Natural gas is supplied under an agreement, concluded between the Supplier and Customer (hereinafter referred to as the Agreement), in accordance with the procedure for natural gas supply, approved by the resolution No. 2496 of the National Commission for state regulation in the energy and utilities (NKREKP) as of 30.09.15 (hereinafter referred to as the Rules for natural gas supply), and under a valid gas transportation agreement between the Consumer and the Operator of the Ukrainian gas transmission system.
Natural gas is transferred to the Consumer in the delivery point, determined by the parties in the agreement. This is the place where the property rights, responsibilities and all risks related to the natural gas supply are transferred from the Supplier to the Consumer.
The quantity of the delivered natural gas to the Consumer is determined based on readings of the natural gas metering station in the Delivery Point under procedure, established by the applicable Ukrainian legislation.
Natural gas is supplied during a month, usually uniformly and proportionally, based on the average daily rate. The rate is calculated by dividing a monthly volume of natural gas agreed by the parties by a number of days in the corresponding month. Provided the monthly consumption is irregular, natural gas is supplied under the schedule agreed by the parties.
The Supplier is not responsible for any overrun in gas offtake rate by the Consumer.
A price of the supplied natural gas is established in the respective specification to the Supply agreement for a certain natural gas volume in the corresponding delivery point.
Natural gas, supplied to the Consumer by the Supplier during a month, is transferred and accepted under a transfer and acceptance certificate, which is signed by authorized representative of the parties. In cases stipulated by the applicable Ukrainian legislation, by representative of the Ukrainian gas transmission system operator.
The Supplies may amend supplied volumes during a month of supply with the Ukrainian gas transmission system operator under Consumer’s written request with required volumes of natural gas supply increase/decrease, certified by the gas transmission organization and submitted to the Supplier not later than 5 (five) days prior to 25 day of the Supply month. Such amendment can be introduced only upon Supplier’s consent, which the Consumer is to be informed of.
Supplier has the right to:
Receive from the Consumer a payment for the delivered gas under terms and conditions of the Agreement.
Unimpaired access to Consumer’s facilities and natural gas metering stations, installed at Consumer’s facilities, to reconcile actual natural gas consumption data. The access is granted by Supplier’s employees (representatives) under employment certificate (POA).
Receive complete and accurate information from the Consumer on natural gas consumption state.
Initiate the procedure to terminate (limit) supply to Consumer under terms and conditions of the Agreement and Rules for natural gas supply.
Issue orders to the GTS operator to limit (terminate) gas supply to the Consumer under terms and conditions of the Agreement and the procedure established by the law.
Supplier shall be obliged to:
Ensure the gas is supplied to the delivery point under terms and conditions and in volumes determined by the Agreement, provided the Consumer complies with gas offtake discipline and payment procedures.
Ensure all documents are submitted to the GTS operator to confirm the required gas volume to the Consumer, provided the Consumer carried out its obligation to the Supplier to order the required natural gas volume.
Review all Consumer’s requests on natural gas supply under the established procedure.
Timely inform the Consumer on the beginning of Supplier’s liquidation or bankruptcy, suspension/termination of the natural gas supply license (except for cases determined by the law that do not require any licenses for this type of business activity). Under such circumstances, the Supplier’s obligation on timely notification is considered to be fulfilled as of the day of publication of corresponding announcements (information) in the mass media according to the requirements of the applicable Ukrainian law.
Draw and sign gas transfer and acceptance certificates under procedure determined by the Agreement.
Consumer shall have the right to:
Receive information stipulated by the Law of Ukraine "On peculiarities of access to information in fields of supply of electricity, natural gas, heat, centralized hot water supply, centralized potable water supply and water disposal"
Receive natural gas in volumes and under conditions determined by the Agreement.
Individually terminate (limit) natural gas offtake for its individual needs in compliance with the requirements of the applicable Ukrainian law.
Require resumption of gas supply under the procedure stipulated by the law upon elimination of any breaches and compensation of costs for connection and disconnection services if gas supply was halted without termination of the Agreement.
Change the Supplier under procedure stipulated by the Agreement and corresponding regulatory acts.
Consumer shall be obliged:
Comply with gas consumption discipline, determined by the Agreement and the Rules for natural gas supply.
Settle all payments with the Supplier for the supplied gas under terms and conditions and in volumes determined by the Agreement.
Implement measures aimed at preventing danger to life or injury, damage to equipment and products, adverse environmental effects, etc. in the case of a notice on natural gas supply termination (limitation).
Ensure access of Supplier’s employees (representatives) on presentation of an employment certificate (POA) to its facilities and gas metering stations installed to reconcile actual natural gas consumption data.
Individually limit (terminate) natural gas consumption if: payment terms under the Agreement are violated; there is lack or insufficient amount of confirmed volume of natural gas allocated to the Consumer; excessive daily and / or monthly confirmed gas volume without the consent of the Supplier; violation or termination of the Agreement; in other cases stipulated by the Rules for natural gas supply and other regulatory acts.
In case of seizure of Consumer’s facility (its part), vacating the facility (its part) by the
Consumer, any other actions that lead to termination of natural gas consumption by the Consumer:
- inform the Supplier not later than 20 working days prior to such seizure, vacation and/or final termination of natural gas consumption by sending a written request on agreement termination;
- carry out final payment and settle all payments under the Agreement before the date of seizure (vacation) of the object (its part), facility and/or date of final gas consumption stipulated by the Consumer.
Compensate the Supplier the cost of services on connecting (limitation/termination) and disconnecting of gas supply, provided such services of GTM operator are performed as a result of violation (failure to act) of the Consumer and were paid by the Supplier.
Inform the GTS operator and the Supplier on any failures in natural gas metering stations (meters) operation (breakage, defects, damage, including damage to seals) on the same day when such failure was found.
In case of need for sharp shifts in gas consumption (more than 50% of the daily offtake rate), the Consumer is obliged to inform the Supplier and GTS Operator about such changes not later than three days before such changes.
Settlement of Disputes.
All disputes between the consumer and the supplier are resolved through pre-trial settlement in transparent, fair and quick manner. The Supplier shall review all customers’ applications, claims and during one month shall inform on results of their examination.
In case of any disputes/differences between the Supplier and the Consumer, all differences shall be settled through negotiations.
If a corresponding dispute cannot be settled through negotiations, it shall be settled in the court in accordance with the established jurisdiction of such dispute under the applicable Ukrainian law.
For any additional information please contact company’s legal department: tel. (0532) 50-30-79, e-mail: Dmytro.Haidabura@cadoganpetroleum.com, responsible person Dmytro Haidabura, working hours: Monday-Friday 09:00am-6:00 pm, lunch break 1:00-2:00 pm. Saturday and Sunday are nonworking days.