CONTRACTING PARTY’S AGREEMENT

All market participants are required to execute the standardized Contracting Party's Agreement (the "CPA") with Natural Gas Exchange Inc. The CPA contains all of the contract terms necessary to allow market participants to trade, clear and settle physical, swap and option instruments with NGX. The CPA provides standardized definitions, terms and conditions for electronic trading, financial and collateral requirements, performance obligations and default remedies. The CPA is amended from time to time with notification of any amendment provided directly to each market participant. All amendments to the CPA are filed with NGX's lead regulator, the Alberta Securities Commission.

The CPA is structured as follows and may be downloaded here:
Schedules:

A - Fee Schedule
B - Mediation and Arbitration
C - Risk Management Policy
D - NGX Product List
E - Natural Gas Oil and Electricity Swaps and Options
F - Physical Gas Transactions - Canadian Delivery Points
G - Physical Gas Transactions - U.S. Deilvery Points with Mediated Delivery Nominations
H - Physical Oil Transactions
I - Bilateral Transactions
Market participants must meet the following criteria:

All Entities must be an eligible party as specified in Article 2.3 of the CPA. Specifically they must be a "corporation, partnership, organization, trust or other business entity with a net worth exceeding $C 5,000,000 or total tangible assets exceeding $C 25,000,000 as shown on its latest balance sheet, or has a majority of its voting shares owned directly or indirectly by one or more of any such business entities and comply with any other conditions or requirements imposed by Exchange". Companies that do not meet the financial requirements must provide a guarantee in the minimum amount of $C 5,000,000 from a Credit Support Provider as well as financial statements demonstrating that the Credit Support Provider meets the requirement of a net worth exceeding $C 5,000,000 or total tangible assets exceeding $C 25,000,000.

ICE Agreement – In addition to the above, participants must have executed and maintained in good standing at all times a Participant's Agreement with Intercontinental Exchange, Inc. There are no incremental ICE fees for participants who wish to access NGX markets.

U.S. Status – In addition to the above, market participants must be, to the extent required by U.S. law, an "eligible contract participant", an "eligible swap participant" and an "eligible commercial entity" with respect to each Transaction under the CPA as applicable.

Ontario Residents – In addition to the above, market participants that are Ontario residents must also be an "accredited investor" as defined in Ontario Securities Commission Rule 45-106.

Physical Contracts – In order to trade physical instruments, market participants must meet certain requirements. Specifically, market participants must have either a title transfer, firm or interruptible agreements with the hub operator or similar ability to make or take delivery. It should be remembered that all transactions on NGX are firm.

Swap and Option Instruments – Market participants that trade in natural gas or electricity swap or option instruments are not required to hold transport capacity.
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