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RS 0.733.134.9 Exchange of letters of 27 January/26 February 2009 between the Swiss Federal Council and the Government of the French Republic on the mutual security of supply of natural gas

Original Language Title: RS 0.733.134.9 Echange de lettres des 27 janvier/26 février 2009 entre le Conseil fédéral suisse et le Gouvernement de la République française relatif à la sécurité mutuelle d’approvisionnement en gaz naturel

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0.733.134.9

Exchange of letters of 27 January/26 February 2009

Between the Swiss Federal Council and the Government of the French Republic on the mutual security of supply of natural gas

Entered into force on 1 Er March 2009

(State 1 Er March 2009)

Original text

The Head of the Federal Department of the Environment, Transport, Energy and Communication DETEC

Bern, 26 February 2009

North Federal Palace

3003 Berne

A Mr Jean-Louis Borloo

Minister of State, Minister of Ecology, Energy, Sustainable Development and Spatial Planning (MEEDDAT)

French Government

Minister of State,

I acknowledge receipt of your letter dated 27 January 2009, which reads as follows:

" Mr. Federal Advisor,
Following the discussions between the representatives of our two states on our mutual security of supply of natural gas, I have the honour, of the order of my Government, to propose that the relations between our two States in this field are settled as follows:
In the preamble, I would like to stress the importance that France attaches to cooperation and solidarity between France and Switzerland in the natural gas sector. The latter has been translated over the years by the many existing links between French (Gaz de France) and Swiss (Gaznat and Gasverbund Mittelland) operators. Both French and Swiss operators were able to design their networks and structure their supply on the basis of this close cooperation embodied in several long-term contractual commitments. Consumers in western Switzerland benefit from access to French underground storage. The contracts state that, in the event of a shortage, the Swiss side will be subject to reductions or interruptions comparable to those applied to public distributions in the east of France. Conversely, several French communes are only fed through the Swiss network, and France is therefore also attached to security of supply.
The development of the French regulatory environment resulting from the transposition of Directive 2003-55 on common rules for the internal gas market has made it necessary to set up third-party access to underground storage Transparent and non-discriminatory through the provisions of the Act of 3 January 2003 and its implementing decree 2006-1034 of 21 August 2006 concerning access by third parties to the storage of natural gas. This regulation takes place in a context in which the European authorities are particularly vigilant about the proper functioning of the market and the absence of discrimination, while admitting security of supply and International solidarity.
In this context, the Swiss and French governments affirm their desire to pursue solidarity and cooperation between the two states in the gas field, while falling within the French regulatory framework of the requirements European. I note that the decree of 21 August 2006 refers to agreements between France and member states of the European Free Trade Association. It is in this context that this letter sets out the principle that, in the event of a shortage, the French authorities would ensure that, in the event of interruptions or reductions in access to storage, the constraints on the Swiss and French consumers concerned are strictly comparable. With regard to situations of scarcity, the provisions to be adopted would be subject to review Ad hoc The situation as provided for in s. 18 of the Act of 3 January 2003 which opens the possibility of provisional measures. In accordance with the principle set out above, the possible interruptions or reductions applied for the Swiss part in access to storage, irrespective of its causes, would be strictly comparable to those applied to consumers French.
Although the aforementioned suppliers of Swiss consumers do not market gas in France today, they intervene effectively in the French market, both in terms of transport and storage. According to the provisions of Decree 2006-1034 of 21 August 2006, it is possible to guarantee access to a volume of storage capacity for the satisfaction of the needs of the Swiss consumers concerned, on the understanding that this volume must be Effectively reserved by operators. In these circumstances, it is essential that a transparent framework be defined by this Agreement, so that the French authorities and the Swiss and the gas operators can have visibility on these storage capacity reservations.
The requirements of the aforementioned Decree and the modalities for the allocation of these capacities are set out in the Annex to this letter, which is jointly agreed by the Federal Energy Board and the Directorate General for Energy and Climate. This Annex freeens the Swiss requirements at a maximum value corresponding to the current contractual situation; these values cannot be exceeded.
As regards the duration of the application of the foregoing provisions and without prejudice to the development of the commercial relations between the undertakings concerned, you will understand that, for access to the storage of French gas, I cannot To ensure greater visibility than the French Government now has for its own consumers.
In those circumstances, I propose that those provisions be concluded until 30 September 2016 (end of the gas year), with the exception of those relating to the principle of equal treatment of Swiss and French clients, concluded up to 30 September 2030. I propose that they may be renewed by tacit renewal, for a period of seven years from 30 September 2016, respectively 2030, unless terminated by one of the Parties on written notice of twelve months.
I also propose that the representatives of the French and Swiss energy ministers examine, as appropriate, at the request of either of the Parties, the clauses contained in the Annex to this letter and may This opportunity to amend it by mutual agreement, if necessary.
I would be obliged to inform me if the above provisions have been approved by your Government. If so, this letter and your reply constitute an Agreement between our two Governments, which will enter into force on 1 Er Day of the month following the date of your reply."

I have the honour to inform you of my Government's agreement on the above provisions and on the Appendix which is mentioned in this letter. In these circumstances, this Agreement shall enter into force on 1 Er March 2009.

I would ask you, Minister of State, to accept the assurance of my high regard.

Annex

1. Beneficiaries

As agreed in the above-mentioned exchange of letters, consumers of natural gas located in western Switzerland are recognized as priorities within the meaning of Art. 3 of Decree No. O 2006-1034 for access to French underground storage capacity and will be treated in the event of a shortage, following a principle of equality with French consumers of public distributions located in the east of France.

It is through operators who supply them that the above Swiss consumers benefit from access to storage capacity and security of supply in accordance with pre-existing commitments to the implementation of the The opening of the European energy markets.

2. Storage Capacities for Swiss Consumer Food

The storage capacity required for the supply of Swiss consumers is defined in terms of volume (TWh) and flow rate (GWh/d). They are the subject of a declaration by the Swiss operators concerned with the French Minister and the Swiss Federal Councillor for Energy before 1 Er December each year.

These storage capacities cover the commitments of Gaz de France with its Swiss counterparts GAZNAT S.A. (Gaznat) and Gasverbund Mittelland AG (GVM). They include, on the one hand, the storage capacity contracted by the company Gaznat to Gaz de France, 1.51 TWh and 37.44 GWh/d and the storage capacity necessary to honour the supply contracts between Gaznat and Gaz de France. France and GVM and Gaz de France, with a flexibility of supply of Gaz de France of 114 %, respectively 0.609 TWh and 4.03 GWh/d and 0.898 TWh and 5.94 GWh/d, respectively.

The storage capacities likely to be covered by this Annex shall therefore not be greater than 3.017 TWh in volume and 47.41 GWh/d in circulation rate available on 1 Er February after 55 % of the useful volume was fired.

3. Storage Capacity Subscription Method

The storage capacity that is defined can be purchased from the storage manager concerned alternately:

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By the operators supplying the Swiss consumers referred to in the letter, provided that they have an authorisation for supply as defined in Decree No O 2004-250 of 19 March 2004,
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By the agent (s) of their choice, authorised supplier (s) of natural gas in France.

The Swiss operators shall inform the French Minister and the Swiss Federal Councillor responsible for the energy of the modality they hold and of the agent (s) concerned, as well as of the volumes and debits that they wish to subscribe to.

In order to have access to these capacities, operators supplying Swiss consumers or their agents shall apply to the storage manager concerned in accordance with the provisions of Art. 6 of Decree No. O 2006-1034 above. A copy of the request is also addressed to the French Minister and the Swiss Federal Councillor for Energy.

The demand for storage capacity in the coming year must be sent to the aforementioned manager for 1 Er December in accordance with its Rules of Allocation.

4. Monitoring and Annual Report

In case of development, the Swiss Federal Councillor for Energy shall inform his French counterpart before 1 Er February of each year the storage capacity necessary for the security of supply of the Swiss consumers benefiting within the limit of the amount indicated in point 2. Of this Annex.

The operators supplying the relevant Swiss consumers or their representatives shall be liable for a report on the use made of the storage capacity they have subscribed, transmitted before 1 Er December of each year to the French Minister for Energy.

5. Shortage Management

The storage capacity available today in France allows to satisfy all the needs listed in art. 3 of Decree No. O 2006-1034 above for the next three years.

The storage needs of final consumers located on French territory are estimated annually by the Minister for Energy. Storage capabilities are distributed among providers through their access rights to storage capabilities. These capacities are geographically allocated to the various underground storage sites of French operators through their allocation regulations.

Several cases must be distinguished.

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In the first case, a local shortage, where suppliers' requests to the storage site (s) where storage capacity under this bilateral agreement are desired, suppliers will be served on the Pro-rata Of their application in accordance with para. 1 of the art. 9 of the decree n O 2006-1034 above: " the underground storage operator reduces the reserved storage capacity of each supplier in proportion to the reserved useful volumes, taking into account the order of priority established for the satisfaction of the requirements listed in Art. 3 ". The unfilled balance may be purchased on another storage site. In any event, on the one hand, the shortage is limited to a site or a grouping of storage, the capacity necessary for the food of Swiss consumers may be subscribed to another storage site, and on the other hand, the Of these capacities at another site must be such that the availability of natural gas for Swiss suppliers is ensured.
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The second case, known as an overall conjunctural shortage, is that or the access rights to storage capacity exceed the physically available capacity. In such a case, provided for by para. 3 of Art. 9 of the decree n O 2006-1034, the Minister responsible for energy takes the necessary precautionary measures to restore balance supply-demand for storage capacity: " the rights of suppliers are reduced as necessary, by order Ministerial, so that the sum of the storage rights allocated in volume and volume of recirculation is equal to the available capacity once the requirements set out in para. 1 of the art. 3 ".
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Finally, if this shortage finds its cause in a threat to France's natural gas supply security, art. 18 of the Act of 3 January 2003 would apply through national emergency measures. In this event, a meeting between the French authorities and the Swiss authorities could be arranged quickly.

In these situations, Swiss consumers will be treated as French consumers. The Swiss authorities and the Swiss operators concerned shall be informed by the Minister responsible for energy of the application of these measures as soon as possible.

6. Forecasting investment in storage and cooperation between France and Switzerland

The development of storage capacity by operators is the subject of a multi-annual indicative plan for investment in the gas sector in France.

On the occasion of the preparation of future plans, the Swiss Authorities will be invited by the French authorities to take part in this work, in particular to express the demand for underground gas storage capacity for Swiss needs. The Swiss authorities will be able to involve the Swiss operators concerned.


State 1 Er March 2009