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HomeMy WebLinkAbout02477 ORD - 03/01/1949JUT ORDIIZARGE AUTHORIZEIG AND DIR CTL :G THE CITY TiAPTAGT.s"t TO MCUTE A COITTPACT FOP, ALD CPT BEH61o' OF TEE CITY 1-MM HOUSTON NATURAL 0.3 CORPQKATION FOR TEE PTj - Ciil 5'E OF ITATIIRAL GAS TO BE USED Iii THE CITY'S Gr,S DISTRI=1014 SYSTEM. 'uMN wLS, at an election held in the City of Corpus Christi an February 12, 19149, the majority of the qualified electors voting at such election voted to authorize the City Council to oause to be executed a non - treat on behalf of the City with Houston I3atural Gas Corporation for the purchase of natural Gas required by the City for its gas distribution system for a period of twelve (12) years, said contract eontainino an option to re- negotiate for an additional night years' supply at the and of .said twelve - year period, at the prices and under the terns as conteined in szid ocntreat= N01, TMMFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TIMAS: SECTION 1. That the City ?_anagor is hereby authorized and directed for and on. behalf of the City to execute a contract with the Houston Natural. Gas Corporation for the purchase of natural oas required by the City for its gas distribution system for a period of twelve (12) years with an option to re- negotiate for an additional night ye—s' supply at the end of said bwolsa- year period at the prices and under the terms contained in said contract, and the City Secretary is hereby authorized and directed to attest to said oon- tract and affix the corporate seal of the City, a copy of said contract boing attached hereto and made a part cf this ordinance for all purposes. 24-7 -7 THE STATE OF TEXAS ) COUNTY OF NUECES 3 THIS AGREQMIT, made and entered into by end between HOUSTON NATURAL GAS CORPORATION, a corporation organized and coasting tinder and by virtue of the laws of the State of Texas, with its principal office in Houston, Harris County, Texas, hereinafter designated Seller, and CITY OF COMS CHRISTI, Nuseas County, Taxers, a municipal corporation, horeinafter designated Buyer, W I T N E S S E T H3 MUMS, Seller is engaged in the production, purchase and sale of natural gas in the State of Toxas; and WHEREAS, Buyer is the owner and operator of a natural gas distribution system located within and without certain areas of the City of Corpus Christi, Texas, and is -desirous of purchasing from Seller its natural gas regnironants for its distribution system; and TVMERFAS, Seller is willing to sell and deliver to Buyer cer- tain quantities of gas for the consideration and subject to the terms, conditions and provisions hereinafter set £orths FORE, in ooneidoration of the oovenants heroin contained and the aam of One ($61.00) Dollar in hand paid by each to the other, the receipt of which is hereby aelmawledged, the parties hereto have mutually covenanted and agreed as follows ARTICLE I. AGFME4'T TO SELL AND PURCHASES Subject to the terms and conditions hereof, Seller hereby agrees to sell and deliver to Buyer and Buyer hereby agrees to purehaso and receive from Seller, at the points of delivery hereinafter designated, such quantities of natural gas daily 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 CCNTRACTs This contract shall be effective and in full force and effect when approved by the City Council and the qualified voters of the City of Corpus Christi and properly assented by Buyer, 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 set auC in Faragrapbs SIV and %V hereof this contract may be extended for an addl- tiona7 period of eight (8) years. ARTICLE 117. POMTS OF MMrV t For the purpose of enabling Seller to discharge its obligations to Shyer hereunder, Seller will construct at its cost.and expense four (4) meter and regulator stations adjacent to its present existing transmission line at such points as nay be selected by Buyer. If and when Buyerts demand shall increase, Buyer may designate not more than two (2) additional delivery points on Seller's transmissi(m line. The points of delivery of the gaa to be furnished to Swap here - under she 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 gas received and to be paid for by Buyer under this contract shall be measured at such points. Buyer shall notifjr Seller of the points on Seller's transmission line where such meter and regulator stations shall be installed at ]east thirty (30) days prior to the date of the first delivery of gas to be made hereunder. ARTICLE W. MEASUMMENTr Seller ahall deliver gas to Buyer at a pressure satisfactory to Buyer, fart, in no event, to esoead a pressure of two hundred (200) pounds per square inch. The gas de4vered hereunder shall be measured at such pressure as may exist by virtue of Seller's operat. ing conditions, but for the purpose of ms3dag payment therefor by Buyer to Seller the volume of natural gas delivered shall be as followmt (1) Sales Dr4to The sales emit of the gas delivered by Seller ahsll be one thousand (1,000) cubic feet of gas measured to obey Boyleta Law, and corrections for ary deviation therefrom shall be made. The gas compressibility factor (the dimensionless factor which represents the deviation of the gee in question from the ideal gas laws) shall be considered in computing the volume of gas sold each month. The gas compressibility factor ahall be determined at the gas pressure and gas temperature esLsting at the gas sales meter or motors 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 balance. Either the Buyer or the Seller may request, after ten (10) days written notice, that the compressibility factor be determined Prom hydrocarbon analysis, Either party so requesting such hydrocarbon analyaie shall select a licensed inspector reoogaized by the petroleum industry to conduct such hydrocarbon analysis. If the Buyer and Seller mutually agree that the gas pressure and the gas temperature exiating at the gas sales mater or meters and the gas composition is suMajeatly coneistent, it will suffice to determine the gas Compressibility factor semi- annual]y. Buyer shall hens the right to be represeuted at and to participate in all teats or of any equipment used and to inspect at any time during busiaoes houre any sad all equipment of Seller used for the determination of the volume and quality of gas delivered hereunder. (2) Determination of yolumpi The vol— and the total heating value of the gas delivered by the Soper -11,11 be determined as followat 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.U. ocu- teat -0 provided in ARTICLE VI hereof, is the amount of gas neceeaary to fill a cubic foot of apace when the gas is at a baso pressure of eight (8) canoes per square inch gage pressure above fourteen and seven - tenth, (74.7) pounds per square inch atmospheric preserve (15.2 poumde per square inch absolute pressure) and at a bass temperature of sixty (60) degrees Aft=heit, and the gas volumes shall be Computed into such units in the MMMr described below. Recognizing that the atmospheric pressure may, vary somewhat from time to time and that the average atmospheric presmme is epproximatoly fourteen and savor tenths (14,7) pounds per equare inch, it is agreed that, for the purposes of measurement and eomputation, the atmospheric pressure shall be assumed to be fourteen arA seven - tenths (14.7) pounds per square inch, regardless of the actual atmospheric pros — sure at which the gas is delivered and measured, (3) Procedure when Usim Orifice Meters: The computation of the volume of gas measured -hall be made in accordance with the following paragraphs: (a) The hourly orifice coefficient for each meter shall be oaloulated at the above lase pressure and base flowing temperature of ?1x47 (60) degrees Fahrenheit and for a gas of sixty hundredths (.60) specific gravity. (b) Recognizing that the average flowing temperature at the orifice plate affects the calculation of the volume of gas measured and that each temperature may vary from time to time, it is agreed, FIRST, that the tomperature of the gas shall be determined by moans of a recording thermometer of standard manufacture and so installed that it may properly record the temperature of the gas flowing through the meter or motors, and, SECOND, that the avorago of the twonty —four, (24) hour record from the re- cording thermometer shall be deemed to be the gas temperature for that day, and the baso volum as calculated by use of the coefficient as pro- vided in Paragraph (a) above shall be corrected daily for each degree variation in tho average temperature from sixty (60) degrees Fahrenheit. (o) And further recognizing that the specific gravity of the gas affects the calculations of the volume of gns measured and that such gravity may vary from time to time, it is agreed that the specific gravity of the gas ehall be determined by joint teats mad. monthly at the Seller's sales meter or meters by the use of an Acme or other approved typo gas balance, or by such other mothod 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 any devia- tion from sixty hundredths (.60) specific gravity. (d) Exact measurement of inside diameters of pipe runs and orifices shall be obtained by moans of a micrometer to the nearest one. thousandth (.001) inch, which measurements nhnll be need in ocmputationa of coefficients. (e) Pressure taps for meter installations shall be taken from pipe runs, two and one —hall (2 -1/2) inside pipe diameters upstream and eight (S) inside pipe diameters downstream from the orifice, or from the openings provided in standard orifice flanges or special orifice fittings, (f) All orifice meter computations required in this Article shell be made in accordance with forrmalae and tables contained In Metric Metal Works Bulletin E-2 (Revised 1931). In the computations of the hourly orifice coeffiaient, the calculations of 'xc sball be carried to six decimals and C+ shall be determined to three decimal places by interpolation from tables on Pages 76, 77, and 78 of Metric Metal Works Bulletin E-2 (Revised 1931). The pressure base► flowing temperature and specific gravity faotore used shall consist of four significant figures, unless, the first digit is ale, in which came five significant figures shall be used. (g) 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 awn of the extensions obtained from the reading or integration of the meter charts shall be multiplied by the homily orifice coefficient, as calculated in accordance with Paragraph (a) above, the base volume thus obtained ahall then be corrected in accordance with Paragraphs (b) and (a) above to obtain the gas volume for that chart. (4) Erooedi -_ When Using Positive Meters: The computation of the volume of gas measured shall be made in accordance with the following paragraphs (a) The flowing temperature of the gas delivered shall be assumed to be sixty (60) degrees Fahrenheit, and no correction shall be made for any variation therefrom; provided, however, that Seller or BtWer shall have the option of installing a recording thermometer and if Seller or Buyer exercises each option and installs such thermometer, correction sball be made for each degree variation in temperature from sixty (60) degrees Fahrenheit in the average flowing temperature for each monthly period. ARTICLE V. METERING EQBIPtM: (1) Sales Meagaring Stations Seller shall install and maintain in accurate repair at the point or points of delivery herein provided, meters of ample sloe and type for the accurate measurement of the gas delivered by Senor hereunder, and shall cause said meter or motors to be read and/or have charts changed regularly. (2) Check lbama*cg r4uinmant3 Buyer may lcst+ ii, maintain and operate, at its own expense, such check measuring equipment as desired, provided that such equipment shall be so installed as not to interfore with the Operation of Seller's measuring equipment at or near the point or points of delivery. (3) Fight to be Present. Seller and Buyer ahall have the right to have represents. tives present at the time of ate installing, reading, cleaning, ohm,,Fd e, ra. i ring. inspecting, testing, calibmting, or adjusting done in oonnco- tion with the other +s measuring equipment used in naasuring or cheaking 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 records and charts, together with calculations therefrom, for inspection and varifica. tion, subject to return within ten days after receipt thorsof. (4) Calibration and Testa of Metersa The rospaotivo meters, mater readings and meter obarte shal, . be at all reasonable times accessible to inspection and examination by Buyer. At least once every thirty (30) days, Seller -shall calibrate its orifice Mora, calorimeters, gravitamsters and thermometers, and at least once each twelve (12) mouths, Seller sha11 calibrate its positive dig— placement meters. Buyer shall have the right to require the meters to be calibrated at any time, but calibrations made at Buyerls request shall be at the expense of Bayer unless the percentage of inscavracy is found to be two per cent (2 %) or more, in which case the calibration shall be made at the expense of Seller. Readinge, calibrations and adjustments of Senarls meters and changing of charts shall be done only by Senor, but all data with reject thereto shall at all reasonable times be available to Buyer. If. upon any tests the percentage of inaccuracy shell be two per cent (z$) or more, registrations thereof shall be corrected at the rate of such inaccuracy for any period which is definitely known or agreed upon, then for a period extending back one -half of the time elapsed since the last date of calibration. Following any, teat, metering equipment found inaccurate shall immediately be restored by Seller to a condition of accuracy. (5) Correction of Metering Errors - Failure of Haters: If for any reason any rooter is out of service or cut 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 each meter was out of service or out of repair shall be estimated and agreed upon by the parties hereto upon the basis of the best data available, using the first of the following methods which is feasible: (a) By using the registrations of Boyer's check meter, if installed as hereinafter provided for an accurate registering; (b) By correcting the error, if the percentage of error is ascertainable by calibration, test or mathematical. calculations; (o) By estimating the quantity of the delivery upon the basis of deliveries during preceding porioda under similar conditions when the mater was registering accurately. (6) Preservation of Metering Records: Seller and Buyer shall each preserve for a period of at least three years all test data, charts, and other similar records, ARTICLE 9I. QUALITY: (1) Beating value, The gas to be delivered under this contract shall be natural gas from Seller +s present or future sources of supply, provided, however, that helium, natural gasoline, butane, propene, and any other hydrocarbons except methane may be removed prior to delivery of such gas to Buyer, the gas to have a minimum total heating value of Nina Hundred Fifty (950) British Thermal Unite per cubic foot of gas at a temperature of sixty degrees (600) Fahrenheit and at an absolute pressure equivalent to thirty inches (30 ") of mercury at thirty -two degrees (320) Fahrenheit when saturated with voter vapor. Any deviation below this value to be corrected as followat If the average heating value content of all gas delivered hereunder during my calendar month or billing period shall not fall below Nine Huvdged and Fifty (950) B.T.U.ts per cubic foot of gas, there shall be no B.T.U. adjustment. In the event such heating value content should fall below Nino Hundred and Fifty (950) B.T.U. Is per cubic foot of gas, when averaged over the calendar month or billing period, then, and in such event, the volume herein ahn11 be decreased one par cant (1 %) for each Ten (10) B.T.U. is or fractions thereof below Nine Hundred and Fifty (950) B.T.U. to per cubic foot. The B.T.U. content of the gas shall be determined by mnlring spot checks at some or all of the points of delivery at least once a month by Soller by the use of a Sargent Gas Calorimeter or by such other method as shall be agreed upon between the parties. The average of the readings obtained by such taste during the month shall determine the everago B.T.U, content of the Me so delivered, A state - >ont reflecting the average B.T.U. content of the gas so delivered during each calendar month or during each billing period shall be furnished by Boller to Buyer at the time the monthly statement is rendered to Buyer, (2) Freodom from Objectionable Matters The natural gas to be delivered by Seller to Buyer here- under shall conform to the following requirements and specifications, (a) Such gee shall bo oommoroial]y 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 lines, regulators, maters, or other appliances through which it flows or in which it is used. (b) such gas shall not contain more than two (2) grains of hydrogen sulphide per one hundred (100) cubic feet of gas volume when tested in accordanco with the following procaduret A strip of white filter paper previously moistened with fresh five percent (5 %) lead acetate solution shall be exposed to the Fe for one and one-half (1 -1/2) minutes in a previously purged apparatus through which the test gas is flowing at a rate of approxime ely five (5) cubic feet per hour, the gas shall not directly impinge upon the test strip during the test. At the end of the stated time the test paper thus exposed shall be compared with a second test strip similarly prepared but not exposed to the test gas. If the exposed strip is not noticeably darker than the comparison strip the gas under test shall be considered ecceptable. If the exposed strip is definitely darker than the comparison strip the gas shall be tested quantitatively for hydrogen sulphide by the Tutwoilor Method, and (c) Such gas shall not contain mere than twenty (20) grains Of total sulphur per one hundred (100) cubic feet of gas volume, nor more than three per cent (3 %) by volume of carbon dioxide, nor more than one Per coat (1 %) by volume of oxygen. ARTICLE VII. ODORIZATION OF GAS: It is distinctly understood that there Shall be no obligation upon Seller to edorize the gas to be delivered here- under, but any odorization of gag that my be required by law or the Charter or Ordinances of the City of Corpus Christi prior to Sale for do- mestie, commercial, or industrial use sha11 be performed by Buyer, and Buyer shall indemnify and save harmless the Seller against all claims for damages arising from or growing out of any failure to properly odorize Such gas as required by law or the Charter or Ordinances of the City of Corpus Christi. ARTICLE VIII, QUA14TITY: It is understood that Buyer has heretofore entered into a contract with the Ropublic Natural Gas Company, which contract does not expire until August 4, 1952, and that under the terms of such contract Byer is obligated to receive from the Republic Natural Gas Company a minimimm of 4 nillion cubic feet per day averaged over each calendar month period. It is therefore agreed that this contrast covers, and that Seller shall deliver to Buyer daily, all gas which Buyer may need in excess of 4 million cubic feet daily averaged over each calendar month Period until August 4, 1952o 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 Corpus Christi and users of such gas canected with Buyer's distribution aystem for domestic, commercial, or industrial purposes. ARTICLE 1$. STATIMMS CO,NCEMUNG At•OM OF GASt On or before the tenth (10) day of each calendar month Seller shall render a statement to Buyer showing the quantity of gas delivered to Buyer during the preceding calendar month or billing period, which billing period shall not be less than thirty (3o) days, and the amount payable therefor by Bayer. SCEEDM.E OF RATES: For all gas delivered during the preceding . calendar month or bilk period under the term hereof, Buyer shall pay Seller on or before the twenty —fifth (25th) day of each calendar month by its check to Houston, Texas, based upon the fallowing schedule of rates t Imo[' BATE PER M.C.F. During first Four (Q} Years .0550 During second Four (4) Years .0725 Daring third Four (4) Years .0850 It is understood that M.C.F. as used herein means one thousand (11000) cubic feet of gas measured in the manner set forth in this con- tract. Ch all bills paid by Buyer on or before the twenty fifth (25th) Of each month for the gas delivered to it by Seller during the preceding month cr preceding billing period the net rate above shall apply, but on all such bill a that are delinquent and unpaid for more than thirty (30) days after the due date of each bill, Buyer stall pay interest at the rate of six per cent (6%) per annum on such bill or bills for delivery of gas made by Seller that are unpaid. ARTICLE X. TAMt Seller shall Pay all present producticn, COoupation, transportation, sales, 0=4 a, severance or distribution taxes, or any other tax of such nature now assessed against Seller; provided, however, Buyer shall pay or reimburse Seller for any new or additional taxes and increased rates of present taxes (other than ad valorem taxes or taxes measured by net income), including production, occupation, gathering, transportation, sales, excise, 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 lav, ordinance, or any other governmental impositions emoted subsequent to January 1, 19490 or which is added to or made a part of the cost of natural gag produced or Purchased by Seller for delivery to Buyer as a result of any legislative enactment subsequent to January 1, 1949. ARTICLE %I. LIABILITY OF PARTIES: Seller shall not be responsible for the condition, mainteaanae, repair or upkeep of Buyeris service 11n ea, appli.. ances, equipment, or any utilisation of gas after it has passed the deli, vary point as hereinabove 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 ahn11 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 hereinabave provided for. Buyer sha11 not be responsible for personal injuries or damages resulting from ex- ploaion or fire or from the Owroyanae of such 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. ARTICLE %II. CovERMIENT REGULATICKS AND FORGE NUEUREt This contract is made subject to all existing and future Roles, Regulations, orders, laws or Proclamations of governmental, authorities (both Federal and State, including both civil and military) having jurisdiction over the parties hereto or the subject matter heraof. In the event either party hereto is rendered unable wholly or in part by force majoure, 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 such partyls giving notice, and reasonably full particulars of such force majeure In writing or b8 telegraph to the other party within a reasonable tins after the occurrence of the cause relied on, then the obligations of the party, giving such notice, so far as they are affected by each force majeure or other causes herein specified, sball be suspended during the continuance of any imbility so caused, but for no longer period, and such cause ahall, SO far as possible, be remedied with all reasonable dispatch. The term "force majourea as employed herein shall mean sots of God, strikes, lockouts or abhor industrial disturbances, note of the public enemy, wars, blockades, ineurroctions, riots, epidemics, land- slides, lightning, earthquakes, fires, storms, floods, washouts, arrests and restraints of the Government, either Federal or State, civil or mill. tart', civil disturbances, explosions, breakage or accident to machinery or lines of pipe, failuro of comproesor stations, freezing of wells or linos of pipe, inability of any party hereto to obtain neoesaaay materials, supplies, or permits due to existing or future rules, regulations, orders, laws or proo]nmtions of Governmental authorities, both Federal and State, including both civil and military, and any other causes whether of the kind heroin enumerated or othorrise not reasonably within the control of the pasty claiming 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 force majeure shall be remedied with all reasonable dispatch shall not re. Vire the settlement of strikes or lookouts by acceding to the demands of the opposing party when such course is inadvisable in the discretion of the party having the difficulty, ALTMWIGNS AND RMPAMS: It is expressly recognized by Buyer that Seller my be compelled to make necessary alterations, repair$, or installation of new or additional lines and equipment Eros time to time during, the life of this contract. ARTICLE %III, GIVING OF addTICR HERECNOERr Any written notioe to be given or served hereunder shall be deemed sufficiently given or served when de. posited in the United States ldail, with postage prepaid, addressed to Seller at its office in Houston, Tems, and to Buyer at its office in Corpus Christi, Texas, ARTICLE FIV. EXTENSION OF CONTRACT: Bayer 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 execution upon the same terms and provisions as contained herein, SAVE AND EXCEPT those provisions as to the volume of gee Seller Shall be obligated to deliver and the price that Bier shall pay to Seller for such gas so 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, Bayer shall, on or before six (b) months prior to the termination of this oontract, notify Seller in writing of Buyer's 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 prioos that Buyer shell pay to Soper for such gas so delivered during such additional eight year period, then tho parties hereto shnii 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 on the wlums of gag Seller shall deliver and the price Buyer shall pay therefor during such additional period, than this contract shall terminate at the expiration of twelve (12) years from date of its execution. ARTICLE %V. USE OF TRANSPORTATION FACIUMIESt In the event that the Parties hereto cannot agree on an extension of this contract as provided for in Article %I4 hereof and Buyer, on or before the termination of this agreement, acquires a supply of gas for its needs Pram another perecn or persons who do not have immediate facilities available for the trana- portation and delivery of such gas from its source to the Cityts delivery Points provided for in Article III hereof, then, in that event, Seller agrees, if Buyer elects, to permit Buyer to make connection to its main transmission lino and if such gas is furnished to Seller's transmission line at sufficient pressure (bat Seller shall not be required to operate its then transmission lines with a working pressure in excess of a safety factor of three (9)) Seller will transport for Buyer such quantities of gas as Buyer may require, calculated at the pressure base provided in Article IV hereof, not exceeding, however, twenty -five (25) million cubic feet par day for such temporary period as will permit Buyer to construct Its owe transmission lino to each source of supply or make other arrange.. meats for the transportation and delivery of its gas to Buyerls delivery Points 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 (B) years. For the traneportation and delivery of such gas Buyer shall pay to Seller a roasonable amount to be agreed upon between the parties horeto, taking into consideration the distance such gas is to be transported and delivered to Buyer and other conditions Prevailing at the time but which transportation charge shall not exceed three cents (30) per one thousand (1000) cubic feet. ARTICLE %VI. ASSIGNABILITY. OF CONTRACTS This contract may be assigned by Seller but nevertheless all the terms and provisions hereof shall be binding upon Seller and its successors and assigns. IN WITNESS 4hffih;OF, parties hereto have caused this instrument to be duly executed in dupUcato originals this day of 194 . HOUSTON NATURAL GAS OORPOAATION By ATT=t PresYdeat. Secretary. CITY OF CORPUS CHRISTI, TEAS BY ATTESTS MY idanager = 3oorataxY. E Att --Y. The foregoing Ordinance was read the first time and passed to the s000nd reading, on the fr day of , 1949, by the following vote% Nealey E. Seale George R. Clark, Jr. John A. Ferris R. R. Remy Joe 1. D waon The foregoing Ordinance was read the s oond time and passed to the third reading, on the,2&Lday of , 1949, by the following vote. Wealoy E. Seale George R. Clark, Jr. John A. Ferris R. R. Henry Joe T. Dawson The foregoing Ordinanae was read the rd time and passed and ordered approved by the Mayor, on the _/ day of >1-111/ 1949, by the following vote, 'ifealey E. Seale George R. Clark, Jr. John A. nerris R. R. Reny Joe T. Dawson APPROVED this day of j, A. D. 1949. ATTEST. ty Sq et City of Corpus Christi, Texas APFR TO F t ity A o . 2M