HomeMy WebLinkAbout06734 ORD - 12/26/1962.'i JKH:12 -26 -62
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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 LUMAR GAS
CORPORATION, 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, WITH DELIVERIES TO BEGIN ON MARCH 1,
1966, AT 8:00 A. M., OR SUCH EARLIER DATE AS DEMANDED BY
THE CITY OF CORPUS CHRISTIO TEXAS, BY SUCH CITY GIVING
AT LEAST ONE HUNDRED TWENTY (120) DAYS PRIOR WRITTEN NOTICE;
DESIGNATING THE PLACES FOR HOLDING SUCH ELECTION; NAMING
THE OFFICER THEREFOR; DESCRIBING 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 OAS DISTRI-
BUTION SYSTEM; AND
WHEREAS, IT IS NECESSARY THAT All ADEQUATE GAS SUPPLY BE OBTAINED
IN ORDER TO OPERATE SAID DISTRIBUTION SYSTEM; AND
WHEREAS, THE CITY OF CORPUS C+IRISTI HAS NO CONTRACT PROVIDING `FOR
ADEQYATE GAS SUPPLY FOR ITS SAID DISTRIBUTION SYSTEM BEYOND MARCH 1, 1966,
AT 8:00 A. M.; AND _
WHEREAS, LUNAR GAS CORPORATION HAS OFFERED.TO SUPPLY SUCH GAS
IN ACCORDANCE WITH THE TERMS AND PROVISIONS SET OUT IN THE CONTRACT HEREIN-
AFTER SET FORTH IN THIS ORDINANCE, FOR A TERM OF TWENTY'(20) YEARS,
WITH DELIVERIES TO BEGIN ON MARCH 1, 1966, AT 8 :00 A. M., OR SUCH EARLIER
DATE AS DEMANDED BY THE CITY OF CORPUS CHRISTI, TEXAS, BY SUCH CITY GIVING
AT LEAST ONE HUNDRED TWENTY (120) DAYS PRIOR WRITTEN NOTICE; AND
WHEREAS, THE CITY COUNCIL DEEM$ IT NECESSARY THAT THE QUESTION
OF WHETHER OR NOT SAID CONTRACT SHOULD BE ENTERED INTO WITH THE SAID LUNAR
GAS CORPORATION SHOULD BE SUBMITTED TO A VOTE OF THE QUALIFIED ELECTORS
OF THE CITY:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
SECTION 1. THAT AN ELECTION BE HELD IN THE SAID CITY OF CORPUS
CHRISTI, TEXAS, ON THE _;DAY OF JANUARY, A. D., 1963, FOR THE PURPOSE
OF DETERMINING WHETHER OR NOT THE QUALIFIED ELECTORS OF THE CITY OF CORPUS
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CHRISTI TEXAS, APPROVE,
DESIRE AND AUTHORIZE THE EXECUTION OF THE
FOLLOWING CONTRACT WITH
LUNAR GAS CORPORATIONS TO -WIT:
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vOI , , NAIL. Aw 9fto INTIi`A* or lot' Wi1AY. OF
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il'IERF SELLER OWN3 AND. OPERATES A NATAL 4RAMSMI SS I ON
SYST11Ih, Aft: NO "'SUBSTANTIAL GAS 'RESERVES UNDER GAS PBRCN98f CDNTRACTS I'M
TIME ;,p!k`E' POST AREA% OF TEXAS AM IS ENGAGED IN THE PURCHASE AND... SALE ,OF -
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NATURAL OAI &:. A►M? ta.: p$SA MOUS Vr, .SUPPLYING BUYER- WITH MATV*&J_ OA3 ;:;.AM
SAS, 8UYJW IS A MUNICIPAL C9IePORAT110 DESIROUS BF' PURCHASING
NATURAL 4": TO SUPPLY 9v YERIS NATURAL GAS REQUIREMENTS AND FOR RESALE BY
ftYCR T**`*U.RN ITS GAS DI'STRIBUTI ON SYSTEN FOR A TWENTY (20) YCAR PERIOD
"
BE2 61O1N41 At PRBYIDEb IN ARTICLE Iwtiter, SUBJECT TO THE TERM AM CON-
WoRB MEIREiN skLOW STATED:,
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N9W, THEREFflREi; IN CONlIpEAATION�BFTNE PR[NISES AMC TUC MUTUAL
ONTAIND THE PARTIES HERETO D HEREBY AND A6WHN?3 *ENV 14
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COV4%*ANT AND AGREE AS FOLLOWS:
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ARTICLE 1. SCOPE OF AGREEMENT
(1) SELLER AGREES, SUBJECT ONLY TO "FORCE MAJEURE" AS HERE-
INAFTER DEFINED, TO SUPPLY, FROM THE NATURAL GAS RESERVES PRESENTLY
UNDER CONTRACT TO SELLER IN THE STATE OF TEXAS AND FROM SUCH OTHER LANDS
AND LEASES AS TO WHICH SELLER MAY HEREAFTER ACQUIRE THE GAS RIGHTS OR
THE RIGHT TO MARKET THE GAS THEREFROM, AND WHERE FROM SELLER SHALL ELECT
TO SELL GAS HEREUNDER, THE ENTIRE NATURAL GAS REQUIREMENTS OF .BUYER FOR
RESALE BY BUYER THROUGH ITS GAS DISTRIBUTION SYSTEM AND FOR THE USE OF
BUYER WITHIN AND WITHOUT THE CITY FOR A PERIOD OF TWENTY (20) YEARS,
WITH DELIVERIES TO BEGIN ON MARCH 1, 1966, AT 8:00 A. M. OR SUCH EARLIER
DATE AS DEMANDED BY BUYER BY BUYER GIVING AT LEAST ONE'HUNDRED AND TWENTY
(120) DAYS' PRIOR WRITTEN NOTICE.
(2) SUBJECT TO THE TERMS,-CONDITIONS AND LIMITATIONS HERE-
INAFTER 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 RE-
QUIRED BY BUYER FOR ITS DISTRIBUTION SYSTEM, INCLUDING ALL GAS REQUIRED
FOR RESALE TO ULTIMATE CONSUMERS AND ALL GAS REQUIRED FOR USE ON PROPERTIES
OF THE BUYER, INCLUDING PUBLIC BUILDINGS, AIRPORT PROPERTIES, SEWER DISPOSAL
SHALL BE '•ASSUMEO TO,SE FOURTEENA+1�D,, fi4EYEN —JE`NT HS 14,7) POUNDS
PER SQUARE 6NCH,a.REQAROLESS. OF THE ACTUAL ATMQSPH.ERIC PRESSURE
AT WHICH THE GAS IS DELIVERED AND..MEASl1RED.
(D) THEIARITHMETUCAL AVERAGE OF THE „ryOURLY TEMPERATURE
RECORDED 43URI NG EACH DAY) THE FACTOR f.OR- SPECIFIC GRAV I TY.AC-
CORDING TO-THE LATEST TEST.THEREF;OR AND THE CORRECTIONS FOR
DEVIATION FROM'BOYLE.'S LAW APPLICABLE DURING EACH DAY SHALL BE
USED TO-MAKE-PROPER COMPUTATIONS OF VOLUMES HEREUNDER. CHART
INTEGRATION AND VOLUME COMPUTATIONS SHALL OE,.MaDE BY SELLER
AS 'ACCURATELY AS POSSIBLE AND WITHIN THE ACCURACY PRESCRIBED
BYTHE - bANLUFACTURER OF ,THE &OMPUTING EQUIPMENT-USED.
(E) THEL TEMPERATURE OF THE,2 48 SH41, BE BY
XrWfft'OF A RECORDING THERMOMEYER OF STANDARD MANUFACTURE AND
SO'114STALLED�THAT IT MAY PROPERLY RECORD,THE TEMPERATURE OF
THE`4AS�`FLOWING THROUGH THE METER OR METERS.
' (F) AT BUYER'S OPTION THE SPECIFIC,GRAVITY OF THE GAS
SHALL BE DETERMINED BY,A " %ORDI.NG GRAVITOMETER OF APPROVED
TYPE OR BY<MONTHLY TESTS MADE WITH AN ACME OR.QTHER APPROVED
TYPE GA& BALANCE. IF BUYER ELECTS TO DETERMINE GRAVITY BY
A REGORDINGGRAYITpMETER) SELLER SMALL PURCHASE,) INSTALL AND
MAINTAIN'SAID GRAVITOMETER AT SELLER'S EXPENSE. SELLER'S
OBLIGATIbN TO PURCHASE AND INSTALL A.GRAYITOMETEtj SHALL EXTEND
TO ONLY ONE DELIVERY POINT TO BE SELECTED BY BUYER OR A MUTUAL -
LR AGREED,UPQN,POINT ON SELLER'S PIPELINE. HOWEVER,, SHOULD
BUYER ELEC.T TO USE A,.GRAVITQMETER OR GRAVITOMETERS AT ANOTHER
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POINT OR POINTS
OF DELIVERY, SELLER SMALL PURCHASE AND INSTALL
SAME AT BUYER'S
EXPENSE AND;. §EULER SHALL BE OBLIGATED TO MAIN-
TAIN AND OPERATE FREE OF CH•ARRE TO - Btl(kR ALL SUCH RECORDING
GRAVITOMETERS.
WHEN A RECORDING GRAVITOM£TER IS USED., THE
ARITHMETICAL AVERAGE OF THE GRAVITIES RECORDED DURING PERIOD
FLOW ONLY SHALL
BE USED FOR COMPUTATION PURPOSES FOR EACH
CHART PERIOD.
(G) IN DETERMINING THE VOLUME OF GAS DELIVERED THROUGH
THE ORIFICE DURING THE CHART. PERIOD, THE ORIFICE CHART INTE-
GRATOR SHALL BE USED IN READING THE METER CHART.
(3) AT THE WRITTEN REQUEST OF THE BUYER FOR MEASUREMENT ON ANY
PRESSURE BASE OTHER THAN 14.65 PSIA, THE PRICE PAYABLE HEREUNDER WILL BE
ADJUSTED TO CORRESPOND TO SUCH REQUESTED 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 AGREE-
MENT.
ARTICLE IV. MEASURING'EQUIPMENT
(1) SALES MEASURING STATIONS
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.
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(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 OPERATION OF SELLER'S MEASURING
EQUIPMENT AT OR NEAR THE POINT OR POINTS OF DELIVERY.
(3) RIGHT TO SE PRESENT:
SELLER AND BUYER SHALL HAVE THE RIGHT TO HAVE REPRESENTATIVES
PRESENT AT THE TIME OF ANY INSTALLING, READING, CLEANING, CHANGING, REPAIR-
ING, INSPECTING, TESTING, CALIBRATING OR ADJUSTING DONE IN CONNECTION WITH
THE OTHER'S MEASURING EQUIPMENT USED IN MEASURING OR CHECKI4G THE MEASURE-
MENT OF DELIVERING GAS UNDER THE GAS SALES CONTRACT. EACH PARTY SHALL GIVE
THE OTHER PARTY TWO (2) DAYS. WRITTEN NOTICE PRIOR TO THE DATE OF ALL SUCH
ACTIONS, OR WORK TO BE DONE, SO THAT THE OTHER PARTY MAY CONVENIENTLY HAVE
ITS REPRESENTATIVE OR REPRESENTATIVES PRESENT; PROVIDED, HOWEVER, THAT IF
EITHER PARTY HAS GIVEN SUCH NOTICE TO THE OTHER PARTY AND NO REPRESENTATIVE
OF THE PARTY IS PRESENT AT THE TIME SPECIFIED, THEN THE PARTY GIVING THE
NOTICE MAY PROCEED WITH THE WORK AS THOUGH A REPRESENTATIVE OF THE OTHER
PARTY WERE PRESENT. THE ABOVE NOTIFICATION REQUIREM£NTSHALL ALSO APPLY TO
TESTS AND CALIBRATIONS REFERRED TO UNDER THE NEXT FOLLOWING PARAGRAPH 4
OF THIS ARTICLE IV. THE RECORDS FROM SUCH MEASURING EQUIPMENT SHALL
REMAIN THE PROPERTY OF THEIR OWNER BUT UPON REQUEST EACH WILL SUBMIT TO
THE OTHER I,TS RECORDS AND CHARTS TOGETHER WITH CALCULATIONS THEREFROM FOR
INSPECTION AND.VERkFICATION 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
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BE AT ALL REASONABLE TIMES ACCESSIBLE TO INSPECTION AND EXAMINATION BY
BUYER. AT LEAST ONCE EVERY THIRTY (30) DAYS, SELLER SHALL CALIBRATE
ITS ORIFICE METERS, CALORIMETERS, GRAVITOMETERS AND THERMOMETERS, AND AT
LEAST ONCE EACH TWELVE i12J 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 BUYERS REQUEST SHALL
BE AT THE EXPENSE OF BUYER UNLESS THE PERCENTAGE OF INACCURACY IS FOUND
TO BE MORE THAN TWO PERCENT !2%/, IN WHICH CASE THE CALIBRATION SHALL BE
MADE AT THE EXPENSE OF SELLER. READINGS, CALIBRATIONS AND ADJUSTMENTS OF
SELLER'S METERS AND CHANGING -OF CHARTS SMALL BE DONE ONLY BY SELLER, BUT
ALL DATA WITH RES -PELT THERETO SHALL AT -ALL REASONABLE TIMES BE AVAILABiE
TOY BUYER. IF, UPON ANY TEST, THE - PERCENTAGE OF INACCURACY SHALL BE MORE
THAN TWO PERCENT (2%), REGISTRATIONS THEREOF SHALL BE CORRECTED AT THE
RATE OF SUCH INACCURACY FOR ANY PERIOD`WHICH IS DEFINITELY KNOWN OR AGREED
UPON, BUT IN —.CASE THE PERIOD IS NOT 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 IN-
ACCURATE SHALL IMMED LATELY -BE RESTORED BY SELLER TO A CONOI TG ON OF ONE
HUNDRED PERCENT (100%) ACCURACY.
(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 ASCER-
TAINED 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 THERETO UPON THE BASIS OF THE
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BEST DATA AVAILABLE, US I�G THE FIRST OF THE FOLLOWING IMETH008 WHICH IS
FEASIBLEB
(A) BY USING THE REGISTRATIONS OF BUYER'S CHECK METERS,
IF INSTALLED AS HEREINAFTER PROVIDED FOR AN ACCURATE REGISTER-
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(B) BY CORRECTING THE ERROR, IF THE PERCENTAGE OF ERROR
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IS ASCERTAINABLE BY CALIBRATION, TEST OR MATHEMATICAL CALCULA-
TIONS;
(C) BY ESTIMATING THE QUANTITY OF THE DELIVERY UPON THE
BASIS OF DELIVERIES DURING PERIOD UNDER SIMILAR OPERATING CONDI-
TIONS-WHEN THE METER iAS REGISTERING ACCURATELYg
(D) IN THE EVENT THAT THE PARTIES HERETO CANNOT AGREE,
AS ABOVE PROVIDEO,.IIPON -THE AMOUNT OF GAS OELIVERED DURING
THE TIME WHEN A METER IS OUT "OF SERVICE OR OUT OF ORDER, THEN
AND IN SUCH AN EVENT ITHE 1EATTER SHALL BE AIM I TRATED. THE BUYER
SHALL PROMPTLY APPOINT :A,RE•PRESENT4TIVE AND THE SELLER SHALL
LIKEWISE APPO1f4T:.A,- #EPRESB'FINTAT I V.E. THE TWO REPRESENTATIVES THUS
APPOINTED SHALL CH06ft THIRD DISINTERESTED, COMPETENT ARBITRATOR,
WHO SHALL AS SOON AS POSSIBLE CONVENE THE BOARD OF ARBITRATION AND,
AFTER HEARING SUCH EVIDENCE AWP ARGUMVNTS AS THE BOARD MAY DEEM AD-
VISABLE, SHALL PROMPTLY RENDER WRI7TENi DECISION WHICH SHALL BE
BINDING UPON THE PARTIES. �]*N'`T`HE EVENT THAT THE.ARSITRATOR APPOINTED
QY THE BUYER AND THE DUE APPOINTED 6V SELLER CANNOT AGREE UPON
A THIRD DISINTERESTED, COMPETENT ARBITRATOR,, THEN AND IN SUCH AN
EVENT, THE PARTIES SHALL IMMEDIATELY JOINTLY APPLY TO ANY UNITED
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STATES,' DISTRICT JUDGE OF THE SOUTHERN DISTRICT OF TEXAS TO
APPOINT ATHLRD.ARBITRATORAS:ABOVE PROVIDED, AND THEREAFTER
THE MATTER -SHALL PROCEED AS.ABOYE STATED.
(61 PRESERVATI;ON--OF *ETERtNG RECO7ts:
,�ELLER AND .BUYER SHALL :EACH PRESERVE FOR A PERIOO OF AT
LEAST TWO `2) YEARS ALL TEST DATA,, CHARTS AND OTHER SIMILAR RECORDS.
ARTICLE V. QUALITY
f{EATI.NGXA441£8
THE 00 TO BE DELIVERED UNDER THIS CONTRACT SHALL 0E
NATURAL GAS FROM SELLER'S PRESENT OR FUTURE SOURCES OFSUPPLY) PROVIDED,
HOWEVER, TH¢T HELIUM, NATURAL GASOLINE, BUTANE, PROPANE AND ANY OTHER
HYDROCARBONS EXCEPT METHANE MAY RE REMOVED PRIOR TO DELIVERY OF SUCH
GAS TO BUYER, THE GAS TO HAVE AL TOTAL HEATING VALUE OF ONE THOUSAND
(1.,WQ) BRITISH TgaRMAL LIN.kTS PER CUBIC FOOT OF GAS AT A TEMPERATURE
OF SIXTY DEGfKES FAHRENHEIT. (6.Q°F.) AND AT AN ABSOLUTE PRESSURE EQUIV-
ALiNT TO TJII1 S; RTY (5Q) fNCHE QF MERCURY AT THIRTY -TWO DEGREES FAHREN-
HEIT `3Z *F./ WHEN SATURATED WITH WATER VAPOR.
IF THE AVERAGE HEATING VALUE CONTENT OF ALL GAS DELIVERED
HEREUNDER, AT EACH POINT OF DELIVERY DURING -ANY DAY OR`CHART PERIOD
SHALL NOT FALL BELOW ONE THOUSAND (1,000) BTU'S PER CUBIC FOOT OF GAS,
THERE SHALL'BE -No BTU ADJUSTMENT. IN THE EVENT SUCH AVERAGE HEATING
VALUE CONTENT, FOR THE DAY OR CHART PERIOD, SHALL FALL BELOW ONE
THOUSAND (1,000) BTU'S THEN, AND IN SUCH EVENT, THE METERED VOLUME
OF GAS DELIVERED HEREUNDER FOR PAYMENT PURPOSES SHALL BE DECREASED
ONE +T,EWTH OF ONE PERCENT (9.1 %) FOR EACH 8711 GELOW ONE THOUSAND (1,000)
.Wtl' 3 PER CUBIC FOOT.
AT .BUYER p.$ OPTIQM 'T.HE M tONTENT OF THE GAS iMALL'BE
OCTERMIN90 BY A RECORDING CALORIMET" OF APPROVED TYPE M ST TESTS AS
REQUESTED BY BUYER WITH A SARGENT SA6 C.4LBBi.METER OR QTfJ0R APPROVED
TXIPE .GAS CALORIMETER, OR BY SUCH OTHER MET141M AS S%UL BE AGREED UPON
13V THE PARTIES. IF BUYER ELECTS TO DETERMINE THE OTtJ CONTENT OF A
RS ,CORDING CALORIMETER, SELLER SHALL PURCHASE, INSTALL AND MAINTAIN
SAIA CA ARIMETJR AT SELLERS EXPf.{1pE. SELLER 'S OBLIGATION TO PURCHASE
AND INSTALL ACALORIMETER SHALL EXT£NO TO O1[LY ONE DELIVERY POINT TO BE
r3 EI.Ed3T;R BY BUYER OR A A9UTl1ALLY AQ;fgD UPON POINT ON SELLER °S PIPELINE.
*WEOER, SHOULD .BUYER ELECT Tq USE A ffECORDINS CA�gPIMETER OR CALORI-
METER$ AT ANOTHER POINT OR P*o4TB OF OELIvv",'SSLLER SHALL PURCHASE
AND INSTALL GAME AT lapVfR °S EXPENSE AND SELLER SMALL BE OBLIGATED TO
MAINT41N Mp OPERATE FREE OF CHARGE TO BUYER ALL SUCH CALORIMETERS.
WHEN A PE4PADING CALORIMETER 16 U990 THE ARITHMETIC AVERAGE OF THE
RECORPINQS PgRIMG PERIOD OF PL" "LT SPAII L BE USED FOR COMPUTING PUR-
PPS . FOR gq" g"ART PERIOD. AT BUYER°G REQUEV, SELLER SHALL FURNISH
A 4TATEMEbl76t RfF 4FT.VG THE AVERAGE BTq EgNTF}AT OF 'THE GAS QELA YffRED. DURING
gACM g4V PF EACH SILLI"P.PERIQD.
6Y� 'FREEDOM FROM OB.IFCTIRNARLE MATTER.
THE NATURAL GAS TO BE DELIVERED BY SELLER Tp BUYER HERE-
UNOER OHALL CONFORM TO THE FOLLOWING REQUIREMENTS AND SPECIFICATIONSS
(A) SUCH GAS SMALL BE COMMERCIALLY FREE FROM DUST OR
OTHER SOLID OR LIQUID MATTERS WHICH NIGHT INTERFERE WITH ITS
MERCHANTABILITY OR CAUSE INJURY TO OR INTERFERENCE WITH PROPER
_1I#_
OPERATION OF THE LINES, RE¢ULATORS,,.,METERS�OR -OTHER APPLIANCES
.'GHRLUGH WHICH IT FL-9WS :02R t;N WHICM IT 1$ AJSEO.
_$UCH GAS 'SMAL4' 4,01,"NT,AI'4 MORf THAN 'ONE (1 ) GRAIN OF
HYDROGEN SULPHIAE PER ANE HY,94fkEll =1'QOd CUBIC FEET-.OF GAS VOLUME
WHEN TESTED WITH A HYOdEIXdN _a4Ut PaI1,I►E 4ETECTOR..APRARATUS"OR IN
ACCORDANCE WITH THE FOLLOWING PROCEDURE!
A STRIP OF WHITE FILT_"Af9APER PREVIOUSLY MOISTENED WITH FRES1
.FIVE PERCENT '{5�, LEAD ACETATE :A-PLUTIO" SH'AkL'eE _EXPOSED TO THE
,.GAS FOR ONE AND CNE-HALF MINUTES -1-N A °PREVIOUSLY PURGED
APPARATUS THROUGH` -WHICH THE BEST GAO I# F$9W6NG AT A RATE OF A'P•-
t,;
PROXIMATELY FIVE (54 CUd1:6.FF,ET PER -HOUR, •THE GAS 'SHALL NOT
DIRECTLY IMPINGE UPON THE T &ST STRIP.DURING T14E TEST, AT THE END
.OF THE STATED TIME THE TEST -PAPER THUS EXPOSED SHALL BE COMPARED
,WITH A SECOND TEST STR19.P ,Rt•M1,LARLY PREPARED 'BUT NOT EXPOSED TO
T#,E TEST GAS, IF'THE EXPOSED STRIP IS NOi NOTICEABLY DARKER
THAN THE' COMPARISON STR4;P, iTAS GAS IWOER tEST SHALL BE CONSIDERED
*%:FT Aft, E. IF TtIE ;EA4Pg.#AQ STRIP .f6 ,DEF[Ni,T.ELY DARKER THAN THE
COM,P,ARISOV STRIP, THE .G4 `011,4L 41E T4TXD , U,ANTITA$I ,VELY FOR
ro GEN SULPHlpg #Y T4 3yr Rl¢sa TdIOD.
.(C, SUCH GAS 3HA.S..L Nea &"T4)01 MORE THAN TEN (10) GRAINS OF
TlA+4 SULPHUR 'PER'ONE'�itONp+ ('949 P,U_BIC °FE'ET. OF GAS VOLUME, NOR
BORE THAN THREE PERCENT �3%, BY V9! -vic OF CARSON DIOXIDE, NITROGEN
"AND QTHER INERT GASES, WHEN A TEST OR A GAS A#ALYSi� OR THE -AP
PEANANCE OF OBJ.ECTIOQIIO®E MATTER SUOWS SUUCH LIMI.TS STATED IN THIS
SECTION (P) ARE £XCEEOED, $ELLER AMAiLL IMMEDIATELY DETERMINE THE
SOURCE AND DISCgN.fl'*K THE DELIVERY OF SUCH GAS TO BUYER.
ARTICLE 111. VDAR'IZATIQN
IT IS RISTINCTLY U.NBERSTQ$B THAT TKV,,R¢ SHALL BE NO OBLIGATION
UPON SELLER TO ODORIZE THE GAS TO. HE OEL(l1ERED HEREUNDER, OUT ANY 000foi-
ZATION OF GAS THAT MAY BE REQUIRED BY LAW OR THE CHARTER OR ORDINANCES
OF THE CITY OF CORPUS CHRISTI PRIOR T4.SALE FOR DOMESTICS COMMERCIAL AND
IN04STRIAL USE SHALL BE PERFORMED BY %Ybt AND WYER SHALL INDEMNIFY AND
SAVE HARMI,ESB.THE SEI"UZR AGAINST ALL CLAIMS FOR DAMAGES ARISING FROM OR-
GROWING OUT OF ANY FAILURE TO PROPERTY ODORIZE SUCH GAS AS REQUIRED. BY LAW,
OR THE CHARTER OR ORDINANCES OF THE ;CI'TY OF CORPUS CHRISTI..'NOTWITHSTANQINQ
THE FOREGOING. LIMITATIONS, AT BUYERaS OPTION AND EXPENSES SELLER AGREES
THAT BUYER MAY INJECT INTO SELLERS _ PIPELINES PRIOR TO THE POINT OF
DELIVERY A3 -SET_ FORTH lid aART I CLt J j, -- A - MALODORANT TO ,ODOR I ZE THE GAS TO `
BE DELIVERED BY SELLER TO BUYER. IN THE EVENT BUYER SO REQUESTS IN WRIT MQ
THAT AN 9DORIZAiION- CONNECT - ION - =BE. YOADE INTO - SELLER'S - .PIPELINE -AT -R LOCATION
AGREEAOLE TO SELLER AND 8UYER''_8UYER`ViL1: -PROVIDE 7HE -3I7EB OPERATE AND. -
- MAiflTAIN THE 9DORIZATI OM -EQU I PMENT: AT NO EXPZNSE TO rK SELLER.
ARTICLE-VII. BILLING AND PRICE
1-1) ON OR BEFORE THE TENTH .(10TH)_ DAY. OF ..EACH CALENDAR MONTH
SELLER SHALL RENDER A STATEMENT TO- MUYEWk$HOWIN9 THE QUANTITY OF GAS DELIVERED
TO BLCYER.DURING THE PRECEDING .CALENRAR MONTH OR DOLLING PERIODS WHICH BILLING
PERIOD SHALL AE APPROXIMATELY THIRTY '(30) DAYS, AND.THE- AMOUNT:RAYABLE THEREFOR
BY BUYER. SUCH STATEMENT SHALI..SHOW;THE NUMBER of MCF DELIVERED USING THE
CONTRACT PRESSURE, BASE OF 14.65 P0UNDS PER SQUARE INCH ABSOLUTZy AND ALSO
THE NUMBER OFjMC.F DELIVERED USING-* PRESSURE :SASE -OF*. rA ''00UNDS'PER SQUARE
INCH ABSOLUTE.
(2) FOR ALt,.QAB,OELtVERED DURING THE PRECEDING CALENDAR MONTH OR
BILLING PERIOD DURIWG'THE TERM %ERE.OF (MEASURED AT A PRESSURE BASE OF 14.65
PSIAS AND :ADJUSTED FOR. BTU CONTENT AS HEREIN OTHERWISE PI?OYI'DED), BUYER
SHALL PAY SELLER.ON OR BEFORE THE TWENTY- FIFTH-(25TH) OF EACH CALENDAR
MONTH BY ITS CHECK AND AT.THE OFFICE OF SELLER IM CORPUS CHRISTI, NUECES
COUNTY, BASED UPON. THE FOLLOWING SCHEDULE OF GAS PRICESI
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FOR THE FIRST
5 -YEAR PERIOD OF
THE
TERM OF THIS
CONTRACT, THE
PRICE PER 1000 CF
OF
GAS DELIVERED
SHALL BE
pp
FOR THE SECOND
5 -YEAR PERIOD OF
THE TERM OF THIS
` CONTRACT, THE
PRICE PER 1000 CF
OF
.GAS DELIVERED
SHALL BEi
�y
FOR THE THIRD
5 -YEAR PERIOD OF
THE
TERM OF THIS
CONTRACT, THE
PRICE PER 1000 CF
OF
GAS DELIVERED
SHALL BE
FOR THE FOURTH
5 -YEAR PERIOD OF
THE TERM OF THIS
CONTRACT, THE
PRICE PER 1000 CF
OF
GAS DELIVERED
SHALL BE
ARTICLE VIII, TAXES
IT IS UNDERSTOOD BY THE PARTIES HERETO THAT THE PRICE FIXED HEREIN
INCLUDES ALL PRESENT TAXES OF EVERY NATURE ASSESSED AS OF DECEMBER 31, 1962,
AND ENTERING INTO THE COST OF GAS OF SELLER AS WELL AS ALL PRESENT TAXES
ENTERING INTO THE COST OF PROVIDING GAS SERVICE UNDER THIS AGREEMENT, UP
TO THE POINT OF DELIVERY TO THE BUYER, AND IN THE EVENT THERE IS ANY CHANGE
IN THE AMOUNT OF SUCH TAXES OR ANY NEW OR SUBSEQUENTLY APPLICABLE TAXES
ALLOCABLE TO EACH ONE THOUSAND (I,0W) CUBIC FEET OF GAS OF THE QUANTITY,
QUALITY AND MEASUREMENT PROVIDED HEREIN, SELLER SHALL MAKE AN ADJUSTMENT
IN ITS BILLING UNDER THIS AGREEMENT REFLECTING THE EFFECT OF SUCH CHANGE
IN TAXES. THE WORD "TAXES" AS USED IN THIS PARAGRAPH DOES NOT INCLUDE AD
VALOREM, FRANCHISE, EXCESS PROFITS, GROSS RECEIPTS OR INCOME TAXES FOR
THE REASON THAT THESE SHALL AT ALL TIMES BE WHOLLY THE RESPONSIBILITY OF
SELLER.
-17-
ARTICLE IX. RESPONSIBILITY OF PARTIES
SELLER SHALL NOT BE RESPONSIBLE.FOR THE CONDITION, MAINTENANCE,
REPAIR OR UPKEEP OF BUYERS SERVICE LINES, APPLIANCES, EQUIPMENT, OR ANY
-
UTILIZATION OF OAS AFTER IT HAS PASSED THE DELIVERY POINT AS HEREINABOVE
PROVIDED FOR, AND NEITHER SHALL BUYER BE RESPONSIBLE FOR THE CONDITION OF
SELLER'S LINES OR OTHER. APPLIANCES.U.SEP IN THE ..DELIVERY OF SUCH GAS TO
BUYER. SELLER SHALL MOT BE RESPONSIBLff FOR PERSONAL INJURIES OR.FOR DAN-
AGES RESULTING FROM EXPLO31ON OR FIRE OR.FROM THE USE OF SAS DELIVERED
HEREUNDER ARISING FROM.ANY CAUSE AFTER SUCH GAS HAS PASSED THE DELIVERY
POINT AS HERETNABOVE PROVIDED.FORo-- �SIYER,.SHALL NOT BE RESPONSIBLE FOR
PERSONAL INJURIES OR DANAGES.RESULTIKQ FROM_EXPLOSION OR FIRE OR FROM THE
CONVEYANCE OF SUCH OAS UP TO.THE DELIVERY POINT AS,ASON6 PROVIDED FOR
ARISING FROM ANY CAUSE. SELLER.AAR.EES TO.A NDEMMIFY AND SAVE HARMLESS THE
BUYER AGAINST ANY LIABILITY. FOR PE"ONAL INJURIES TO EMPLOYEES OR AGENTS
OF SELLER, AND BUYER AGREES TO.A NDEMNIFY AND SAVE - HARMLESS THE SELLER
AGAINST ANY LIABILITY FOR PERSONAL INJURIES TO THE..EMPLOYEES OW AGENTS
OF BUYER WHEN THE CAUSE OF SUCH PERSONAL INJURIE3.EX13TS ON THE SIDE OF
THE DELIVERY POINT 'FOR. WHI CH' THM ;,,tmDEINN IF I ER 13. RESPONSIBLE AS PIROV I DED
IN THIS ARTICLE; NOTHING HEREIN SHALL BE CONSTRUED AS RELIEVING SELLER
OF ANY RESPONSIBILITY OR LIABILITY FOR..AANY DAMAGES RESULTING FROM SEL-
LER'S FAILURE TO COMPLY WITH THE .PROVISAONS OF THIS CONTRACT RELATING TO
PRESSURE AND QUALITY.
�18-
ARTICLE ISa. GOVERNMENT RE¢ULATID s.aNP.UItC &.IMAs?EVRg_.
THE TERM "FORCE MAJEURE" SHALL MEAN ACTS OF GOD, STRIKES, - LOCK°
OUTS, OR OTHER INDUSTRIAL DISTURBANCES, ACTS OF-THE PUBLIC ENEMY, WAR$,
BLOCKADES, INSURRECTIONS, RIOTS, EPIDEMICSp LANOSLIDESp LIGHTNING, EARTH-
QUAKES, FIRES, STORMS, FLOODS, WASHOUTS, ARRESTS AND RESTRAINTS OF THE
GOVERNMENT, EITHER FEDERAL OR STATE, CIVIL -OR MILITARY, CIVIL DISTURBANCES,
EXPLOSIONS, BREAKAGE OR ACCIDENT TO MACHINERY OR-LINES-OF PIPE -AND ANY
OTHER "CAUSES, WHETHER OF THE KIND HEREIN ENUMERATED OR OTHERWISE, NOT
REASONABLY WITHIN THE CONTROL OF THE PARTY CLAINI.NG SUSPENSION, AND WHICH
BY THE EXERCISE,OF DUE DILIGENCE SUCH PARTY IS UNABLE, WHOLLY OR IN PARTp
TO PREVENT ®%-OVERCOME. THE SETTLEMENT OF STRIKES OR LOCKOUTS SHALL BE
ENTIRELY WITHIN THE GOOD FAITH D1,$CRETION• OF. THE PARTY HAVING THE DIFFICUL-
TY, AND --THk REQUIREMENT THAT ANY FORCE MAJEURE SHALL.BE REMEDIED WITH ALL
REASONABLE DISPATCH SHALL NOT REQUIRE THE SETTLEMENT OF STRIKES OR LOCKOUTS
BY ACCEDING TO THE DEMANDS OF THE OPPOSING PARTY WHEN SUCH COURSE I$ IN-
ADVISABLE IN -THE GOOD FAITH DISCRETION OF THE PAR.TY.HAVING THE DIFFICULTY.
THE CONTRACT SHALL BE SUBJECT -TO ALL EXISTING AND FUTURE RULES,
REGULATIONS, ORDERSp LAWS OR PROCLAMATIONS OF GOVERNMENTAL - AUTHORITIES
(BOTH FEDERWAND STATE, INCLUDING'SdtH CIVIl AND-MILITARY) HAVING`JURIS-
DICTION OVER THE PARTIES HERETO OR THE SU6JEGT MATTER.
IN THE EVENT THAT EITHER PARTY IS- RENDERED UNABLE WHOLLY OR IN
PART,-BY FORCE MAJEURE OR OTHER CAUSES SPECIFIED IN THE CONTRACT TO CARRY
OUT ITS OSL I GAT I ONS.: UNDERC"THE CONTRACT OTHER- :TwAN'THE OBLIGATION :TO
-MAKE --
PAYMENTS OF AMOUNTS DUE THEREUNDERg`AND 74UCH PARTY GIVES NOTICE AND RES°
SONABLY FULL PARTICULARS OF SUCH FORCE 04AJEURE IN WRITING OR BY TELEGRAPH
TO THE OTHER PARTY WITHIN A REASONABLE TOM AFTER THE OCCURRENCE OF THE
CAUSE RELIED ON, THEN:TNE OBLIGATIONS OF THE PARTY GIVING SUCH NOTICE, SO
FAR AS THEY ARE AFFECTED BY SUCH FORCE MAJ%URE OR OTHXR.CAUSES SPECIFIED
ON THE CONTRACT SHALL BE SUSPENDED DURING THE CONTINUANCE OF ANY INABILITY
30 CAUSED9 BUT FOR NO LONGER PERIOD,. A40 VCH CAURE SHALL 80,FAR AS FOS-
$ISLE BE REMEDIED WITH ALL REASONABLE DISPATCH., EiTwElR PARTY WAY PAR-
T.IALLY OR ENTIRELY, INTERRUPT ITS.;P9RFORM4MCE, THEREUNDER FOR THE PURPOSE
OF MAKING NECESSARY aNSPECTION89 OUT ONLY FOR
SUCH TIME ASAAY SE REASONABLE OR UNAV
01.DABLEJ AND THE PARTY REQUIRING
SUCH RELIEF SHALL GIVE TO THE.OTHrR PARTY REASONABLE NOTICE OF ITS INTEN-
TION TO $USPEMO ITS PERFORMANCE THEREUNDER, EXCEPT WCASE3 . OF EMERGENCY
WHERE SUCH NOTICE IS IMPRACTICABLE, AND SHALL ENDEAVOR TO ARRANqE SUCH
ONTE-RRUPTtOKS 80 AS TO INCONVENIENCE TNEQTOqfR PARTY AS LITTLE AS POS-
SIBLG -.SERVICE INTERRUPTION* ON THE PART OF KATHER'PARTY WHICH ARE
SANCTIONED By THE PROVISIONS OF TH"-PARAGRAPH ARE EXPRESSLY INCLUDED
WITHIN THE DEFINITION Of "rORCE.116,002RE" FOR THE PURPOSES OF THE CON-
TRACT. FORCE MAJEURE SHALL IN 49ATUT BE INTERPRETED TO MEAN OR IN-
CLUDE-THE FAILURE OF SELLER TO COMMENCE DEW: wrgy CM,THE PATE SPECIFIED
BY LACK OF, OR DELAY IN INSTALLATION OF, DELIVERY P,&1896 OR OTHER FACILI-
TIES, ON ANY. I NTERRUPT I ON QF AA4 -11UPPLY 'OVE TO -VA I LURE OF SELLER TO HAVE
A SUFFICI.EMT,GAS.SUPPLY..UND9R CONTRACT TO MEET ALL COMMITMENTS OF SELLER
TO ALL PERSONS IN ACCORDANCE WITH AND IN KEEPING WIT" ALL-REGULATIONS OF
ANY AND ALL REGULATORY BODIES.
m-
ARTICLE 'X11, DEFAULT
(1) EXCEPT WHERE A DIFFERENT REMEDY HAS BfrEN'SPECIFICALLY AGREED
UPON ELSEWHERE IN THE CONTRACT, ANY DEFAULT. IN PERFORMANCE THEREOF BY SELLER
SHALL ENTITLE BUYER-TO THE PAYMENT OF MONETARY DAMAGES FOR ALL DAMAGES
OR LOSS, INCLUDING COST OF ANY OUTSIDE SUPPLY OBTAINED BY BUYER TO KEEP
ITS SYSTEM IN OPERATION, WHICH BUYER MAY ACTUALLY INCUR-OR SUFFER BY REASON
OF OR AS A RESULT OF SUCH DEFAULT.BY SELLER, AND BUYER MAY ALSO ENFORCE
SPECIFIC PERFORMANCE OF THE CONTRACT BY SELLER. BUYER SHALL BE UNDER
NO OBLIGATION TO PROCURE ANY OUTSIDE SUPPLY OF GAS OR CONTRACT FOR ANY
STANDBY SERVICE.
ANY DEFAULT.BY SELLER IN THE - PERFORMANCE OF ITS'OBLIGATIONS UNDER
THE CONTRACT WHICH RESULTS IN SELLER'S FAILURE OR INABILITY TO DELIVER
TO BUYER-ALL OF THE QUANTITIES OF GAS (OF THE QUALITY SPECIFIED) AT THE
TIMES AND,RATES OF DELIVERY: WHICH SELLER IB OBLIGATED TO DELIVER, SHALL
BE DEEMED A MATERIAL DEFAULT BY SELLER, AND IN ADDITION TO ALL OTHER
REMEDIES WHICH IT MAY ELECT, BUYER MAY, AT 'ITS OPTION TERMINATE THE'
CONTRACT BY GIVING WRITTEN NOTICE TO.THE SELLER STAT.INQ SPECIFICALLY THE'
CAUSE OR CAUSES FOR TERMINATING•THEhCONTRACT AND DECLARING IT TO BE THE
INTENTION OF BUYER TOTERMINATE.THE SAMEAT•SUCN TIME AFTER 60 DAYS AS BUYER
SPECIFIES IN SAID NOTICE; WHEREUPON, SELLER SHALL HAVE SIXTY (60) DAYS
AFTER THE-SERVICE OF SUCH NOTICE IN WHICH TO REMEDY OR REMOVE THE CAUSE
OR CAUSES STATED IN THE NOTICE FOR TERMINATION OF THE CONTRACT, AND IF WITHIN
SAID PERIOD OF SIXTY (60)'DAYS SELLER DOES SO REMOVE OR REMEDY SAID CAUSE OR
CAUSES, AND FULLY INDEMNIFY BUYER FOR ANY AND ALL CONSEQUENCES OF'SUCH MATERIAL
-21-
DEFAULT, THEN SUCH NOTICE SHALL BE WITHDRAWN AND THE CONTRACT SHALL CON-
TINUE IN FULL FORCE AND EFFECT. IN CASE SELLER DOES NOT SO REMEDY OR RE-
MOVE THE CAUSE OR CAUSES OR DOES NOT INDEMNIFY BUYER FOR ANY AND ALL CONSE-
QUENCES OF SUCH MATERIAL DEFAULT WITHIN SAID PERIOD OF SIXTY (60) DAYS, THEN
BUYER MAY, IF IT SO ELECTS, DECLARE SAID CONTRACT NULL AND VOID FROM AND AFTER
THE EXPIRATION OF SAID PERIOD OF - TIME -AS BUYER SPECIFIED IN SAID NOTICE.
ANY SUCH CANCELLATION OF THE CONTRACT BY BUYER SHALL BE WITHOUT PREJUDICE
TO THE RIGHT OF BUYER TO COLLECT OR WITHHOLD ANY AMOUNTS THEN DUE IT FROM
SELLER, BUT SHALL NOT CONSTITUTE A WAIVER OF ANY OTHER REMEDY TO WHICH-BUYER
MIGHT BE ENTITLED FOR BREACH OF THE CONTRACT BY SELLER.
(2) IF THE BUYER SHOULD DEFAULT IN PERFORMANCE OF ITS OBLIGATIONS
UNDER THE CONTRACT, SELLER MAY, AT ITS OPTION, TERMINATE THE CONTRACT BY
GIVING WRITTEN,NOTICE TO BUYER STATING SPECIFICALLY THE CAUSE OR CAUSES
FOR TERMINATING THE CONTRACT AND DECLARING IT TO BE THE INTENTION OF SEL-
LER TO TERMINATE THE SAME; WHEREUPON,- BUYER SHALL HAVE SIXTY (60) DAYS
AFTER THE SERVICE OF SUCH NOTICE IN WHICH TO REMEDY OR REMOVE THE CAUSE
OR CAUSES STATED IN THE NOTICE FOR TERMINATION OF THE CONTRACT, AND IF
WITHIN SAID.PERIOD OF SIXTY (60) DAYS THE BUYER DOES SO REMOVE OR REMEDY
SAAD CAUS.E OR. CAUSES, AND FULLY I NOEMNI FY_ SELLER FOR ANY AND ALL CONSE-
QUENCES, OF SUCH BREACH, THEN SUCH NOTICE SHALL BE WITHDRAWN AND THE CON-
TRACT SHALL CONTINUE IN FULL FORCE AND EFFECT. IN CASE BUYER DOES NOT
SO REMEDY OR REMOVE THE CAUSE OR CAU,F5 01: 00ES [101 INDEMNIFY SELLER
FOR ANY AND ALL CONSEQUENCES OF SUCH BREACH WITHIN THE SAID PERIOD OF SIXTY
-22-
(6D) DAYS, THEN SELLER MAY, AT ITS OPT.I.ON, OEd1.ARE•.SA10 CONTRACT NULL
AND VOID FROM AND AFTER THE EXPIRATION OF.SIX<(6) MONTHS NEXT FOLLOWING
SAID SIXTY (0) DAYS. ANY SUCH CANCELLATION, OF SAI•111 CONTRACT SHALL BE
WITHOUT PREJUDICE TO THE RIGHT OFI SELLq TO COLLECT ANY iI1A10UWS THEN DUE
IT FROM BUYER, BUT SHALL CONSTITUTE A YA.1 VFIR OF, AMP OTHER REMEDi TO WHICH
SELLER.MIGHT BE ENTITLED.
IN THE EVENT OF DEFAULTIBY BUYER IN THE PERFORMANCE OF ITS OB-
LIGATIONS UNDER THE CONTRACT, AND.IF SIELL£R DOES, %OT ELECT TC TERMINATE
THE CONTRACT,, SELLER SHALL BE ENTITLED 70 PAYMENT FROM BUYER OF MONETARY
DAMAGES FOR ALL DAMAGES OR LOSSES WHICH SELLER MAY 6CTUALEY INCUR OR SUF-
FER BY REASON OF OR.AS A RESULT OF SUCH DEFAULT -BY BUYER; BUT SELLER SHAL4.
NOT BE ENTITLED TO ENFORCE SPECIFIC PERFORMANCE OF: THE 'CONTRACT BY 'BUYER.
ARTICLE XIII. NOTICE
ANY WRITTEN NOTICE TO BE GIV €N OR SERVED HEREUNDER SHALL SE DE €MED
' k 1
SUFFICIENTLY GIVEN OR SERVED WHEN DEPOSITED IN THE UNITED STATES MAIL, WITIII y
POSTAGE PREPAID, ADDRESSED TO SELLER AL._1 TS OFF-ICE AT
AND T II BUYER. AT ITS OFF1 CE AT ,3n SOUTH L
SHORELINE, CORPUS CHRISTI, TEXAS, UNJf$S,,AP19, Al.1h NOTICE OF CHANGE` OF'AQOR9SS
IS GIVEN IN WRITING.
ARTICLE XIV. ASSIGNMENT
THE PROVISIONS OF THIS.CONTRACT SHALL BE 01NDING UPON�AND IWLWE
TO THE BENEFIT OF THE SUCCESSORS, A�9S16NS ANO ,LEGAL REPRESENTATIVE$ IOF THE
- �3-
PARTIES HERETO, BUT NEITHER BUYER OR 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,
THAT EITHER SELLER OR'BUYER,, OR BOTH MAY ASSIGN ITS RIGHTS TITLE AND
INTEREST INS TO AND BY VIRTUE OF THIS AGREEMENT, INCLUOJNGANY AND ALL
EXTENSIONS, RENEWALS AMENDMENTS AND SUPPLEMENT'S THERETO TO A TRUSTEE
OR TRUSTEES, INDIVIDUAL OR CORPORATE, AS SECURFTY FORi60905 OR OTHER OB-
LIGATIONS OR SECURITIES AND, IF ANY SUCH TRUSTEE BE A i6100RATION WITH-
OUT ITS BEING REQUIRED BY THE PARTIES HERETO TO QUALIFY TO -60 -&US[ MESS
IN THE STATE OF TEXAS; PROVIDED FURTHER, THAT THE PARTY MAKING SUCH AN
ASSIGNMENT SHALL REMAIN LIABLE TO 015e9ERVE AND PERFORM ALL OF THE CON-
DITIONS AND COVENANTS IN THIS AGREEMENT. SELLER SHALL FORTHWITH FURNISH
TO BUYER A CERTIFIED COPY OF ANY INSTRUMENT OR ASSIGNMENT BY SELLER TO A
WHOLLY OWNED SUBSIDIARY.
ARTICLE XV. MISCELLANEOUS
ANY PERSONAL PROPERTY OF..S&L�ER PLACED UPON REAL PROPERTY OWNED
BY BUYER SHALL REMAIN THE PROPERTY. ;OF,.S¢LLER WHETHER'It -NOT AFIFIXED. TO
THE REALTY OF BUYER.
THIS CONTRACT CONSTITUTES.THE ENTIRE AGREEMENT BETWEEN THE PARTIES
AND NO OTHER REPRESENTATIONS MEMORANDA AGREEMENTS OR OTHER:- MATTERS ORAL
OR WRITTEN, PRIOR TO THE TIME HEREOF,, SHALL. VARY ALTER OR'INTEAPOET- -THE
TERMS HEREOF. THE SIDE HEAD CAPTIONS AND THE INDEX IN THIS INSTRUMENT ARE
-24-
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
bSHALL THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS, BE AUTHORIZED TO CAUSE TO BE EXECUTED A CONTRACT,
ON B'EH4F OF THE CITY, WITH LUMAR GAS CORPORATION FOR THE
PURCHASE OF NATURAL GAS BY THE CITY FOR ITS GAS DISTRIBUTION
SYSTEM FOR A TERM OF TWENTY (20) YEARS, WITH DELIVERIES TO
BEGIN ON MARCH 11 1966, AT 8.00 A. M., OR SUCH EARLIER
DATE AS DEMANDED BY THE CITY OF CORPUS CHRISTI, TEXAS, BY
SUCH CITY GIVING AT LEAST-ONE HUNDRED TWENTY (120) DAYS
PRIOR WRITTEN NOTICE, AT THE PRICES AND UNDER THE TERMS
AS CONTAINED IN PROPOSED , SAID CONTRACT BEING
SET OUT IN ORDINANCE N0. �� ��at$$ , PASSED AND APPROVED
BY THE CITY COUNCIL'OF THE CITY OF CORPUS CHRISTI, TEXAS,
ON DECEMBER 26, 1962?"
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-
LIST OF VOTING PRECINCTS, POLLING PLACES ELECTION JUDGES AND ASSISTANTS.
PRECINCT NO. 1 - JUDGE GILLELAND'S COURTROOM - COUNTY COURTHOUSE
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 1, 2y 4
5, 6, 3D, 31, 32, 33, 45, 46, 47, , 9,
AND ALL OF THAT PORTION OF COUNTY VOTING
PRECINCT ND. 21 LOCATED WITHIN THE CITY
LIMITS.
J. M. HAIGLER ELECTION JUDGE
H. J. KERBER ASSISTANT JUDGE
MISS GERTRUDE DREYER CLERK
MRS. C. P. CULLINAN CLERK
PRECINCT NO. 2 - WYNN SEALE JR. HIGH SCHOOL ANNEX, 1800 SOUTH STAPLES
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 339, 40, 41, 43,
53, 56, 57, 58, 62, 73, 83, S5, 88, 96 AND
97<
MRS. E. G. WELDON ELECTION JUDGE
MRS. P. A. TOM ASSISTANT JUDGE
MRS. JOHN R. LOPQ, SR. CLERK
MRS. RUTH SCARLETT CLERK
PRECINCT NO. 3 - LINDALE RECREATION BUILDING, 3133 SWANTNER
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 42, 5D, 592
63, 67, 68, 69 AND 86.
MRS. DOLLY CARROLL JUDGE
MRS. EDWIN OLSEN ASSISTANT JUDGE
MRS. A. C. ROACH CLERK
MRS. RUTH B. GILL CLERK
PRECINCT NO. 4 - HAMLIN JR. HIGH SCHOOL, 3850 SOUTH STAPLES
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 64, 66, 71,
72, 87, 93, 94, 95 AND PART OF 20 WITHIN
THE CITY LIMITS.
MRS. R. H. GODEKE JUDGE
MRS. M. A. CAGE ASSISTANT JUDGE
MRS. W. P. LIVINGSTON CLERK
MRS. D. A. BRANDON CLERK
PRECINCT NO. 5 - LOZANO SCHOOL, 650 OSAGE
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 44, 60, 61,
74, 75, 76, 77, 80, 98 AND THAT PART OF
24 WITHIN THE CITY LIMITS.
MRS. ROSE GONZALES JUDGE
MRS. J. B. FULTON ASSISTANT JUDGE
MRS. THELMA K. DAVID CLERK
MRS. GEORGE M. CHATMAN CLERK
•
PRECINCT NO. 6 - WEST HEIGHTS BAPTIST CHURCH, 642 SCOTT DRIVE r
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 7, 8, 38, 52,
78, 79, 81, 82, 99 AND ALL THAT TERRITORY
CONTAINED IN COUNTY VOTING PRECINCT NO. 51
LOCATED WITHIN THE CITY LIMITS.
MRS. J. H. VETTER5 JUDGE
MRS. H. A. TYLER ASSISTANT JUDGE
MRS. JACK BARFIELD CLERK
MRS. R. J. HEREFORD CLERK
PRECINCT NO. 7 - FRASER ELEMENTARY SCHOOL_, AIRLINE AND McARDLE ROADS
COMBINED NUECES COUNTY VOTING PRECINCT NOS. 65, 84, 89, goy
91 AND 92 AND THAT PART OF 70 WITHIN THE
CITY LIMITS.
R. L. WISWELL JUDGE
BEN F. WOOD, JR. ASSISTANT JUDGE
GLEN C. LEBLEU CLERK
P. B. SNYDER CLERK
PRECINCT NO. S - CLARKWOOD INDEPENDENT SCHOOL
THAT PART OF NUECES COUNTY VOTING PRECINCT NOS. 29 AND 34
WITHIN THE CITY LIMITS.
MRS. F. C. PAYNE JUDGE
MRS. D. E. KILGORE ASSISTANT JUDGE
MRS. A. E. MOSTELLO CLERK
MRS. JESS DOTSON CLERK
PRECINCT NO. 9 - COUNTY BUILDING., ANNAVILLE
THAT PART OF NUECES COUNTY VOTING PRECINCT NOS. 9 AND 101
WITHIN THE CITY LIMITS.
W. M. MAGEE JUDGE
MRS. DOROTHY FERRELL ASSISTANT JUDGE
MRS. DOLPH MAGEE CLERK
MRS. J. R. SINCLAIR CLERK
PRECINCT NO. 10 - TULOSO- MIDWAY HIGH SCHOOL, HOME ECONOMICS WING
THAT PART OF NUECES COUNTY VOTING PRECINCT NOS. 100 AND
103 WITHIN THE CITY LIMITS.
MRS. J. W. LAWRENCE JUDGE
MRS. D. D. BRAMBLETT ASSISTANT JUDGE
MRS, T. W. AMMERMAN CLERK
MRS. ABE WHITWORTH CLERK
PRECINCT NO. 11 - JOHN L. TOMPKINS FIELD OFFICE, PEARY PLACE
THAT PART OF NUECES COUNTY VOTING PRECINCT NOS. 17 AND 18
WITHIN THE CITY LIMITS.
MRS. FELIX IRWIN JUDGE
MRS. R. R. BISHOP ASSISTANT JUDGE
MRS. HERMAN HAWKINS CLERK
MRS. M. C. SLOUGH 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 ELVA QUINTANILLA, CLERK
THE PRESIDING JUDGES SHALL BE AUTHORIZED TO SELECT SUCH CLERKS
OR OTHER ASSISTANTS PROVIDED BY LAW, AS MAY BE DEEMED NECESSARY AND SAID
ELECTION SHALL BE HELD IN ACCORDANCE WITH THE PROVISIONS OF LAW RELATING
TO ELECTIONS AND THE GENERAL LAWS OF THE STATE OF TEXAS SHALL BE OBSERVED
INSOFAR AS THEY ARE APPLICABLE.
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 LUNAR GAS
CORPORATION SHALL HAVE WRITTEN OR PRINTED ON THEIR BALLOTS THE FOLLOWING
WORDS:
"FOR THE AUTHORIZATION AND APPROVAL OF THE CONTRACT WITH
LUMAR GAS CORPORATION."
AND ALL THOSE OPPOSED TO THE PROPOSITION OF AUTHORIZING AND APPROVING THE
EXECUTION OF THE CONTRACT WITH LUNAR GAS CORPORATION SHALL HAVE WRITTEN OR
PRINTED ON THEIR BALLOTS THE FOLLOWING WORDS:
"AGAINST THE AUTHORIZATION AND APPROVAL OF THE CONTRACT
WITH LUMAR GAS CORPORATION."
SECTION 5. A SUBSTANTIAL COPY OF THIS ORDINANCE, SIGNED BY
THE MAYOR OF THE CITY OF CORPUS CHRISTI AND ATTESTED BY THE CITY SECRETARY,
SHALL CONSTITUTE THE NOTICE OF ORDERING OF SAID ELECTION, 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 HIM, PUBLISHED IN THE CORPUS CHRISTI TIMES,
THE OFFICIAL NEWSPAPER OF THE CITY OF CORPUS CHRISTI, BEING A NEWSPAPER O*
GENERAL CIRCULATION PUBLISHED WITHIN THE CITY OF CORPUS CHRISTI, TEXAS,
SAID PUBLICATION TO BE MADE ONE TIME AT LEAST TEN (10) DAYS PRIOR TO THE
DATE OF THE ELECTION.
SECTION E. VOTING MACHINES MAY BE EMPLOYED AT THE ELECTION
HEREIN ORDERED IN ACCORDANCE WITH THE PROVISIONS OF V.A.T.S. ELECTION CODE,
ARTICLE 7.124, AND SAID ELECTION SHALL BE HELD AND RETURNS OF SAID ELECTION
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 DISTRIBUTION 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 RESOLUTION SHALL BE PASSED FINALLY ON
THE DATE OF ITS INTRODUCTION AND 74AT SUCK ORDINANCE OR RESOLUTION SHALL
BE 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 SUS -
PENDED, THIS ORDINANCE SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRO -
DUCATION AND TAKE EFFECT AND BE'IN FULL FORCE AND EFFECT FROM AND AFTER
ITS PASSAGE, IT IS ACCORDINGLY SO ORDAINED THIS THE 26TH DAY OF DECEMBER,
1962,
("'W OR
ATTEST: THE CITY OF CORPUS CHRISTI, (AS
e
CITY SECRETAR
APPROVED AS
THE 26TH DAY OF DECEMBER, 1962:
1
CITY ATTORNEY ,
aY ��
l I I
c• -
c
TO OF THE CITY COUNCIL
CORPUS CUR13Tt� TE d
FOR THE REASONS SET FORTH II lil NG .6LAUIIE OF THE FOR }
GOING ORDINANCE, A PUBLIC EMERGENCY AND IMPCRATIVE NECESSITY EXIST FOR
THE SUSPENSION OF THE,CHAA7ER RU E on - NCE OR - -
_,___ RESOLUTION SHALL BE PA$$E6` F NJ1 L - ' P IMT - VCM -AMO THAT
SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY
COUNCIL; I, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE
OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRODUCED,
OR AT TMi _- ,___
,- RESPECTFULLY,
MIA R
THE CITY OF CORPUS CHRIST TEXIAS
-V
Y+< Abg CHARTER ROLE WAS Btl m1w lov N4 VOTE:
,y - BEN F. MIL►
Tom R. S>f411ITNER
DR. JAMES L. BARIKRo
JOSE R. DELEoN
M. P. MIILDONADO
W. J..ROBERTS
JAMES H. YOUNG
TmE ABOVE ORDINANCE WAS PASSED BY THE FOLLOW VOTE:
BEN F. McDONA LD-
Tom R. SWANTHER
DR. JAMES L..BARNARD
JOSE R. DELEON
Mn
F. MALDONADO
W. J. ROBERTS
JAMES H. YOUNG