UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date
of
Report (Date of earliest event reported) November
9, 2007
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UNITED
STATES NATURAL
GAS
FUND, LP
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(Exact
name of registrant as specified in its charter)
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Delaware
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001-33096
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20-5576760
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(State
or other jurisdiction
of
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
No.)
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1320
Harbor Bay Parkway, Suite 145
Alameda,
California 94502
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(Address
of principal executive offices)
(Zip
Code)
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Registrant's
telephone number, including area code
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(510)
522-3336
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Not
Applicable
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(Former
name or former address, if changed since last report)
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
o |
Written
communication pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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o |
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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o |
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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o |
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4c))
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Item
8.01 Other Events.
Units
of
the United States Natural Gas Fund, LP (“UNG”) are offered on a continuous basis
under Rule 415 of the Securities Act of 1933, and when all registered units
have
been sold, additional units are registered in subsequent registration
statements. At this time, UNG only has 500,000 units registered with the SEC
that are available for purchase by its Authorized Purchasers. On November 6,
2007, UNG submitted a registration statement to the Securities and Exchange
Commission (“SEC”) to register an additional 50,000,000 units. This registration
statement is currently subject to review and comment by the SEC, the Financial
Regulatory Industry Association (“FINRA”) and the National Futures Association
(“NFA”).
As
stated
in its current prospectus, UNG creates and redeems units in blocks of 100,000
units called Creation Baskets and Redemption Baskets, respectively. Only
Authorized Purchasers may purchase or redeem Creation Baskets or Redemption
Baskets. If UNG issues all of its currently
remaining registered units, UNG management would have to
suspend the ability of the Authorized Purchasers
to purchase new creation baskets until such time as the
registration statement for the additional units has been declared effective
by the SEC, and FINRA and NFA have determined that their comments, if any,
on
UNG’s prospectus/ disclosure document have been adequately addressed. The
ability of Authorized Purchasers to redeem baskets of units in such a situation
would remain unaffected.
In
the
event that there was a short-term disruption in the ability of Authorized
Purchasers to purchase additional Creation Baskets, management
believes that Authorized Purchasers and other groups that make a market in
units
of UNG would still continue to actively trade the units. However, management
believes that in such a situation, Authorized
Purchasers and
other
market makers may seek to adjust the market they make in the units.
Specifically, these market participants may increase the
spread between the prices that they quote for offers to buy and sell
units to allow them to adjust to the potential uncertainty as to when they
might
be able to purchase additional Creation Baskets of units. In
addition, Authorized Purchasers may be less willing to offer to quote
offers to buy or sell units in large numbers. The potential impact of
either wider spreads between bid and offer prices, or
reduced number of units on which quotes may be available,
could increase the trading costs to investors in UNG compared to the
quotes and the number of units on which bids and offers are
made if the Authorized Purchasers were to still be able to freely create
new baskets of units. Management believes that any potential impact to the
market in units of UNG that could occur from the Authorized Purchasers’
inability to create new baskets would not extend beyond the time when additional
units would be registered and available for distribution.
If
a
lengthy period of time were to elapse before new units were declared effective
and there was continued demand for units, UNG management believes that
the impact on the spread between bid and ask prices might widen even
further. In addition, there could be a significant variation between
the market price at which units are traded and the units' net asset
value, which is also the price units can be redeemed with UNG by Authorized
Purchasers in Redemption Baskets. The foregoing could
also create significant deviations from UNG's investment
objective,
i.e.,
to have
changes in the market price of its units track changes in the price of the
futures contract for natural gas traded on the New York Mercantile Exchange
that
is the near month next to expire.
Any
forward-looking statements in this current report are based on expectations
of
UNG management at this time. Whether or not actual results and developments
will
conform to management’s expectations and predictions, however, is subject to a
number of risks and uncertainties, including the special considerations
discussed in UNG’s prospectus, general economic, market and business conditions,
changes in laws or regulations made by governmental authorities or regulatory
bodies, and other world economic and political developments. UNG undertakes
no
duty to update or revise any forward-looking statements, whether as a result
of
new information, future events or otherwise.
For
further information, please call:
Victoria
Bay Asset Management
John
Hyland (510)
414-5153
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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UNITED
STATES NATURAL GAS FUND, LP |
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By: |
Victoria
Bay Asset Management, LLC, its general partner
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Date: November
9,
2007 |
By: |
/s/
Nicholas D. Gerber
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Name: Nicholas
D. Gerber
Title: Chief
Executive Officer
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