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