4 N/A N/A N/A 5 Project team The team agreed to discuss road map (1) the rest of the remaining contract terms the next day. 6 Break between N/A N/A N/A days 7 Recap on The team reflected: previous day Liabilities and indemnities are generally a point of contention in commercial negotiations, and hence the amount of discussion is not surprising. A simple secondary agreement may be beneficial in facilitating liquid and requires an appropriate level of There is a need to distinguish between trades and agreements to be used on the exchange platform and bilaterally. 3 Remaining The team held a preliminary The team provided in All - For all that have in cont. contract terms discussion regarding principle agreement, subject principle agreement (as per potential standardisation for column), to testing, for the following ‘Decisions/Views’ engage in preliminary the following contract clauses: discussions with respective terms. Note, where the team organisations and wider has reached in principle industry that agreement, this is recorded recommendations are in the ‘Decisions/Views’ suitable. column. Default GMRG add to Default – “parking that the items to be lot” to revisit at a later Recommends the clause decided include what stage: includes: constitutes default, the Arrangements for Cure period to be 7 days remedy options, and the defaulting traders that for financial, and 21 days time to remedy. have traded on the for a non-financial Commented that the time exchange platform, default. periods for remedying noting these are likely to The annexed table financial and align with the provisions contains a starting point defaults appear in the Gas Supply Hub for the provisions of the to already be standard, Exchange Agreement. agreements. and the consequences of not remedying are to suspend or terminate. The team discussed the possible outcomes if any of the parties default, as detailed in the annexed table. Ways to facilitate continued access to the capacity if a party was to default were discussed, such as allowing the option for the secondary trader to pay the published reference price to the pipeline operator if the primary shipper were
4 N/A N/A N/A 5 Project team road map (1) The team agreed to discuss the rest of the remaining contract terms the next day. 6 Break between days N/A N/A N/A 7 Recap on previous day The team reflected: Liabilities and indemnities are generally a point of contention in commercial negotiations, and hence the amount of discussion is not surprising. A simple secondary agreement may be beneficial in facilitating liquid and requires an appropriate level of There is a need to distinguish between trades and agreements to be used on the exchange platform and bilaterally. 3 cont. Remaining contract terms The team held a preliminary discussion regarding potential standardisation for the following contract terms. Note, where the team has reached in principle agreement, this is recorded in the ‘Decisions/Views’ column. All - For all that have in principle agreement (as per ‘Decisions/Views’ column), engage in preliminary discussions with respective organisations and wider industry that recommendations are suitable. The team provided in principle agreement, subject to testing, for the following clauses: Default that the items to be decided include what constitutes default, the remedy options, and the time to remedy. Commented that the time periods for remedying financial and defaults appear to already be standard, and the consequences of not remedying are to suspend or terminate. The team discussed the possible outcomes if any of the parties default, as detailed in the annexed table. Ways to facilitate continued access to the capacity if a party was to default were discussed, such as allowing the option for the secondary trader to pay the published reference price to the pipeline operator if the primary shipper were GMRG – add to “parking lot” to revisit at a later stage: Arrangements for defaulting traders that have traded on the exchange platform, noting these are likely to align with the provisions in the Gas Supply Hub Exchange Agreement. Default Recommends the clause includes: Cure period to be 7 days for financial, and 21 days for a non-financial default. The annexed table contains a starting point for the provisions of the agreements.
20170509%20gmrg%20standardisation%20pt%20-%20minutes%206.docx