Laserfiche WebLink
PJ A r F R F N F R c v L I F E <br />RIVERSIDE PUBLIC UTILITIES <br />W& Board Memorandum <br />P U B L I C U T I L I T I E S <br />BOARD OF PUBLIC UTILITIES DATE: SEPTEMBER 9, 2019 <br />ITEM NO: 6 <br />SUBJECT: NORTH AMERICAN ENERGY STANDARDS BOARD BASE CONTRACT FOR SALE <br />AND PURCHASE OF NATURAL GAS WITH CONOCOPHILLIPS <br />ISSUE: <br />Recommend that the City Council approve the North American Energy Standards Board Base Contract for <br />Sale and Purchase of Natural Gas with ConocoPhillips. <br />RECOMMENDATIONS: <br />That the Board of Public Utilities recommend that the City Council: <br />Approve the North American Energy Standards Board Base Contract for Sale and Purchase of <br />Natural Gas with ConocoPhillips for use in the purchase or sale of natural gas under the terms and <br />conditions stated therein; and <br />2. Authorize the City Manager, or designee, to execute the North American Energy Standards Board <br />Base Contract, as well as, subsequent transaction confirmation agreements with ConocoPhillips, <br />for sales and purchases of natural gas, subject to the terms and conditions of individual North <br />American Energy Standards Board enabling agreements and consistent with the City Council <br />approved Energy Risk Management Policy. <br />BACKGROUND: <br />The North American Energy Standards Board (NAESB) Base Contract for Sale and Purchase of Natural <br />Gas is a standardized set of business practices and standards that most buyers and sellers have adopted <br />for their natural gas and energy transactions. On March 7, 2008 and April 8, 2008, respectively, the Board <br />of Public Utilities and City Council approved the NAESB Base Contract for Sale and Purchase of Natural <br />Gas. The NAESB Contract does not require any specific purchase or sale of natural gas, but constitutes <br />the terms and conditions that would apply to any natural gas purchase or sale ultimately agreed to between <br />Riverside and a counterparty. <br />DISCUSSION: <br />Currently, Riverside has NAESB Base Contracts with Shell Energy North America, L.P., Occidental Energy <br />Marketing, Inc., Macquaire Energy LLC., and BP Energy Company for natural gas transactions. Approval <br />of the NAESB Base Contract with ConocoPhillips will expand Riverside's pool of potential buyers and <br />sellers of natural gas and will allow for additional competitive pricing when pursuing favorable natural gas <br />transactions. <br />