HomeMy WebLinkAbout04136 ORD - 02/02/1955ac: 1/5/55
AN ORDINANCE
AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE,
FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI, A
CONTRACT WITH SINCLAIR OIL & GAS COMPANY SECOND PARTY,
AND SUNTIDE REFINING COMPANY, THIRD PARTY, FOR THE F R-
NISHING OF UNTREATED WATER TO SINCLAIR OIL AND GAS
COMPANY TO BE USED IN THE GAS PRODUCTS PLANT LOCATED OR
TO BE LOCATED ACROSS THE NUECES BAY FROM THE CITY OF
CORPUS CHRISTI, IN ACCORDANCE WITH THE TERMS AND PRO-
VISIONS OF SAID CONTRACT, A COPY OF WHICH IS ATTACHED
HERETO AND MADE A PART HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS: e
SECTION 1. THAT THE CITY MANAGER BE, AND HE IS HEREBY AUTHORIZED
AND DIRECTED FOR AND ON BEHALF OF THE CITY OF CORPUS CHRISTI TO EXECUTE A
CONTRACT WITH SINCLAIR OIL & GAS COMPANY, SECOND PARTY, AND SUNTIDE REFINING
COMPANY, THIRD PARTY, FOR THE FURNISHING OF,UNTREATED WATER TO SINCLAIR OIL
AND GAS COMPANY TO BE USED IN THE GAS PRODUCTS PLANT LOCATED OR TO BE LO-
CATED ACROSS THE NUECES BAY FROM THE CITY OF CORPUS CHRISTI, IN ACCORDANCE
WITH THE TERMS AND PROVISIONS OF SAID CONTRACT, A COPY OF WHICH IS ATTACHED
HERETO AND MADE A PART HEREOF.
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THE STATE OF TEXAS )
COUNTY OF NUECES )
WHEREAS, the City of Corpus Christi, Texas, a municipal
corporation, is now the owner of its water distributing system and is en-
gaged in supplying water for industrial and domestic purposes to its
customers; and
WHEREAS, in conducting such business, said City impounds
water used for such industrial and domestic purposes in a reservoir
located at or near Calallen, Texas, which reservoir has for its source
of water supply water impounded by the La Fruta Dam, located near
Mathis, Texas; and
WHEREAS, the said City of Corpus Christi, Texas, is desirous
of furnishing Sinclair Oil & Gas Company, a Maine corporation, having a
permit to -do business in the State of Texas, untreated water to be used by
said corporation in its Gas Products Plant No. 20, Aocated across the
Nueces Bay from the City of Corpus Christi, Texas; and
WHEREAS,. Suntide Refining Company, a Delaware corp koration,
having a permit to do business in the State of Texas, is now the owner of
and maintains a water line for the transportation of untreated water from
the reservoir of the City of Corpus Christi, Texas, at Calallen, Texas,
to a point near the western city limits of the City of Corpus Christi, Texas:
NOW, THEREFORE, THIS CONTRACT AND AGREEMENT, this
day made and entered into by and between the City of Corpus Christi,
Texas, acting by and through its duly authorized officers, hereinafter
called "First Party ", Sinclair Oil & Gas Company, acting by and through
its duly authorized officers and agents, hereinafter called "Second Party, "
and Suntide Refining Company, or either of them, then, in such event, this
contract shall become suspended; provided, however, that should the City
prior to the expiration of this contract, acquire other and further supplies
of water, by virtue of which said City would have at its disposal a surplus
amount of water over and above its total current needs for its domestic
within its City limits
and industrial consumers And thereafter the requirements of the Suntide
Refining Company, then this contract, at the option of Second Party, shall
again become immediately effective, and First Party will be obligated to
sell to Second Party its requirements of water, limited by the terms of this
contract.
Provided further should Third Party, in the operation of its
Plant require the capacity of its water line from Calallen or should First
Party under Paragraph 11 hereof be unable to deliver to Third Party more
than its requirement under its contract with First Party, then, as long as
such conditions prevail, this contract shall become suspended, but, there-
after and during the period covered by this contract should such conditions
change, whereby Third Party could, under the terms of this contract deliver
to Second Party all or a portion of its requirement of water, as hereinabove
specified, then Second Party may, at its election, by notice to First Party
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and Third Party, again resume the purchase of water in the same manner
as if there had been no interruption in the purchases and delivery of same.
Provided further that should the presently existing contract
between First Party and Third Party, under which First Party is supplying
water to Third Party, not be renewed, then that portion of this contract
between Second Party and Third Party shall be terminated, but provided
that thereafter and during the period covered by this contract First Party
and Third Party should renew the contract between them, then Second Party
may, at its election, by notice to First Party and Third. Party again resume
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the purchases of water in the same manner as if there had been no interruption
in the purchases and delivery of same.
M.
Third Party is now the owner of a water line reaching from
First Party's reservoir at Calallen, Texas to a point near the western
border of the City of Corpus Christi. Third Party agrees to transport
through said line for the account of Second Party the water purchased by
Second Party from First Party, as provided by the foregoing Paragraphs
I and II hereof, such water to be delivered by Third Party to Second Party
at the delivery point hereinafter described. For such pipe line trans-
portation Second Party shall pay to Third Party a sum equal to eight (80)
cents per 1, 000 gallons for all such water transported and delivered by
Third Party to Second Party under the terms of this agreement. Provided,
however, that if and when First Party shall, under the foregoing provisions
hereof, be unable to sell to Second Party the volumes of water so contract-
ed to be sold by First Party to Second Party, then during such periods of
time Second Party shall not be required to make payment to Third Party
for any such transportation charges for water not sold by First Party to
Second Party and not transported by Third Party for Second Party, it being
understood, however, that at all times when First Party is able to deliver
to Second Party Second Party's minimum requirements of water, as here -
iubefore provided, and if such water be not taken by Second Party from
First Party, then, notwithstanding, Second Party shall pay to Third Party -
transportation charges for such minimum requirements of 120, 000 gallons
of water per day.
As between First Party and Second Party, it is agreed that at
any time when First Party is able to sell to. Second Party Second Party's
requirements of water, as hereinbefore provided, but, nevertheless, if
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Third Party shall be unable to transport such water for the account of
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cond Party, then, notwithstanding, Second Party shall be relieved of
Ats obligation to take and pay First Party for such minimum volume of
120, 000 gallons per day while such condition exists, as the result of
which Third Party is unable to transport water for Second Party. In the
event of the interruption of the transportation of water by Third Party
for Second Party, nevertheless when the cause of such interruption shall
be removed, then the sale of water by First Party to Second Party and the
transportation of such water by Third Party for Second Party shall be re-
sumed as theretofore under the terms of this agreement.
It is, however, understood and agreed between Second and Third
Parties that Third Party shall not be liable for any damages to Second Party
resulting from interruption in the transportation of water by Third Party
for Second Party due to line breaks or for any other cause beyond the control
of Third Party, or even as the result of negligence of Third Party's agents,
servants or employees. However, in the event Third Party shall fail at any
time to make use of its available facilities for the transportation of Second
Party's minimum requirements of water purchased from First Party and
which First Party is then able and willing to deliver to Second Party, then
upon ten (10) days written notice to First and Third Parties, Second Party
shall have the right and option to cancel this agreement.
IV.
The delivery point of said water to Second Party shall be at a
point on the 16" line of Third Party on the right of way of the San Antonio
Uvalde & Gulf Railroad Company at or near Engineer's Chaining Station
143 plus 60, Corpus Christi, Nueces County, Texas. Second Party has
now in place an 8" and a 6" water line extending from this point approximate-
ly 3, 400 feet north to a water pump station which it owns and operates, and
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all water sold and delivered hereunder shall be measured by an orifice
meter to be furnished by Second Party, and to be located at such water
pump station. The duly authorized agents and representatives of either of
the parties to this contract shall have the right to inspect the meter, read
same for the purposes of checking its correctness and test same upon
demand; provided, however, no agent or representative of either party
shall molest, change or disturb any of the mechanism of said'meter or
measuring device, unless in the presence of the agents of the other parties
to this contract or by their permission.
V.
Second Party shall change the orifice meter charts on such
meter or meters measuring water sold by First Party to Second Party.
A fiscal month shall be set up for accounting purposes which shall begin
on the 24th day of the month and end on the 24th day of the following month.
On or before the 5th day of each calendar month, Second Party shall mail
a monthly statement of the volume of water purchased hereunder,to First
and Third Parties. The computed meter charts shall be mailed to Third
Party for inspection and Third Party shall mail the computed charts to
First Party for inspection and retention. After inspection of the statement
and computed charts, First and Third.Parties shall invoice Second Party
on or before the 15th of the month for water purchased the previous month.
VI.
The payments for any and all water sold by First Party to
Second Party shall be made monthly at the office of the City- Water Depart-
ment at the City Hall in Corpus Christi, Texas, and all bills therefor
shall be paid on or before the 25th of the succeeding month after the same
accrue.. Statements shall be mailed to Second Party at P. O. Box 576,
Taft, Texas, on or before the 15th day of each month, showing the sum due
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said First Party for water so purchased from it for the preceding month.
Likewise, payments for any and all water transported by Third Party
from Calallen for Second Party shall be made monthly at the office of
Third Party at Corpus Christi, Texas, by Second Party, and all bills
therefor shall be paid on or before the 25th day. of the succeeding month
after the same accrue. Statements shall be mailed to Second Party at
P. O. Box 576, Taft, Texas, on or before the 15th day of each month,
showing the sum due Third Party for water transported during the pre-
ceding fiscal month.
VII.
Any party to this contract shall have the right to cancel and
terminate same by giving to the other parties hereto twelve (12) months'
written notice of its intention so to do. . Said notice may be given by
registered letter, addressed to First Party at Corpus Christi, Texas,
to Second Party at Tulsa, Oklahoma, and to Third Party at Corpus Christi,
Texas, in which event, at the expiration of twelve (12) months from the
date of the mailing of said letter, said contract shall terminate as to all
of said parties, including all options for reinstatement of this contract
granted hereunder.
VIII.
It is distinctly understood and agreed that Second Party shall
not deliver or sell water obtained under this contract to any other person,
firm, or corporation, except such persons, firms, or corporations which
are affiliated with or subsidiaries of Second Party, or of a parent company
of which Second Party is a subsidiary, and except further to ships, steam-
ers, and freighters or other water craft delivering or receiving tonnage
from said Second Party or any such subsidiaries or affiliated companies.
Provided, however, Second Party may sell and deliver water purchased
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under this contract to any other person, firm, or corporation Engaged in
any industrial enterprise or any other person, firm, or. corporation en-
gaged in the drilling, development, or operation of any oil or gas lease,
but no water shall be sold or delivered to any such other person, firm,
or corporation south of the platted line shown on the plat attached hereto
and made a part hereof, which platted line has its origin in the middle of
the channel of Nueces River at a point where Nueces River enters Nueces
Bay; continuing in an easterly direction to a point on the Corpus Christi
causeway, which point is one quarter of a mile north of the south abutment
of said causeway.
IX.
Notwithstanding any of the provisions of this contract, it is
agreed that the prices provided herein which Second Party is to pay. First
Party for water, are subject to adjustment upward to such price as the City
Council of the City of Corpus Christi, Texas may fix, provided that such rate
shall not be greater than ten (10�) cents to the City per thousand gallons of
water, and provided further that such price shall not be higher than that
fixed after the date of this contract in any other similar contract entered into
between the City of Corpus Christi and any other industrial consumer outside
the city limits of the City of Corpus Christi using a comparable amount of
water.
X.
THIS AGREEMENT shall be available to and binding on the parties
hereto, their successors and assigns.
IN WITNESS WHEREOF, the parties hereto have executed this
agreement this the . day of January, A. D., 1955.
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COUNTERSIGNED: CITY OF CORPUS CHRISTI, TEXAS
By
C omptroller
ATTEST:
Secretary
FIRST PARTY
ATTEST: SINCLAIR OIL & GAS COMPANY
By
President
SECOND PARTY
ATTEST: SUNTIDE REFINING COMPANY
By
President
THIRD PARTY
THE STATE OF TEXAS )
COUNTY OF NUECES )
BEFORE ME, the undersigned authority, a Notary Public, on this
day personally appeared
known to me to be the person whose name is subscribed to the foregoing
instrument as of the City
of Corpus Christi, Texas, and acknowledged to me that he executed the same
for the purposes and consideration therein expressed, as the act and deed of
said City of Corpus Christi, Texas, a municipal corporation, and in the
capacity therein stated.
GIVEN under my hand and seal of office this the . day
of A. D., 1955.
, Notary Public
i in and for Nueces County, Texas,
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STATE OF OKLAHOMA
COUNTY OF TULSA
BEFORE ME, the undersigned authority, a Notary Public, on this
day personally appeared , Vice- President of
Sinclair Oil & Gas Company, a Maine corporation, known to me to be the
person and officer whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and considera-
tion therein expressed, as the act and deed of said corporation, and in the
capacity therein stated.
GIVEN under my hand and seal of office, this the day
of A. D., 1955.
My commission expires:
, Notary Public
in and for Tulsa County, Oklahoma
THE STATE OF TEXAS
COUNTY OF NUECES
BEFORE ME, the undersigned authority, a Notary Public, on this
day personally appeared , known to me
to be the person whose name is subscribed to the foregoing instrument as
of Suntide Refining Company, a Delaware
corporation, and acknowledged to me that he executed the same for the pur-
pose and consideration therein expressed, in the capacity therein stated and
as the act and deed of said corporation.
GIVEN under my hand and seal of office this the
day of , A. D., 1955.
My commission expires: , Notary Public
in and for Nueces County, Texas
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4)
That the foregoing vdinancelm -read fo a first time and passed
to its seeaad reading -on this -the _/J a of C(it, ,195Cy the
following votes-
P. C. Callaway
- Ellroy King _
Jambs -S, Naismith
M. James Brace
F. -P, i'eterson, Jr.
That the foregoing ordinance-was -read TJ9540 he-second time and passed
tp.its third reading vn this the day of by
the following vote-
-P. C. Callaway zzz g... j�
- EiIToy King _ `
James S. Na #smith
W. James Brace
F, P. Peterson, Jr
That rthe- foregoing vxdl=nce w sea for the thi#11me nd passed
finally -on ttris- the -day of , 1954, by the follow-
ing votes
P. C. Callaway _6- �'
Ellroy King / \/
James S. Naismith
Wa James Brace
F, P. Peterson, Jr. �1
- PASSED AND APMOVED, This the day of _,1954,
NL
177
A7 CIT THE Y OF CORPUS_ CHRISTI, TFM
Ci y Secret
APPROVED AS- T4 EGAL FORDS (/
City Atto ey
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