Reviewing, evaluating, and negotiating contracts and agreements on behalf of producers and midstreamers has always been a big part of our business, but this year marks one the busiest as both parties adjust to the new-normal playing field. Shippers and midstream operators will always be codependent, with contracts and agreements between them to lock down the best rates and terms. When these are strategically negotiated, everyone wins. Producers get their supplies to the most lucrative markets and midstream operators earn their fees for processing and transporting those supplies. Then March happened and with it a confluence of fallout conditions that have resulted in pipelines offering fresh incentives for customers to stick with them. Sweeter terms, reduced rates upon contract renegotiation, and creative shipping options may be just the start. As negotiators, we know that preserving relationships is vital for both parties as they adapt and mutate in an uncertain environment for the benefit of each other. Interesting times for those of us on the bargaining end as the cards continue to shuffle.
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Learn more about Reese Energy Consulting and our contract expertise at www.ReeseEnergyConsulting.com.