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Automated Contract Matching

Automated contract matching’s first project was Colonial Pipeline movements. LEAP Members created the LEAP MASTER AGREEMENT FOR PURCHASING AND SELLING REFINED PETROLEUM PRODUCTS AND CRUDE OIL and with the help of ICE e-Confirm now have four member firms confirming contracts electronically. The Match Groups is now focusing on making this agreement an ISDA Annex, standardization of the Rotterdam Barge Contract and the Canadian Crude Contract.

US Initiatives:

  • The status of the ISDA Annex is that they have a a very aggressive schedule and would like to have their version of the Master Agreement For Purchasing and Selling Refined Petroleum Products and Crude Oi ready to present at their annual conference in early 2Q08. There are several substantive changes with LEAP should consider incorporating in V3.0. IF you would like information on the clause under discussion please contact the Committee Chairs.
  • LEAP Members are working with eConfirm to update their schema to accept TEPPCO pipeline trades.
  • The contract matching group anticipates working on US waterborne contracts in 2Q09.

Status of the Rotterdam Barge Contract:

The goals for the Rotterdam Barge group are as follows: To develop draft standard terms and conditions for a North West Europe (NWE) Barge purchase and sales contract and/or to identify clauses where standardisation may not be achievable; to present the draft standard terms to LEAP for acceptance as a LEAP standard; to propose acceptance of the standard to ISDA and/or EFET for inclusion as a new standard Annex; to develop the standard in a format which supports further automation of this type of trade and on a variety of systems, as may be selected by individual users in the industry.

Canadian Crude

  • This contract will be similar to the structure utilized for the North American physical natural gas master (NAESB) which is also an Annex to ISDA with a Canadian Addendum.
  • If executed, the Canadian Addendum becomes part of the LEAP Master Agreement for Purchasing and Selling Refined Products and Crude Oil Version 2.0.
  • Simple differences include allowing for additional currencies, unit conversion (cbic meters), exchange rates and Alberta law
  • Key differences include Canadian legislation for insolvency and termination requirements, i.e. CCAA.
  • Next steps are:
    • To present LEAP agreement to the Canadian oil & gas industry via CAPP in June
    • To complete the Canadian Addendum by the end June, 2008