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portant additional nuances that address certain risks specific to CCUS projects . In each case , the provisions of the applicable agreement will need to be tailored to address the facts and circumstances involved with the project itself and the different participants who are parties to the agreement .
As with many gas supply and gas purchase agreements in the midstream space , these CO 2 Supply and Offtake Agreements will normally address the following general topics , among others :
• Required buildout of project facilities ( in-service deadlines , facility specifications and requirements , permitting and approval requirements , and remedies for the failure to meet deadlines or the failure to build ( or maintain ) facilities in accordance with required specifications );
• Fees for CO 2 delivered or stored pursuant to the agreement ;
• Service levels (“ firm ” vs . “ interruptible ”) for delivery obligations and capacity for storage ;
• Force Majeure and change in law provisions which excuse performance of obligations in certain circumstances ( scope of circumstances constituting a “ Force Majeure ” event or a change in law , termination rights for prolonged events , obligations to remedy or adjust the agreement );
• Required specifications for the quality , temperature , and pressure of the CO 2 delivered ;
• Measurement of delivered CO 2 and testing of measurement equipment ;
• Custody and control of CO 2 delivered under the agreement ( at what point does it transfer );
• Division of responsibility and liability for CO 2 delivered under the agreement and for the facilities owned by each party ;
• Confidentiality obligations with respect to information to which each party has access to pursuant to the agreement ; and
• Obligations to maintain appropriate levels of insurance for the benefit of the other parties involved in the project .
One of the most material issues in any legal arrangement is the creditworthiness of the parties and their ability to stand behind their respective obligations under the agreement . While diligence regarding the financial and operational wherewithal of each of the participants in a CCUS project should occur prior to the commencement of the project , it is also important to provide contractual mechanics that seek to maintain the credit profile of the parties to each agreement ( or that provide remedies in the event one party can no longer effectively stand behind its obligations ).
In circumstances where a party to an agreement has limited resources ( such as when a special purpose vehicle is used ), a guarantee of that party ’ s obligations from more creditworthy affiliates or capital sponsors should be obtained . Alternatively , in these situations , related parties may grant a lien on certain