The lawyers in Haynes and Boone’s Commodities Trading and Finance practice help clients at all stages of commercial transactions involving commodities, especially in the energy industry, and including significant experience in metals and soft commodities. We understand the legal, commercial and operational aspects of energy origination and trading, as well as all available financing options and financial derivatives, and the regulations that govern these types of transactions.
Our team routinely works with clients in the oil, natural gas, bio-fuels, petroleum products, coal and electricity markets, including upstream, midstream and downstream sectors of the energy industry, with particular experience in the areas of physical supply transactions, transportation and storage, financial derivatives transactions, as well as renewable energy sources and related environmental attributes, such as RECs and RINs.
We provide a variety of services to our trading clients, including:
- Full coverage of physical and financial commercial trading spaces, including purchase, sale or exchange contracts and related matters;
- Coverage of storage and transportation operations, such as pipeline, vessel, rail and truck;
- Master agreements, including industry form agreements such as ISDA, EEI, LEAP and NAESB;
- Import and export matters, including obtaining government licenses;
- Credit-related matters, including guarantees, letters of credit and other credit support arrangements, such as intercreditor agreements, master netting arrangements, and the use of derivatives in support of project financing and borrowing base credit facilities;
- Extraction and processing arrangements such as operating and development agreements;
- Supply chain finance, including bills of exchange and letters of credit; and
- Commercial arrangements for infrastructure projects to support energy and mining development, such as plants and pipelines.
We advise banks and other financial services company lenders as well as commodities-related borrowers, issuers, buyers and sellers considering a variety of options for financing, from traditional to innovative, as well as alternative options involving monetization and intermediation structures. Our counsel begins at deal inception and structuring, continuing through all stages of the transaction to closing and beyond.
Clients benefit from our lawyers’ experience as in-house counsel at leading global energy companies and other international businesses. We bring a sophisticated, creative and pragmatic approach to successfully handling these deals, both in the United States and abroad.
Our team assists clients across the spectrum of finance options specific to commodities, including:
- Borrowing base-secured financing, including reserve based lending and specialty products that allow lenders to give downstream marketing and trading borrowers value to the forward book;
- Production payment financing, including volumetric production payment (VPP);
- Prepay financing structures;
- Inventory monetization, including true sale, and intermediation structures, including supply, offtake and asset intermediation; and
- Project and export credit agency financings.
Depending on the commodities involved in a given transaction, a wealth of state, federal and international regulatory agencies may become involved. We are very familiar with these agencies, understanding their roles and routinely advising clients on current and new rules from both a business and legal perspective.
Our regulatory services relating to commodities trading and finance include:
- Licensing, bonds and permitting, including import and export licenses and bonds and environmental permitting;
- Reporting, recordkeeping, registration and tariff-filing requirements, including customs, RINS (Part 80 of EPA regulations), Dodd-Frank (CFTC), power and natural gas (FERC) and others;
- Internal investigations, voluntary disclosures and regulatory compliance programs and training;
- Representation in regulatory enforcement investigations before FERC, CFTC and other agencies; and
- Sanctions and embargo compliance.