Common use of Base Prices Clause in Contracts

Base Prices. (a) The Base Price for the Initial Commitment shall be $1.55 per Mcf. (b) The Base Price for all Gas delivered after the Initial Commitment is exhausted shall be $1.35 per Mcf. 10.1 The Price Index (a) The Price Index will be used to calculate the Annual Base Prices of the Initial, Annual Additional and Final Additional Commitments. (b) The Price Index is a fraction. The numerator is the daily average price per barrel of Light Sweet Crude Oil Futures (“LSCOF”) for the quarter ending on September 30 of the Year prior to the Year for which the Annual Base Price is being calculated. The denominator is $18.00 per barrel. (c) The average price of LSCOF shall be determined from prices for “CRUDE OIL, Light Sweet” futures contracts traded on the New York Mercantile Exchange or its successor. The daily average price of LSCOF shall be the sum of the “Settle” prices reported in the Wall Street Journal or its successor for (i) July contracts for each day that July contracts are reported as the contracts for the Current Trading Month, plus (ii) August contracts for each day that August contracts are reported as the contracts for the Current Trading Month, plus (iii) September contracts for each day that September contracts are reported as the contracts for the Current Trading Month, divided by the total number of days that such “Settle” prices are reported. “Current Trading Month” means the final month in which a contract can be traded.