Are there any legal requirements when negotiating a gas transportation agreement?

Yes, there are legal requirements when negotiating a gas transportation agreement in North Carolina. First, the agreement must comply with the regulatory framework of the Federal Energy Regulatory Commission (FERC). This means that the agreement must include certain conditions, such as the identity of the shipper and transporter, provisions for service, provisions for rates, and provisions for service termination. The agreement must also contain language regarding the laws that govern the transaction, including state and federal laws. In North Carolina, gas transportation agreements must also adhere to the terms of the North Carolina Natural Gas Act. This act regulates the transportation of natural gas within the state. It requires that all transactions concerning the transportation of natural gas must be conducted in a manner that is in compliance with the act and all applicable regulations. In addition, the act requires that all parties to the agreement must include the appropriate rate schedule in the agreement. Furthermore, the party signing the agreement, also known as the transporter, must be approved by the North Carolina Utilities Commission. This is done to make sure that the transporter is capable of providing safe and reliable transportation. Once approved, the party must post a bond to ensure its obligations are met. Finally, North Carolina has adopted a Gas Transportation Agreement Model. This model outlines the provisions necessary for an agreement to be in compliance with all applicable laws and regulations. Therefore, when negotiating a gas transportation agreement in North Carolina, all parties must adhere to all applicable laws and provisions set forth in the model.

Are there any legal requirements when negotiating a gas transportation agreement?

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