01 Feb 2013

PRESS RELEASE: RINs Master Agreement Available for Use

February 2013 — Leadership for Energy Automated Processing (“LEAP”) is pleased to announce the publication of the LEAP Master Agreement for Purchasing and Selling Renewable Identification Numbers.  This “LEAP RINs Master Agreement” template is available for voluntary use by market participants in order to document the purchase and sale of Renewable Identification Numbers (RINs)[1].  The document can be downloaded free of charge from the LEAP website at http://www.energyleap.org/document-downloads/.

Master agreements, like the LEAP RINs Master Agreement, are utilized by counterparties for several reasons, including, to: (i) obtain agreement on legal, credit and operational terms; (ii) obtain transaction simplification; and (iii) facilitate the electronic matching of trades.

Where one party and another party buy and sell RINs with each other regularly, it makes sense that they would want to obtain agreement on the general terms that govern their trades, like title transfer, buyer’s remedies for invalid or deficient RINs, seller’s remedies for buyer’s failures to accept or pay, limitations of parties’ liability, among other terms.  Once a LEAP RINs Master Agreement is executed, transactions become simplified because individual trade confirmations only need to include the economic terms of a trade.  In the future, subject to development by industry partners, parties may be able to forego paper confirmations altogether by using an online matching platform to confirm their trades.

The LEAP RINs Master Agreement was prepared by a Committee comprised of representatives from LEAP member companies and non-member participating companies.  The Committee believes that the LEAP RINs Master Agreement represents an unbiased set of terms and conditions that provide legal and operational clarity for the rights and obligations of the buyer and seller of RINs.

LEAP’s mission is to promote efficient and reliable transaction processing within the energy trading industry. More information about LEAP and how to join, including our Limited Project Participation option, is available at www.energyleap.org.
Membership in LEAP is open to energy trading, service and association entities on a nondiscriminatory basis.  All members must be legal entities, not natural persons.

Contact Kevin Jandora at kjandora@energyleap.org or 203-354-4502 if you have additional questions regarding the LEAP RINs Master Agreement.

[1] The template may require revision and further customization by market participants depending on their individual commercial and legal objectives for each RINs transaction.  Parties should consult their own legal counsel and other professional advisors when using the template to effect RINs transactions.