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HomeMy WebLinkAbout02445 ORD - 01/14/1949AN ORDnuNaE NO- 24.&A BY THE onr consoIL OF THE CAR OF coapus CHRISTI, TEYA3 CALLING AN ELECTION ON THE QUESTION OF WHETHER OR HOT A CONTRACT ON MRAHP OF THE CITY AND HOUSTON H9TURAL GAS CORPORATION FOR THE PURCNASE OF NATURAL GAS REQUIRED BY THE CAR FOR ITS GAS DISTRIBUTION SYSTEM RE APPROVED AHD TBE CITY COUNCIL BE AUTHORIZED TO CAUSE THE AA .DJ CONTRACT TO HE F.%ECUTED, ON BEHAW OF THE CITY, SAID CONTRACT BEING SET OUT IN THIS ORDINANCE AND IS TO RUN FOR A PERIOD OF TWELVE YEARS AND CONTAINING AN OPTION FOR RENEGOTIATION RETHEEN THE CITY AND HOUSTON NATURAL GAS CORPORATION FOR AN ADDITIONAL EIGHT -YEAR PERIOD AFTER THE INITIAL TWELVE -YEAR TERM OF SAID CONTRACT; DESIGNATING THE PLACES FOR HOLDING SUCH ELEC- TION; HAMM THE OFFICERS THEREFOR; DESCRIBING FORM OF NOTICE OF ELECTION, AND ENACTING PRD- 9ISIONS INCIDENT AND RELATING TO THE SUBMT OF THIS ORDISANCE AND DECLARING AN EHERMY. 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; ends WHEREASs Houston Natural Gas Corporation has offered to supply each gas in accordance with the terns and provisions set out in the Contract herein- after set forth in this Ordinance; and, WHEREAS, the City COm011 deems it necessary the+ the question of whether or not said contract should be entered into with the Houston Natural Gas Corporation should be submitted to a vote of the Vilified electora of the City; NOW, THEREFORE, BE IT OHDAIIdED BY THE CITY COURCIL OF THE CITY OF CORPUS CHRISTI, TE%ASs SECTION 1. That an election be held in said City of Corpus Christi, Texas on the J2 "# day of February, A.D. 1949, for the purpose of determining whether or not the qualified electors of the City of Corpus Christi, Teas approve, desire and authorize the axaoution of the following Contract with Houston Natural Gas Corporation, to-wits 2-446 THE STATE OF TEAS } CCU= of NOECES THIS ACHMmgT, made and entered into by and between HOUSTON MURAL GAS CORPORATION, a corporation organized and existing under and by virtue of the laws of the State of Texas, with its prinoipal office in Houston, Harris County, Tows, hereinafter designated Seller, and CITY OF CORM CHILiI, NueCBS County, Texas, a municipal corporation, hereinafter designated Bwor, W I T N E S S E T Ht T'M REAS, Seller is engaged in the production, purchase and sale of natural gas in the State of Texas; and WHEREAS, Buyer is the owner and operator of a natural gas distribution system located within and without certain arms of the City of Corpus Christi, Tama, and is desirous of purchasing from Seller its natural gas requirements for its distribution systems and tip, Seller is willing to sell and deliver to BWw oei,.. tain quantities of gas for the oonsideration and subject to the terms, conditions and provisions hereinafter sot forth: THEREFORE, in conaidoration of the oovenants herein contained end the sum of One ($1.00) Dollar in hand paid by each to the other, the recsipt of which is hereby aoknowlodged, the parties hereto have mutually Covenanted and agreed as follows: ARTICLE I. AGHEMM4T TO SELL Alm PURCHASE: Subject to the terms and conditions hereof, Seller hereby agrees to sell and deliver to Buyer and Borer hereby agrees to purchase and receive from Seller, at the Points of delivery hereinafter designated, snob quantities of natural gas dai.7.y Which may be required by Buyer for the operation of its above mentioned distribution system during the term of this contract as herein- after set forth, ARTICLE II. TERM OF OCNTRACTt This contract shall be effective and in fun force and effect when approved by the City Council and the quai3wed voters of the City of Corpus Christi and properly executed by Byer, and shall continue in force for a term of twelve (12) years from the date of its execution, and subject to the terms and conditions as sat out'in Paragmphe SI4 and XV hereof this contract may be extended for an addi- tional period of -eight (B) years. MICLE III. P01UTS OF BELVM: For the purpose of enabling Seller to discharge its obligations to Buyer hereunder, Seller will oonetruct at its cost and expense four (4) meter and regulator stations adjacent to its present e)dsting transmission line at such points as may be selected by Byer, If and when Buyerts demand shall increase, Buyer may deaignato not more than two (2) additional delivery points on sellerts transmission line. The points of delivery of the gas to be furnished to Buyer here- under shall be at the outlet side of the metering stations and at such Points there shall be installed the meters and regulators hereinafter Provided for, and the gee received and to be paid for by Buyer under this a -tract shall be measured at such points. Buyer shell notify Seller of the Pointe on Seller's transmission line where such meter and regulator atotione aball be installed at least thirty (30) days prior to the data Of the first delivery of gas to be made hereunder. MICLE 17. MEASOBEaM: Seller shall deliver gas to Buyer at a pressure satisfactory to Buyer, bat, in no event, to exceed a pressure of two hundred (200) Potmds per square ineb. The gas delivered hereuag er Shall be measured at such pressure as may Est by virtue of Sellerls operat. ing oonditiona, but for the purpose of making paymont therefor by Buyer to seller the volume of natural gas delivered ahall be an follows (1) Sales units The acles unit of the gas delivered by Seller shall be one thousand (1,000) cubic feet of gas measured to obey Boylats Iaw, and correctiona for any deviation therefrom shall be made. The gas compressibility factor (the dimensionless factor which represents the deviation of the gas in question from the ideal gas laws) shell be ooneidered J. oompubing the volume of gas sold each month. The gee compressibility factor shall be determined at the gas pressure and gas temperature existing at the gas sales metar or meters by- the methods generally accepted by the industry, and the specific gravity Of the gas is to be determined by the use of a gravity balanoa. Either the Buyer or the Seller may request, after ten (10) days written notice, that the cGEpressibility factor be determined from hydrocarbon analysis. Either }arty so requesting such hydrocarbon analysis ehal'i select a licensed inspector recognized by the petroleum industry to conduct such hydrocarbon analysis. If the Bayer and Seller mutually agree that the gas pressure and the gas temperature existing at the gas sales motor or meters and the gas aomposition is su£.Piciently consistent, it will su££ies to determine the gas compressibility factor semi-annually. Buyer shall have the right to be represented at and to participate in all tests or of any equipment used and to inspect at any time during business hours any and all equipment o£ Seller used for the determination of the volume and quality of gas delivered hereunder. (2) Determination of volume, The voltme and the total heating value of the gas delivered by the Seller shall be determined as follawsr A "cubic foot of gas ", for the purpose of measurement of the gas delivered hereunder and for all other Purposes of this agreement, except in the determination of the B.T.B. can.. teat as provided in ARTICLE VI horeof, is the amount of gas neocssery to fill a cubic foot of space when the gas is at a baso pressure of eight (S) ounces per square inch gage pressure above fourteen and seven - tenths (24»7)- pounds per square inch atmospheric pressure (15.2 pounds per square inch absolute pressure) and at a base temperature of sixty (60) degrees Fahrenheit, and the gas volumes shall be computed into such units in the manner described below. Recognizing that the atmospheric pressure may vary somewhat from time to time and that the averaga atmospheric pressure is approximately fourteen and savor tenths (14.7) pounds per square inch, it is agreed that, for the purposes of measurement and mp tAtion, the atmospheric pressure shall be assumed to be fourteen and eeven- teethe (147) pounds per square inch, regardless of the actual atmospheric pres- sure at which the gas is delivered and measured. (3) Procedure when Using orifice Meterst The oompatation of the volume of gas measured shall be made in accordance with the following paragraphs: (a) The hourly orifice coeffieiettt for each motor shall be calculated at the above bass pressure and base flawing temperature of sixty (6o) degrees Fahrenheit and for a gas of sixty hndredthe (.60) specific gravity. (b) Recognizing that the average flowing temperature at the orifice plate affects the calculation of the volume of gas measurad and that each temperature may vary from time to time, It is agreed, prim, that the temperature of the gas shall be determined by means of a recording thermometer of standard mamrfacture and so installed that it may properly record the temperature of the gas flew-ing through the meter or motere, and, SEGOM, that the average of the twenty —four (24) hour record from the oording thermometer shall be deemed to be the gas temperature for that day, and the base volume as calculated by use of the coefficient as pro- vided in Paragraph (a) above shall be corrected daily for each degree variation in the average temperature from sixty (60) degrees Fahrenheit. (a) 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 tho 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 Arms or other approved typo 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 monthly for atp devia- tion from sixty hundredths (.60) specific gravity. (d) FXnat measurement of inside diameters of pipe rune and Orifices shall be obtained by means of a miarometer 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 rune, two and one —half (2-1/2) inside pipe diameters upstream and eight (8) inside pipe diameters downstream from the orifice, or from the openings Provided in standard orifice flanges or special orifice fittings, (f) 1 orifice meter computations required in this Article shall be made In accordance with formulae and tables contained in Metric Metal works Bulletin F-2 (Revised 1931). In the computations of the hourly orifice ocefficient, the calculations of "x" shall be carried to six decimals and of shall be determined to three deoime, places by interpolation from tables on pages 76, 77, and 7S of Metric Metal Works Bulletin &2 (Revised 1931). The pressure base, flowing temperature and specific gravity factors used shall consist of four significant figures, unless the first digit is ml", in which came five significant figures shall be used. (9) in determining the volume of gas delivered through the orifice during a daily period, either the observation method or the orifice chart integrator shall be used in reading the meter chart. The am 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 Obtained shall then be corrected in accordance with Paragraphs (b) and (o) above to obtain the gas volume for that chart. (4) bngPaura When Using Positive meters, The campatation of the volume of gas measured shad be made in accordance with the following paragraphs (a) The flowing temperature of the gas delivered shall be assumed to be sixty (6o) degrees Phhrenheit, and no correction sha11 be made for — variation tberefr =j provided, however, that Seller or Buyer shall he- the option of installing a recording thermometer and if Seller or Buyer exercises such option and instalin such thermometer, correction 01-11 be made for cash degree variation in tempperature from sixty (60) degrees Fahrenheit in the average flowing temperature for each monthly period. ARTICLE 0, HUMUNO E4UIP4lENTi (1) Sales Measurine Stations Seller aban install and maintain in accurate repair at the point or points of delivery herein provided, meters of ample size and VW for the accurate measurement of the gas delivered by Seller hereunder, and a1a11 cause said meter or meters to be read and /or have charts changed regularly. (2) Chook LLee+,ring Fquinment: Beyer may install, maintain and operate, at its own expense, each check measuring equipment as desired, provided that such equipment shall be so installed as not to intorfore with the operation of Sellerts measuring equipment at or near the point or points of delivery. (3) Right to be Presentt Seller and Buyer shall have the right to Imes represents. Uwe present at the time of any installing, reading, cleaning, ohaoging, repairing, inspecting, testing, calibrating, or adjusting done in connco- tion with the other's measuring 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 owner, but upon request each will submit to the other its reeords and charts, together with calculations therefrom, for inspection and verifica- tion, subject to return within ten days after receipt thereof, (4) Calibration and Toots of Moterei The respective motors, moter readings and meter charts shell 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, gravitematera and thermometers, and at least once each twelve (12) months, Seller shall calibrate its positive dis- placement meters. Boyar slmlI have the right to require the meters to be calibrated at any time, but calibrations made at Buyer's request shall be at the expense of Buyer ualess the percentage of inaccuracy is found to be two per cant (2f) or more, in which case the calibration shall be made at the expense of Seller. Readings, calibrations and adjustments of Seller's meters and ohanging of charts shall be done only by Seller, but all data with respect thereto shall at all reasonable times be available to Buyer. I£, upon any teat, the percentage of imccuraoy shall be two per cent (2%) or more, registrations thereof -hall be corrected at the rate of such inaccuracy for any period which is definitely known or agreed upon, VIII for a period extending back one —half of the tame elapaed since the last date of calibration, Following any teat, metering equipment found inaccurate ahall immediately be -Stored by Seller to a oondition of accuracy. (5) Correction of Metering Errors Failure of Meters: If for any reason any meter 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 bereto 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 horelnafter provided for an accurate registering, (b) By correcting the error, if the percentage of error, Is ascertainable by oo]9bration, teat or mathematical. calculations; (a) By estimating the quantity of the delivery upon the basis of deliveries during proosding periods inter similar condition- when the mater was registering acmuatoly. (6) Pros ion of Metering Records: Seller and Buyer shall each preserve for a period of at least three years all test data, chart-, and other similar records. ARTICLE vI. QUALM, (1) Heati»s Value: The &a 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, propaye, and any other hydrocarbons except methane may be removed prior to delivery of such gas to Buyer, the gas to have a minimum total hosting value of Ras a ndred Fifty (950) British Thermal Unite per oubio foot of gas at a temperature of sixty degrees (600) Fahrenheit and at an absolute pressure equivalent to thirty inches (30n) of mercury at thirty-two degrees (320) Fahrenheit when saturated with water vapor. Any deviation below this value to be oorreoted as follows: If the average heating value content of all gas delivered hereunder during any calendar month or billing period shall not fall below Nina Hundred and Fifty (950) B.T.U. rs per cubic foot of gee, there shall be no H.T.U. adjustment. In the event Much heating value content should fall below Mine Hundred and Fifty (990) B.T.U. to per cubic foot of gas, when averaged over the calendar month or billing period, then, and In such event, the voluMe herein shnI1 be decreased one per oent (1 %) for each Ten (10) B.T.U.Is or fractions thereof below Nine Hundred and Fifty (950) B.T.U. Is per cubic foot. The B.T.Q. content of the gas shall be determined by making Spot checks at some or all of the points of delivery at least once a month by Seller by the use of a Sargent Gas Calorimeter or by such other method as shell be weed upon betwoen the partiea. The average of the reedingS obtained by such taste during the month shall determine the average H.T.U. content of the gas so delivered. A stata Mont reflecting the average B.T.U. content of the gas so delivered during each calondar month or during each billing period shall be f u7ilahed by Seller to Buyer at the time the monthly statement is rendered to Buyer. (2) I_4Ceedom Ftom Obiee +iom.ble Afatters The natural gas to be delivered by Seller to Buyer hero. under shall conform to the following roquirements and epocificational (a) Such gas shall be oommorcinl3y free from dust or Other solid or liquid matters which might interfere with its merchant- ability or cause injury to or interference 'with proper operation of the liasM, regulators, meters, or other appliances through which it flows or in which it is used. (b) Such gas stall not contain more than two (2) grains Of hydrogen sulphide per one hundred (IM) cubic feet of gas volume when tested in accordance with the Following procedure, A strip of white Filter paper previously moistened with fresh five percent (5 %) ]sad acetate solution shall be exposed to the gas for one and one -half (1 -1/2) minutes in a previously pinged 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 ahnll be compared with a second test strip similarly prepared but not exposed to the teat gas. If the exposed strip is act noticeably 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 quantitatively for hydrogen sulphide by the Tutwellor Method; aid (c) Such gas shall not captain more than twenty (20) grains of total sulphur per one hundred (100) cubic feet of gas volume, nor more tbnn three per cent (9$) by volume of carbon dioxide, nor More than one per cent (1 %) by volume of cVgen. ARTICLE VII. ODORIZATICN OF GASs It is distinctly understood that there shall be no obligation upon Seller to odorize the gas to be delivered here- under, 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 do- mestic, commercial, or industrial we sba7.1 be performed by Buyer, and Buyer ahnll indemnify and save harmless the Seller against all claims for damages arising from or growing out of any failure to properly odorize such gas as required by law or the Charter or Ordinances of the City of Corpus Christi. ARTICLE VIII. QUANTITYs It is understood that Buyer has heretofore entered into a contract with the Republic Natural Gas Company, which contract does act ire until, August 4. 1952, and that under the terms of each contract Buyer is obligated to receive from the Republic Natural Gals Company a minimum of 4 pillion cubic feet per day averaged over each calendar month period. It is therefore agreed that this contract covers, and that Seller'sball deliver to Buyer daily, all gas which gayer any need in excess of 4 million cubic feet daily averaged over each calendar month period until Amt 4, 1952, after which and during the remaining period of this contract Seller shall deliver to Buyer daily such quantities of gas as Buyer may need (even though the volume may fluctuate from time to time) to meet the full requirements and obligations of Buyer to furnish natural gas to the residents of Gorpas Christi and users of such gas connected with Buyer$e distribution system for domestic, commercial, or industrial purposes. ARTICLE I%. STATII+,iTS CONGNffidIHdG AMOUNT OF GASt Cn or before the tenth (10) day of each calendar month Seller -ball reader a statement to Buyer showing the quantity of gee delivered to Buyer during the preceding calendar month or billing period, which billing period shall not be less tban try (30) days, and the amount payable therefor by Buyer. SCF WLE OF RATESs For all gas delivered during the preceding calendar month or billing period under the term hereof, Buyer sboll pay Seller on or before the twenty —fifth (25th) day of each calendar month by its check to Houston. Teloxs, based upon the following schedule of rates$ NET BATE X.C.F. PER During first Four (4) Years .0550 During second Four (4) Years .0725 During third Four (4) Years .0850 It is understood that M.C.F. as used herein means one thousand (1,000) cubic feet of gas measured in the mamler set forth in this con,- tract. oa all hills Paid by Buyer on or before the twenty -firth (25th) of each month for the gas delivered to it by Seller during the preceding month or preceding billing period the net rate above shall apply, but on all such bills that are delinquent and unpaid for more than thirty (3o) days after the due data of each bill, Buyer sball pay interest at the rate Of sin per cent (6 %) per annum on such bill or bills for delivery of gas made by Seller that are unpaid. ARTIOLE X. TA=s Seller shall pay all present production, occupation, transportation, sales, excise, severance or distribution taxes, or any other tae of each nature now "seemed against Sellers provided, however, Buyer shall pay or reimburse Seller for any new or additional tam a and increased rates of preset taxes (other than ad valorem taxes or taxes measured by net - income), including production, occupation, gathering, transportation, salea, eaoise, severance or distribution taxes, or other charges applicable to or levied against the gas delivered under this con- tract that may be assessed against Seller or its business by any govern- mental authority as a result of any new or amended law, ordinance, or any other governmental impositions enacted subsequent to January 1, 1949, or which is added to or made a part of the cost of natural gas produced or purchased by Seller for delivery to Buyer as a result of any legislative enactment subsequent to January 1, 1949. ARTICLE %I. LIARII,IfiY OF PARTIES; Seller shall not be responsible for the condition, maintenance, repair or upkeep of Buyerts service lines, appli. once., equipment, or any utilization of gas after it has passed the deli. very point as horoinabove provided for, and neither shall Buyer be re. sponsible 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 hareinabove provided for. Buyer shall not be responsible for personal injuries or damages resulting from e plosion or fire or from the conveyance of each gas up to the delivery Point as above provided 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 injuries to the employees or agents of Buyer. ARTXcrz xli. GOVEa UMNT REGHILATIOUS AND FORCE DJAJEDREs This a=bbot in made subject to all existing and future Rules, Regulations, Orders, laws or Proclamations of governmental authorities (both Federal and State, including both civil and military) haying 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 specified, to carry out its obligations under this contract, other than the obligation to make Payments of amounts due hereunder, it is agreed that on each party's giving notice, and reasonably full particulars of such force mejeure*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 notice, so far as they are affected by such force majoure or other muses herein specified, shall be suspended during the continuance of any inability so caused, bat for no longer period, and such cause shall, so far as possible, be remedied with all reasonable dispatch. The term "force majoure" as employed herein shall mean acts of God, strikes, lockouts or other industrial disturbances, nets of the public enemy, wars, blockades, insuxxsctims, riots, epidemics, land- slides, lightning, earthquakes, fires, storms, floods, washouts, arrests and restraints of the aovernment, either Federal or State, civil or mili. tary, civil disturbances, explosions, breakage or accident to machinery or lines of pipe, failura of compressor stations, freezing of wells or linos of pipe, inability of any party hereto to obtain necessary materiale, supplies, or permits duo 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 muses whether of the kind herein enumerated or otherwise not reasonably vithin the control of the day o1nininc suspension. It is understood and agreed that the Settlement of strikes or lockouts Shall be entirely within the discretion of the party having the difficulty and that the above requirement that any farce majeure shall be remedied with an reasonable dispatch shall nab re- quire the settlement of strikes or lockouts by acceding to the demands of the opposing party when each course is inadvisable in the discretion of the Party having the difficulty. AMEMIMS AND IiUMBs It is expressly recognized by Buyer that Seller may be compelled to make necessary alterations, repairs, or installation of new or additional lines and epipment from time to time during the life of this contract. ARTICLE Mi. ' GIMGI OF NOTICE HEIMMERe Any written notice to be given or served hereunder shall be deemed sufficiently given or served when de- posited in the United States thil, with postage prepaid, addressed to Seller at its office in Houston.. Texas and to Buyer at its office in Corpus Christi, Texas. ARTICLE %IV. EXTENSION OF C@ITRACT: Buyer is hereby granted the right and option to renew and extend this contract for an additional period of eight (8) years from and after the expiration of twelve (12) years from date of its Uecution upon the setae terms and provisions as contained herein, SAVE AND EXCEPT those provisions as to the volume of gas Seller shall be obligated to deliver and the price that Buyer shall pay to Seller for each gas 90 delivered during such additional eight year period. In the event Buyer desires to extend this contract for an additional eight Year period as above mentioned. Buyer shall* on or before six (6) mouths prior to the termination of this contract, notify Seller in writing of Buyerls desire to extend the same for an additional eight year period, and promptly thereafter the parties hereto shall confer for the purpose of arriving at an agreement as to the daily volume of gas that Seller shall be obligated to deliver to Buyer during such eight year additional Period and the price Buyer shall pay Seller for the gas delivered during such additional period. If Seller and Buyer can mutually agree upon the daily volume of gas to be delivered to Buyer and the price or prices that Buyer shall pay to Seller for such gas so delivered during such additional eight year period, than tho parties hereto shall, execute a supplement to this contract setting forth the agreement of the parties as to such Matters, and this contract shall be deemed extended for an additional eight year period. If the parties hereto cannot agree oa the volume of gas Seller shall, delivor and the price Buyer shall pay therefor during such additional period, then this contract ehnll terminate at the expiratioc of twelve (12) years from date of its execution. ARTICLE %P. USE OF TRANSPORTATICI FACILITIES: In the event that they Parties hereto cannot agree on an extension of this contract as provided for in Article %IV hereof and Buyer, on or 'before the termination of this agreement, acquires a supply of gas for its needs from another person or persons Who do not have immediate facilities available for the trans- portation and delivery of such gas from its source to the Cityls delivery Points provided for in Article III hereof, then, in that eventp Seller agrees if Buyer elects, to permit Buyer to make connection to its main transmission line and If such gas in furnished to Sellerts transmission line at sufficient pressure (but Seller shall not be required to operate its than transmission lines with a working pressure in eacesa of a safety factor of three (g)) Seller will transport for Buyer each quantities of gas as Buyer may requires o.lculato1 at the pressure base provided in Article IV hereof, not exceeding, however, twenty -five (25) million cubic feet per day for such temporary period as will permit Buyer to construct its own transmission line to such source of supply or make other arrange- ments for the transportation and delivery of its gas to Buyer's delivery Pointe designated in Article III hereof. In no event shall Seller be re- quired by reason of this paragraph to transport such gas for Buyer for a Period longer than eight (S) years. For the transportation and delivery Of such gas Buyer W-11 pay to Seller a reasonable amoomt to be agreed upon between the parties hereto, taking into consideration the distance such gas is to be transported and delivered to Buyer and other conditions Prevailing at the tlee but Which transportation charge ahall not exceed three cents (30) per one thousand (1000) cubic feet. ARTICLE $9I. ASSIGNABTTM OF CONTRACPa This contract my be assigned by Seller but nevertheless all the terms and provisions hereof shall be binding upon Seller and its suoocasore and assigns. IN 'ONMS WHOEOFn parties hereto have can ad this instrument to be duly exemrred in duplioato originals tbp day of 194 HCUSTCN NATURAL CAS CORPORATION BY ATTMTs Preaident. 3eoretaxy. CITY or CORPUS MMMI. TEXAS E9 ATTEST: Mayor. Seoreteiy. C1ty Attornoy. At which election, above mentioned, the following proposition shall be submit- ted to the resident qualified eleotors of the City of Corpse Christi,.Texas. PRAPOSITDJN -A' "MR11 the City Coil of the City of Corpus Christi, Dins be authorised to cause to be executed a contract, on behalf of the City, vith Houston Natural Gee Ccapomtica for the purchase of mtoral gas required by the City for its gas distribution system for a period of twelve years with an option to renegotiate for an additional eight year's supply at the and of said twelve-year period at the prices and under the terms as contained in a contract, said contract being set out in Ordinance No. passed and approved by the City Council of the Cite of Gorpne Christi, Texas on dammly !, 19492 SECTION 2. Said election shall be held In the City of Corpus Cbrl td, Teas at the following places and the following named persona are hereby ap- pointed judges and officers of said election: ELECTION PRECINCT No. 1 POLLING PLUM Hneoea ty court Houses (Rill Off land Court Room) C. E. Hannon, Presiding Judge Mrs. D. E. Cornett, Assistant Judge Mrs. J. P. Bishop, Clark Mrs. L. W. Harris, Clark ELECTION POCINOT NO. 2 City Hall Gertrude Dreyer, Presiding Judge Mrs. Wm. J. Biggio, Assistant Judge Mrs. Dora H. Olsen, Clerk Mrs. Ottins Doronfield, Clerk ELECTION PB nIGT NO. 3 H. H. Edwards, 204 Mesquite M. C. Ellis, Presiding Judge Harry Edwards, Assistant Judge Miss Van Pellegrino, Clerk Mrs. A. R. Yeargan, Clark ELECTION P=3zT NO. 4 Oheston Heath School, Meatim and Carri ze Darothy McElroy, Presiding Judge W. H. McElroy, Assistant Judge Mrs, Rate Borden, Clerk Mrs. Mardus Gallagher, Clerk MOTION IMINCT No. 5 T. J. Dineen, Presi&%g Judge Mrs. Olive Dineen, Assistant Judge Mrs. Am. T. Roth, Clerk George Peters, Clark ELMTION P==T No. 6 D. C. Rsohal, Presiding Judge Mrs. Marjorie Paul, Assistant Judge Mrs. J. M. Best, Clerk Anna Mae Weaker, Clerk ELECTION PWMIHCT NO. 7 Mrs. Richard glummer, Presiding Judge Mrs. H. A. Tyner, Assistant Judge Mabel Teal, Clerk Doratby Turner, Clerk ELgCTION PM=T N0. 8 Juliann Prlma, rrssiding Judge Kra. F. M. Thomases, AM Utaat Judge Mrs, Earl Donn, Clerk Mandie Bell, Clark ELECTION PRECINCT N0. 17 Ed E. Roberts, Presiding Judge Fred C. Reeder, Assistant Judge Gerd= C. Bieber, Clerk W003my G. Neuberger, Clerk NIMTION IMUIHMT NO. 20 Fonneale Cole, Presiding Judge Helen Joca, Assistant Judge Kra. John Roy, Clerk Mrs. Easels R. Beard, Clerk POLLNG FL4CE aolusan Coles School Gym 924 Winnebago Givio Center, 700 South Broadway NOV Fire Station, 3312 Leopard at. Oak Park Methodist Charch, 878 Oak Park 3 4 4 Ooaaa Drive Fannin School 2730 00114h, Road ELECTION PRECIWT NO. 21 J. M. Haigler, Presiding Judge Mrs. A. E. Tanker, Assistant Judge J. C. Louison, Clerk John H. Treat, Clerk ELECTION PRSCIHCT NO. 30 Raman T. Lopes, Prea4A4ne Judge Mrs. Ramon T. Lopsa, Assistant Judge Mrs. M. Herrera, Jr., Clerk Juan Arsaega, Clerk ELECTION PRECINCT NO. 31 Mrs. L. M. Holbirt, Presiding Judge L. M. Halbirt, Assistant Judge Mrs. J. H. Seagle, Clerk Mrs. Noss Barnes, Clerk EIECTION PREGIBOT NO. 32 S. T. Lepage, Presiding Judge H. 0. Walker, Assistant Judge Mrs. MTV, Bretton, Clerk Olive Rees, Clerk ELECTION PRECINCT Ho. 33 H. P. South, Presiding Judge G. W. Howard, Assistant Judge Mrs. C. W. Whittaker, Clark Mrs. H. P. South, Clark ELECTION PBOINCT NO. 38 Mrs. J. H. Vetters, Presiding Judge Mrs. Walter Vetters, Assistant Judge Mrs. E. T. Wicker, Clerk )We. F. J. Ha' r s ^a, Clerk POLLM PIACE Breakers Hotel 36U R mUtoa Bead Holy Cress Sehoal, =3 North Staples Eduard Furman School, Room 1, 1115 Chamberlain Corpus Christi Implement Co. 1301 Agnes Street Gen. Evans School, 1315 Co>nnahe Crossley School, 2412 Noepke ELECTION PBEOMET NO. 42 POLLM PL= ELECTION PBEOINOT M. 39 Eubanks Music Company$ B. L. West, Presiding Judge 1405 Third J. R. Weath'eaFord, Assistant Judge Mrs. F. L. Aleiander, Clerk Anne Timon, Clerk xm. Travis School, ELECTION P=IHCT NO. 40 Central Church of Christ Mrs. F. H. Underwood, Presiding Judge 1610 7Avnviev Mrs. C. H. Grett, Assistant judge Mrs. Boy Burdett, Clerk Mrs. F. S. Feokenpaugh, Clark ELECTION PRECINCT N0. 41 Morgan Street Fire Station, E. A. Meadford , Presiding Prey Judge 1401 Morgan Mrs. J. T. Tyson, Assistant Judge Mrs. R. T. Ferguson, Clerk Kra. Lloyd Rhodes, Clark ELECTION PBEOMET NO. 42 B. B. Fisher. school, Mrs. Willard Brava , Presiding Prey Judge Minnesota and Fort Worth Mrs. J. B. Brooks, Assistant Judge Mre. A. C. Williamson, Clerk Mro. Mande McCarty, Clerk ELECTION PBECMNCT NO.43 xm. Travis School, V. S. tales, Presiding judge 1545 Tarleton Mrs. W. S. Liles, Assistant Judge Mrs. Lee Bohannon, Clerk Margaret Collins, Clerk ELBOTION FMCINOT No. " Meadow Fark Ohnroh of Christ, Mrs. Minnie OvOOn2811 , idiag Pres 314 Cheyenne judge Kra. P. E. xiokel, Assistant Judge Kre. 0. B. Prater, Clerk Mrs. W. H. Diehl, Clerk ELECTION PBECIN7T N0. 45 Mrs. T. E. Sparks, Presiding Judge T. E. Sparks, Assistant Judge Mrs. Jobs Carter, Clerk Mrs. Philip Tennis, Clerk ELECTION PMINCT NO. 46 Lee H. Scott, Presiding Judge J. B. Maeoorro, Assistant Judge Abel Sots, Clerk Mrs. Rodrigo Zarate, Jr., Clerk MOTION PMIWT N0. 49 G. c. Riebardsm, Presiding Judge Mrs, 0. C. Obsadler, Assistant Judge Mrs. R. N. Richardson, Clerk Mrs. R. W. Parker, Clerk ELECTION PROIRCT N0, 48 A. R. Comes, Presiding Judge Mike W. Same, Assistant Judge Juanita 0ehoa, Clark Alicia Enhevaraia, Clerk ELECTION PRECINCT NO. 49 Tom Wholes, Presiding Juidge Ere. Nellie Whelan, Assistant Judge W. J. Gribbin, Clerk R- R. Saos, Clerk ELRCTION Hti+ lWT N0. 50 Narry Stuth, Presiding Judge Mrs. 2. G. Horne, Assistant Judge Mrs. W. W. Cream, Clark M. E. White, Clerk Pni.T�PjAP.P. 2 Wiggins Ronne, 320 lamar School, 2212 Morris St. Leopard Street Fire Station, 1329 Leopard Street Commnaity Nome, 33.8 Sixteenth 3,302 Leopard Street Louisiana Street Fire Station, Louisiana and Fifteenth FJMT106 FMI93T B0. 52 Mrs. Violet Chaan, Presiding Judge Florence Htmter, Assistant Judge Mrs. Crane Stevens, Clark R. J. Victor, Clerk SUCTION PSECIET NO. 53 Victor R, Fosroter, Presiding Judge B. 0. Horton, Assistant Judge Mrs. Maude E. Jack, Clerk 0. M. Rogers, Clerk EMOTION PEMIHCT R0. 56 Frank Cumbee, Presiding Judge H. G. Hams, Assistant Judge Jobs M mVi, Clerk V. H. Phillips, Clerk SUCTION PMM$CT No. 57 Mrs. E. H. Andrew, Presiding Judge Mrs. P. A. Tom, Assistant Judge Mrs. Ben E. Shaw, clerk Mrs. E. D. Fredrick, Clerk EMOTION FM3WT Ho. 5s Jim Fisher, Presiding Judge Mande Smith, Assistant judge Herbert French, Clerk Mrs. W. E. Stevens, Clerk ELECTION FMIMT N0. 59 Oharlse Porter, Presiding Judge A. L. Kraut, Assistant Judge Mrs. H. G. Resken, Clerk F. A. Martin, Clerk POLL= K= Hobert Drisoon jwd— High School, Old Robstows Hoed opposite so Heights Sam Houston School, Arcadia Village (363 Norton) La Armada Recreation Room, Administration Building, 3701 Ayers Street Aestmintster: Presbyterian Churoh 2045 Eighteenth Street Meager School, 2209 Alevw Santa Fe and Texas Streets POLLING P7.ACB ELECTION PRMINCT NO. 60 Stephen F. Austin Sobpol, Harbert Wiesken, Presiding Judge Morgan Street Mrs. Herbert Vienken, Assistant Judge Mre. W. W. X="ll, Clerk E. E. Rosober, Clerk ELECTION PRECINCT N0. 61 David Crockett School Ray E. Nib 3302 Rabbit Rom Bond bey, Presiding Judge Mrs. M. D. Elliott, Assistant Judge Mrs. J. D. MoOrsy, Clerk Mrs. H. D. Elliott, Clerk EI OTION FREGINOT N0. 62 Wynn Seale Junior High School, Mrs. E. L. Olsen, Presiding Judge Ayers Mrs. Harry Wells, Assistant Judge Mrs. Joe B. W1 33 Clerk Mrs. Heart' Finigan, Clerk SECTION 3. That amid election simll be held in socordanae vith the Provisioaa of the statutes and Conatitation of the State of Texas and the Obarter of the City of Corpus Christi, Teems, l SECTION 4. The polls will be open fromX 01clock A.M. to 7 o'clook P.M. All —tern desiring to support the proposition to author- ize and approve the execution of the contract to Houston Natural Gas Corporation shall lave Written or printed on their ballots the following words: 'FOB. THE AUTHORIZATION AHD APMVAL CV TH6 CONTRACT WITH muSTON NATURAL CAS CORPORATION.' And all those opposed to the proposition of authorising and approving the eae- oution of the contract to Houston Natural Oat Corporation Shan have Written or printed on their ballots the following wordes 'AGAINST THE AUTHORIATION AND APPROVAL OF THE CONUMOT WITH HOUSTON NATURAL US CORPORATION.' 860T1DH 5. A substantial copy of this ordinance, signed by the Mayor of the City of Corpus Christi and attested by the City 9eeretat7, shell constitute the notice Of ordering said election, and the Mayor in 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 and each election precisot 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 Obristi Times, the official newspaper, being a newspaper of general circulation, published within the City of Corpus Cbristi, said publication to be made on the same day in each of two suoesseive weeks Prior to the date of the election and the date of the first publication to be not less than twenty (20) days prior to the date of said election. 9E6TIOH 6. The fact that it is essential to acquire rights to a sufficient supply of natural gas in order to enpply the citizens of the City Of Corpus Christi in the future creates a public emergency and imperative necessity requiring the suspension of the Charter role that no ordinance or resolution shall be passed finally on the date it is introduced and that such ordimnee or resolution shall be read at three (3) several meetings of the City Council, and the Mayor having declared that such public emsrgemy and imperative necessity exists, and having regmsted that numb Obarter rule be sucpanded, and that this ordinance be passed fimUy on the date of its introduction and take effect and be in fell force and effect from and after its passage, IT 18 ACCORD- IN= 90 OBDAIM. PAS= AIM APPBC9ED tbis,' day of canary, A.D. 1969. y Mayor; GIVY Ctr Corpoe Christi, e ATTWM: 01ty Se rater 0ity A P' To To mosm (ir Tm CITY caumn Corpse Christi, Tows Gent7smenr 6orpas Ohrieti TOMS as�azy 11s.?, 1949 For the reasons set forth in the emergency clause of the feragoing o+�i^=��, a pobllc emergency aral imperative neseesity ez[st for the eaepenslon of the Ghartea role or regairemeat 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 Coanoil= I, therefore, hereby regmet that yon suspend said Charter rails or requirement and pass this ondimanoe finally on the date it is introduced, or at the present mseting of the City Conseil. Heapeatfolly, K YCE City of Corps Christi, Terms The Charter rate vas suspended by the following voter Vealsy 8. Heals George R. Clark, Jr. John A. Ferris R. R. Henry Jo ace T. Dawson The above ordinanoe vas passed by the following votes Wesley D. Saale George R. Clark, Jr. x///7777 70ffi A. Farris !�/l R. R. Henlq Joe T. Dawson Zg4..S