Common use of Pricing Principles Clause in Contracts

Pricing Principles. For each Pricing Period subsequent to the Pricing Period for which the price of gas to be sold and purchased hereunder has been established and specified, the Parties agree to determine Price by negotiation or, if unsuccessful, by arbitration. If the Price for Gas delivered in any Pricing Period is to be determined by arbitration, the arbitrators shall determine a Price that, under the prevailing market circumstances for long term firm Gas Supply and in the opinion of the arbitrators, is fair and reasonable to both Buyer and Seller. In making such determination, the arbitrators shall limit their consideration to the evidence which is presented by the Parties, and to the extent that evidence is presented, shall base their determination upon and shall give due consideration to each of the following criteria: (i) The weighted average cost of gas paid by Buyer during the next one year period for firm gas supplies with a term of two (2) years or more; (ii) The prices being paid during the next one year period for other firm gas supplies by local distribution companies with a term of two (2) years or more in the state of Montana; and, (iii) The prices being paid during the next one year period for other firm gas supplies by local distribution companies with a term of two (2) years or more in the province of Alberta; provided that the arbitrators shall consider the above matters in light of the following: (a) To the extent that evidence with respect to Prices for the next one year period is not available or is insufficient, prices for the current Pricing Period will be considered; (b) The times at which the prices were agreed to between the respective buyers and sellers; (c) Differences in transportation costs relevant to establishing a point of comparison at the Delivery Point; (d) The similarities and dissimilarities between the service provided hereunder and the sales and transportation arrangements under which other gas is being sold for consumption in Buyer's market area and in Alberta, including in particular but not limited to the similarities and dissimilarities between the quality of service and the security of supply provided hereunder and provided under such other arrangements; and, (e) Any other considerations in respect of which relevant evidence is adduced by the Parties and which is relevant to the determination of such matters. In the event that a negotiated or arbitrated Price is determined for a Pricing Period after commencement thereof, Seller shall retroactively adjust its invoices to Buyer to the first Day of that Pricing Period, to take into account the revised Price. Until a new Price is concluded and retroactively implemented, the previous Price shall remain in effect. If the Price settlement date exceeds sixty (60) Days past the Pricing Period commencement, the retroactive invoice shall be adjusted for interest at the prime rate pursuant to section 7.04." 7. The Contract is hereby amended by incorporating Schedule "A" attached hereto as Schedule "A" to the Contract. 8. As amended by this Amending Agreement, the Contract is hereby ratified and confirmed and shall continue in full force and effect.

Pricing Principles. For each Pricing Period Contract Year subsequent to the Pricing Period Contract Year for which the price Price of gas Gas to be sold and purchased hereunder has been established and specified, the Parties agree to determine Price by negotiation or, if unsuccessful, or by arbitration. If the Price for Gas delivered in any Pricing Period Contract Year is to be determined by arbitration, the arbitrators shall determine a Price that, under the prevailing market circumstances for long term firm Gas Supply and in the opinion of the arbitrators, is fair and reasonable to both Buyer and Seller. In making such determination, the arbitrators shall limit their consideration to the evidence which is presented by the Parties, and to the extent that evidence is presented, shall base their determination upon and shall give due consideration to each of the following criteria: (i) The weighted average cost of gas paid by Buyer during the next one year period Contract Year for firm gas supplies with a term of two (2) years or more; (ii) The prices being paid during the next one year period Contract Year for other firm gas supplies by local distribution companies with a term of two (2) years or more in the state of Montana; and, (iii) The prices being paid during the next one year period Contract Year for other firm gas supplies by local distribution companies with a term of two (2) years or more in the province of Alberta; provided that the arbitrators shall consider the above matters in light of the following: (a) To the extent that evidence with respect to Prices for the next one year period Contract Year is not available or is insufficient, prices for the current Pricing Period Contract Year will be considered; (b) The times at which the prices were agreed to between the respective buyers and sellers; (c) Differences in transportation costs relevant to establishing a point of comparison at the Delivery Point; (d) The similarities and dissimilarities between the service provided hereunder and the sales and transportation arrangements under which other gas is being sold for consumption in Buyer's market area and in Alberta, including in particular but not limited to the similarities and dissimilarities between the quality of service and the security of supply provided hereunder and provided under such other arrangements; and, (e) Any other considerations in respect of which relevant evidence is adduced by the Parties and which is relevant to the determination of such matters. In the event that a negotiated or arbitrated Price is determined for a Pricing Period Contract Year after commencement thereof, Seller shall retroactively adjust its invoices to Buyer to the first Day of that Pricing PeriodContract Year, to take into account the revised Price. Until a new Price is concluded and retroactively implemented, the previous Price shall remain in effect. If the Price settlement date exceeds sixty (60) Days past the Pricing Period Contract Year commencement, the retroactive invoice shall be adjusted for interest at the prime rate pursuant to section 7.04." 7. The Contract is hereby amended by incorporating Schedule "A" attached hereto as Schedule "A" to the Contract. 8. As amended by this Amending Agreement, the Contract is hereby ratified and confirmed and shall continue in full force and effect.