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HomeMy WebLinkAbout05834 ORD - 07/27/1960e I f AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, CALLING AN ELECTION ON THE QUESTION OF WHETHER OR NOT A CONTRACT ON BEHALF OF THE CITY, AS BUYER,; AND HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY, CON- TRACTING JOINTLY, AS SELLER, fOR THE PURCHASE OF NATURAL GAS BY THE CITY FOR ITS GAS DISTRIBUTION SYSTEM BE,APPROVED AND THE CITY COUNCIL BE AUTHORIZED' TO CAUSE THE SAID CONTRACT TO BE EXECUTED, ON BEHALF OF THE CITY, SAID CONTRACT BEING SET OUT IN THIS ORDINANCE AND PROVIDING FOR A TERM OF TWENTY (20) YEARS SUBJECT TO THE OPTION OF,THE' CITY BY NOTICE TO TERMINATE AT THE END OF-FIFTEEN (15) YEARS; DESIGNATING THE PLACES -FOR HOLDING SUCH ELECTION; NAMING THE OFFICERS THEREFOR; DESCWIB�:: ING FORM OF NOTICE OF ELECTION, AND ENACTING, PROVISIONS INCIDENT AND RELATING TO THE SUBJECT OF THIS ORDINANCE; AND DECLARING AN EMERGENCY, WHEREAS, THE CITY OF CORPUS CHRISTI IS THE OWNER OF A GAS DISTRI- BUTION SYSTEM; AND - - - - WHEREAS, IT IS NECESSARY THAT AN ADEQUATE GAS SUPPLY BE OBTAINED IN ORDER TO OPERATE SAID DISTRIBUTION SYSTEM; AND - WHEREAS, HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE - 'COMPANY, JOINTLY, HAVE OFFERED TO SUPPLY SUCH GAS -IN ACCORDANCE WITH THE - yTERMS AND PROVISIONS SET OUT IN THE CONTRACT HEREINAFTER SET FORTH IN THIS' ORDINANCE; AND - WHEREAS, THE CITY COUNCIL DEEMS IT NECESSARY THAT 'THE QUESTION OF WHETHER OR NOT SAID CONTRACT SHOULD BE ENTERED INTO WITH THE HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY SHOULD BE SUBMITTED r TO A VOTE OF THE QUALIFIED ELECTORS OF THE CITY: t NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF tHE CITY s OF CORPUS CHRISTI, TEXAS:- . .y SECTION 1. THAT AN ELECTION BE HELD IN SAID CITY OF CORPUS CHRISTI, TEXAS, ON THE 2QTH DAY OF AUGUST, A. D. 1960, FOR THE PURPOSE OF DETERMIN- ING WHETHER OR NOT THE QUALIFIED ELECTORS OF THE CITY OF CORPUS CHRISTI, TEXAS, APPROVE, DESIRE AND AUTHORIZE THE EXECUTION OF THE FOLLOWING CONTRACT WITH HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LIME COMPANY,'TO —WITS . y..t 5834 s I N D E X ARTICLE PAGE I. AGREEMENT TO SELL AND PURCHASE 2 II. TERM OF CONTRACT 4 III. POINTS OF DELIVERY 5 IV. MEASUREMENT 6 (1) Sales Unit 7 (2) Determination of Volume 8 (3) Procedure When Using Orifice Meters 8 (4) Procedure When Using Positive Meters 10 V. METERING EQUIPMENT 10 (1) Sales Measuring Station 10 (2) Check Measuring Equipment 10 (3) Right to be Present 10 (4) Calibration and Tests of Meters 11 (5) Correction of Metering Errors - 12 Failure of Meters (6) Preservation of Metering Records 12 VI. QUALITY 13 (1) Heating Value 13 (2) Freedom From Objectionable Matter 14 VII. ODORIZATION OF GAS 15 VIII. STATEMENTS CONCERNING AMOUNT OF GAS AND SCHEDULE OF RATES 16 IX. TAXES 23 X. LIABILITY OF PARTIES 24 XI. GOVERNMENT REGULATIONS AND FORCE MAJEURE 25 XII. GIVING OF NOTICE HEREUNDER 26s XIII. ASSIGNABILITY OF CONTRACT 27 XIV. MISCELLANEOUS 27 July 25, 1960 THE STATE OF TEXAS ) COUNTY OF NUECES )) THIS AGREEMENT, made and entered into by and between HOUSTON NATURAL GAS CORPORATION and HOUSTON PIPE LINE COMPANY, corporations organized and existing under and by virtue of the laws of the State of Texas, hereinafter designated jointly as Seller, and CITY OF CORPUS CHRISTI, Nueces County, Texas, a municipal corporation, hereinafter designated Buyer, W I T N E S S E T H: WHEREAS, Seller is engaged in the purchase and sale of natural gas in the State of Texas; and WHEREAS, the parties Seller make the following repre- sentations with regard to Houston Pipe Line Company, a wholly owned subsidiary of Houston Natural Gas Corporation: (1) Houston Pipe Line Company is the major gas supplier of Seller for gas resold in Corpus Christi and more than one hundred other cities and communities; and (2) Houston Pipe Line Company currently purchases an average of approximately 400,000,000 cubic feet of gas per day under long term purchase contracts from more than eighty -five (85) different fields in the Texas Gulf Coast Area; and (3) Virtually all gas sold by Houston Pipe Line Company to its large customers, including a recent twenty (20) year agreement with Central Power & Light Company, is sold on the basis of its weighted average cost of gas from all sources plus a fixed amount, or on the basis of prices fixed by the Rail- road Commission of Texas; and WHEREAS, Buyer is the owner and operator of a natural gas distribution system located within certain areas of the City of Corpus Christi, Texas, and is desirous of purchasing, I from Seller its natural gas requirements for its distribution system;•and WHEREAS, Houston Natural Gas Corporation has been fur - nishing Buyer's said natural gas requirements for its distri- bution system pursuant to a contract for sale of gas dated March 1, 1949 which contract provides for an extension of the contract for the eight year period beginning March 1, 1961 provided Buyer and Houston Natural Gas Corporation can reach an agreement as to the daily volume that Houston Natural Gas Corporation will be obligated to deliver and the price Buyer shall pay; and WHEREAS, Seller and Buyer desire to enter into a firm arrangement for the supply of said natural gas requirements of Buyer for a twenty (20) year period commencing after the first twelve years of said 1949 contract on March 1, 1961, subject to the terms, conditions and provisions hereinafter set forth: NOW, THEREFORE, in consideration of the mutual coven- ants herein contained, the parties hereto have agreed as follows: ARTICLE I. AGREEMENT TO SELL AND PURCHASE. Subject to the terms, conditions and limitations herein- after provided, Seller hereby agrees to sell and deliver to Buyer and Buyer agrees to purchase and receive from Seller, at the points of delivery hereinafter designated, the quantities of natural gas which may be required by Buyer for-its distri- bution system, including all gas required for resale to ulti- mate consumers and all gas required for use on properties of the City, including public buildings, airport properties, sewer disposal plants and parks, it being the intention of the parties hereto that Seller shall deliver and Buyer will buy all quanti- ties of gas needed by Buyer for its own use or for resale, both within and without the City limits of the City of Corpus Christi, including sufficient quantities to meet the full -2- requirements and obligations of the Buyer to furnish, at all times during the life of this contract, natural gas to all users of such gas connected with Buyer's distribution system for domestic, commercial or small industrial purposes; provided,, however, it is agreed that the reference in this paragraph to "commercial" and "small industrial" customers shall mean all commercial or industrial customers which have been or currently are being served by Buyer and new commercial or industrial customers not requiring a delivery pressure in excess of 60 psig. and who will purchase at one place of business an annual average quantity per day of 500,000 cubic feet or less. Although it is expressly agreed Seller shall not be obligated, except by its prior written consent, to supply gas for resale to new customers of Buyer of a size in excess of' the limits specified above or requiring a delivery pressure in excess of sixty (60) psig., if Seller consents to the service of such a customer or customers, Seller shall be obligated to continue to supply all gas required by Buyer to serve such approved customer or customers during the term of Buyer's agreement with such customer. If the City should obtain production of gas from a well or wells on lands.owned by the City at the time of the execution of this contract, it is understood that Houston Natural Gas Corporation shall arrange to take such gas from the City under conditions which permit maximum flexibility in deliveries which will not impair the City's said well or wells or the horizons from which producing. The amounts payable by the City under this agreement shall be credited with all gas furnished by the City from any such production at a rate per Mcf which is four (4¢) cents less than the price payable by the City per Mcf under this agreement from time to time. It is understood that Seller and Puyer shall cooperate in arranging for the most -3- economical use by Seller of any such gas production which Buyer elects to have taken by Seller. Seller further agrees to supply all gas required by Buyer to supply the temporary or emergency needs of the City for gas to supply customers or privately owned gas distribution systems serving areas within the City of Corpus Christi when the gas supply of such customers or system has been temporarily interrupted to facilitate street, highway, road or other public works for the benefit of the City of Corpus Christi; provided, however, Seller's obligation in this connection is limited to the quantity of gas available after all other customers of Seller have been provided service. Buyer shall advise Seller's Corpus Christi office prior to making any temporary or emergency deliveries of gas and the anticipated duration of such emergency or temporary deliveries and shall deliver only such quantities as Seller advises are available from time to time during such period of delivery. ARTICLE II. TERM OF CONTRACT This contract shall be effective and in full force and effect when approved by the City Council and the qualified voters of the City of Corpus Christi and properly executed by Buyer, and shall continue in force for a term of twenty (20) years from the first day of March, 1961; provided, however, by giving at least eighteen (18) months prior written notice of intention to termi- nate, that is, on or before September 1, 1974, the Buyer may terminate this agreement effective at (but not before) the con- clusion of the fifteenth contract year of this agreement. If Buyer gives such notice, this agreement shall terminate at the conclusion of the fifteenth contract year. If no such notice is given by Buyer this contract shall continue in full force and effect for said full term of twenty (20) years. -4- ARTICLE III. POINTS OF DELIVERY. (1) The point of delivery for all gas delivered here- under shall be at the downstream side of Seller's last valve, flange or fitting downstream from the point of measurement at each delivery point. (2) Seller has heretofore established, at its own cost and expense, a number of delivery points and is now operating suitable meters, regulators and other necessary equipment for the sale, measurement and delivery of natural gas to Buyer in accordance with this agreement at the following locations: a Shell Road East of Cantwell Lane b Old Brownsville Road at Kosar Road c Gollihar Road at Weber Road d 1900 Block Navigation Boulevard e Highway 44 at Lexington Boulevard In addition, Seller has established and agrees to con- tinue to operate meter stations and points of delivery in the vicinity of the East property line of the Corpus Christi Inter- national Airport and at the Oso Sanitary Sewer Plant on Ennis Joslin Road. Gas is furnished at such points of delivery only for consumption by Buyer and not for resale otherwise; provided, however, gas may be resold to customers of Buyer located upon the International Airport property of the City. (3) Such existing meter stations and points of deli- very shall constitute the place of measurement and points of delivery under this contract subject to the provisions herein- after set forth: (a) In the event any metering and /or regulating faci- lities of Seller shall be required to be moved to a new location to facilitate any public works program of any governmental agency other than the City of Corpus Christi (whether or not Seller is entitled to any reimbursement), Seller shall move such facilities to such new location as is agreeable to Seller and Buyer without cost to Buyer. In the event the City of -5- Corpus Christi requests in writing that any metering, regulat- ing, regulating facilities or point of delivery be moved to a new location, Seller shall be reimbursed for the cost of removal and relocation and shall be furnished by Buyer a site satis- factory to Seller upon which to relocate such facilities at the expense of Buyer, but subject to the control and operation of Seller under the terms of this contract during the term of the contract, (b) For the purpose of enabling Seller to discharge its obligation to Buyer when and if Buyer's gas requirements should increase, Seller will construct at the cost and expense of Buyer, (and Seller will operate and have free use of the land occupied by the station or stations) two additional metering stations and delivery points, adjacent to its transmission lines, at such points as may be mutually agreed upon by Buyer and Seller. Seller shall have at least one hundred twenty (120) days to con- struct the facilities at such new point of delivery after the location of such new point of delivery has been agreed upon. It is understood that the establishment of the new delivery points to be operated by Seller as provided for herein shall be for the purpose of serving the expanded requirements of Buyer's distri- bution system and not for the purpose of serving single large customers. It is further understood that abandonment of any established point of delivery by Buyer shall not require Seller to establish an additional point of delivery in lieu of the abandoned point of delivery. By the term "abandonment" is meant the failure of Buyer to take delivery of any gas for any period of twelve (12) consecutive months unless written notice of abandonment is delivered by the City in a lesser period. ARTICLE IV. MEASUREMENT. Seller shall deliver gas to Buyer at a pressure satis- factory to Buyer, but in no event to exceed a maximum pressure M of 150 psig. during the first contract year ending March 1, 1962, 140 psig. during the second contract year ending March 1, 1963, 135 psig. during the third contract year ending March 1, 1964 and 125 psig. during the remaining term of this agreement. Not- withstanding the foregoing limitations, Seller shall make gas available to Buyer at such additional pressure in excess of Seller's maximum obligation as stated above, as Seller's system may have available for delivery at the respective points of deli- very from time to time. The gas delivered hereunder shall be measured at such pressure as may exist by virtue of Seller's operating conditions, but for the purpose of making payment therefor by Buyer to Seller the volume of natural gas delivered shall be as follows: (1) Sales Unit: The contract sales unit of the gas delivered by Seller shall be one thousand (1,000) cubic feet of gas referred to herein as "Mcf ", and the unit of volume for the purpose of measurement of the quantity to be billed at the prices provided in this agreement shall be one (1) cubic foot of gas at a tem- perature base of sixty degrees Fahrenheit (600F.) and a pressure base of fourteen and sixty -five one - hundredths (14.65) pounds per square inch absolute with corrections for deviation from Boyle's Law. Seller shall also determine and report to Buyer monthly as a part of the accounting for gas delivered here- under the total quantity of gas delivered by Seller to Buyer using as the unit of volume for the purpose of measurement one (1) cubic foot of gas at a temperature base of sixty degrees Fahrenheit (600F.) and a pressure base of fifteen and two - tenths (15.2) pounds per square inch absolute with cor- rection for deviation from Boyle's Law. Buyer shall have the right to be represented at and to participate in all tests of any equipment used and to inspect at any time during business -7- hours any and all equipment of Seller used for the determin- ation of the volume and quality of gas delivered hereunder. (2) Determination of Volume: Computations of volumes including deviation of gas from Boyle's Law, shall be conducted in accordance with Gas Measure- ment Committee Report No. 3 on "Orifice Metering of Natural Gas" published in April, 1955 by the American Gas Association, or any subsequent revision thereof. Recognizing that the atmospheric pressure may vary somewhat from time to time and that the average atmospheric pressure is approximately fourteen and seven - tenths (14.7) pounds per square inch, it is agreed that, for the purposes of measurement and computation, the atmospheric pressure shall be assumed to be fourteen and seven-tenths (14.7) pounds per square inch, regardless of the actual atmospheric pressure at which the gas is delivered and measured. (3) Procedure When Using Orifice Meters: The computation of the volume of gas measured shall be made in accordance with said Gas Measurement Committee Report No. 3 on "Orifice Metering of Natural Gas ", or any subsequent revision thereof and in accordance with the following paragraphs: (a) `.Che hourly orifice coefficient for each meter shall be calculated at the above base pressure and base (flowing) tem- perature of sixty degrees Fahrenheit (600F.). (b) Recognizing that the average flowing temperature at the orifice plate affects the calculation of the volume of gas measured and that such temperature may vary from time to time, it is agreed, FIRST, that the temperature of the gas shall be determined by means of a recording thermometer of standard manufacture and so installed that it may properly record the tem- perature of the gas flowing through the meter or meters, and SECOND, that the arithmetical average of the chart record from the recording thermometer shall be deemed to be the gas tempera- ture during periods of flow, and the base volume as calculated by use of the coefficient as provided in Paragraph (a) above shall be corrected for each degree variation in the average tem- perature from sixty degrees Fahrenheit (600F.). (c) And further recognizing that the specific gravity of the gas affects the calculations of the volume of gas measured and that such gravity may vary from time to time, it is agreed that the specific gravity of the gas shall be determined by joint tests made monthly at the Seller's sales meter or meters by the use of an Acme or other approved type gas balance, or by such other method as shall be agreed upon by the parties, and the base volume as calculated by use of the coefficient as provided in Paragraph (a) above shall be corrected for specific gravity. (d) Exact measurement of inside diameters of pipe runs and orifices shall-be obtained by means of a micrometer to the nearest one - thousandth (.001) inch, which measurements shall be used in computations of coefficients, (e) Pressure taps for meter installations shall be taken from pipe runs, two and one -half (2 -1/2) inside pipe diameters upstream and eight (8) inside pipe diameters down- stream from the orifice, or from the openings provided in stan- dard orifice flanges or special orifice fittings, (f) All orifice meter computations required in this Article shall be made in accordance with specifications and recommendations contained in Report No. 3 of the Gas Measure- ment Committee of_the Natural Gas Department of the American Gas Association or any subsequent revision thereof. (g) In determining the volume of gas delivered through the orifice during a chart period, either the obser- vation method or the orifice chart integrator shall be used in reading the meter chart. The sum of the extensions obtained from the reading or integration of the meter charts shall be multiplied by the hourly orifice coefficient, as calculated in accordance with Paragraph (a) above, the base volume thus ob- tained shall then be corrected in accordance with Paragraphs (b) and (c) above to obtain the gas volume for that chart. -9- (4) Procedure When Using Positive Meters: ' The computation of the volume of gas measured shall be made in accordance with the following paragraph: (a) The flowing temperature of the gas delivered shall be assumed to be sixty degrees Fahrenheit (600F.), and no cor- rection shall be made for any variation therefrom; provided, however, that Seller or Buyer shall have the option of instal- ling a recording thermometer and if Seller or Buyer exercises such option and installs such thermometer, correction shall be made for each degree variation in temperature from sixty degrees Fahrenheit (600F.) in the average flowing temperature. ARTICLE V. METERING EQUIPMENT. (1)' Sales Measuring Station: Seller shall install and maintain in accurate repair at the point or points of delivery herein provided, meters of ample size and type for the accurate measurement of the gas delivered by Seller hereunder, and shall cause said meter or meters to be read and /or have charts changed regularly. (2) Check Measuring Equipment. Buyer may install, maintain and operate, at its own expense, such check measuring equipment as desired, provided that such equipment shall be so installed as not to interfere with the operati6n of Seller's measuring equipment at or near the point or points of delivery. (3) Right to be Present: Seller and Buyer shall have the right to have repre- sentatives present at the time of any installing, reading, cleaning, changing, repairing, inspecting, testing, calibrat- ing, or adjusting done in connection with the other's measur- ing equipment used in measuring or checking the measurement of deliveries of gas under the gas sales contract. The records from such measuring equipment shall remain the property of their -10- owner, but upon request each will submit to the o�per its records and charts, together with calculations therefrom, for inspection and verification, subject to return within ten (10) days after receipt thereof. (4) Calibration and Tests of Meters: The respective meters, meter readings and meter charts shall be at all reasonable times accessible to inspection and examination by Buyer. At least once every thirty (30) days, r Seller shall calibrate its orifice meters, calorimeters, gravitometers and thermometers, and at least once each twelve (12) months, Seller shall calibrate its positive displacement meters. Buyer shall have the right to require the meters to be calibrated at any time, but calibrations made at Buyer's 4 request shall be at the expense of Buyer unless the percen- tage of inaccuracy is found to be more than two per cent (2 %), in which case the calibration shall be-made at the expense of Seller. Readings,,calibrations and adjustments•, r of Seller's meters and changing of charts shall be done only by Seller, but all data with respect thereto shall at all reasonable times be available to Bji;,er. If, upon any test, the percentage of inaccuracy shall be more than two per cent (2 %), registrations thereof shall be corrected at the rate of such inaccuracy for any period which is definitely known or agreed upon, then for a period extending back one -half of the time elapsed since the last date of calibration. Following any test, metering equipment found inaccurate shall immediately be restored by Seller to a condition of accuracy, -11- (5) Correction of Metering Errors - Failure of Meters: If for any reason any meter of Seller is out of service or out of repair, so that the amount of,gas delivered cannot be ascertained or computed from the reading thereof, the amount of gas delivered during -the period such meter was out of service or out of repair shall be estimated and agreed upon by` the parties hereto upon the basis of the best'data available, using the first of the following methods which is feasible: (a) By using the registrations of Buyer's check meter, if installed as hereinafter provided for an accurate registering; (b) By correcting the error, if the percentage of error is ascertainable by calibration, test or mathematical calculations; (c) By estimating the quantity of the delivery upon the basis of deliveries during periods under similar oper- ating conditions when the meter was registering accurately. (6) Preservation of Metering Records: Seller and Buyer shall each preserve for a period of at least two (2) years all test data, charts, and other similar records. -12- ARTICLE VI. QUALITY. (1) Heating Value: The gas to be delivered under this contract shall be natural gas from Seller's present or future sources of supply, provided, however, that helium, natural gasoline, butane, propane, and any other hydrocarbons except methane may be removed prior to delivery of such gas to Buyer, the gas to have a total heating value of Nine Hundred Fifty (950) British Thermal Units per cubic foot of gas at a temperature of sixty degrees Fahrenheit (600F.) and at an absolute pressure equivalent to thirty (30) inches of mercury at thirty -two degrees Fahrenheit (320F.) when saturated with water vapor. If the weighted average by volume of the heating value con- tent of all gas delivered hereunder during any calendar month or billing period shall not fall below Nine Hundred and Fifty (950) B.T.U.'s per cubic foot of gas, there shall be no B.T.U. adjustment. In the event such heating value content should fall below Nine Hundred and Fifty (950) B.T.U.'s per cubic foot of gas, when averaged over the calendar month or billing period, then, and in such event, the volume herein shall be decreased one -tenth of one per cent (0.1 %) for each B.T.U. below Nine Hundred and Fifty (950) B.T.U.'s per cubic foot. Periodically as requested by Buyer, but not more often than once a month, Seller shall advise Buyer of the B.T.U. content of the gas at various locations where such B.T.U. content is deter- mined by Seller and is indicative of the B.T.U. content of the gas being delivered to Buyer. If such periodic test should at any time or from time to time indicate that the B:T.U. content of the gas being delivered to Buyer may be less than Nine Hundred and Fifty (950) British Thermal Units per cubic foot, then the B.T.U. content of the gas being delivered by Seller to Buyer shall be determined by making spot checks at some or all of the points of -13- delivery periodically as requested by Buyer but not more often than once a month by Seller by the use of a Sargent Gas Calorimeter or by such other method as shall be agreed upon between the parties. The weighted average of the readings obtained by such test during the month shall determine the weighted average B.T.U. content of the gas so delivered. For such period of time as the foregoing procedure indicates the B.T.U. content of the gas may be below Nine Hundred and Fifty (950) B.T.U.'s per cubic foot, a statement reflecting the weighted average B.T.V. content of the gas so deli- vered during each calendar month or during each billing period shall be furnished by Seller to Buyer at the time the monthly statement is rendered to Buyer. Notwithstanding anything to the contrary in this Section (1) of Article VI pertaining to heating value, it is agreed that over the life of this agreement the gas furnished to Buyer shall have a total heating value which averages one thousand (1,000) B.T.U.'s per cubic foot of gas. There shall be no B.T.U. adjust- ment if the average heating value is in excess of one thousand (1,000) B.T.U.'s per cubic foot; however, if the average heating value is less than one thousand (1,000) B.T.U.'s per cubic foot of gas over the life of this agreement, Buyer shall be entitled to a credit or reimbursement, as may be appropriate, of one tenth of one per cent (0.1 %) for each B.T.U. by which such average is below one thousand (1,000) B.T.U.'s per cubic foot as to all volumes of gas delivered under this agreement. (2) Freedom From Objectionable Matter: The natural gas to be delivered by Seller to Buyer here- under shall conform to the following requirements and specifi- cations: (a) Such gas shall be commercially free from dust or other solid or liquid matters which might interfere with its mer- chantability or cause injury to or interference with proper oper- ation of the lines, regulators, meters, or other appliances through -14- which it flows or in which it is used. (b) Such gas shall not contain more than one (1) grain of hydrogen sulphide per one hundred (100) cubic feet of gas volume when tested in accordance with the following procedure: A strip of white filter paper previously moistened with fresh five per cent (5 %) lead acetate solution shall be exposed to the gas for one and one -half (1 -1/2) minutes in a previously purged apparatus through which the test gas is flowing at a rate of approximately five (5) cubic feet per hour; the gas shall not directly impinge upon the test strip during the test. At the end of the stated time the test paper thus exposed shall be compared with a second test strip similarly prepared but not exposed to the test gas. If the exposed strip is not notice- ably darker than the comparison strip the gas under test shall be considered acceptable. If the exposed strip is definitely darker than the comparison strip the gas shall be tested quanti- tatively for hydrogen sulphide by the Tutweiler Method; and (c) Such gas shall not contain more than twenty (20) grains of total sulphur per one hundred (100) cubic feet of gas volume, nor more than three per cent (3 %) by volume of carbon dioxide, nor more than one per cent (1 %) by volume of oxygen. When a gas analysis shows such limits stated in this Section (2) are exceeded, Seller shall immediately determine the source and discontinue the delivery of such gas to Buyer. ARTICLE VII. ODORIZATION OF GAS. It is distinctly understood that there shall be no obli- gation upon Seller to odorize the gas to be delivered hereunder, but any odorization of gas that may be required by law or the Charter or Ordinances of the City of Corpus Christi prior to sale for domestic, commercial, or industrial use shall be performed by Buyer, and Buyer shall indemnify and save harmless the Seller against all claims for damages arising from or growing out of any -15- failure to properly odorize such gas as required by law or the Charter or Ordinances of the City of Corpus Christi. ARTICLE VIII. STATEMENTS CONCERNING AMOUNT OF GAS AND SCHEDULE OF RATES, (1) On or before the tenth (10th) day of each calendar month Seller shall render a statement to Buyer showing the quan- tity of gas delivered to Buyer during the preceding calendar month or billing period, which billing period shall be approxi- mately thirty (30) days, and the amount payable therefor by Buyer. Such statement shall show the number of Mcf delivered using the contract pressure base of 14.65 pounds per square inch absolute, and also the number of Mcf delivered using a pressure base of 15.2 pounds per square inch absolute. (2) For all gas delivered during the preceding calendar month or billing period during the term hereof (measured at a pressure base of 14.65 p.s.i.a.), Buyer shall pay Seller on or before the twenty -fifth (25th) of each calendar month by its check and at the office of Houston Natural Gas Corporation in Corpus Christi, Nueces County, Texas, based upon the following schedule of gas prices: SECTION I. First Four Contract Years - 3/1/61 to 2/28/65. During that portion of the term of this contract commenc- ing on the 1st day of March, 1961 and ending on the last day of February, 1965, the unit price for all gas delivered hereunder to Buyer shall be twenty -four and one -half cents (24 -1/2¢) per Mcf . SECTION II. The Succeeding Four Contract Years - 3/1/65 to 2/28/69. During that portion of the term of this contract commenc- ing on the 1st day of March, 1965 and ending on the last day of February, 1969 the unit price for all gas delivered hereunder to Buyer shall be twenty -eight and one -half cents (28 -1/2¢) per Mcf. -16- SECTION III. The Succeeding Seven Contract Years - 3/1/69 to 2/29/76. During that portion of the term of this contract commencing on the 1st day of March, 1969 and ending on the last day of February, 1976 the unit price per Mcf for all gas delivered here- under to Buyer shall be determined by the sud of the following: (1) the current "weighted average cost of gas per Mcf" to Houston Pipe Line Company, as hereinafter defined, plus (2) the fixed amount of ten and one -half cents (10-1/2¢). The "weighted average cost of gas per Mcf" of Houston Pipe Line Company as used herein shall mean Houston Pipe Line Company's weighted average cost per Mcf of gas in the five - months period beginning March 1, 1969 and each six- months period thereafter beginning August 1, 1969, with respect to all of the various sources of supply of Houston Pipe Line Company from which it purchased or received gas during such period, without regard to whether such sources of supply of Houston Pipe Line Company supply gas for sale and delivery to the Buyer hereunder. Cost, as used herein, shall be determined at the point at which title passes to Houston Pipe Line Company as determined by the various agreements under which it purchased or received gas. Houston Pipe Line Company's weighted average cost shall be its weighted average cost for one thousand (1,000) cubic feet of gas measured at sixty degrees Fahrenheit (600F.) temperature and 14.65 pounds per square inch absolute pressure, adjusted for deviation from Boyle's Law. Except for the period beginning March 1, 1969, and ending July 31, 1969, all periods for the determination of weighted average cost of gas per Mcf shall be six (6) months beginning respectively on August 1 and February 1 of each year. It is recognized that the actual weighted average cost per Mcf will not be determinable until the end of the controlling period. Accord- ingly, Seller shall bill Buyer at the weighted average cost per Mcf for the preceding period, and adjustment to the actual weighted -17- average cost per Mcf shall be made as promptly as possible at the conclusion of each six (6) months period. On or before thirty (30) days after the first day of each six (6) months period, the Seller shall furnish Buyer the actual weighted average cost of gas per Mef for all gas delivered during the preceding six (6) months period and all gas will be billed during the current six (6) months period at such actual weighted average cost of gas per Mcf for the pre- ceding period. However, when the actual weighted average cost of gas per Mcf for such period has been established, the billing for such period shall be adjusted to the actual to reflect the differ- ence, if any, from the weighted average cost of gas per Mcf used in the billing period. In the event the actual weighted average cost for any preceding period is not furnished within the first thirty (30) days of a current period, the billing price used during the preceding period shall continue to be used until the actual weighted average cost for such preceding periods has been furnished and when furnished, the billings shall be adjusted accord- ingly at that time. It is understood that the tentative billing for the five month period beginning March 1, 1969 shall be at the weighted average cost per Mcf for the six months period preceding March 1, 1969. It is further understood that references in this paragraph to determination, billing and adjustment of the weighted average cost of gas per Mcf are intended to be explanatory of the manner of determination of such component of the total price and amount to be billed, which total price and amount to be billed shall be determined by reference to all provisions of this agree- ment. Seller agrees that Buyer shall at all reasonable times have the right to inspect and check in the offices of Houston Pipe Line Company the records and calculations of Houston Pipe Line Company pertaining to the determination of the weighted average cost of gas per Mcf to Houston Pipe Line Company. -18- Any purchase by Houston Pipe Line Company from a subsidiary or affiliate shall be included in the determination of weighted average cost of gas at a price which does not exceed the fair market value thereof at the time delivered. In this connection, it is distinctly agreed that such price shall in no event exceed the average of the three highest prices being paid by three dif- ferent Interstate Pipe Line Companies for gas purchased under simi- lar conditions in the same Railroad Commission District during the corresponding period. Seller shall furnish Buyer documented evi- dence supporting its determination of the three highest prices being paid by three different Interstate Pipe Line Companies in the Railroad Commission Districts from which gas may be purchased from a subsidiary or affiliate by Houston Pipe Line Company. Such infor- mation shall be furnished for each six (6) months period beginning August 1 and February 1 of each contract year beginning after March 1, 1969. Houston Pipe Line Company's weighted average cost for the month of March, 1960 was 14,121¢ per Mcf. Seller has furnished Buyer and there is attached hereto as Exhibit "A" a summary show- ing the volumes of gas from various sources, the cost thereof, and other relevant information supporting such weighted average cost calculation of 14.121¢ per Mef for the month of March, 1960. It is agreed that the same basis of calculation and the same elements of cost will be followed and applied in future determinations of Houston Pipe Line Company's weighted average cost. Seller shall furnish Buyer detailed information regarding determination of the weighted average cost for each six (6) months period beginning on August 1 and February 1 of each year. It is understood that de- tailed information regarding identification of each of the var- ious gas suppliers and the gas fields involved may be obtained from the books and records of Houston Pipe Line Company by any representative of the City authorized by the City Manager of Buyer. -19- Seller shall furnish Buyer on or before July 1 in each third year, beginning with the year 1961, a certificate of gas reserves stating the quantity of the Company's gas reserves of date not earlier than the preceding December 31. Such certificate shall be furnished by an Independent Engineer and in accordance with the requirements for such certificate in Company's Indenture of Mortgage dated November 15, 1955, as amended to date, between Houston Natural Gas Corporation and Maryland Trust Company as Trustee. Seller also shall furnish copies of the certificates of gas supply furnished under such Indenture for the years 1958, 1959 and 1960. It is understood that such reports shall continue to be furnished to the Buyer each third year by the Seller in accordance with this provision whether or not such reports continue to be re- quired under the Indenture of Mortgage referred to herein. SECTION IV. The Last Five Contract Years - 3/1/76 to 2/28/81. During that portion of this agreement commencing on March 1, 1976 and ending on the last day of February, 1981, the unit price per Mcf for all gas delivered hereunder to Buyer shall be deter- mined by the sum of the following: (1) the current weighted average cost of gas per Mcf to Houston Pipe Line Company, as de- fined and determined from time to time in accordance with the pro- visions relative thereto in Section III of this Article VIII, plus (2) the fixed sum of twelve and one -half cents During the periods of time when gas is furnished under Sections III and IV hereof, Seller shall annually upon written request from Buyer furnish Buyer an estimate of the weighted average cost of gas of Houston Pipe Line Company for the next fiscal year of Buyer. SECTION V. Additional Price Provisions: The foregoing unit prices shall be applied in accordance with and subject to the following provisions: -20- (A)_ For all gas delivered during any billing period, commencing after January, 1962, the unit prices provided in the foregoing schedules of prices shall be subject to reduction in accordance with the following provisions: (i) If the City achieves an annual load factor of from 35% to 40% for the immediately preceding twelve months period (including the billing period for which prices are being determined), the prices which would otherwise be applicable shall be reduced by 1¢ per Mcf; (ii) If the City achieves an annual load factor of from 40% to 50% for the immediately preceding twelve months period (including the billing period for which prices are being determined), the prices which would otherwise be applicable (exclusive of any other adjust- ment for load factor) shall be reduced by 2¢ per Mcf; (iii) If the City achieves an annual load factor in excess of 50% for the immediately preceding twelve months period (including the billing period for which prices are being determined), the prices which would otherwise be applicable (exclusive of any other adjust- ment for load factor) shall be reduced by 3¢ per Mcf. The term "annual load factor" as used herein shall be a percentage determined by a fraction, the numerator of which is the annual average delivery per day by Seller to Buyer during the applicable period of twelve consecutive months (ending with the current billing month) and the denominator of which is the total delivery by Seller to Buyer on the peak day during the same period of twelve consecutive months. The term "day" as used herein shall mean a period of twenty -four (24) consecutive hours beginning at 8:00 o'clock a.m., Central Standard Time on each calendar day. (B), The amount (hereinafter referred to as the "spread ") to be paid above the weighted average cost of gas of Houston Pipe Line Company for each Mcf of gas sold during each billing month covered -21- by Sections III and IV of this Article VIII (i.e., 10 -1/2¢ per Mcf from 3/1/69 to 2/29/76 and 12 -1/2¢ per Mcf from 311176 to 2/28/81) shall be increased or decreased, as the case may be, to an amount which bears the same ratio to the applicable spread as the United States Department of Labor combined wholesale commodity price index (as published in the monthly pamphlet, "Survey of Current Business ", published by the United States Department of Commerce) bears to such price index for the month of December, 1968. The adjustment referred to in the preceding sentence shall be applicable on August 1 and February 1 of each year beginning August 1, 1969. The most recent index figure released prior to August 1 and February 1 of each year beginning August 1, 1969, shall be used for the succeed- ing six (6) months period and shall remain in effect thereafter until a further increase or decrease is applicable. Should the publication of such index be transferred to a different Department of the government, such index shall continue to be used. Should the publication of such index be changed or discontinued, the parties shall agree upon some other index which closely approxi- mates the changed or discontinued one, and thereafter the substi- tuted index shall be used in lieu of the index which is changed or discontinued. It is agreed that the adjustment of the "spread" (i.e., 10 -1/2¢ per Mcf from 3/1/69 to 2/29/76 and 12 -1/2¢ per Mcf from 3/1/76 to 2/28/81) shall at no time during the term of this agree- ment result in a variation (increase or decrease) in such "spread" in excess of 33 -1/3% of the applicable "spread" specified in the contract excluding any adjustment under the provisions of this Paragraph (B). (C). The unit prices stated in the foregoing price schedules are exclusive of and do not include any adjustment required by reason of changes in taxes under the provisions of Article IX hereof. -22- (3) On all bills paid by Buyer on or before the twenty -fifth (25th) of each month for the gas delivered to it by Seller during the preceding month or preceding billing period the schedule of rates referred to above shall apply, but on all such bills thht are delinquent and unpaid for more than thirty (30) days after the due date of each bill, Buyer shall pay interest at the rate of six per cent per annum on such bill or bills for delivery of gas made by Seller that are unpaid. (4) At the written request of the Buyer for measure- ment on any pressure base other than 14.65 psia., the price payable hereunder will be adjusted to correspond to such re- quested pressure base and the amounts payable by the Buyer hereunder will be billed by Seller at such requested pressure base and corresponding adjusted price. It is distinctly under- stood that the billing by Seller to Buyer at such requested pressure base and corresponding adjusted price shall in no way reduce or increase the total amount payable by Buyer to Seller under the provisions of this agreement. ARTICLE IX. TAXES. It is understood by the parties hereto that the price fixed herein includes all present taxes of every nature assessed as of June 1, 1960, and entering into the cost of gas of Seller or its supplier, Houston Pipe Line Company and all present taxes entering into the cost of providing gas service under this agree- ment, up to the point of delivery to the Buyer, and in the event -23- there is any change in the amount of such taxes or any new or sub- sequently applicable taxes allocable to each one thousand (1000) cubic feet of gas of the quantity, quality and measurement pro- vided herein, Seller shall make an adjustment in its billing under this agreement reflecting the effect of such change in taxes, if any. The word taxes as used in this paragraph does not include ad valorem, franchise, excess profits or income taxes. During the periods of time when gas is being sold by Seller to Buyer on the basis of the weighted average cost per Mcf of Houston Pipe Line Company plus a fixed spread, that is, after March 1, 1969, there shall be excluded from the tax reimbursement provi- sions of this Article IX any taxes reimbursed by Houston Pipe Line Company to its producers of gas and included in Houston Pipe Line Company's weighted average cost of gas per Mcf. The amount of such taxes or charges for which payment is due hereunder shall be billed by Seller to Buyer monthly or at the end of each contract year, at the election of Seller, and shall be paid by Buyer to Seller, at Corpus Christi, Texas, within ten (10) days after receipt of such billing. ARTICLE X. LIABILITY OF PARTIES. Seller shall not be responsible for the condition, main- tenance, repair or upkeep of Buyer's service lines, appliances, equip- ment, or any utilization of gas after it has passed the delivery point as hereinabove proYided for, and neither shall Buyer be res- ponsible for the condition of Seller's lines or other appliances used in the delivery of such gas to Buyer. Seller shall not be responsible for personal injuries or for damages resulting from explosion or fire or from the use of gas delivered hereunder arising from any cause after such gas has passed the delivery point as -24- hereinabove provided for. Buyer shall not be responsible for per- sonal injuries or damages resulting from explosion or.fire or from the conveyance of such gas up to the delivery point as above pro- vided for arising from any cause. Seller agrees to indemnify and save harmless the Buyer against any liability for personal injuries to employees or agents of Seller,-and Buyer agrees to indemnify and save harmless the Seller against any liability for personal-in- juries to the employees or agents of Buyer when the cause of such personal injuries exists on the side of the delivery point for which the indemnifier is responsible as provided in this Article. Nothing herein shall be construed as relieving Seller of any re- sponsibility or liability for any damages resulting from Sellers failure to comply with the provisions of this contract relating to pressure and quality. ARTICLE XI. GOVERNMENT REGULATIONS AND FORCE MAJEURE. This contract is made subject to all existing and future Rules, Regulations, Orders, Laws or Froclamations of governmental authorities (both federal and state, including both civil and mili- tary) having jurisdiction over the parties hereto or the subject matter hereof. In the event either party hereto is rendered unable wholly or in part by force majeure, or other causes herein speci- fied, to carry out its obligations under this contract, other than the obligation to make payments of amounts due hereunder, it is agreed that on such party15 giving notice, and reasonably full particulars of such force majeure in writing or by telegraph to the other party within a reasonable time after the occurrence of the cause relied on, then the obligations of the party giving such no- tice, so far as they are affected by such force majeure or other causes herein specified, shall be suspended during the continuance of any inability so caused, but for no longer period, and such cause shall, so far as possible, be remedied with all reasonable dispatch. -25- . • .. . The term "force majeure" as employed herein shall mean acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, storms, floods, washouts, arrests and restraints of the Government, either federal or state, civil or military, civil disturbances, explosions, break- age or accident to machinery or lines of pipe, failure of compressor stations, freezing of wells or lines of pipe, inability of any party hereto to obtain necessary materials, supplies, or permits due to existing or future rules, regulations, orders, laws or proclamations of governmental authorities, both federal and state, including both civil and military, and any other causes whether of the kind herein enumerated or otherwise not reasonably within the control of the party claiming suspension. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the dis- cretion of the party having the difficulty and that the above re- quirement that any force majeure shall be remedied with all reason- able dispatch shall not require the settlement of strikes or lock- outs by acceding to the demands of the opposing party when such course is inadvisable in the discretion'of the party having the difficulty. ALTERATIONS AND REPAIRS: It is expressly recognized by Buyer that Seller may be- compelled to make necessary alterations, repairs, or installation of new or additional lines and equipment from time to time during the life of this contract. ARTICLE XII. GIVING OF NOTICE HEREUNDER. Any written notice to be given or served hereu%der shall be deemed sufficiently given or served when deposited in the United States Mail, with postage prepaid, addressed to Seller at its office in Houston, Texas, and to Buyer at its office in Corpus Christi, Texas. _26,_ ARTICLE XIII. ASSIGNABILITY OF CONTRACT. The provisions of this contract shall be binding upon and inure to the benefit of the successors, assigns and legal represen- tatives of the parties hereto, but neither Buyer nor Seller shall have the right to assign this contract or any portion thereof or interest therein without the prior written consent of the other party hereto; provided, however, (1) that Seller may assign this contract to a wholly owned subsidiary company (effective only so long as such subsidiary remains wholly owned) and (2).that either Seller or Buyer, or both, may assign its right, title.and interest in, to and by virtue of this agreement, including any and all ex- tensions, renewals, amendments and supplements thereto, to a trus- tee or trustees, individual or corporate, as security for bonds or other obligations or securities, and, if any such trustee be a cor- poration, without its being required by the parties hereto to qualify to do business in the State of Texas. Seller shall forthwith fur- nish to Buyer a certified copy of any instrument of assignment by Seller to a wholly owned subsidiary. XIV. MISCELLANEOUS. Any personal property of Seller placed upon real property owned by Buyer shall remain the property of Seller whether or not affixed to the realty of Buyer. This contract constitutes the entire agreement between the parties and no other representations, memoranda, agreements or other matter, oral or written, prior to the time hereof, shall vary, alter or interpret the terms hereof. The side head captions and the index in this instrument are for the convenience of the parties in identification of the provisions hereof and shall not constitute a part of the agreement nor be considered interpretive thereof. In the consideration and interpretation of this agree- ment, the following shall apply: (a) This agreement was prepared jointly by the parties hereunder and not by either party to the exclusion of the other. -27- (b) Failure to exercize any right hereunder shall not be considered a waiver of such right or rights in the future. (c) Time is of the essence with regard to all obliga- tions to be performed on or by a specified date, if any, herein contained. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in duplicate originals this day of , 1960. ATTEST: ATTEST: Secretary Secretary ATTEST: Secretary APPROVED: City Attorney HOUSTON NATURAL GAS CORPORATION By Presi en HOUSTON PIPE LINE COMPANY By Vice President CITY OF CORPUS CHRISTI, TEXAS By City Manager -28- Cost of Gas ` 12.30 261.64 969.48 3,049.56 235.94 i,906.45 35.37 $ '2,o65.28 4,215.68 12,477.36 1,823.57 4,362.05 2,905.82 913.08 325.44 546.84 260.75 0$29, 895.877 $ 1,213.24 32,254.72 X33 467.9 $ 1,152.45 1,161.88 1,906.51 ,220. $ 14,668.30 1,507.30 .��i6,175. do $ 15,150.98 41,348.00 5,339.27 31,568.76 30,046.19 6o,505.02 16,548.48 200,506-70 $ 1,872.97 2,624.81 113 71.43 p 5, 9.21 $ 547.18 5,359.42 5,120.50 336.67 pil 363.77 1,052.76 $ 2,24o.64 $ 1,708.98 $ 344.85 EXHIBIT "A" HOUSTON PIPE LINE COMPANY STATEMENT OF GAS PURCHASED MONTH OF MARCH, 1960 Location M.C.F. Nwnber 14.65# Base Price 1 205 2 4,293 3 16,158 4 50,826 5 3,895 6 31,472 110 �+ oo 7 29,504 8 6o,224 9 178,248 10 26,051 11 62,315 12 41,117 .13 13,o44 14 4,605 15 7,812 16 3,725 T6+2 ,3�5 7.0 17 15,039 18 403,184 --71T, 223 8m 19 12,805 20 12,787 21 20,982 . 9.0¢ 22 146,683 23 15,073 161-77­5 6 10.0 24 144,295 25 390,046 26 50,394 27 297,796 28 284,186 29 570,782 30 156,1o6 193, 605 10.5 31 17,027 32 23,635 33 12,349 53,011 11.0¢ 34 4,831 35 47,397 36 45,284 37 3 ooh 1 0 lei 11.2¢ 38 8,773 12.0 39 18,353 12,102¢ 4o 14,008 12.2 41 2,769 12.454¢ z� Cost of Gas ` 12.30 261.64 969.48 3,049.56 235.94 i,906.45 35.37 $ '2,o65.28 4,215.68 12,477.36 1,823.57 4,362.05 2,905.82 913.08 325.44 546.84 260.75 0$29, 895.877 $ 1,213.24 32,254.72 X33 467.9 $ 1,152.45 1,161.88 1,906.51 ,220. $ 14,668.30 1,507.30 .��i6,175. do $ 15,150.98 41,348.00 5,339.27 31,568.76 30,046.19 6o,505.02 16,548.48 200,506-70 $ 1,872.97 2,624.81 113 71.43 p 5, 9.21 $ 547.18 5,359.42 5,120.50 336.67 pil 363.77 1,052.76 $ 2,24o.64 $ 1,708.98 $ 344.85 Cost of Gas $ 1,929.75 9,4ol.00 11,330.75 $ 14,817.85 $ 5,034.82 2,676.48 195.08 1,281.47 1,169.02 10, 35'6-.-8-7 $ 54,281.90 $ 1,654-32 $ 22,042.00 45,900.79 $ 21,760.48 21,816.28 lo,607.22 9,093.13 101,921.50 1,451.41 1 50.02 $ 143,203.63 $ 8,673.74 17,249.76 494.42 1,537.48 11,367.56 39,322.9 4,668.83 5.80 3,662.35 5,022.40 78,750.01 615.91 23,738.20 23,703.08 15,841.59 50,344.81 7,680.99 2,363.99 13,770.12 18,248.69 52,724.25 452.25 301,593.27 $ 43,710.00 $ 52,558.52 86,988.90 $ 139,5 7. 2 $ 331,351.41•. 25,205.60 126,727.90 n 151,933-50 EXHIBIT "A ", CONTINULD Location M.C.F. Number 14.65# Base Price 42 15,438 43 75,208 90,U,-6 12.50 44 117,602 12.6¢ 45 39,003 46 20,910 47 1,524 48 10,011 49 9,056 80,504 50 420,041 12.9230 51 12,590 13.015¢ 52 167,4ol 53 348 073 5 5 13.0 1 54 163,331 55 163,990 56 79,659 57 68,113 58 765,168 59 10,891 1,251,152 13.2¢ 6o i,o61,672 13.25¢ 61 62,4ol 62 124,o99 63 3,557 64 11,o61 65 81,781 X2,899 13.9¢ 66 31,375 67 39 68 24,999 69 33,751 70 529,243 71 4,139 72 159,523 73 159,287 74 lo6,457 75 338,322 76 51,617 77 15,891 78 93,99k 79 122,633 8o 354,469 81 3,o44 2TO-2-8,79-3 1 F7.65 82 291,400 15.0 83 344,646 84 570,419 9 5,�5 15.25¢ 85 2,137,751 15.5¢ 86 157,535 8" 743,585 9u'.110 1, �a Cost of Gas $ 1,929.75 9,4ol.00 11,330.75 $ 14,817.85 $ 5,034.82 2,676.48 195.08 1,281.47 1,169.02 10, 35'6-.-8-7 $ 54,281.90 $ 1,654-32 $ 22,042.00 45,900.79 $ 21,760.48 21,816.28 lo,607.22 9,093.13 101,921.50 1,451.41 1 50.02 $ 143,203.63 $ 8,673.74 17,249.76 494.42 1,537.48 11,367.56 39,322.9 4,668.83 5.80 3,662.35 5,022.40 78,750.01 615.91 23,738.20 23,703.08 15,841.59 50,344.81 7,680.99 2,363.99 13,770.12 18,248.69 52,724.25 452.25 301,593.27 $ 43,710.00 $ 52,558.52 86,988.90 $ 139,5 7. 2 $ 331,351.41•. 25,205.60 126,727.90 n 151,933-50 Cost of Gas $ 65,000.93 40,275.84 70,493.12 175,769_d9 $ 199,772.62 $ 23166,521.75 Weighted Average Cost of Gas - $2,166,521.75 divided by 15,343,034 $ .14121 3/ EXHIBIT "A", CO iTINiIT'D M. C. F. 14.65# Base Price 88 393,945 89 244,o96 go 427,231 1,5,272 16.5¢ 91 919,979 21.7 15,343,034 Cost of Gas $ 65,000.93 40,275.84 70,493.12 175,769_d9 $ 199,772.62 $ 23166,521.75 Weighted Average Cost of Gas - $2,166,521.75 divided by 15,343,034 $ .14121 3/ AT WHICH ELECTION, ABOVE MENTIONED, THE FOLLOWING PROPOSITION SHALL BE SUBMITTED TO THE RESIDENT QUALIFIED ELECTORS OF THE CITY OF CORPUS CHRISTI, TEXAS: PROPOSITION 'A' "SHALL THE CITY COUNCIL OF. THE CITY OF CORPUS CHRISTI TEXAS, BE AUTHORIZED TO CAUSE TO BE EXECUTED A CONTRACT, ON BEHALF OF THE CITY, WITH HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY, JOINTLY FOR THE )URCHASE OF NATURAL GAS BY THE CITY FOR ITS GAS DISTR4e4Y `1-ON SYSTEM FOR A PERIOD OF TWENTY (20) YEARS WITH AN OPTION ON TAIE PART OF THE CITY, ON GIVING NOTICE TO TERMINATE THE CONTRACT AT THE END OF FIFTEEN (15) YEARS, AT THE PRICES AND UNDER THE TERMS AS FONTAINED IN PROPOSED CONTHACT, SAID CONTRACT BEING SET OUT IN ORDINANCE NO..fJ a o� PASSED MD APPROVED EX THE CITY COUNCIL OF THE CITY OF C. CHRISTI TEXAS, ON JULY 27, 196oz° SECTION 2. SAID ELECTION SHALL BE HELD IN THE CITY OF CORPUS CHRISTI, TEXAS, AT THE FOLLOWING PLACES AND THE FOLLOWING NAMED PERSONS ARE HEREBY APPOINTED JUDGES AND OFFICERS OF SAID ELECTION: 3 L PRECINCT NUMBER LOCATION ELECTION OFFICERS 1 GILLELANP'S COURT ROOM J. M. HAIGLER, JUDGE COURTHOUSE HENRY J. KE&OER,ASST.JUDGE LEO H. BECK, CLERK - SAM TYCER, CLERK 2 CHESTDN HEATH SCHOOL GERTRUDE DREYER, JUDGE 500 N. CARRIZO MRS.J.J.COTTEAELL,ASST.JUDGE DOROTHY PIERSQN, CLERK AGNES KONIAKOVSKY, CLERK 3 GEO. W. CROSSLEY SCHOOL MRS. J.H »VETTERS, JUDGE 2512 KOEPKE MRS. GEORGE STEIN,ASST.JUDGE MRS. D.H.MOORE, CLERK MRS. J.A. ALSTPN, CLERK 4 OAK PARk•SCHOOL MRS.H.A. TYCER, JUDGE - 3701 MUELLER MRS. W.H.DAVIS,ASST.JUDGE ' MISS ROSALEA RUSCHNAUPT,CLERK H. A. TYLER, CLERK 5 SAVAGE LANE FIRE STATION MRS. R. E. HOBBS, JUDGE 501 SAVAGE LANE MRS. J.A. CRABT.REE,ASST.JUDGE MRS. C. 0. UPCHURCHy CLERK MRS. H.H. MCCOOL, CLERK 6 SCOUT HUT MRS. R.J. HEREFORD, JUDGE WOODLAWN ORESBYTf-RIAN CHURCH MRS. M.C..MCKINNEY,ASST. JUDGE 3757 UP RIVER ROAD MRS. WALTER T. DOERR, CLERK - R. J. HEREFORD, CLERK 7 ROY MILLER HIGH SCHOOL MRS. JACK BARFIELD, JUDGE 515 FISHER ELIZABEJ44 A. NARK,ASST.JUDGE .,, ALBERTA KING, CLERK PAULINE M. TRIBBLE, CLERK S EDWARD FORMAN SCHOOL J. R. WETHERFORD, JUDGE 1115 S. ALAMEDA MRS. F.L. ALEXANDER,ASST.JUDGE MARJORIE PAUL, CLERK MRS. F.C. PIERCE, CLERK 9 GEO, WIGGINGS HOMES MRS. E. M. JIMINEZ, JUDGE RECREATIAN CENTER MRS. PHILIP E. TANIS,ASST.JUDGE 2320 BUFORD DOLORES FISCHER, CLERK E. M. JIMINEZ, CLERK 10 DE ZAVALA SCHOOL MINNIE B.O'CONNELL, JUDGE 925 FRANC ESCA MRS. CLEO FULTON,ASST.JUDGE MRS. ETTA GOFORTH, CLERK MRS. LON J. HOLLAND, CLERK 11 STLP,MEN F. AUSTIN SCHOOL MRS. JAMES B.FULTON, JUDGE 3902 MORGAN MRS. MERCEDES TIJERINA,ASST.JUDGE ' MRS. LILIA V. ALVAREZ, CLERK MRS. LOUELLA L.HRCHEK, CLERK 33 3'1 PRECINCT NUMBER LOCATION ELECTION OFFICERS 12 GEO. W. CARVER SCHOOL GEORGE ELIZONDO, JUDGE 3109 CARVER GEORGE M.CHATMAN,ASST.JUDGE MRS. O.P. ALEMAN, CLERK MRS. VALENTIN ELIZOyDO, CLERK 13 DAVID CROCKETT SCHOOL ROSA GONZALES, JUDGE 2625 BELTON SABAS S. GONZALES, ASST.JUDGE ZULEMA M. TAMEZ, CLERK ' LYDIA M. TRUJILLO, CLERK 14 WM. B. TRAVIS SCH90L LOUIS ADERHOLT, JUDGE 1645 TARLTON MRS.LOUIS ADERHOLT,ASST.JUDGE MRS. F. J. FLOYD, CLERK MRS. E. D. TERRELL, CLERK 15 ELIZABETH ST. SCHOOL P. E. GNEGY, JUDGE 2002 ELIZABETH MRS. ETHEL HAY,ASST. JUDGE MRS. IDELL S. CONNELL, CLERK 16 WM. MENGER SCHOOL MRS. C.E. BUCK, JUDGE 2209 S. ALAMEDA MRS. J. D. PROCTOR,ASST.JUDGE MRS. J. B. DURHAM, CLERK MRS. E. G. WELDON, CLERK 17 INCARNATE WORq ACADEMY DOLLY CARROLL, JUDGE CAFETERIA ELINOR H. KAUFMAN,ASST. JUDGE 2930 S. ALAMEDA MRS. G. W. PERRY, CLERK HARRISON ST. ENTRANCE - W. DUNLAP, CLERK 18 LINDALE RECREATION CENTER MARS. EDWIN L. OLSEN, JUDGE 3133 SWANTNER MRS. A.E. ENGELHARDT,ASST.JUDGE MRS. A. C. ROACH, CLERK MRS. C. E. BEARDSLEY, CLERK 19 DEL MAR COLLEGE AUDITORIUM MRS. E.H. ANDREW, JUDGE AYERS STREET MRS. P.A. TOM,ASST. JUDGE MRS. R. E. THURMAN, CLERK - E. H. ANDREW, CLERK 20 SAM HOUSTON SCHOOL NED W. BEAUDREAU, JUDGE 363 NORTON CATHERINE CASSIDY,ASST. JUDGE EULA ORCHARD, CLERK MRS. MARIE J. BRADLEY, CLERK 21 BAKER JR. HIGH SCHOOL DON M. HARRIS, JUDGE 3445 PECAN MRS. R.D.MOREHOUSE,ASST.JUDGE MRS. T. L. PARKER, CLERK MRS. WADE CARRUTH, JR.,CLERK 22 CUNNINGHAM JR. HIGH SCHOOL MRS. W. T. NEWTON, JUDGE 4321 PRESCOTT MRS. K. W. LEWIS, ASST.JUDGE W. J. NEWTON, CLERK OFELIA G. GAONA, CLERK 3'1 PRECINCT NUMBER LOCATION ELECTION OFFICERS 23 PRESCOTT ELEMENTARY SCHOOL REV. MARVIN L.LEWIS, JUDGE 1945 GOLLIHAR MRS. RUTH FERGUSON,ASST.JUDGE MRS. LOLA LANCE, CLERK MRS. ADA G. BURFORD, CLERK 24 JAS-W. FANNIN SCHOOL MRS. GARLAND M. BLUHM, JUDGE 2730 GOLLIHAR MRS. L. C. SCHMIDT, ASST.JUDGE MRS. R. P. PHILLIPS, CLERK MRS. M. C. BESS, CLERK 25 LEXINGTON SCHOOL MRS. W. D. JOHNSON, JUDGE 2901 MCARDLE HENRY T. INGRAMIASST. JUDGE MRS. JACK J. HANSEN, CLERK MRS. CLIFFORD LANDEN, CLERK 26, CENTRAL PARK SCHOOL MRS. W.P. LIVINGSTON, JUDGE 3602 MCARDLE ELMA -FINN, ASST. JUDGE LEON PINNI CLERK - W. P. LIVINGSTON, CLERK 27 R. B. FISHER SCHOOL E. S. BARROWI SR. I JUDG€ 601 MINNESOTA VAUGHN E. BOWEN,ASST. JUDGE MRS. WILLIAM HOSFORDI CLERK MRS. VIRGINIA SPOOR, CLERK 28 SCOUT HUT MRS.'A.C. KUEHM, JUDGE PARKWAY PRESBYTERIAN CHURCH MRS. A. E. SPARKS,ASST.JUDGE 3707 SANTA FE MRS. J-A. DUPONT, CLERK MARK J. GREGORY, CLERK 29 GARAGE MRS. M.A. CAGE, JUDGE 338 WILSHIRE MRS. V. E. WHITSTI.NE,A8ST.JUDGE MR. JOE HOLLAND, CLERK MRS. J. M. MORRIS, CLERK 30 ROBERT T. WILSON LEE R. HUGON, JUDGE ELEMENTARY SCHOOL ELIZABETH MAGEEI ASST. JUDGE 3925 FT. WORTH CATHERINE M. COX, CLERK MARJORIE S. HILL, CLERK 31 CARRO_LL LANE SCHOOL DREW HARRISON, JUDGE 4120 CARROLL LANE MRS. J -A. LOVE, ASST.JUDGE MRS. A. V. ASH, CLERK MRS. HOMER H. BROWN, CLERK 32 PARKDALE ELEMENTARY SCHOOL EDGAR W. BASS, JR., JUDGE 4801 EVERHART MRS. ALBERT CARHARTIASST.JUOGE MRS. SALLY HAMILTON, CLERK WALTER G. JAUER, CLERK 33 WINDSOR CHURCH OF CHRIST P. B. SNYDER, JUDGE 4420 S. STAPLES ELAINE G. BARTLING,ASST.JUDGE ELLEN A. SHOEMAKERI CLERK DOROTHY H. JOHNSON, CLERK Zs PRECINCT NUMBER LOCATION ELECTION OFFICERS 34 MONTCLAIR ELEMENTARY SCHOOL WANTA KEITH, JUDGE 5241 KENTNER MOLLY MULLE, ASST.JUDGE RUTH GRASSBAUGH, CLERK IMEL GRAHAM, CLERK 35 WINDSOR PARK SCHOOL F. G. TULEY, JUDGE 4525 S. ALAMEDA GRACE J. CLINES ASST.JUDGE M. L. SRAYBEAL2 CLERK MRS. M.L. GRAYBEAL, CLERK 36 FRASER ELEMENTARY SCHOOL HAROLD J. BOSWELL, JUDGE AIRLINE AND MCARDLE ROADS LAURA A. BOSWELL,ASST.JUDGE MARY JO LLOYD, CLERK ANNA T. NICOLAS, CLERK ABSENTEE VOTING SHALL BE CONDUCTED BY THE CITY SECRETARY AT HIS OFFICE IN THE CITY HALL AND THE RESULTS CANVASSED AND RETURNS MADE AS IS PROVIDED BY LAW. A SPECIAL CANVASS BOARD IS HEREBY APPOINTED AS FOLLOWS: MRS. EDNA MEADOR, JUDGE MRS. DORIS FRANCIS, ASSISTANT JUDGE MISS WANDA DIPPFEj CLERK 3�b SECTION 3. THAT SAID ELECTION SHALL BE HELD IN ACCORDANCE WITH THE PROVISIONS OF THE - STATUTES AND CONSTITUTION OF THE STATE OF TEXAS AND THE CHARTER OF THE CITY OF CORPUS CHRISTI, TEXAS. SECTION 4. THE POLLS WILL BE OPEN FROM 7 :00 O'CLOCK A. M. TO 7:00 O'CLOCK P. M. ALL VOTERS DESIRING TO SUPPORT THE PROPOSITION TO AUTHORIZE AND APPROVE THE EXECUTION OF THE CONTRACT WITH HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY SHALL HAVE WRITTEN PR PRINTED ON THEIR BALLOTS THE FOLLOWING WORDS: "FOR THE-AUTHORIZATION AND APPROVAL OF THE CONTRACT WITH HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY." AND ALL THOSE OPPOSED TO THE PROPOSITION OF AUTHORIZING AND APPROVING THE EXECUTION OF THE CONTRACT TO HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY SHALL HAVE WRITTEN OR PRINTED ON THEIR BALLOTS THE FOLLOWING WORDS: "AGAINST THE AUTHORIZATION AND APPROVAL - - -OF THE CONTRACT WITH HOUSTON NATURAL GAS CORPORATION AND HOUSTON PIPE LINE COMPANY." SECTION 5. A SUBSTANTIAL COPY OF THIS ORDINANCE, SIGNED BY THE MAYOR OF THE CITY OF CORPUS CHRISTI AND ATTESTED BY THE CITY $ECRETARY, SHALL CONSTITUTE THE NOTICE OF ORDERING OF SAID ELECTIONS AND THE MAYOR IS DIRECTED TO CAUSE A COPY OF THIS ORDINANCE) SIGNED BY HIM TO BE POSTED AT THE CITY HALL AND AT EACH OF THE VOTING PLACES IN EACH ELECTION PRECINCT NOT LESS THAN TWENTY (20) DAYS PRIOR TO SAID ELECTION, AND TO HAVE A COPY OF THIS ORDINANCE, SIGNED BY HIMp PUBLISHED IN THE CORPUS CHRISTI TIMES, THE OFFICIAL NEWSPAPER OF THE CITY OF CORPUS CHRISTI BEING A NEWSPAPER OF GENERAL CIRCULATION PUBLISHED WITHIN THE CITY OF CORPUS CHRISTI, TEXAS, SAID PUBLICATION TO BE HAD ONE TIME AT LEAST TEN (10) DAYS PRIOR TO THE DATE OF THE ELECTION. - SECTION 6. VOTING MACHINES MAY BE EMPLOYED AT THE ELECTION HEREIN ORDERED IN ACCORDANCE WITH THE PROVISIONS OF V.A.T.S. ELECTION CODE ARTICLE 7.14, AND SAID ELECTION SHALL BE HELD AND RETURNS OF SAID +ELECTION 371 I H MADE PROMPTLY BY THE RESPECTIVE OFFICERS HOLDING SAME TO THE CITY SECRETARY, AND SAID RETURNS SHALL BE CANVASSED AND THE RESULTS DECLARED BY THE CITY COUNCIL. SECTION 7. THAT THE PUBLIC IMPORTANCE OF THE QUESTION INVOLVED AND THE REQUIREMENT-OF THE CITY CHARTER REQUIRING THE SUBMISSION OF SUCH QUESTION AND THE NECESSITY FOR DETERMINING THE FUTURE STATUS OF GAS SUPPLY TO THE DISTRIBUT-1-ON SYSTEM OF THE CITY OF CORPUS CHRISTI CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER' RULE THAT NO ORDER OR RFSOL'UThON SHALL B£ PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDER OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR AND THE CITY COUNCIL HAVING DECLARED THAT SUCH EMERGENCY AND NECESSITY EXIST AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED, THIS ORDINANCE SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE, IT IS AC- CORDINGLY PASSED- AND APPROVED' THIS 27TH DAY OF JUDY, 1960. ATTEST. MAYO THE CITY OF CO z6s CHRIST TEXAS CITY ECR TAR APPROVED AS TO' LEGAL FORM THIS THE 27TH DAY OF Jy , 19600 CITY ATT NEY , 3� s % CORPUS CHRISTI, TEXAS f AY OF �9 (/ TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE- GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLU- TION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIRE- MENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYO THE CITY OF CO PUS CHRIS' , TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: ELLROY ICING JAMES L. BARNARD MRS. RAY AIRHEART JOSEPH B. DUNN (� n PATRICK J. DONNE Cv p^ R. A. HUMBLE `) a GABE LOZANO, SR. - THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: ELLROY KING JAMES L. BARNARD- MRS. RAY AIRHEART JOSEPH B. DUNN PATRICK J. DUNNE R. A. HUMBLE GABE LOZANO, SR. 3f'