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GAS CONTRACTS: THEN AND NOW

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January 12, 2006

Our industry has seen tremendous progress in the accuracy of natural gas measurement since the implementation of electronic gas measurement (EGM) in the 1980s. With respect to orifice measurement, the transition from mechanical chart recorders to EGM had an unprecedented impact on our ability to measure natural gas and adjust to market demands throughout the country. In order to realize the benefits of EGM, gas contracts should include measurement provisions specific to this technology and its downstream data management requirements. Furthermore, they should represent both buyer and seller in the most equitable manner possible. This writing discusses some of those challenges while recommending more up-to-date measurement provisions for gas contracts

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