Natural Gas Ventures
a New Master Limited Partnership Company now formed
www.NaturalGasVentures.com


Natural Gas Ventures, a new MLP company, is focused on:

          The Right People doing the right things, acquiring the right assets, and doing so with lower lifting and production costs
          than our competitors. More specifically, one of our goals is to become a leader in the natural gas sector in terms of having
          one of the lowest lifting costs per Mcfe of natural gas production ~ $1.00/Mcfe or less along with a Finding & Development
          Costs of no more than $1.00/Mcfe.

The company is reviewing several “vehicles” for securing capital, including corporation type, state of incorporation as well as use of Master Limited Partnerships (MLPs) for acquisitions of Midstream Assets, Power Purchase Agreements (PPAs) for financing; Cogeneration, Gas-To-Power and Trigeneration plants.

A brief discussion on MLPs and PPAs follows.


What are Master Limited Partnerships?

Master Limited Partnership (MLPs) are limited partnerships that are publicly traded on a securities exchange.

MLPs combine the tax benefits of Limited Partnerships with the liquidity and protection/oversight of a publicly traded security.

Master Limited Partnerships are limited by regulation to apply to specific businesses - most notably - natural resources, including;  oil and natural gas extraction and transportation.

To qualify for MLP status, a partnership must generate at least 90 percent of its income from "qualifying" sources/resources. For many Master Limited Partnerships, this includes activities related to the production, processing or transportation of oil, natural gas and coal.

Master Limited Partnerships pay their investors through Quarterly Required Distributions or QRDs.  The amount of the QRDs is stated in the contract between the Limited Partners (the investors) and the General Partner (the managers). Failure of the General Partner to pay the quarterly required distributions constitutes a default of the MLP Agreement.

Because of the stringent provisions on Master Limited Partnerships and the QRD, the majority of all Master Limited Partnerships are pipeline businesses, and natural gas companies engaged in the "midstream" oil and natural gas sector, which generated  a reliable and steady income from the oil and natural gas sector.

Because MLPs are a partnership, there is no corporate income tax at either the state or federal level.  The Limited Partners (investors) are able to record a pro-rated share of the investment in the Master Limited Partnership's depreciation on their personal income tax filings which further reduces their (that year's) tax liabilities. This is the primary benefit of Master Limited Partnerships and provides MLPs relatively inexpensive funding and capital costs. Simultaneously, this makes Master Limited Partnerships unattractive to "tax-deferred funds" that are unable to utilize this tax savings advantage.  To encourage tax-deferred investors, MLPs set up new corporation holding companies for their Limited Partner's claims which can then issue equity.

In most new Master Limited Partnerships, the General Partner starts out with a small stake or position in the company - typically in the 2% to 5% range.  However, the MLP receives "incentive distributions" from the net income after the Quarterly Required Distributions.  As the incentive distributions are normally paid in the form of increased equity claims this allows the General Partner to attain an increasingly greater percentage of ownership in the company over time.


Power Purchase Agreements: highlights from www.PowerPurchaseAgreement.com

What is a Power Purchase Agreement?

A Power Purchase Agreement is a legal agreement wherein our clients agree to buy either the power (electricity) or the power and energy (hot water, steam and/or chilled water for air-conditioning) - or both - directly from us, for a term of 10 to 20 years, where we have installed, own and operate our solar energy systems.

In nearly every case, once we have installed our solar energy systems at our client's facility, we can immediately reduce our (commercial) client's electricity expenses by 10% over what they were paying for their power electricity from their electric utility.

The right Power Purchase Agreement, may save your company hundreds of thousands, and possibly millions of dollars over the term of the agreement.

Simultaneously, having the wrong or poorly drafted PPA can cost your company thousands or millions of dollars. You wouldn't consult a brain surgeon to treat your child's broken bone! Selecting the wrong attorneys, law firm or team to promulgate or re-negotiate your Power Purchase Agreement can leave you "powerless" and penniless - and still requiring the skills and expertise of competent and qualified professionals to resolve the situation.

Because a Power Purchase Agreement is at the "heart" and underlying foundation of our projects, we can help your business with the selection and oversight of PPA's.

We can help your city or community create a Municipal Utility District or Public Utility District that may then qualify for our very competitively priced energy and electricity rates. Now is the time for cities, municipal and governmental clients to consider having our company install one of our renewable power and energy systems that will generate "clean" power and energy, lower costs, and avoid the coming electricity shortages and grid congestion problems!

Products and services provided by us include the following power and energy project development services:

·         Project Engineering Feasibility & Economic Analysis Studies

·         Engineering, Procurement and Construction

·         Environmental Engineering & Permitting

·         Project Funding & Financing Options; including Equity Investment, Debt Financing, Lease and Municipal Lease

·         Shared/Guaranteed Savings Program with No Capital Investment from Qualified Clients

·         Project Commissioning

·         3rd Party Ownership and Project Development

·         Long-term Service Agreements

·         Operations & Maintenance

·         Green Tag (Renewable Energy Credit, Carbon Dioxide Credits, Emission Reduction Credits) Brokerage Services; Application and Permitting

Management Team:

Proven management team: led by by Monty Goodell, a veteran of the energy, natural gas and utility sector with more than 25 years in the natural gas and utility sectors.  He has developed a dynamic and highly creative business strategy that generates new acquisition opportunities and deal flow. In addition, he is the recipient of multiple sales, marketing and business development awards including the 1st Place Company Sales Award in the Annual Who's Who sales competition while at Entex (now CenterPoint Energy.)  In 2007, Monty founded the Renewable Energy Institute, a non-profit company that advocates for American energy and renewable energy solutions.  He has been involved with multiple cogeneration, trigeneration and demand side management projects utilizing natural gas as the fuel of choice. He holds a Master's degree in International Business from the Hankamer School of Business at Baylor University and a B.A. in Economics from Texas State University.

Contact information:

Monty Goodell
Email:  info@NaturalGasVentures.com