This is the content of an email: Our contract with IGS provides that for any agreement identified by IGS and executed, TW will pay a one-time incentive fee of 3% of the first $15 million of net present value, 2% of the next $10 million of net present value, etc. The Southern contract associated with the Gallup Expansion is at a rate of $0.205 for 25,000 Dth/d for 5 years. Using a discount factor of 15%, the net present value of the contract is $6,270,625, so IGS's commission would be $188,118.75. Since the contract does not specify how NPV will be calculated (I believe we purposely omitted this for whatever reason), we will need to agree on a rate that is fair given the nature of and risk associated with the project. We should probably use whatever is standard in the industry for this type of project, if that's possible to determine. I have a call in to James Centilli for his recommendation in this regard, and will let you know what he says.
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IGS