Common use of Fuel Management Clause in Contracts

Fuel Management. FRONTERA hereby appoints EPMI as the Fuel Manager (Fuel Manager) and FRONTERA's agent as necessary for all natural gas purchase agreements and transportation agreements for the Facility. Consistent with or as required by the Fuel Management Plan, EPMI shall arrange, on behalf of FRONTERA, the purchase and delivery of all natural gas, together with all required transportation services, necessary for operation of the Facility. EPMI shall be responsible for making all arrangements on behalf of FRONTERA for the acquisition and delivery of natural gas, subject to the approval and acceptance of any agreements by FRONTERA. It is expressly understood that on the Effective Date, certain natural gas purchase agreements, together with certain firm and interruptible transportation agreements are effective under which, FRONTERA is obligated to purchase and transport certain quantities of natural gas. Within Five (5) Business Days following the Effective Date, EPMI shall manage and administer the natural gas purchases and transportation agreements, consistent with the Fuel Management Plan, together with such recommendations as EPMI, in the exercise of its skill and experience, believes commercially reasonable and necessary; that will provide natural gas to the Facility at a cost which when delivered to the Facility will be the lowest achievable cost delivered to the Facility. The Risk Management Committee shall review and approve the Fuel Management Plan, and shall, from time to time, change modify or amend, the Fuel Management Plan to assure, to the greatest extent possible, that EPMI is managing the natural gas supplies and transportation commitments to produce the lowest possible Fuel Cost to FRONTERA. As Fuel Manager, EPMI shall make such nominations, and schedule delivery of natural gas necessary for operation of the Facility so as not to interfere with operation of the Facility. Frontera and EPMI agree that the Fuel Management Plan as provided in Section 10(a) shall include an obligation on the part of EPMI to provide historical and future natural gas price information; historical and future transportation cost information; and procedures necessary for determining the appropriate natural gas acquisition strategy taking into consideration long term, intermediate term and short term natural gas purchases and transportation. In addition, EPMI shall provide periodic information regarding regulatory changes that have an effect on natural gas purchases or transportation. In assessing and measuring EPMI's performance under Section 6(a), Frontera acknowledges that EPMI's own transactions may, at any time, be opposite of some or all of FRONTERA's natural gas positions, including an overall position that may be long or short; and (ii) the Fuel Management Plan may require EPMI to transact in natural gas in a more conservative manner for Frontera than EPMI will for its own account. Notwithstanding the above, in performing under this Agreement, and subject to the Fuel Management Plan, and FRONTERA's risk tolerances (as provided in the Trading and Risk Policy), the following standards shall apply to EPMI: EPMI shall endeavor to obtain natural gas and transportation at the lowest delivered price at the time natural gas is required by the Facility. EPMI's natural gas activities on its own behalf shall not disadvantage Frontera relative to EPMI's other natural gas transactions made on a reasonably contemporaneous basis on behalf of other parties or fore EPMI's own account. EPMI shall afford Frontera any identified natural as purchase or transportation opportunities to the same extent and on an equivalent basis as such opportunities are made available to other parties or for EPMI's own account.

Fuel Management. FRONTERA hereby appoints EPMI as the Fuel Manager (Fuel Manager) and FRONTERA's agent as necessary for all natural gas purchase agreements and transportation agreements for the FacilityFacility and agrees to execute any and all documentation reasonably necessary to evidence the same. Consistent with or as required by the Fuel Management Plan, EPMI shall arrange, on behalf of FRONTERA, the purchase and delivery of all natural gas, together with all required transportation services, necessary for operation of the Facility. EPMI shall be responsible for making all arrangements on behalf of FRONTERA for the acquisition and delivery of natural gas, subject to the approval and acceptance of any agreements by FRONTERA. It is expressly understood that on the Effective Date, certain natural gas purchase agreements, together with certain firm and interruptible transportation agreements are effective under which, FRONTERA is obligated to purchase and transport certain quantities of natural gas. Within Five (5) Business Days following the Effective Date, EPMI shall manage and administer the natural gas purchases and transportation agreements, consistent with the Fuel Management Plan, together with such recommendations as EPMI’s use of Prudent Fuel Marketing Practices (some standard which is similar to the Prudent Marketing Practices), in the exercise of its skill and experience, believes commercially reasonable and necessary; that will provide natural gas to the Facility at a cost which when delivered to the Facility will be the lowest achievable cost delivered to the Facility. The Risk Management Committee shall review and approve the Fuel Management Plan, and shall, from time to time, change modify or amend, the Fuel Management Plan to assure, to the greatest extent possible, that EPMI is managing the natural gas supplies and transportation commitments to produce the lowest possible Fuel Cost to FRONTERA. As Fuel Manager, EPMI shall make such nominations, and schedule delivery of natural gas necessary for operation of the Facility so as not to interfere with operation of the Facility. [See change proposed to the end of Section 9] Frontera FRONTERA and EPMI agree that the Fuel Management Plan as provided in Section 10(a) shall include an obligation on the part of EPMI to provide historical and future natural gas price information; historical and future transportation cost information; and procedures necessary for determining the appropriate natural gas acquisition strategy taking into consideration long term, intermediate term and short term natural gas purchases and transportation. In addition, EPMI shall provide periodic information regarding regulatory changes that have an effect on natural gas purchases or transportation. In assessing and measuring EPMI's performance under Section 6(a106(a), Frontera FronteraFRONTERA acknowledges that EPMI's own transactions may, at any time, be opposite of some or all of FRONTERA's natural gas positions, including an overall position that may be long or short; and (ii) the Fuel Management Plan may require EPMI to transact in natural gas in a more conservative manner for Frontera FronteraFRONTERA than EPMI will for its own account. Notwithstanding the above, in performing under this Agreement, and subject to the Fuel Management Plan, and FRONTERA's risk tolerances (as provided in the Trading and Risk Policy), the following standards shall apply to EPMI: [See changes proposed to Section 6] EPMI shall endeavor to obtain natural gas and transportation at the lowest delivered price at the time natural gas is required by the Facility. EPMI's natural gas activities on its own behalf shall not disadvantage Frontera relative to EPMI's other natural gas transactions made on a reasonably contemporaneous basis on behalf of other parties or fore EPMI's own account. EPMI shall afford Frontera any identified natural as purchase or transportation opportunities to the same extent and on an equivalent basis as such opportunities are made available to other parties or for EPMI's own account.