So in summary do we agree that we think CTP gets paid for the gas delivered to customers (probably a month in arrears) and any unused capacity under the take or pay contract is settled annually.
Usually these contact work like this:
Set annual take or pay quantity = 1,000
Price = $8 (broken down as $5 for available capacity and $3 for delivery)
Therefore if a customer only takes 800 units in a year the revenue calculation is this:
1000*$5 + 800*$3 = $7,400
Applying this to CTP, they are receiving the 800*$3 annually and the 1000*$5 monthly in arrears
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