· All essays must be typewritten, and must follow usual academic guidelines
such as be properly referenced, be free of plagiarism or borrowing from
other academic sources and be student’s own work
· Referencing instructions: Please refer to the OSCOLA referencing guide
available via www.law.ox.ac.uk/published/OSCOLA_4th_edn.pdf
· Word count: both questions 1 &2 together not to exceed 3500 words
(excluding footnote referencing). There is a penalty for deviating substantially
from the word length (i.e. in excess of +/- 10% of the specified word count)
· You must include a statement on the front cover of your work that gives the
· All questions carry equal mark
Your client, a small new entrant to the UKCS, is looking to enter into a gas
transportation agreement, with the owners of an existing pipeline, to export gas from
their nearby new development.
There are no real technical problems in ‘tie-ing in’ or connecting physically to the
pipeline and the tariff arrangements are acceptable to your clients.
The field to be developed is expected to produce gas and is expected to have a life of
ten to twelve years although this will probably be extended by prudent management
of the reservoir.
A draft Transportation Agreement has been sent for your client’s review and in
· A ten year fixed term;
· A minimum bill (or Send or Pay) obligation of eighty percent of the nominated
· Problems with production will not constitute a Force Majeure event;
· A provision that if there is a problem in the transportation system then the
producer’s capacity may be reduced;
Required: Explain to your client the main effect and implications of the above and any
recommendations you may have.
A gas producer has a field in which it is very difficult to know exactly how much gas
is there and how much can be produced on a day -by -day basis. Given these
difficulties what type of gas sales agreement (GSA) would be advisable and what
other features might mitigate the seller’s liability under the GSA?
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