13 Jul 2015

Contracts Improvement Committee Created By LEAP

July 2015 — Leadership for Energy Automated Processing (“LEAP”) has established a new Committee to improve various aspects of the trade documentation related to North American liquid commodities. This new Committee, the North America Commodities Contracts Improvement Committee, or “NACCIC”, will be an ongoing initiative that will focus their attention every year on several key contract matters that concern our LEAP members. The NACCIC Committee will develop standard contract template language or points of view that could be voluntarily incorporated by market participants into their bilateral trade documentation. In some cases, these documents will further enhance LEAP’s existing trade templates such as the LEAP “Version 3” Master Agreement suite, the LEAP RINs documentation, the LEAP LCFS Master Agreement, etc.

The NACCIC committee will focus on the following topics of discussion in 2015:

  • QAP Changes to RINs Agreements: Certain edits to the LEAP RINs Master Agreement and LEAP RINs Single Trade Agreement to recognize the EPA’s QAP program for Renewable Identification Numbers (“RINS”)
  • Attached RINs Annex: The creation of an additional Annex to the LEAP Version 3 Master Agreement to govern the purchase and sale of refined product with RINs attached
  • Back-to-Back Clause: The creation of a market-standard “back-to-back” trade clause, which allows two parties with a master agreement in place to agree to the use of a third-party set of General Terms and Conditions to govern a specific transaction, while clarifying that certain clauses in their master agreement still govern that transaction
  • Processed Condensate Exports: The creation of a set of clauses for buyers and sellers of condensate within the US to clarify that product’s suitability for export
  • NYH Ethanol Barge/Vessel Supplement: The creation of the LEAP New York Harbor Ethanol Barge/Vessel Supplement agreement, which is intended to be used by parties to clarify the obligations of a buyer and seller of waterborne ethanol in the key New York Harbor terminal area, with particular focus on nomination procedures, volumetric tolerances, the transfer of RINs, and the calculation of demurrage responsibility for the buyer and seller of the ethanol

The NACCIC Committee is comprised of representatives of certain LEAP member companies. All LEAP members are welcome to join the Committee. For more information about LEAP Membership or about our Limited Participation option, either visit our Membership Page or else contact us at info@energyleap.org.

LEAP’s mission is to promote efficient and reliable transaction processing within the energy trading industry. 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.