Common use of Basis Difference Clause in Contracts

Basis Difference. This is the difference, which may exist for any period between the Exchange Price and the Index Price. The Parties acknowledge that the Exchange Price and Index Price vary based upon market conditions. Under the terms of this Addendum the Parties may agree to price certain quantities of gas to be delivered in the future under this Agreement by fixing, or "locking in", either or both, of the Exchange Price and the Basis Difference. If the Parties do not fix or "lock in" either the Exchange Price or the Basis Difference, then that pricing factor shall continue to vary with market conditions and shall be referred to as "Floating". In light of this background, the Price for a specified quantity of gas for specified delivery period(s) may be priced by agreement of the Parties according to any one of three formulas, which are as follows:

Basis Difference. This is the difference, difference which may exist for any period between the Exchange Price and the Index Price. The Parties acknowledge that the Exchange Price and Index Price vary based upon market conditions. Under the terms of this Addendum the Parties may agree to price certain quantities of gas to be delivered in the future under this Agreement by fixing, or "locking in", either or both, of the Exchange Price and the Basis Difference. If the Parties do not fix or "lock in" either the Exchange Price or the Basis Difference, then that pricing factor shall continue to vary with market conditions and shall be referred to as "Floating". In light of this background, the Price for a specified quantity of gas for specified delivery period(s) may be priced by agreement of the Parties according to any one of three formulas, formulas which are as follows: