What is Warranty contracts?
Warranty contracts meaning Gas purchase agreements for the sale of natural gas by a producer to a pipeline company wherein the producer warrants it will have available sufficient gas supplies to meet its commitments over the life of the contract. Generally, the producer does not dedicate gas reserves underlying any specific acreage, lease, or fields to the agreement. Substitution of various sources of gas supply may be permitted according to the terms of the contract. Warranty contracts, by their terms, may vary from the above.