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Home My WebLink About09065 ORD - 10/09/196810- 7- 68:FMB AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, AN AMENDMENT TO THE 1963 GAS SALES AGREEMENT AND CONVEY- ANCE AND BILL OF SALE, BETWEEN THE CITY OF CORPUS CHRISTI, VALLEY PIPE LINES, INC., AND CORPUS CHRISTI MUNICIPAL GAS CORPORATION, A COPY OF WHICH AGREEMENT AND CONVEYANCE AND BILL OF SALE IS ATTACHED HERETO AND MADE A PART HEREOF; AND DECLARING AN EMERGENCY. ` BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT THE CITY MANAGER BE, AND HE 15 HEREBY, AUTHORIZED AND DIRECTED TO EXECUTE, FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, AN AMENDMENT TO THE 1963 GAS SALES AGREEMENT AND CONVEYANCE AND BILL OF SALE BETWEEN THE CITY OF CORPUS CHRISTI, VALLEY PIPE LINES, INC., AND CORPUS CHRISTI MUNICIPAL GAS CORPORATION, A COPY OF WHICH AGREEMENT AND CONVEYANCE AND BILL OF SALE IS ATTACHED HERETO AND MADE A PART HEREOF. SECTION Z. THE NECESSITY TO EXECUTE THE HEREINABOVE DESCRIBED INSTRUMENT CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND THAT SUCH ORDI- NANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED SUCH EMERGENCY AND NECESSITY TO EXIST, AND HAVING REQUESTED THE SUSPENSION OF THE CHARTER RULE AND THAT THIS ORDI- NANCE 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 ACCORDINGLY SO ORDAINED, THIS THE � DAY OF OCTOBER, 1968. ATTEST: //"-v - C 1� ✓J CITY SECRETARY THE CITY OF CORPUS CHRISTI, TEXAS APPROVED: 1DAY OF OCTOBER, 1968: G F CITY ATT07RNEY 9065 AMENDMENT TO 1963 GAS SALES AGREEMENT AND CONVEYANCE AND BILL OF SALE THE STATE OF TEXAS COUNTY OF NUECES This agreement, made and entered into by and between VALLEY PIPE LINES, INC., a corporation organized and existing under and by virtue of the laws of the State of Texas, with its principal offices in Houston, Harris County, Texas (here- inafter called "Seller "); CORPUS CHRISTI MUNICIPAL GAS CORPORA- TION, a non - profit corporation organized and existing under and by virtue of the laws of the State of Texas (hereinafter called "Buyer "); and the CITY OF CORPUS CHRISTI, TEXAS, Nueces County, a municipal corporation (hereinafter sometimes called "City "). W I T N E S S E T H WHEREAS, Houston Natural Gas Corporation (Seller's predecessor in interest), Buyer and the City entered into a cer- tain agreement dated April 19, 1963, entitled "Contract of Sale and 1963 Gas Sales Agreement" in which Article III thereof pro- vides for the sale of certain quantities of gas to Buyer for resale to consumers provided with gas service from the facilities sold and conveyed to Buyer under Article I of said agreement; and WHEREAS, the parties desire to amend said 1963 Gas Sales Agreement in the particulars hereinafter set forth, and to further provide for the exchange of certain facilities be- tween the parties as hereinafter set forth. NOW, THEREFORE, for and,in consideration of the mutual covenants and agreements herein contained, thb parties hereby agree as follows: ARTICLE I. AMENDMENT OF 1963 GAS SALES AGREEMENT A. The parties recognize that all of the customers of Buyer being served by gas delivered by Seller under the 1963 Gas Sales Agreement are now being served by Buyer from another source of gas, except for the four customers identified below which are still being served by gas delivered from Seller's pipeline facilities. It is understood that either Buyer or the City plan to connect such customers to Buyer's existing or future gas supplier (other than Seller) at such time in the future as extension of the facilities of Buyer or the City will reasonably permit economically, and it is the desire of the parties hereto to provide for continuation of gas deliveries by Seller to Buyer to serve said four customers for the term and on the conditions herein set forth. Therefore, unless any of such customers are sooner connected by Buyer or the City to another gas supplier other than Seller, Seller agrees to con- tinue to deliver gas to Buyer to supply gas to said four cus- tomers for a term expiring not later than October 1, 1973• Buyer and the City severally covenant and warrant that they will secure another source of gas supply for said four customers not later than said expiration date of October 1, 1973, and hereby agree that the 1963 Gas Sales Agreement shall terminate in its entirety not later than the expiration date of October 1, 1973• B.' Commencing with all gas delivered under said 1963 Gas Sales Agreement on and after October 1, 1968, the price to be paid to 2. Seller for'all gas delivered shall be 28.7¢ per MCF, plus an amount equivalent to any future increase set for city gate deliveries of natural gas by Rouston Pipe Line Company, a Texas corporation (an affiliated company of Seller) plus any adjustment in "taxes" incurred under Paragraph I of the 1963 Gas Sales Agreement. The four customers of Buyer referred to above in this Article I are as follows: In Calallen Area; Transport of Texas (Linkenhouger) 902 Sharpsburg Road On Old Brownsville Road between Lexington Blvd. and Tex -Mex Railroad: A. B. Leal, Route 3, Box 464 J. Lane, Route 3, Box 467 J. W. Regmund, Route 3, Box 458A ARTICLE II. EXCHANGE OF PIPELINE FACILITIES A. Seller hereby sells and conveys to City approximately 16,324 feet of 2--inch pipe (referred to as "Seller's London Gin lateral 2 -inch transmission pipeline" in Paragraph 2 of Article I of the "Contract of Sale and 1963 Gas Sales Agreement "), including any and all meters, regulators, pipes, valves and other allied equipment owned by Seller and affixed to and con- nected with said London Gin lateral 2 -inch pipeline, together with any and all easements, service leases, rights of way, li- censes and permits owned by Seller and which are assignable, which are used exclusively in the operation of said London Gin lateral 2 -inch pipeline. B. Buyer and City hereby sell and convey to Seller approxi- mately 1,508 feet of 8 -inch pipeline presently installed along and under Tribble Lane, beginning at a point adjacent to Sell- er's 12 -inch main pipeline and running to a point near Suntide 3• Refining Company's truck loading terminal, including any and all meters, regulators, pipes, valves and other allied equip- ment owned by Buyer and the City and affixed to and connected with said 1,508 feet of 8 -inch pipeline, together with any and all easements, service leases, rights of way, licenses and permits owned by Buyer and the City and which are assignable, which are used exclusively in the operation of said 1,508 feet of 8 -inch pipeline. EXECUTED as of the day of , 1968, in multiple originals. ATTEST: ATTEST: ATTEST: VALLEY PIPE. LINES, INC. By Vice President CORPUS CHRISTI MUNICIPAL GAS CORPORATION By President CITY OF CORPUS CHRISTI By City Secretary City Manager APPROVED AS TO L GAL FORM THIS DAY OF 1968. ' ' City , try 4. Diroctor of Finance CORPUS CHRISTI, TEXAS / I e?t2.J DAY OF atl"., 1961? TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS . FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPEN- SION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION 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; I, THEREFORE REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDI- NANCE FINALLY ON THE DATE IT IS INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, YOR THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: JACK R. BLACKMON V RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. GAGE LOZANO, SR. KEN MCDANIEL Q W. J. "WRANGLER" ROBERTS THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: JACK R. BLACKMON RONNIE SIZEMORE V. A. "DICK" BRADLEY, JR. P. JIMENEZ, JR., M.D. GABE LOZANO, SR. _ KEN MCDANIEL W. J. "WRANGLER" ROBERTS 4