Document:

exv10w13

 

Exhibit 10.13

CONFIRMATION OF GAS PURCHASE AND SALES AGREEMENT DATED NOVEMBER 17, 2004

BETWEEN ATLAS RESOURCES, INC. ET. AL. AND FIRST ENERGY SOLUTIONS CORP. FOR THE

PERIOD FROM APRIL 1, 2006 THROUGH MARCH 31, 2007 PRODUCTION/CALENDAR PERIODS

 

 

	 	 	 	 	 	 	 
	To:

	 	Mike Brecko
	 	From:
	 	David Frederick
	Co:

	 	Atlas America
	 	Co:
	 	FESC
	Phone:

	 	 (412)262-2830x126
	 	Phone:
	 	 (330)315-7367
	Fax:

	 	 (412)262-3927
	 	Fax:
	 	 (330)315-7250
	Date:

	 	November 17, 2004
	 	Pages:
	 	 3

CONFIRMATION OF GAS PURCHASE AND SALES AGREEMENT

Per our phone conversations this morning, this will confirm the following new price trigger
pursuant to the natural gas sale and purchase agreement between Atlas Resources, Inc. et. al. as
“Seller” and First Energy Solutions Corp. as “Buyer”:

	 	 	 
	PERIOD:

	 	April 1, 2006 through March 31, 2007 production/calendar
periods.
	 
	 	 
	LOCATION 1:

	 	All Seller’s production delivered to National Fuel
Gas Supply Corp. (NFGS) at PL00000015 and Measuring
Station PSP1129541 (approximately 400,000 dth/month).
	 
	 	 
	PRICE 1:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.35, per Dth. (73093)
	 
	 	 
	LOCATION 2:

	 	Delivered to East Ohio Gas Company (EOG) at the
Measuring Stations which are currently dedicated to
the pools and customers of FESC (approx. 290,000 mcf/
month).
	 
	 	 
	PRICE 2:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.75, per Mcf. (73092)
	 
	 	 
	LOCATION 3:

	 	Delivered to Peoples Natural Gas Company (PNG) at the
Measuring Stations which are currently dedicated to
the pools and customers of FESC (approx. 16,000 mcf/
month).
	 
	 	 
	PRICE 3:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.68, per Mcf. (73099)

(continued)

The information contained in this facsimile message is privileged and confidential, and is
intended only for the individual(s) or entity named above who have been specifically authorized to
receive it. If the reader is not the intended recipient, you are hereby notified that any
dissemination, distribution, or copying of this communication is strictly prohibited. If you have
received this communication in error please notify us immediately by phone and return all pages to
our corporate office at the address shown below. Thank you.

 

 

November 17, 2004

	 	 	 
	PERIOD:

	 	November 17, 2004
April 1, 2006 through March 31, 2007 production/calander
periods
	 
	 	 
	LOCATION 4:

	 	All Seller’s production delivered to Columbia Gas
Transmission (TCO) at the Measuring Stations which
are currently dedicated to the pools and customers of
FESC (approximately 300 Dth/month)
	 
	 	 
	PRICE 4:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.23, per Dth. (73101)
	 
	 	 
	LOCATION 5:

	 	Delivered to National Fuel Gas Company (NFGD) at the
Measuring Stations which are currently dedicated to
the pools and customers of FESC (approx. 1500 mcf/
month).
	 
	 	 
	PRICE 5:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.47, per Mcf. (73096)
	 
	 	 
	LOCATION 6:

	 	Delivered to Tennessee Zone 4 (Tenn Z4) at the
Measuring Stations which are currently dedicated to
the pools and customers of FESC (approx. 180,000 Dth/
month).
	 
	 	 
	PRICE 6:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.26, per Dth. (73100)
	 
	 	 
	LOCATION 7:

	 	Delivered to Columbia Gas of Ohio (COH) at the
Measuring Stations which are currently dedicated to
the pools and customers of FESC (approx. 2,500 mcf/
month).
	 
	 	 
	PRICE 7:

	 	Priced each month at the monthly settlement value of
the underlying NYMEX natural gas futures contract at
expiration, plus $0.70, per Mcf (73102)

(continued)

The information contained in this facsimile message is privileged and confidential, and is
intended only for the individual(s) or entity named above who have been specifically authorized to
receive it. If the reader is not the intended recipient, you are hereby notified that any
dissemination, distribution, or copying of this communication is strictly prohibited. If you have
received this communication in error please notify us immediately by phone and return all pages to
our corporate office at the address shown below. Thank you.

Page 2

 

November 17, 2004

PERIOD: April 1, 2006 through March 31, 2007 production/calander periods

ADDITIONAL FLOORS AND TRIGGERS

Buyer is prepared to negotiate price floors and/or triggered fixed prices with Seller for any
portion of the volume contracted above.

Seller is responsible to deliver a minimum monthly volume at each location identified above equal
to the total volume involved at each location in all price-triggered and/or floor-priced portions
of this agreement (currently zero). Seller agrees to keep Buyer economically whole in the event
that Seller’s inability to deliver the minimum monthly volume adversely impacts Buyer’s purchased
gas cost.

Buyer is to buy all production at the above meters. NFGS and TENN Z4 production will be held to a
20% tolerance of the nominated volume.

APPROVED:

	 	 	 	 	 	 	 
	/s/ David A. Frederick

	 	 	 	/s/ Jeffrey C. Simmons Exec VP	 	 
	 

David A. Frederick

	 	 
	 	 

Jeffrey C. Simmons
	 	 
	FirstEnergy Solutions Corp.

	 	 	 	Atlas America	 	 

The information contained in this facsimile message is privileged and confidential, and is
intended only for the individual(s) or entity named above who have been specifically authorized to
receive it. If the reader is not the intended recipient, you are hereby notified that any
dissemination, distribution, or copying of this communication is strictly prohibited. If you have
received this communication in error please notify us immediately by phone and return all pages to
our corporate office at the address shown below. Thank you.

Page 3exv10w14

 

Exhibit 10.14

TRANSACTION CONFIRMATION DATED DECEMBER 14, 2004

BETWEEN ATLAS AMERICA, INC. AND UGI ENERGY SERVICES, INC.

D/B/A/ GASMARK

 

 

Revised EXHIBIT A

TRANSACTION CONFIRMATION

FOR IMMEDIATE DELIVERY

	 	 	 
	Atlas America, Inc.

	 	Date: December 14, 2004
	 

	 	Transaction Confirmation
	 

	 	#:                                        

This Transaction Confirmation is subject to the Base Contract between Seller and Buyer dated
November 13, 2002. The terms of this Transaction Confirmation are binding unless disputed in
writing within 2 Business Days of receipt unless otherwise specified in the Base Contract.

	 	 	 
	SELLER:

	 	BUYER:
	 
	 	 
	Atlas America, Inc.

	 	UGI Energy Services,
	311 Rouser Corp.

	 	Inc. d/b/a GASMARK
	Moon Two, PA 15108

	 	1100 Berkshire
	Attn: Michael Brecko

	 	Blvd., Suite 305
	Phone: 412-262-2830x126

	 	Wyomissing, PA 19610
	Fax: 412-262-3927

	 	Attn: Robert Meder
	Base Contract No.

	 	Phone: 610-373-7989
	Transporter:

	 	Fax: 610-374-4288
	Transporter Contract Number:

	 	Base Contract No.
Transporter:

Transporter Contract Number:

Contract Price $                     /MMBtu or NYMEX LDS plus $.75 payable on Adjusted Mcfs.

Delivery Period: Begin: June 1, 2005 End: March 31, 2007

Performance Obligation and Contract Quantity: (Select One)

	 	 	 	 	 
	Firm (Fixed Quantity):

	 	Firm (Variable Quantity)
	 	Interruptible:
	                     MMBtus/day

	 	2,500 MMBtus/day
	 	Up to                     MMBtus/day
	[       ] EFP

	 	subject to Section 4.2	 	 
	 

	 	at election of	 	 
	 

	 	[       ] Buyer or [       ] Seller	 	 

Delivery Point(s): Various meters located on Dominion East Ohio’s pipeline system

(If a pooling point is used, list a specific geographic and pipeline location):

Special Conditions: Additional walls may be added upon mutual consent of the parties. All gas
produced under this agreement shall be produced from wells located within the state of Ohio. Atlas
America shall have trigger rights to lock in prices. Adjusted Mcfs are the actual Mcfs at the meter
converted to MMBtu’s using a conversion factor of 1.109 to get total MMBtu’s. The total MMBtu’s are
converted to Adjusted Mcfs by dividing the MMBtu’s by a factor of
1.036. These conversion factors are set by Dominion East Ohio and are subject to change by Dominion
East Ohio.

Atlas America has chosen to lock in prices on the volumes produced each month as per the attached
“Confirmation of Price Locks”.

All volumes sold in excess of the locked in volumes shall continue to be priced as per the pricing
clause above.

Seller: Atlas America, Inc. Buyer: UGI Energy Services, Inc., d/b/a GASMARK

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:
	 	Vice President, Gas Supply & Risk Management	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

Copyright (C) 2002 North American

Energy Standards Board, Inc. NAESB Standard 6.3.1 All Rights Reserved Page 1 of 10 April 19, 2002

 

 

Revised EXHIBIT A

TRANSACTION CONFIRMATION

FOR IMMEDIATE DELIVERY

	 	 	 
	Atlas America, Inc.

	 	Date: December 14, 2004
	 

	 	Transaction Confirmation
	 

	 	#:                                         

This Transaction Confirmation is subject to the Base Contract between Seller and Buyer dated
November 13, 2002. The terms of this Transaction Confirmation are binding unless disputed in
writing within 2 Business Days of receipt unless otherwise specified in the Base Contract.

	 	 	 
	SELLER:

	 	BUYER:
	 
	 	 
	Atlas America, Inc.

	 	UGI Energy Services,
	311 Rouser Corp.

	 	Inc. d/b/a GASMARK
	Moon Two, PA 15108

	 	1100 Berkshire Blvd., Suite 305
	Attn: Michael Brecko

	 	Wyomissing, PA 19610
	Phone: 412-262-2830x126

	 	Attn: Robert Meder
	Fax: 412-262-3927

	 	Phone: 610-373-7999
	Base Contract No.

	 	Fax: 610-374-4288
	Transporter:

	 	Base Contract No.
	Transporter Contract Number:

	 	Transporter:

Transporter Contract Number:

Contract Price $                     /MMBtu or NYMEX LDS plus $.385 per Dth

Delivery Period: Begin: April 1, 2006 End: March 31, 2007

Performance Obligation and Contract Quantity: (Select One)

	 	 	 	 	 
	Firm (Fixed Quantity):

	 	Firm (Variable Quantity)
	 	Interruptible:
	                     MMBtus/day

	 	20,000 MMBtus/day
	 	Up to                     MMBtus/day
	[ ] EFP

	 	subject to Section 4.2	 	 
	 

	 	at election of	 	 
	 

	 	[ ] Buyer or [ ] Seller	 	 

Delivery Point(s): Texas Eastern Meter Number 73133, Station Name of Prah and the Joseph Meter
in Market area M2

(If a pooling point is used, list a specific geographic and pipeline location):

 

Special Conditions: Additional wells may be added upon mutual consent of the parties. All gas
produced under this agreement shall be produced from wells located within the Commonwealth of
Pennsylvania. Atlas America shall have trigger rights to lock in prices.

Atlas America has chosen to lock in prices on the volumes produced each month as per the attached
“Confirmation of Price Locks”.

All volumes sold in excess of any locked in volumes shall continue to be priced as per the pricing
clause above.

Seller: Atlas America, Inc. Buyer: UGI Energy Services, Inc.,d/b/a GASMARK

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:
	 	Vice President, Gas Supply & Risk Management	 	 
	 

	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 
	 	 	 	 

	 	 

Copyright (C) 2002 North American

Energy Standards Board, Inc. NAESB Standard 6.3.1 All Rights Reserved Page 1 of 10 April 19, 2002

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