© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy -Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omission s excepted.
**DRAFT**
Transaction Confirmation
This Transaction Confirmation is delivered pursuant to and in accordance with a gas supply agreement ("Gas Supply Agreement"), effective TBD, by and between Constellation NewEnergy-Gas Division, LLC ("Constellation") and City of Stockton ("Customer"), and is subject to and made part of the terms and conditions of such Gas Supply Agreement.
Special Condition: This Transaction Confirmation is not effective and binding upon the parties hereto unless signed by both parties.
Trade Date: TBD
Buyer: City of Stockton
Seller: Constellation NewEnergy - Gas Division, LLC (CNEGAS) Facility Name: City Of Stockton
Delivery Period: 10/1/2024 - 9/30/2027 (inclusive)
Nature of Obligation: Firm - "Firm" means deliveries and receipts may not be interrupted without liability except for reasons of Force Majeure regardless of the capacity type Constellation uses to receive such gas.
Deal Type: Physical Index
Index Price: To be based on Natural Gas Intelligence's ("NGI") Bidweek Survey, under the column heading "AVG" on the first business day of each month during the calculation period for PG&E Citygate.
Year 2024 Year 2025 Year 2026 Year 2027
Contract
Month
Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price Fixed Amount
(MMBtu)
Price
January 1,542.0 $0.26240 1,542.0 $0.26240 1,542.0 $0.26240 February 1,125.0 $0.26240 1,125.0 $0.26240 1,125.0 $0.26240 March 1,491.0 $0.26240 1,491.0 $0.26240 1,491.0 $0.26240 April 773.0 $0.26240 773.0 $0.26240 773.0 $0.26240
May 272.0 $0.26240 272.0 $0.26240 272.0 $0.26240
June 199.0 $0.26240 199.0 $0.26240 199.0 $0.26240
July 219.0 $0.26240 219.0 $0.26240 219.0 $0.26240
August 185.0 $0.26240 185.0 $0.26240 185.0 $0.26240
September 170.0 $0.26240 170.0 $0.26240 170.0 $0.26240
October 170.0 $0.26240 170.0 $0.26240 170.0 $0.26240
November 174.0 $0.26240 174.0 $0.26240 174.0 $0.26240
December 933.0 $0.26240 933.0 $0.26240 933.0 $0.26240
US$ Rounded to five decimal places
Plus applicable taxes
Account Manager: Hughes, Jennifer L DEAL NO. TBD
(270) 316-2691
[email protected]
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy -Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omission s excepted.
Buyer acknowledges and understands that, in connection with this transaction, Seller may be paying a fee to a third party. The fee, if any, would be included in Buyer's price and would be charged by a broker/agent representing Buyer, a broker/agent representing Seller, or an association/referrer who helped facilitate this transaction.
Incremental Pricing: For all additional quantities required by Customer, in excess of the fixed quantities listed herein in combination with any other nominated quantities, or for gas quantities bought back from Customer by Constellation due to Customer’s requirements being less than the total nominated volumes each month, the price for such additional purchases or buybacks shall be based on the then current market price, as determined by Constellation in its reasonable discretion.
If Constellation and Customer have previously entered into any commodity transaction(s) for the Facility (the "Previous Transaction") that overlap one or more of the delivery months covered in this Transaction Confirmation (the "Overlapping Month(s)"), the incremental gas pricing in this Transaction Confirmation shall apply to the Overlapping Months instead of any conflicting incremental gas pricing associated with the Previous Transaction.
Alternative Pricing Mechanism: The above described index pricing may be amended by a mutually agreed to fixed, NYMEX based, price arrangement at any time during the Delivery Period herein. Upon expiration of such a fixed price arrangement before the end of the Delivery Period, the pricing mechanism shall return to the index pricing of the Delivery Period herein.
NYMEX Trigger Rights: Customer has the right to trigger the NYMEX price for any month(s) at any time during the Delivery Period, prior to 12:00 p.m. EST/EDT on the final day of NYMEX settlement for each applicable month.
Pipeline: PG&E
Delivery Point(s): PG&E-CITYGATE
Utility: PG&E
LDC Account No(s): 6512160005
Seller's planned billing method for this facility is to bill Buyer based on: Actual Consumption Change In Law: Constellation may pass through or allocate, as the case may be, to Customer any increase or decrease in Constellation’s costs related to the natural gas and related products and services sold to Customer that results from the implementation of new, or changes (including changes to transportation rates) to existing, Laws, or other requirements or changes in administration or interpretation of Laws or other requirements. “Law” means any law, rule, regulation, ordinance, statute, judicial decision, administrative order, pipeline or utility business practices or protocol, pipeline or utility tariff, or rule of any commission or agency with federal jurisdiction or jurisdiction in the state in which the facility is located. Such adjusted amounts will be included in subsequent invoices to Customer.
Default Service : Should Constellation continue to deliver to Customer beyond the term of this Transaction Confirmation, said deliveries will be made for successive 1 month terms (each an "Extension Term"), until terminated by either party by giving written notice of termination not less than 30 days prior to the expiration of the then-current Extension Term. The price for gas delivered during the Extension Term(s) will be based on market prices as determined by Constellation. Unless otherwise provided by Customer, Constellation will determine Customer's monthly nomination in a commercially reasonable manner based upon Customer's historical usage data.
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy -Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omission s excepted.
(SIGNATURE BLOCKS FOLLOW ON NEXT PAGE)
EXHIBIT 3
© 2022 Constellation Energy Resources, LLC. The offerings described herein are those of either Constellation NewEnergy -Gas Division, LLC or Constellation NewEnergy, Inc., affiliates of each other.
Brand names and product names are trademarks or service marks of their respective holders. All rights reserved. Errors and omission s excepted.
Please return via the DocuSign E-Signature process.
Constellation NewEnergy-Gas Division, LLC City of Stockton By: By:
*CustomerSignature1
Name: Amanda Stewart Name: *CustomerSignerName1
Title: Vice President- Retail Ops Title: *CustomerSignerTitle1 Date: Date: *CustomerSignedDate1
Customer ID RG-44573882
Contract No.
Deal No. TBD
EXHIBIT 3