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