions due for delivery at the QGP Trading Location: Transaction 1: N as Seller to deliver 8 TJ to M as Buyer at $5/GJ Transaction 2: O as Seller to deliver 12 TJ to M as Buyer at $6/GJ Transaction 3: M as Seller deliver 4 TJ to P as Buyer at $4/GJ Transaction 4: M as Seller to deliver 6 TJ to Q Buyer at $6/GJ Transaction 5: M as Seller in a Location Swap with R for 7 TJ at $0.50/GJ. Operator determines Offset Quantity, Close Out Quantity and Close Out Location Swap Quantity (clause 20.5.2): TQS under Transactions 3 and 4 equals 10 TJ, TQB under Transactions 1 and 2 equals 20TJ Offset Quantity is the lesser of the two, ie 10 TJ Close Out Quantity is the absolute value of TQS-TQB, ie 10 TJ. Close Out Location Swap Quantity is 7 TJ. Operator determines adjusted Transaction Quantities (clause 20.5.3 or 20.5.4): M is a net Buyer, therefore clause 20.5.3 applies SRF is 10/20 (0.5) Transaction 1: N’s Transaction Quantity is adjusted down to 4 TJ, leaving 4 TJ to be closed out Transaction 2: O’s Transaction Quantity is adjusted down to 6 TJ, leaving 6 TJ to be closed out. M’s obligations under the Transaction are terminated Transactions 3 and 4: No change for P and Q Transaction Quantities Transaction 5: No change to R’s Transaction Quantity. M’s obligations and rights in respect of delivery and payment under all 5 Transactions are terminated. If no Delivery Netting, Operator determines offset delivery schedule Offsetting Sellers: N (for 4 TJ) and O (for 6 TJ) Offsetting Buyers: P for 4 TJ and Q for 6 TJ Delivery pairs are: N to deliver 4 TJ to P and O to deliver 6 TJ to Q. Dispute Resolution Dispute notice If any dispute arises between two or more parties (Disputing Parties) in connection with this agreement, the party requiring it to be resolved must promptly give each other Disputing Party written notice giving details of the dispute. Negotiation period Within 10 Business Days of a Disputing Party receiving a dispute notice under clause 21.1 or such longer period agreed by the Disputing Parties, a senior executive of each Disputing Party with authority to resolve the dispute must meet and, in good faith, attempt to resolve the dispute by negotiation. If the Disputing Parties are unable to reach a resolution of the dispute by negotiation within a period of 10 Business Days, then any Disputing Party may by notice in writing to the other given at any time after the negotiation period, bring the good faith negotiation period to an end. Urgent relief Nothing in this agreement denies any party the right to seek injunctive or declaratory relief from an appropriate court where failure to obtain that relief would cause irreparable damage to the party concerned. The dispute resolution procedures in this clause do not apply to impair, delay or otherwise prejudice the exercise by a party of its rights under this agreement (including without limitation any right of termination). Alternative dispute resolution The Disputing Parties may agree to seek to have the dispute resolved by mediation. In that case, within five Business Days of reaching that agreement, the Disputing Parties must refer the matter to a mutually agreed mediator, or failing agreement to a mediator appointed at the request of any Disputing Party by the Institute of Arbitrators and Mediators Australia. The mediation will be conducted in accordance with the procedures determined by the mediator. The mediator must determine who will bear the liability for the mediator’s fees and the disbursements and other costs of the mediation which must be paid accordingly. Nomination disputes The Disputing Parties must pay the costs, if any incurred by the Operator in connection with the resolution of any dispute between Trading Participants as to the quantity of gas delivered or accepted in equal shares or in the shares determined under the dispute resolution process for that dispute.