Force Majeure Declaration with Respect to Deliveries of September 2008 and Any Remaining August 2008
Force Majeure Declaration with Respect to Deliveries of September 2008 andAny Remaining August 2008 NYMEX Natural Gas Contracts
In consideration of the impact of Hurricane Ike, a Delivery Committee panel(the "Committee") convened, Friday September 12, 2008, to review deliveriesin progress related to the NYMEX Natural Gas (NG) Futures Contract for theSeptember 2008 contract month.
The Committee noted that Sabine Pipe Line, which operates the Henry Hubfacility in Louisiana, shut-down all facilities connected to Sabine andissued a Force Majeure declaration that became effective at 9:00 p.m. FridaySeptember 12, 2008 for intraday 2 cycles.
Based upon this shutdown and declaration by Sabine, the Committee determinedto make a finding of Force Majeure with respect to all remaining deliveryobligations in the September 2008 Natural Gas contract month effective as ofthe Force Majeure implementation by Sabine. Further, as certain August 2008NYMEX deliveries were affected by Hurricane Gustav and extended intoSeptember, any of those obligations which may not have been confirmed ascompleted, are also subject to this declaration. Accordingly, any furtheraction as may be made by the Committee will be undertaken pursuant to itsauthority as set forth in NYMEX Rule 220.18, in particular Rule 220.18Section (C)(6). The Committee is currently in close contact with Sabineregarding the handling of all outstanding NYMEX delivery obligations as wellas general conditions at the Henry Hub.
All market participants with outstanding September 2008 NYMEX NG obligationswill be advised of any further decisions of the Committee via their ClearingMembers and through additional Notices To Members posted on the NYMEX website(www.nymex.com). All parties who maintain open NYMEX delivery obligationsshould be in close contact with their clearing members as to the status ofthese obligations. Lastly, all parties have available now, as always, theability to mutually agree to execute an alternative delivery procedurepursuant to NYMEX Rule 220.17(A) for the September 2008 delivery obligations.
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