09/27/2005
- A Delivery Committee panel (the "Committee") has been reviewing on an ongoing basis the conditions at the Henry Hub relating to NYMEX Natural Gas (NG) delivery obligations for September 2005 and has just finished a meeting today, Tuesday, September 27, 2005.
- The Committee notes that that the Force Majeure declaration issued by Sabine Pipeline LLC, the operator of the Henry Hub in Louisiana, that became effective at 1:00 PM CST Thursday September 22, 2005 is still in effect. The Committee further notes that Exchange staff has provided up-to-date information to the Committee through regular contact with Sabine staff as well as other industry experts and participants concerning conditions at the Henry Hub.
- Based upon the information now available, the Committee currently anticipates a lifting of the Force Majeure condition at the Henry Hub in October 2005. Upon notice from Sabine of such event, the Committee will convene promptly. More specific information regarding the September and October contracts is provided immediately below.
SEPTEMBER 2005 NG DELIVERY OBLIGATIONS
- A NYMEX Force Majeure declaration remains in effect for this contract month.
- With regard to the eventual lifting of NYMEX’s Force Majeure declaration, the Committee presently plans to extend the delivery period an appropriate amount of time pursuant to its authority as set forth in NYMEX Rule 220.18 Section (C)(6) as to effect completion of all outstanding obligations.
OCTOBER 2005 NG DELIVERY OBLIGATIONS
- The October 2005 contract expires tomorrow, September 28, 2005, and termination and settlement will be performed as per standard procedures.
- The Committee has determined to declare Force Majeure at this time for the October 2005 contract.
- Any party that ultimately maintains a delivery position through termination will be required to nominate volumes and complete its obligations within the month of October commencing immediately with the lifting of the Force Majeure condition by Sabine. The Committee will continue to be in close contact with Sabine regarding this matter.
- In particular, please note that the Committee, pursuant to its authority under Rule 220.18, reserves the right at all times to modify the timing of delivery, depending principally upon the actual date that the Sabine and NYMEX Force Majeure declarations are lifted.
- A NYMEX Force Majeure declaration remains in effect for this contract month.
The Committee further notes that Sabine is posting updates as they are available regarding the conditions of their system at www.sabinepipeline.com. Click on the topic heading "Informational Postings," then "Notices" from the drop down menu, and finally on "Critical".
All market participants with outstanding September or October 2005 NYMEX NG obligations will be advised of any further decisions of the Committee via their Clearing Members and through additional Notices To Members posted on the NYMEX website (www.nymex.com).