Ama Asset Management Agreement

AMAs are contractual relationships in which an „asset manager“ agrees to manage another party`s gas supply and supply agreements, including its pipeline capacity. In the case of a delivery to the AA, a large buyer of gas,. B, for example, a local distributor or industrial user, transfers its pipeline capacity (and possibly its gas purchase contracts) to an asset manager. WADA requires the asset manager to provide gas to the purchaser when asked to do so in accordance with WADA`s terms and conditions. To the extent that there is excess pipeline capacity or excess gas purchased, the asset manager is expected to maximize the value of these assets by making bulk sales or passing on pipeline capacity to third parties, with revenues to be distributed in accordance with WADA. Delivery AMA works in the same way as delivery CAs, except that a large gas seller – usually a producer – assigns its pipeline capacity to the asset manager who buys gas from the vendor, then markets and shares the revenues as expected under WADA`s terms. On 15 October 2015, the Federal Energy Regulatory Commission (FERC) clarified that the exemption from the ban on the purchase/sale of natural gas wealth management agreements (AMA) provided for in DerArt No. 712 also applies to AMAs on the supply side. [1] In a useful clarification, FERC found that the purchase/sale transactions in which the AMA distribution shipper sells its natural gas to its asset manager on a supply page, the asset manager transport the gas through the released capacity and then resell the natural gas to the liberating shipper are not purchase/sale transactions. In its october 15, 2015 decision, the Commission stated that „the purchase/sale transactions in which the AMA distribution shipper sells its natural gas to its asset manager, the asset manager transport the gas via the released capacity and the asset manager resells the natural gas to the liberating shipper, are not purchase/sale transactions of this type prohibited by Regulation 636.“ The Commission found that, although the exemption under Regulation 712 reviewed and expressly granted a purchase/sale exemption only for delivery AAAs, the exemption should apply to „corresponding transactions conducted pursuant to a DELIVERY AMA.“ The Commission found that buy/sell transactions related to AMA such as delivery AMA did not circumvent capacity release rules, as capacity continues to be used for the same purpose as that for which the shipper of the AMA delivery company originally purchased it to transport its natural gas to the market. In addition, the transfer of capacity to the asset manager is transparent, both in deliveries and in delivery AAAs, in accordance with the Commission`s capacity release rules (which do not require tenders for AMA, but which require unblocking).

On 15 October 2015, the Federal Energy Regulatory Commission (FERC or „Commission“) adopted a regulation specifying the extent to which natural gas facility management agreements (AMAs) were an exception to the Commission`s prohibition on purchase/sale. In response to a request from Rice Energy Marketing, LLC, the Commission clarified that the exemption from the prohibition on purchase/sale transactions for certain transactions with asset managers applies to both AMA`s „delivery“ and amAs „delivery,“ although the Commission has previously only referred to the exemption as part of AMA`s delivery. Under an AMA, a capacity holder can release the capacity of a pipeline to an asset manager without subjecting the capacity to requirements contrary to FERC`s tender, provided WADA provides for a commodity delivery obligation (in the case of WADA) or an obligation to purchase raw materials (in the case of an ama).