Notice to Members
Notice No. 319 11/20/2002
Amendments to NYMEX Division Rules 150.08A and 190.08A, Product Placement
The Board of Directors and the Petroleum Products Advisory Committee have approved amendments to Rules 150.08A and 190.08A for New York Harbor Heating Oil and Unleaded Gasoline Contracts, to resolve an inconsistency between the product placement rule and the pre-inspection rule (amendments to follow). * * * * * * (** represents an addition, and strikethrough a deletion) New York Harbor Heating Oil Rule 150.08A. Product Placement (1) Certification: For purposes of Rule 9.19, the seller shall fulfill its contractual obligation on a maturing contract only if, prior to one hour before the time established for the beginning of the closing range of the applicable delivery month, such seller has received from his customer a certification, in the form prescribed by the Exchange, stating that the customer has or will have in position, not later than the fifth business day of the delivery month, at one or more eligible delivery facilities at which delivery may made under this Chapter, a quantity and quality of product sufficient to meet such customer’s obligations to make delivery when and as prescribed in these Rules; provided, however, that the receipt of such certification shall not relieve the seller of any obligations under any Rule other than Rule 9.19. (2) Product in Tank The Seller shall have a quantity and quality of product in tank at one or more eligible delivery facilities at least 24 hours **in accordance with the inspection requirements under Rule 150.12** prior to the first day of the consecutive five-day period for initiation of delivery identified by the buyer in the Initial Delivery Instructions. The obligation to have product in tank, as prescribed in this section (2), shall constitute a "material act with respect to a delivery obligation" as referenced in Rule 150.15(A)(1). Unleaded Gasoline Contracts Rule 190.08A. Product Placement (1) Certification: For purposes of Rule 9.19, the seller shall fulfill its contractual obligation on a maturing contract only if, prior to one hour before the time established for the beginning of the closing range of the applicable delivery month, such seller has received from his customer a certification, in the form prescribed by the Exchange, stating that the customer has or will have in position, not later than the fifth business day of the delivery month, at one or more eligible delivery facilities at which delivery may made under this Chapter, a quantity and quality of product sufficient to meet such customer's obligations to make delivery when and as prescribed in these Rules; provided, however, that the receipt of such certification shall not relieve the seller of any obligations under any Rule other than Rule 9.19. (2) Product in Tank The Seller shall have a quantity and quality of product in tank at one or more eligible delivery facilities at least 24 hours **in accordance with the inspection requirements under Rule 190.12** prior to the first day of the consecutive five-day period for initiation of delivery identified by the buyer in the Initial Delivery Instructions. The obligation to have product in tank, as prescribed in this section (2), shall constitute a "material act with respect to a delivery obligation" as referenced in Rule 190.15(A)(1).
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com