“Where a party and another party regularly buy and sell INR with each other, it is useful for them to reach agreement on the terms and conditions governing their business relationship, such as transfer of ownership, buyer`s remedies for invalid or defective INR, seller`s remedies for buyer`s inability to accept or pay, the parties` limitations of liability, among others. “Leap said today in a press release. The RIN contract document can be downloaded free of charge from the leAP (www.energyleap.org/…), the group said. framework contracts, such as the LEAP RINs Master Agreement, are used by counterparties for a variety of reasons, including: to obtain an agreement on legal, credit and operating conditions; simplification of the transaction; and facilitate the electronic comparison of trades. Home / News / New RNs Master and Single Trade Agreement Version 2.0 RINs are now available credits used by refineries, mixers and importers to prove compliance with the annual commitments of the Renewable Fuels standard for renewable fuels. Copyright 2013 DTN/The Progressive Farmer. All rights reserved. . STREATOR, Ill. (DTN) — Leadership for Energy Automated Processing said Friday, Feb.
2, that the legal LEAP Master Agreement for Purchasing and Selling Renewable Identification Numbers is now available. Once a LEAP RINs master agreement has been executed, transactions will be simplified, as individual trade confirmations should only contain the economic conditions of a trade, LEAP said. The LEAP RINs Master Agreement and the RINs Single Trade Agreement and their new versions were prepared by a committee composed of representatives of LEAP member companies and non-participating companies. The Panel finds that the agreements constitute an impartial set of commercial terms that create legal and operational clarifications on the rights and obligations of the buyer and seller of RINs.  Proposals may be reviewed and adapted by market participants according to their individual business and legal objectives for each transaction. Parties should consult with their own lawyer and other professional advisors when using the proposal to conduct transactions. LEAP`s mission is to promote efficient and reliable transaction processing in the energy trading sector. The new versions have been published to address: (1) the affirmative defense and 2% limited exemption for the replacement of invalid Q-NRNs under the Quality Assurance Program (QAP); and (2) correct a wording error in paragraph 2 of section 7.2. The LEAP Working Group considered the benefits of deducting the buyer`s 2% exemption from the seller`s obligation to replace invalid Q-NRNs, but a consensus eventually emerged that the benefit of the buyer`s 2% exemption should not be transferred to the seller.
The main reason for this decision was that: (i) the seller is probably the most culpable party (or at least is in a better position to determine the validity of the NRIs in relation to the buyer), (ii) the original intention of the 2% exemption was to benefit the buyer and not the seller; and (iii) the difficulty of verifying the number of invalid Q-INRs would be covered by the buyer`s 2% exemption, in addition to how the buyer distributed the 2% deductible among multiple sellers. . . .