Notice to Members
Notice No. 482 09/17/2008
Update on August 2008 and September 2008 NYMEX Natural Gas Deliveries
A Delivery Committee panel (the "Committee"), which has been reviewing the conditions at the Henry Hub relating to NYMEX Natural Gas futures (NG) delivery obligations for August and September 2008, convened today, Wednesday, September 17, 2008. The Committee notes that in prior Notices a Force Majeure determination was made by the Committee in light of the circumstances at the Henry Hub, as well as Sabine's Force Majeure declaration related to Hurricane Gustav which affected the last delivery day of the August 2008 NYMEX delivery obligations, as well as September 2008 delivery obligations, and then later, Hurricane Ike further affected the September 2008 NYMEX contract month delivery obligations. Prior Notices to Members No. 08-452 (dated August 31, 2008) and No. 08-476 (dated September 13, 2008), respectively, which are available on the NYMEX website, document the details and related action by the Committee. The Committee has further considered Sabine's September 16, 2008 notice that Sabine's Force Majeure declaration was lifted on a number of receipt and delivery points and that Sabine now would be accepting nominations for gas day September 17, 2008. -------------------------------------------------------------------------------------------------------------------- Based upon the information currently available relating to confirmed nominations for gas day September 17, 2008, and in conformance with its authority as prescribed in Rule 220.18, the Committee has determined that it is lifting the Force Majeure condition for both the NYMEX August 2008 and September 2008 contract month delivery obligations effective for gas day Friday, September 19, 2008. All participants who have outstanding obligations for these delivery months should commence nomination procedures in conformance with prescribed practices of Sabine and all eligible interconnecting pipelines for gas day Friday, September 19, 2008. All August 2008 NYMEX NG contract month obligations that were subject to the prior Force Majeure declaration by the Committee are to commence on gas day September 19, 2008 and complete ratable delivery in the calendar month of September 2008. The timing of payment of the volume associated with the one (1) day's worth of August deliveries shall be that which is otherwise applicable to a September 2008 NYMEX delivery obligation. All September 2008 NYMEX NG contract month obligations should commence on gas day September 19, 2008 and complete ratable delivery by the conclusion of the calendar month of October 2008. The timing of payment for the September 2008 deliveries that are completed in September shall be in accordance with standard terms applicable to a September 2008 NYMEX delivery obligation. For any standard deliveries that are ultimately completed during the calendar month of October 2008, payment on such volume shall be conducted in accordance with the timing applicable to an October 2008 NYMEX NG contract month delivery. --------------------------------------------------------------------------------------------------------------------- All parties have available now, as always, the ability to mutually agree to execute an alternative delivery procedure pursuant to NYMEX Rule 220.17(A) for the August and September 2008 delivery obligations.
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