HomeMy WebLinkAboutResolution - 012276B - Agreement - Pioneer Natural Gas Co- Covering Natural Gas To LP&L For Boiler Fuel - 01/22/1976t
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R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
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PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
t
' J/nh
PF
R ESO LUTION
IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the MAYOR of the CITY OF LUBBOCK, BE and is hereby authoriz.
and directed to execute for and on behalf of the CITY OF LUBBOCK an
'rREEMENT between the CITY OF LUBBOCK and PIONEER NATURAL GAS
►MPANY, covering NATURAL GAS to LUBBOCK POWER & LIGHT for
>ILER FUEL, attached herewith which shall be spread upon the Minutes of
COUNCIL and as spread upon the Minutes of this,COUNCIL shall con-
tute and be a part of this Resolution as if fully copied herein in detail.
ssed by the City Council this 22nd day of January 197E
ROY SS, YOR
KTTEST:
[reva Phillips, City ecretary- Treasurer
PPROVED AS TO FORM:
1. .
Fred O. Sente r, Jr..
►J
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
s
t
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
HARRY H. WALDEN
Vice President
February 5, 1976
Mr. W. T. Wood
Director of Utilities
City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Re: Amendment dated January 1,
1976, to Gas Sales Agreement
dated May 2, 1974, between
Pioneer Natural Gas Company,
as Seller, and City of
Dear Bill: Lubbock, as Buyer.
For your files, we enclose herewith a fully -executed
copy of the above described amendment.
Thank you for your assistance in this matter; and
if we can be of further service, please let us know.
/pm
enclosure
Very truly yours,
Harry Walden
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
R
GAS SALES AGREEMENT
b e t w e e n
PIONEER NATURAL GAS COMPANY
as "Seller"
and
CITY OF LUBBOCK
as "Euyer"
Dated: July 1, 1974
INDEX
ARTICLE
TITLE
PAGE NUMBER
I
DEFINITIONS
.1
II
QUANTITY
2
III
DELIVERY POINT
b
IV
DELIVERY PRESSURE
5
V
METERING
5
VI
MEASUREMENT
7
VII
PRICE
g
VIII
HEATING VALUE
13
IX
BILLING.AND PAYMENT
14
X
QUALITY
15
XI
TITLE
16
XII
FORCE MAJEURE
16
XIII
NOTICES
17
XIV
SUCCESSORS AND ASSIGNS
18
XV
MAINTENANCE OF FACILITIES
18
XVI
DURATION OF AGREEMENT
19
XVII
INDEMNIFICATION
19
XVIII
DESCRIPTIVE HEADINGS
19
XIX
MISCELLANEOUS
19
XX
GOVERNMENTAL REGULATIONS
20
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
GAS SALES AGRIMEENT
THIS AGREEMENT, made and entered into as of this 2nd day of May,
A.D., 1974, by and between PIONEER NATURAL GAS CUIPANY, a Texas corporation,
hereinafter referred to as "Seller," and CITY OF LUBBOCK, a municipal cor-
poration, hereinafter referred to as "Buyer;rr
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants located in Lubbock County,
Texas; and
WHEREAS, Buyer is purchasing certain volumes of natural gas from
Seller pursuant to a Gas Sales Agreement dated July 18, 1972, which is to
be cancelled and superceded effective with the effective date of this agree-
ment; and
WHEREAS, Seller can make available to Buyer certain volumes needed
by Buyer in Buyer's municipal power plants and Seller desires to sell such
volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants
and agreements herein contained, Seller and Buyer do hereby mutually covenant
and agree as follows:
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) con-
secutive hours commencing at 7:00 A.M. on one calendar day and ending at
7:00 A.M. on the following calendar day.
r Section 2. "Billing Month" shall mean the period commencing at
7:00 A.M. on the first day of a calendar month and ending at 7:00 A.M. on
the first day of the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 A.M. on July 1 and ending at 7:00 A.M. on the next succeeding July 1.
In the event deliveries commence hereunder on a date other than July 1,
the period of time from the date of first deliveries until the following
July 1 shall be considered as the first accounting year. In the event de-
liveries permanently cease on a date other than a July 1, the period of time
from the July 1 immediately preceding the date of such delivery cessation
shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at
a temperature of 60 degrees Fahrenheit and an absolute pressure of 13:60
pounds per square inch.
Section 5. The term "Btu" shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content
of the gas delivered.
Section 7. The term "Buyer's municipal power plants" as used herein
shall mean Buyer's electrical generating plants located near the City of
Lubbock in Lubbock County, Texas.
ARTICLE II
QUANTITY
Section 1. Commencing July 1, 1974 Seller agrees to deliver to
Buyer up to the following volumes of natural gas:
(1)
From July 1,
1974
through
June 30,
1977
- 32,000 Mcf/day;
(2)
From July 1,
1977
through
June 30,
1978
- 21,333 Mcf/day;-
(3)-
From July 1,
1978
through
June 30,
1979 -
14,222 Mcf/day;
-2-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's ob-
ligation to take and receive from Seller shall be 6,000,000 MCF during the
first, second and third accounting years hereof, 4,000,000 MCF during the
fourth accounting year hereof and 2,667,000 MCF during the fifth accounting
year hereof.
Section 2. In the event Buyer fails to take from Seller the
minimum volume of gas which Buyer is obligated to take and pay for from Seller
during each accounting year pursuant to the provisions of this .Article II,
then Buyer shall pay Seller for that quantity of gas which equals the dif-
ference between the minimum volumes Buyer was obl_Iigated to take and pay for
during the applicable accounting year and the volume which Buyer did actually
take and pay for. The price which Buyer shall pay Seller for such deficiency
shall be the average price in effect for the accounting year the deficiency
occurred.
Section 3. Gas delivered under this contract is subject to cur-
tailment or interruption when in the sole judgment of the Seller such cur-
tailment or interruption, regardless of cause, is necessary to maintain
service to consumers served on the Seller's General Service Schedule, Regular
Industrial Service Schedule, or any other service schedule. The Seller shall
be the sole and exclusive judge as to the necessity or desirability of cutting
off or reducing the supply of gas from time to time, and the exercise of
this right shall not be the basis for any claim for damages sustained by
either party. In the event curtailment or interruption becomes necessary,
Seller will use its best efforts to curtail all customers of the same classification
-3-
in the immediate vicinity proportionately. In this instance,_the term "same
classification" shall mean electric production and distribution systems and
the term "immediate vicinity" shall mean that area of the Seller's system
affected by such curtailment or interruption.
Section 4. In the event an interruption in, or curtailment of,
deliveries shall become necessary or advisable, Seller shall at once notify
Buyer by telephone, telegraph or other means, of the nature, extent and
probable duration of such interruption or curtailment. Buyer shall resume
the taking of gas within a reasonable length of time following notification
by Seller that gas is again available.
Section 5. In the event the delivery of gas is interrupted or
curtailed at the request of Buyer pursuant to Article XII or at the request
of the Seller, then, and in such event, the minimum volume of gas herein
contracted for shall be reduced by 1/365th of such minimum annual volume
for each day or portion of a day that the delivery of gas hereunder was
interrupted or curtailed.
ARTICLE III
DELIVERY POINT
Section 1. The delivery of gas hereunder shall be made at a point
located at Buyer's power plants in the City of Lubbock.
Section 2. Sufficient space for a meter, or meters and regulators,
is to be furnished free by Buyer at a location to be agreed upon at each
municipal power plant.
Section 3. Buyer agrees to assign to Seller sufficient easements
and rights of way over, across and under any land that Buyer has the right
so to do, and the right to perform thereon any acts necessary for carrying
-4-
out the terms of this contract.
ARTICLE IV
DELIVERY PRESSURE
Section 1. Deliveries shall be made at the pressure requested
by Buyer, but not to exceed 75 pounds per square inch absolute, except de-
liveries may be made at higher pressures if neither party objects.
ARTICLE V
METERING
Section 1. Seller, at its sole cost, risk and expense, shall
install, maintain and operate at the point or points of delivery hereunder
a standard type orifice or positive meter or meters for measuring the volume
of all gas purchased by Buyer hereunder and Seller shall cause said meters
to be read daily or at other mutually agreeable intervals. Orifice meters
and other facilities so installed at the point of delivery shall be constructed
and installed in accordance with the specifications prescribed in Article VI.
Section 2. Said meters and all meter readings and meter charts
shall be accessible at all reasonable times to inspection and examination
by Buyer, but the calibration and adjustment of Seller's meter or meters
shall be done by Seller. Seller may destroy meter charts and other records
after two years.
Section 3. Buyer may install, maintain and operate such check
measuring equipment as it desires, provided that such check meter and equip-
ment shall be so installed as not to interfere with the operation of Seller's
meters.
Section 4. Each such orifice meter installed by Seller shall be
calibrated at least.once each thirty (30) days by and at the expense of
-5-
Seller, in the presence of Buyer's representative if Buyer so desires.. Seller
shall give Buyer or Buyer's designated representative notice of each such
calibration test in sufficient time to enable Buyer to have its representative
present. If upon any such test, the measuring equipment is found to be
not more than two per cent (2%) erroneous in the aggregate, previous readings
of such equipinent shall be considered correct in computing the deliveries
of gas hereunder, but such equipment sha�l be adjusted at once to read ac-
curately. If upon any test the measuring equipment shall be found to be
inaccurate in the aggregate by an amount exceeding two per cent (2%) at a
reading corresponding to the average rate of flow for the period since the
last preceding test, then any previous reading of such equipment shall be
corrected to zero error for any period which is known definitely or agreed
upon, but in case the period is not known definitely or agreed upon, then
for a period extending back one-half (1/2) of the time elapsed since the
date of the last test, but not to exceed thirty (30) days. If for any reason
any meter is out of service or out of repair so that the volume of gas pur-
chased cannot be ascertained or computed from the reading thereof, the volume
of gas purchased during the period such meter is out of service or out of
repair shall be estimated or agreed upon by the parties hereto on the basis
of the best data available using the first of the following methods which
is feasible:
(a) By using the registration of Buyer's check meter if
installed and accurately registering.
(b) By correcting the error in Seller's meter if the .
percentage of error is ascertainable by calibration
test or mathematical calculation.
(c) By estimating the volume of delivery by using as a
ME
basis the volumes delivered during preceding periods
under similar conditions when the meter was registering
accurately.
ARTICLE VI
MEASUREMENT
Section 1. All measurement of gas hereunder shall be in accordance
with the recommendations for measuring gas contained in Report No. 3 of
the Gas Measurement Conmittee of the American Gas Association dated April,
1955, including the supplements and revisions thereto, or other generally
accepted tables relating to gas measurement applied in a practical and ap-
propriate manner. Correction shall be made for deviation from Ideal Gas
Laws as provided for in Section 5 of this Article VI.
Section 2. An assumed atmospheric pressure of thirteen and one-
tenth (13.1) pounds per square inch absolute at the delivery point shall
be utilized for measurement purposes, irrespective of any variation of the
actual atmospheric pressure from such assumed pressures.
Section 3. Seller shall, at its sole cost, risk and expense,
install, maintain and operate a recording thermometer of standard manufacture,
so that it may properly record the temperature of gas flowing through Seller's
meter or meters. The arithmetical average of the twenty-four (24) hour
record, or that portion of the twenty-four (24) hours during which gas was
passing, shall be assumed to be the temperature of the gas for that period
and shall be used in making proper computations of measurement.
Section 4. Seller shall, at its sole cost, risk, and expense, install
maintain and operate a recording gravitometer of standard manufacture, so
that it may properly record the gravity of the gas flowing through Seller's
orifice meter or meters. The gravity so determined shall be used in the
-7-
computations of measurement. In the event Seller has installed, or shall
in the future install, a recording-gravitometer at a point on its system
which properly records the specific gravity of the total stream, a portion
of which is sold hereunder, said gravitometer may be used to ascertain the
specific gravity for which correction is to be made. Seller may, at its
option, install a composite sampling device at the delivery point hereunder
and the specific gravity may be determined as often as may be found necessary
in practice from samples obtained by such devices.
Section 5. The deviation of the gas from the Ideal Gas Laws shall
be determined by tests at one (1) year intervals or at such other intervals
as may be found necessary in practice, or as may be requested by Buyer.
Buyer shall not request such test more frequently than once every three
months. Such tests shall be made by a mutually agreeable industry accepted
method. Each test shall determine the correction to be used in computing
the volume of gas delivered hereunder until the next such test is made.
Section 6. Each party hereto, or its designated representative
shall conduct the tests and determinations under this Article VI which are
to be made with equipment owned or to be furnished by said party, but the
party making such test or determination shall give the other party, or its
designated representative, notice of each such test or determination in
sufficient time to enable said other party to have its representative present.
,ARTICLE VII
PRICE
Section 1. The base price, subject to the adjustments as provided
for in Sections 2, 3 and 4 of this Article VII, to be paid for gas delivered
hereunder and measured as herein provided for shall be the sum of (1) Seller's
latest available weighted average cost of gas to Seller's West Texas Transmission
10
System plus (2) the sum of 12.9 per Mcf.
Section 2. The base prices as provided for in Section l of this
Article VII shall be adjusted upward or downward three one -hundredths of
one cent (3/100ths of 1¢) per Mcf for each point that the Consumer Price
Index, as published by the Bureau of Labor Statistics, is above or below
120 (such index using the 1967 base of 100). In the event the 1967 base
of 100 used in determining the Consumer Price Index is amended or supplemented,
then the factors used in determining the price adjustment pursuant to this
Section 2 shall be appropriately amended or supplemented. In the event the
Consumer Price Index is terminated, then the parties shall adopt another
method of price adjustment which is mutually agreeable to both parties.
The Consumer Price Index for the purpose of this Section 2 shall be rounded
off to the nearest whole number. It is agreed between the parties that
the price adjustment, pursuant to this Section 2, for the preceding month's
deliveries shall be based on the Consumer Price Index for the third preceding
month.
Section 3. The above price provisions, as adjusted, are based
on the delivery of natural gas having an average heating value of 1,000
British thermal units per cubic foot. Should the average total heating value
of the gas delivered in any billing period be more than 1,000 British thermal
units per cubic foot, or less than 1,000 British thermal units per cubic
foot, the total charge for such month shall be increased or decreased respectively
in the percentage by which the average total heating value.of such gas is
greater than 1,000 British thermal units per cubic foot, or less than 1,000
British thermal units per cubic foot.
Section 4. If Seller's Board of Directors increases Seller's
composite depreciation rate from the present composite rate of 4%, the base
price as provided for in'Section 1 of this Article VII shall be adjusted
upward as follows:
For each one-half of one percent (or dollar equivalent)
by which the present composite rate of 4% is increased,
the base price as provided for in Section l shall be
increased by 1¢ per Mcf;
provided, the maximum increase pursuant to this Section 4 shall be 2¢ per
Mcf; and, provided further, that no such adjustment shall be effective prior
to January 1, 1976.
Section 5. For the purpose of this agreement the term "weighted
average cost of gas to Seller's West Texas Transmission System" shall mean
the average price per Mcf of all gas purchased by Seller, for utilization
in Seller's West Texas Transmission System or its Delaware Basin Division,
computed to the nearest one-hundredth of one cent and shall be determined
by dividing the total dollar amounts paid or accrued on Seller's books for
all such gas purchased by Seller during the applicable billing month by
the total number of Mef of gas purchased by Seller during such applicable
billing month, adjusted to the same pressure base as gas sold hereunder and
shall include in addition to the cost of gas itself, amounts expended which
are accrued by Seller to parties other than Seller for the purchase, transportation,
gathering, treating or handling of gas, taxes attributable to the purchase
or production of such gas and other similar actual amounts borne by Seller
and paid or payable to parties other than Seller, but shall not include any
charges attributable to Seller's amortization of its own facilities, Seller's
overhead charges, Seller's direct labor or maintenance expense, or similar
expenses of Seller;.provided, however, if any gas purchased by Seller requires
treating by Seller for the removal of hydrogen sulphide and/or organic sulphur
-10-
and/or carbon dioxide and/or water vapor.. Seller's total cost of treating
such gas, including shrinkage, amortization of facilities, overhead charges,
direct labor costs and maintenance expense, shall be added to the cost of
such gas. Should Seller purchase gas for utilization in Seller's West Texas
Transmission System or its Delaware Basin Division under a contract or con-
tracts containing a Btu adjustment clause, the volumes of gas purchased under
such contract or contracts shall be adjusted in determining the total number
of Mcf of gas purchased by Seller during such month for the purpose of this
Section 5 of Article VII by multiplying the volumes of gas purchased under
any such contract by a fraction, the numerator of which is the average Btu
per cubic foot of gas purchased under such contract and the denominator of
which is 1,000. If any portion of the cost of gas or of any taxes which
have been paid by Seller is refunded to Seller., or if Seller is required
by the terms of any gas purchase contract, or of any agreed settlement of
a disputed claim, or by a determination or judgment of a regulatory body
or court having or asserting jurisdiction, to make retroactive payments with
respect to gas previously purchased by Seller, then appropriate adjustments
to compensate therefor shall be made in the price payable for gas delivered
by Seller to Buyer hereunder as soon as practicable after the time of such
cancellation, refund or retroactive payment; provided, that the period during
which such adjustments are to be made shall be determined by Seller subject
only to the condition that the same shall be made within a reasonable period
of time, taking into consideration the total amount of any such cancellation,
refund or retroactive payment, but no adjustments as provided for herein
shall be made after this contract has terminated except with respect to
items cancelled, refunded or paid prior to the date of such termination,
-11-
• nor shall any adjustments as provided for herein be made with respect to
any gas purchased by Seller prior to the first delivery of gas to Buyer
hereunder. Nothing contained in this contract shall prevent Seller from
entering into any amendment, modification, renewal, extension or replacement
of any existing or future gas purchase contract or contracts between Seller
and any of its gas suppliers. In the event Seller appears as a party before
a regulatory agency in a matter which will affect the rates established
in this contract, Seller shall give Buyer reasonable notice of such hearing
to enable Buyer to prepare and appear at such hearing. An appearance by
Buyer shall not waive any rights under this contract or prejudice its position
under this contract.
Section 6. Within 180 days prior to January 31, 1976, and each
January 31 thereafter during the term of this agreement, as it may be extended
from time to time, representatives of Buyer and Seller shall meet to de-
termine if this agreement is to be extended and the terms and conditions
of any such extension, it being the intention of the parties that so long
as Buyer requires gas supplies at its said municipal power plants which may
be satisfied in whole or in part by Seller upon terms and conditions ac-
ceptable to both parties, that the parties shall endeavor to reach agreement
to extend the contract so that it will have a termination date five years
from the preceding June 30. In the event that the parties do not agree upon
such extension and the terms and conditions thereof, then this agreement
shall terminate in accordance with its terms.
Section 7. In addition to the price to be paid for gas .delivered
hereunder Buyer agrees to pay Seller an amount equal to all of any increased,
additional or new production, severance, gathering, processing, transmission,
-12-
• . sales or delivery taxes in excess of or in addition to those in existence
on January 1, 1974, which are levied upon or.attributable to all or any
portion of such gas, the value thereof or the processing or handling thereof
before the delivery of such gas to Buyer or in connection with such delivery,
but only to the extent such taxes are not included in the weighted average
cost of gas to Seller's West Texas Transmission System as defined in Section 5
of this Article VII. All taxes levied on such gas after delivery shall be
paid by Buyer. Applicable rulings or orders of governmental representatives
in charge of the administration of any law or ordinance increasing or creating
any such tax shall be binding and conclusive upon Buyer until such time as
the invalidity thereof has been finally established by the decision of a
court of competent jurisdiction. Buyer shall be entitled to reimbursement
from Seller to the extent of any payments made by it to Seller pursuant to
this Article VII which may subsequently be refunded to Seller by the taxing
authority. Buyer shall not be obligated to reimburse Seller for any ad valorem
taxes on properties or for taxes which are based upon or measured by the
natural gasoline or other liquefied hydrocarbon content extracted from the
gas before delivery to Buyer.
Section 8. For the purpose of billing and accounting for gas
delivered hereunder, Seller will use its usual calculations in Seller's
determination of the weighted average price, as defined in Section 5 of this
Article VII, of gas purchased by Seller during any applicable period and
nothing herein shall be construed so as to require Seller to change such
procedure.
ARTICLE VIII
HEATING VALUE
Section 1. The Btu content of the gas delivered hereunder shall
-13-
be determined for a cubic foot of gas at a temperature of sixty (60) degrees
Fahrenheit, at an absolute pressure equivalent to that of thirty (30) inches
of mercury, saturated with water vapor. Such total heating value of the
gas delivered shall be determined by a continuous sampling device to be
installed, maintained and operated by Seller at its sole cost, risk and
expense.
Section 2. The average total heating value per cubic foot of
gas shall be determined for any billing period by taking the arithmetic
average of the heating value as determined pursuant to Section 1 of this
Article, and such average total heating value shall be used in adjusting
the price provisions'hereunder. In the event Seller has, or shall in the
future install, a recording calorimeter at a point on its system which properly
records the heating value of the total stream a portion of which is sold
hereunder, said calorimeter may be used to ascertain the heating value for
which correction is to be made.
ARTICLE IX
BILLING AND PAYMENT
Section 1. On or before the 20th day of each calendar month, Seller
shall render a statement to Buyer giving the total volume of gas purchased
hereunder during the preceding monthly period, such statements to be rendered
in accordance with this contract, and shall include any amounts due for tax
reimbursement under the provisions of Article VII hereof; provided, however,
if the amount of reimbursement to Seller cannot be determined currently,
Seller may bill Buyer and Buyer shall make payment therefor within.a rea-
sonable period after such amount becomes determinable.
Section 2. Payment shall be made by Buyer to Seller within ten
(10) days after receipt of the statement.
-14-
Section 3. Seller shall render to Buyer on or before the first
day of March each year a statement setting out the amount of gas, if any,
by which Buyer failed to take Buyer's minimum annual purchase obligation
during the preceding accounting year as provided in Article II hereof and
the amount of money due therefor. Buyer shall pay to Seller the amount
duewithin30 days after receipt by Buyer of such statement.
Section 4. All statements, bills and payments shall be subject
to correction of any errors contained therein until the expiration of one
11
year after date of payment.
Section 5. Any amounts due for gas hereunder remaining unpaid
after the due date for each payment provided for herein shall bear interest
at the rate of seven per cent (7%) per annum until paid.
ARTICLE X
QUALITY
Section 1. Gas delivered by Seller hereunder shall conform to
the following specifications:
(a) Liquids: The gas shall be commercially free from water
and hydrocarbons in liquid form.
(b) Hydrogen Sulphide: The gas shall not contain more than
one (1) grain of hydrogen sulphide per one hundred (100)
cubic feet.
-(c) Organic Sulphur: The gas shall not contain more than
twenty (20) grains of organic sulphur per one hundred
(100) cubic feet.
(d) Carbon Dioxide: The gas shall not contain more than
three per cent (3%) carbon dioxide by volume.
-15-
(e) Dust, Gums, etc: The gas shall be commercially free
of dust, gums, and other solid matter.
(f) Water Vapor: The gas shall not contain more than nine
(9) pounds of water in the vapor phase per million
cubic feet.
(g) Heating Value: The gas shall have a gross heating
value of not more than twelve hundred fifty (1250)
and not less than nine hundred fifty (950) British
thermal units per cubic foot.
(h) Temperature: The temperature of the gas shall not
exceed one hundred twenty (120) degrees Fahrenheit.
ARTICLE XI
TITLE
Section 1. Seller shall be in control and possession of the
natural gas delivered hereunder and responsible for any damage or injuries
caused thereby until the same shall have been delivered to Buyer at the point '
of delivery, after which delivery Buyer shall be deemed to be in exclusive
control and possession thereof and responsible for any such damages or injuries.
Section 2. Seller expressly warrants its title to and rights to
sell the gas to be delivered hereunder free and clear of all liens and Seller
will hold Buyer harmless against adverse claims thereon.
,ARTICLE XII
FORCE MAJEURE
Section 1. The obligations of either party hereto shall be sus-
.
pended during such time as such party is prevented from complying therewith
in whole or in part by acts of God, strikes, war, lockouts, orders or decrees
of any lawfully constituted state, federal or local body, temporary failure
-16-
. of Seller's gas supply due to causes or conditions reasonably beyond Seller's
control, or other causes or conditions reasonably beyond the control of
either party, whether like or unlike those herein enumerated or on account
of either party making necessary repairs to or replacements of facilities
used in the delivery, receipt, transmission or utilization of gas, or because
of any other cause, except financial, beyond the reasonable control of such
party.
Section 2. In the event of either Buyer or Seller being rendered
unable wholly or in part by force majeure to carry out its obligations under
this agreement, other than to make payments due hereunder, it is agreed that
on such party giving notice and full particulars of such force majeure in
writing or by telegraph to the other party as _soon as possible after the
occurrence of the cause relied on, then the obligations of the parties insofar
as they are affected by such force majeure, shall be suspended during the
continuance of any inability so caused but for no longer period, and such
cause shall as far as possible be remedied with all reasonable dispatch.
Section 3. The settlement of strikes or lockouts shall be entirely
within the.discretion of the party having the difficulty, and the above
requirements that any force majeure shall be remedied with all reasonable
dispatch shall not require the settlement of strikes or lockouts by acceding
to the demands of opposing party when such course is inadvisable in the
discretion of the party having the difficulty.
ARTICLE XIII
NOTICES
Section 1. Notices to be given hereunder, unless otherwise desig-
nated in writing, shall be deemed sufficiently given and served when deposited
in the United'States mail, postage prepaid and certified or registered to
-17-
the following addresses:
To Seller: Pioneer Natural.Gas Company
P. 0. Box 511
Amarillo, Texas 79163
To Buyer: City of Lubbock
P. 0. Box 2000
Lubbock, Texas 79457
Section 2. Routine communications, including monthly statements
and payments, shall be considered duly delivered when mailed, postage prepaid,
by either first class or certified mail to the above addresses, or to such
other address as may be mutually agreed upon.
ARTICLE XIV
SUCCESSORS AND ASSIGNS
Section 1. This agreement may not be assigned by either party
without the written consent of the other party.
Section 2. Either party may assign its rights, title and interest
in, to and under this agreement to a trustee or trustees, individual or
corporate, as security for bonds or other obligations or securities, without
such trustee or trustees assuming or becoming in any respect obligated to
perform the obligations of the assignor under this agreement, and, if any
such trustee be a corporation, without its being required to qualify to
do business in any.state in which any performance of this agreement may occur.
However, such assignment, for security purposes, shall not relieve the
assigning party of any of its obligations under this agreement.
ARTICLE XV
MAINTENANCE OF FACILITIES
Section 1. Each party hereto shall maintain the equipment, in -
eluding meters and facilities owned by it and used in its performance hereof
-18
in good, safe, efficient operating condition and repair.
ARTICLE XVI
DURATION OF AGREEMENT
Section 1. This agreement shall be effective as of 7:00 A.M. on
the first day of July, 1974 and shall continue and remain in full force and
effect for a term ending the 30th day of June, 1979, unless extended by
agreement of the parties pursuant to the terms of Section 6 of Article VII
hereof.
ARTICLE XVII
INDEIVNIFICATION
Section 1. Seller agrees to indemnify and hold harmless Buyer
against any and all loss, cost, claim or demand on account of any damage
to property or injury to persons arising or resulting from Seller's operations
hereunder. Buyer agrees to indemnify and hold harmless Seller against any
and all loss, claim or demand on account of any damage to property or injury
to persons arising or resulting from Buyer's operations hereunder.
ARTICLE XVIII
DESCRIPTIVE HEADINGS
Section 1. The descriptive headings of the provisions of this
agreement are formulated and used for convenience only and shall not be deemed
to affect the meaning or construction of any such provisions.
ARTICLE XIX
MISCELLANEOUS
Section 1. It is agreed and understood that the supply and delivery
of gas from Seller's lines as contemplated by this contract is not within
the objects or purposes of Seller in constructing, operating and maintaining
-19-
• said lines but is merely incidental to the construction, operation and maintenance
of such lines to furnish domestic and commercial service in cities and towns
connected to its system. It is expressly understood and agreed that this
agreement shall cancel and supercede the Gas Sales Agreement between the
parties hereto dated July 18, 1972, effective with the effective date and
time of this agreement as set forth in Article XVI hereof.
ARTICLE XX'
GOVERNMENTAL REGULATIONS
Section.l. This agreement is made subject to all present and future
valid laws of the State of Texas and the United States, and regulations or
orders of duly constituted governmental authorities having or asserting juris-
diction which are applicable to the subject matter hereof and effective from
time to'time. In the event any governmental authority having or asserting
jurisdiction over the prices charged hereunder, or.the weighted average cost
of purchased gas, directly or indirectly establishes a price to be charged
hereunder, then any such price shall be treated for all purposes as the
• contract price, subject only to adjustment in the event of subsequent change
in suYl-Price,.
y+EXTED as of the day and year first above written.
.ATTEST: Y/ - CITY.OF LUBBOCK
By
Secretary Its Mayor
ATTEST.;, .
NTSM-. tary
N. Ray Simpson
'Approved es to form: _20_
Fred 0. 3enter, Jr., City Attorne
PIONEER NATURAL GAS COMPANY
Vi PAsiddht
PIONEER.
NATURAL GAS COMPANY
&76-
(ADVL-jwofPIONEERQ.oaPORA1'0N}
-7
BARRY H. WALDEN
Vice President
February 4, 1976
General Contract Memorandum
Subject: Amendment dated 'January 1., 1976, to Gas. Sales Agreement
dated May 2, 1974, between PIONEER NATURAL GAS COTAPANYj_ as
Seller, and CITY OF LUBBOCK, as Buyer.
Copies of Agreement have been distributed as fo11c;vs:
Customer 1 executed copy
Distribution 1 xerox copy to M. B ..Edqui.st
1;xerbx : copy. to Larry R. Shorts-1,
1 xerox copy to District Manager
Amarillo Gas 11easurement l xerox copy to Guy Bufkixi
Rate Accounting 1 xerox copy -W J. V. Huber
I xerox copy to Gerald Joy
Gas-Accounting 1 xerox copy to Jack Raney
1 xerox copy to Bill Heien
Gas Supply 1 xerox copy to Turner King
Budget 1 xerox copy. to Gene Turner
Corporate File Original to Corporate Records
Contract File 1 executed copy to Harry* ii. Walden
nricrnn:M•r rtn: 4f1 InMnF'�� r. rcvnc 7n�i:'> IP4!`l'Jt' nnr: -x7i; .;8; el TWX 916 M8.4108
AMENDWENT TO rW3 SALES ACCREW.ENT
THIS AMMENT made and entered into as of the lst day of January,
A.D. 1976, by and between PIONEER NATURAL G..0.., CO -MANY, a division of Pioneer
Corporation, a Texas corporation (hereinafter referred. to as "Seller"), and
CITY OF LUBBOCK: a municipal corporation (hereinafter referred to as ''Buyer`? );
ti�IIEREA.S, Seller and Buyer have heretofore on the 2nd da* y of May,
1974 entered into an agreement relating to the purchase and sale of gas for
use in Buyer's municipally ovme.d power plants located in Lubbock County, Texas;
and,
YIHEM-S., the parties desire to amend said Agreement;
NOP:►, THEREFORE, in consideration of the mutual covenants and agree–
ments contained in the original Agreement and contained herein, and other and
t further valuable considerations, the parties do hereby mutually covenant and
agree as follows:
Sections 3 and 4 of Article I of said Agreement are hereby deleted
in their entirety and the following .Sections 3 and 4 are substituted in lieu
thereof
ARTICLE I
DEFINITIONS
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 a.m. on January 1 and ending at 7:00 a.m. on the next succeeding
January 1. In the event deliveries commence hereunder on a date other than
January 1, the period of time from the date of first deliveries until the next
following, January 1 shall be considered as the fiarst accounting year. In the
event deliver?es permanently cease on a date other than a January 1, the period
of time from the January 1 immediately preceding the date of such delivery ces
seti.on shall be considered as the final accounting year.
Section 4. The term "'Kef11 shall mean one thousand cubic feet at a
temperature of 6- degrees Fahrenheit and an absolute pressure of 14.65 pounds
per square inch.
,.
16
II. -
.Section I of Article II of said Agreement is hereby deleted in its
entirety and the follovring Section.1 is substituted in.lieu thereof:
ARTICLE II
QUA11TITY
Section 1. Except as provided in Section 6 of Article VII hereof,
Seller agrees to deliver to Buyer up to 36,000 Mcf/day.
Buyer agrees to take and receive. from Seller each day during the
term hereof those volumes of natural gas Which are made. available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided., however, Buyer's obliga-
tion to take and receive from .Seller shall be 6,000,000 lltef during each. Account-
ing Year, or if tendered to Buyer and not received, to nevertheless pay for such
minimum volumes at the price then in effect; provided, however, if Buyer and
Seller fail to agree on price as provided in Section -6 of Article VII, then
Buyer's obligation to take and receive gas shall.be reduced in the same propor-
tion as Seller's obligation to deliver such gas as provided in -said section.
Sections 1, 2, 5, 6, 7 and 8 of Article VII are hereby deleted in their
entirety and the following is substituted in lieu thereof:
ARTICLE VII
PRICE
.Section 1. Commencing January 1, 1976 and continuing through the re-
maining term o` f this Agreement, Buyer shall pay Seller for gas delivered here.
under and measured as herein provi3ed for a price equal to the sum.of: (1)
Seller's weighted average cost of purchased gas as defined in Section 5 of this
Article VII, plus (2) an increment of fifteen cents (15�) per lfcf which increment
shall increase one cent (1;,f) per Mef on February 1, 1976 and shall increase an ad-
ditional one cent (lye) per r:Zcf each Month thereafter for the next eight (8) months.
Section 2. The prices as provided for in Section 1 of this Article
VII shall be adjusted upvmrd or dovmvrard three one -hundredths of one cent
(3/100ths of 1V) per Mef for each point that the Consumer Price Index, as pub-
lished by the Bureau of Labor Statistics, is above or below 165.6 (such Index
using the 1967 base of 100). In the event the 1967 base of 100 used in deter
mining the Consumer Price Index is amended or supplemented, then the factors
used in determining the price adjustment pursuant to this Section 2 shall be
appropriately amended or supplemented. In the event the Consumer Price Index
is terminated, then the parties shall adopt another method of price adjustment
which is mutually agreeable to both parties. The Consumer Price Index for the
-2-
purpose of this section shall be rounded off to the nearest chole number. It
is agreed between the parties that the price adjustment pursuant to this Section
2 for the preceding month's deliveries shall be based on the Consumer Price
Index for the third preceding month.
Section 5. For the purpose of this Agreement the term "weighted average
cost of purc steed gas'° shall mean the average price per one thousand (1,000)
cubic feet paid by Seller for all gas purchased by.Seller, for utilization in
Seller's West Texas Transmission and Delaware Basin Divisions, computed to the
nearest one-hundredth of one cent and shall be determined by dividing the total
dollar amounts paid or accrued on Seller's books for all such gas purchased by
Seller during the applicable billing month by the total number of Mef of gas
purchased by Seller during such applicable billing month, adjusted to the same
pressure base as gas sold hereunder and shall include in addition to the cost
of gas itself: (1) Interest charged at the prime rate in effect on the first
day of each month upon funds advanced for gas development or dedicated volumes
based upon the outstanding portion of such advancements; (2) Amortization over
a five. -year period of advances for gas supply development Which is non-productive;
and (3) Amounts expended Which are accrued by Seller to parties other than Seller
for the purchase, transportation, gathering, compressing, treating, or handling
of gas, taxes attributable to the purchase or production of such gas and other
similar. actual amounts borne by Seiler and paid or payable to parties other
than Seller, but shall not include any charges attributable to Seller's amortiza-
tion of its own facilities, Seller's overhead charges, Seller's direct labor or
} maintenance expense, or similar expenses of Seller; provided, however, if any
gas purchased by Seller requires treating by Seller for the removal of hydrogen
sulfide and/or organic sulfur and/or carbon dioxide and/or nater vapor, Seller's
total cost of treating such gas, including,shrinkage, amortization of facilities,
overhead charges, direct labor and maintenance 'expense., shall be added to the
cost of such gas. Should Seller purchase gas for utilization in Seller's .'`est
Texas Transmission and Delaware Basin Divisions under a contract or contracts
containing a Btu adjustment. clause, the voiuines of. gas purchased under such
contract or contracts shall be adjusted in determining the total number of 116f
of gas purchased by Seller during such month for the purpose of this.Section 5
of -Article VII by multiplying the volumes of gas purchased under any such con-
tract by a fraction; the numerator of which is the average Btu per thousand
cubic feet of gas pirchased under -such contract and the denominator of which -is
1,000 If any portion of the cost of gas or of any taxes tnhich have been paid
by Seller is refunded to Seller, or if Seller is required by the terms of any
gas purchase contract, or of any agreed settlement of a disputed claim, or by
a determination or judgment of a regulatory body or court having or asserting
jurisdiction, to make retroactive payments with respect to gas previously pur-
chased by Seller then appropriate adjustments to compensate therefor shall be
made in the price payable for gas delivered by Seller to Buyer hereunder as
soon as practicable• after the time of such cancellation, refund or retroactive
payment, provided, that the period during which such adjustments are to be
made shall be determined by Seller subject only to the condition that the
same shall be made ulthin a reasonable period of time, taking into consideration
the total amount of any such cancellation, refund or retroactive payment, but
no adjustments as provided for herein shall be made after this Agreement has
terminated except with respect to items cancelled, refunded or paid prior to
the -date of such termination, nor shall any adjustments as provided for herein
be Made with respect to any gas purchased by Seller prior to the first delivery
of gas to Buyer hereunder. Nothing contained in this Agreement shall prevent
Seller from entering into any amendment, modification, renewal, extension or
replacement of any existing. or future gas purchase contract or'contracts between
Seller and any of its gas suppliers.
Section 6. It is the intention of the parties that so long as Buyer
requires gas supplies for Buyer's municipal power plants which may be satisfied.
in whole or in part by Seller upon terms and conditions acceptable to both
parties, the parties shall endeavor to reach agreement to continue the contract
so that it will have a termination date five years from each January 1. To
that end, the parties will meet %rithin.180 days prior to each January 1, the
first such meeting to take place during the 180 day period prior to January 1,
1977, in order to meet and determine Whether or not the contract is to be con-
tinued and the terms of any such continuation. In the event that the parties
reach agreement, then such contract shall be deemed to be continued for a five-
year term commencing the succeeding January 1 and Seller will deliver the volumes
for such five-year period as set forth in Article II. In the event that the
parties do not agree upon such continuation, then the contract shall be deemed
to continue for the five-year period commencing from the succeeding :January. 1.
By way of example, and without expanding or limiting the above and
foregoing, the parties shall meet within 180 days prior to January 1, 1977.
If, during that period the parties agree that Buyer shall require the volumes set...
forth in Article II which Seller can deliver and the terms of any such delivery,
then the deliveries under the contract shall continue for a period of five years
commencing January 1, 1977 at the volumes set forth in Section 1 of said Article II.
In the event the parties do not agree, then the. contract shall expire at the, end
of five vears commencing January 1, 1977 and Seller shall deliver up to 36,000
fief ver day for the aceountinLr vears 1977, X978 7 24,000 7Ccf per day
for the accounting year 1980 and 12,000 RRcf per day` for the accounting seer 1 :;1,
Section 7. In addition to the price to be paid for gas delivered here-
under Buyer agrees to pay Seller an amount equal to all of -any increased, addi-
tional or nevr productionp severance, gathering, processing, trarsmission, sales
or delivery taxes in excess of or in addition to those in existEnce on January 1,
1975 Which are levied upon or attributable to all or any portion,of such gas,
the value thereof or the processing or handling thereof. before the delivery of
such gas to Buyer or in connection with such delivery. All taxes levied on
such gas -after delivery shall be paid by Buyer. Applicable rulings or orders
ofgovernmental representatives in charge of the administration of any lair or
ordinance increasing or creating any such tax shall be binding and conclusive
upon Buyer until, such time as the invalidity thereof has been finally established
by the decision of a court of competent jurisdiction. Buyer shall be entitled
to reimbursement from Seller to the extent of any payments made by it to Seller
pursuant to this Article VII which may subsequently be refunded to Seller by
the taxing authority. Buyer shall not be obligated to reimburse Seller for
any ad valorem taxes on properties or for taxes -which are based upon or measured
by the natural gasoline or other liquefied hydrocarbon content extracted from
the gas before delivery to Buyer or for any taxes which are included in the
computation of Seller's weighted average cost of purchased gas pursuant to Sec-
tion 5 of this Article VIT.
Section 8. For the purpose of billing and accounting for gas de-
livered hereunder, Seller will use.its usual calculations in Seder's deter-
mination of the weighted average cost of purchased gas, as defined in Section 5
of this Article VII, of gas purchased by Seller during any applicable period and
nothing herein shall be construed so as to require Seller to change such procedure.
IV.
Article XVI is hereby deleted in its entirety and the following is
substituted in lieu thereof
ARTICLE XVI
DURATION OF AGRED—DENT
Section 1. This Agreement shall be -effective as of the date hereof
and shall continue and remain in full force and effect until and including
December 31, 1981, and from year to year thereafter as the parties may agree
as provided in Section 6 of Article VII hereof.
Article XX is hereby deleted in its entirety and the following is
substituted in lieu thereof:
ARTICLE XX
GOVE.RIMENTAL RMULATION,S
• Section 1. This Agreement is made subject to all present and future
valid laws or v6 State of Texas and the United States, and regulations or orders
of duly constituted governmental authorities having or asserting jurisdiction
which are applicable to the subject matter hereof and effective from time to time,
In the event any such authority scall establish a price at the point of delivery,
provided herein, or a point related to a point of delivery,, different from the
price applicable pursuant to this contract, then the price as provided herein
shall be adjusted as required in view of such established price,
VI.
This Amendatory Agreement shall be a binding agreement as of the
date hereof but the amendatory provisions contained herein shall not become
operative or effective until January 11 1976.
Any portion of any other article or Amendatory Agreement in conflict
with the provisions hereof shall be deleted or amended so as to be in agreement
herewith.
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Except as hereby amended the original Agreement dated the 2nd day of
May, 1974, shall continue in force and effect in accordance with its terms.
EXECUTED as of the 22nd day of January , 1976..
,, ', ! �l PIONEER NATURAL GAS C00MANY, a
" division of PIONEER CORPO:?ATION
'ATTEST,
By
1den, Vice President
CITY OF LUBBOCK
ATTEST:
By j .
- Secretary Its Mayor
✓/Approved
ass to form:
Fred o. Senter, Jr, City Attor
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No Text
t
a
ARTICLE
TITLE
PAGE NUMBER
I
Definitions
1
II
Quantity
2
III
Delivery Point
4
IV
Delivery Pressure
4
V
Metering
4
VI
Units of Volume
6
VII
Measurement
7
VIII
Price
8
IX
Heating Value
13
X
Billing and Payment
14
XI
Quality
15
XII
Title
16
XIII
Force Majeure
16
XIV
Notices
17
XV
Successors and Assigns
18
XVI
Maintenance of Facilities
18
XVII
Duration of Agreement
18
XVIII
Indemnification
19
XIX
Descriptive Headings
19
XX
Miscellaneous
19
XXI
Governmental Regulations
19
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' GAS SALES AGREEMENT
THIS AGREB=, made and entered into this 18th day of July ,
A.D., 1972, by and betweenPIONEER NATURAL GAS CWANY, a Texas corporation here-
inafter referred to as "Seller," and City of Lubbock ,
a municipality , hereinafter referred to as "Buyer;"
W I T N E S S E T H:
WHEREAS, Buyer is desirous of purchasing certain volumes of natural
gas to be used in Buyer's municipal power plants
located in Lubbock County, Texas; and
WHEREAS, Seller can make available to Buyer certain volumes needed by
Buyer in Buyer's municipal power plants
and Seller desires to sell such volumes of natural gas to Buyer;
NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained, Seller and Buyer.do hereby mutually covenant and
agree as follows;
ARTICLE I
DEFINITIONS
Section 1. "Day" shall mean the period of twenty-four (24) consecutive
hours commencing at 7:00 A.M. on one calendar day and ending.at 7:00 A.M. on the
following calendar day.
Section 2. 'Billing Month" shall mean the period commencing at 7:00 A.M.
on the first day of a calendar month and ending at 7:00 A.M. on the first day of
the following calendar month.
Section 3. "Accounting Year" shall mean a yearly period commencing at
7:00 A.M. on January 1 and ending at 7:00 A.M. on the next succeeding January 1.
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In the event deliveries commence hereunder on a date other than January 1, the
period of time from the date of first deliveries until the following January 1
shall be considered as the first accounting year. In the event deliveries
permanently cease on a date other than a January 1, the period of time from the
January 1 immediately preceding the date of such delivery cessation shall be
considered as the final accounting.year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at a
temperature of 60° Fahrenheit and an absolute pressure of 13.60 pounds
per square inch.
Section 5. The term 11BtW1 shall mean British thermal unit.
Section 6. The term "heating value" shall mean the Btu content of the
gas delivered.
Section 7. The term "Buyer's municipal power plants"
as used herein shall mean Buyer's electrical generating plants
located near the City of Lubbock in Lubbock County, Texas.
ARTICLE II
UQ, ANTITY
Section 1. Commencing January 1. 1974 , and continuing
through the remaining term of this Gas Sales Agreement, Seller agrees to sell and
deliver to Buyer the volumes of natural gas as may be requested by Buyer for
consumption in Buyer's municipal power plants ;
provided, however, Seller shall not be obligated to make deliveries of gas to
Buyer in excess of 26.000 Mcf on any one day.
Section 2. Commencing January 1. 1974 , Buyer agrees
to take and pay for, or nevertheless pay for, if not taken, a minimum volume of
6,000,000,000 _ cubic feet of gas during each accounting year
during the term hereof.
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Section 3. In the event Buyer fails to take from Seller during any
accounting year.of the.term hereof the minimum volume of gas which Buyer is
such
accounting year
pursuant
during s Pte'
.obligated to .take andpayfor from Sellerd g � y
.to the provisions of Section 2 of this Article II, then within ninety (90) days
after the end of such accounting year when there is a deficiency in takes, Buyer
shall pay Seller for that quantity of gas which equals the difference between the
minimum volumes Buyer was obligated to take and pay for and the volume which Buyer
did actually take and pay for. The price which Buyer shall pay Seller for such
deficiency shall be the price in effect at the time the deficiency occurred.
Section A. Gas delivered under this contract is subject to curtailment
or interruption when in the sole.judgment of the Seller such curtailment or
interruption, regardless of cause, is necessary to maintain service to consumers
served on the Seller's General Service Schedule, Regular Industrial Service Schedule,
or any other'service schedule. The Seller shall be the sole and exclusive judge
as to the necessity or desirability of cutting off or reducing the supply of gas
from time to time, and the exercise of this right shall not be the basis for any
claim for damages sustained by either party. In the event curtailment or inter-
ruption becomes necessary, Seller will use its best efforts to curtail all customers
of the same classification in the immediate vicinity proportionately. In this in-
stance) the term"same classification" shall mean electric production and distribution
systems and the term "immediate vicinity" shall mean that area of the Seller's
system affected by such curtailment or interruption.
Section 5. In the event an interruption in, or curtailment of, deliveries
shall become necessary or advisable, Seller shall at once notify Buyer by telephone,
telegraph or other means, of the nature, extent and probable duration of such
interruption or curtailment. Buyer shall resume the taking of gas within a reasonable.
length of time following notification by Seller that gas is again available.
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Section 6. In the event the delivery of gas is interrupted 'or curtailed
at the request of Buyer pursuant to.Article XIII or at the request of the Seller,
then, and in such event, the minimum volume of gas herein contracted shall.be
reduced for that annual period by 1/365th of such minimum annual volume for each
day or portion.of a day that the delivery of gas hereunder was interrupted or
curtailed.
ARTICLE III
DELIVERY POINT
Section 1. The delivery of gas hereunder shall be made at a point
located at Buyer's power plants and other various locations in the City of Lubbock.
Section 2. Sufficient space for a meter, or meters and regulators, is
to be furnished free by Buyer ata location to be mutually agreed upon.
Section 3. Buyer agrees to assign to Seller sufficient easements and
rights of way over, across and under any land that Buyer has the right so to do,
and the right to perform thereon any acts necessary for carrying out the terms
of this contract. .
ARTICLE IV
DELIVERY PRESSURE
Section 1. Deliveries shall be made at the pressure requested by Buyer,
but not to exceed 75 pounds per square inch absolute, except deliveries
may be made at higher pressures if neither party objects.
ARTICLE V
METERING
Section 1. Seller, at its sole cost, risk and expense, shall install,
maintain and operate at the point or points of delivery hereunder a standard type
orifice or positive meter or meters for measuring the volume of all gas purchased
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71872 - LUB
by Buyer hereunder and Seller shall cause said meters to be read daily or at other
mutually agreeable intervals. Orifice meters and other facilities so installed
at the point of delivery shall be.constructed and installed in accordance with the
specifications prescribed by Report No. 3 of the Gas Measurement Committee of the
American Gas Association dated April, 1955, and supplements thereto, or other
generally accepted specifications,,agreed to by the parties.
Section 2. Said meters and all meter readings and meter charts shall
be accessible at all reasonable times to inspection and examination by Buyer,
but the calibration and adjustment of Sellers meter or meters shall be done by
Seller. Seller may destroy meter charts and other records after two years.
Section 3. Buyer may install, maintain and operate such check measuring
equipment as it desires, provided that such check meter and equipment shall be so
installed as not to interfere with the operation of Sellers meters.
Section 4. Each such orifice meter installed by Seller shall be
calibrated at least once each thirty (30) days by and at the expense of Seller,
in the presence of Buyers representative if Buyer so desires. Seller shall
give Buyer or Buyer's designated representative notice of each such calibration
test in sufficient time to enable Buyer to have its representative present. If
upon any such test, the -measuring equipment is found to be not more than two
per cent (2%) erroneous in the aggregate, previous readings of such equipment
shall be considered correct in computing the deliveries of gas hereunder, but
such equipment shall be adjusted at once to read accurately. If upon arty test
the measuring equipment shall be found to be inaccurate in the aggregate by an
amount exceeding two per cent (2%) at a reading corresponding to the average rate
of flow for the period since the last preceding test, then any previous reading
of such equipment shall be corrected to zero error for any period which is known
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71872 - LUB
h
Z
`definitely or agreed upon, but in case the period isnot known definitely or
agreed upon, then for a period extending back one-half (1/2) of the time elapsed
since the date of the last test, but not to exceed thirty (30) days. If for •any
reason any meter is out of service or out of repair so that the volume of gas
purchased cannot be ascertained or computed from the reading thereof, the volume
of gas purchased during the period such meter is out of service or out of repair
shall be estimated or agreed upon by the parties hereto on the basis of the best
data available using the first of the following methods which is feasible:
(a) By using the registration of Buyers check meter
if installed and accurately registering.
(b) By correcting the error in Seller's meter if the
percentage of error is acertainable by calibration
test or mathematical calculation.
(c) By estimating the volume of delivery by using as a
basis the volumes delivered during preceding periods
under similar conditions when the meter was registering
accurately.
ARTICLE VI
UNITS OF VOLUME
Section 1. The unit of volume for gas delivered hereunder, except as
otherwise specifically.provided herein, shall be one thousand (1,000) cubic feet
(sometimes referred to herein as Mcf) at a base temperature of sixty (60) degrees
Fahrenheit, and at an absolute pressure of thirteen and six -tenths (13.6)
pounds per square inch, and the readings and registrations of the metering
equipment herein provided for shall be converted into such units.
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71872 - LUB
EV I
ARTICLE I
I
MEASUREMENT
Section 1. All measurement of gas hereunder shall be in accordance•
with the recommendations,for.measuring gas contained in Report No. 3 of the Gas
Measurement Committee of the American Gas Association dated April, 1955, including
the supplements thereto, or other generally accepted tables relating to gas
measurement applied in a practical and appropriate manner. Correction shall be
made for deviation from Ideal Gas Laws as provided for in Section 5 of this
Article VII.
Section 2. An assumed atmospheric pressure of thirteen and one tenth
(13.1) pounds per square inch absolute at the delivery point shall be utilized
for measurement purposes, irrespective of any variation of the actual atmospheric
pressure from such assumed pressures.
Section 3. Seller shall, at its sole cost, risk and expense, install,
maintain and operate a recording thermometer of standard manufacture., so that it
may properly record the temperature of gas flowing through Seller's meter or
meters. The arithmetical average of the twenty-four (24) hour record, or that
portion of the twenty-four (24) hours during which gas was passing, shall be
assumed to be the temperature of the gas for that period and shall be used in
making proper computations of measurement.
Section 4. Seller shall, at its sole cost, risk, and expense, maintain
and operate a recording gravitometer of standard manufacture, so that it may
properly record the gravity of the gas flowing through Seller's orifice meter or
meters. The gravity so determined shall be used in the computations of measure-
ment. In the event Seller has installed, or shall in the future install, a
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71872 LUB
t
recording gravitometer at a point on its system which properly records the
specific gravity of'the total stream, a portion of which is sold hereunder, said
gravitometer may be used to ascertain the specific gravity for which correction
is to be made.
Section 5. The deviation of the gas from the Ideal Gas Laws shall be
determined by tests at one (1) year intervals or at such other intervals as may
be found necessary in practice, or as may be requested by Buyer. Buyer shall not
request such test more frequently than once every three months. Such tests shall
be made by a mutually agreeable industry accepted method. Each test shall
determine the correction to be used in computing the volume of gas delivered
hereunder until the next such test is made.
Section 6. Each party hereto, or its designated representative, shall
conduct the tests and determinations under this Article VII which are to be made
with equipment owned or to be furnished by said party, but the party making such
test or determination shall give the other party, or its designated representative.,
notice of each such test or determination in .sufficient time to enable said other
party to have its representative present.
ARTICLE VIII
PRICE
Section 1. The base price, subject to the adjustments as provided for
in Sections 2, 3 and 4 of this Article VIII, to be paid for gas delivered here-
under and measured as herein provided for shall be twenty-five and one-half cents
25.5 per Mef.
Section 2. The base prices as provided for in Section 1 of this
Article VIII shall be adjusted upward or downward by the same amount that Seller's
71872 LUB
weighted average price, as defined in Section 5 of this Article VIII varies
upward or downward from _1A_4Lper Mcf. It is agreed between the parties that the
price adjustment pursuant to this Section 2 for deliveries during each billing
month shall be based on Seller's weighted average price for the twelve month
period ending the last day of the second preceding billing month prior to the then
current billing month and Seller shall furnish Buyer with such price on or before
the first day of the then current billing month.
Section 3. The base prices as provided for in Section 1 of this
Article VIII shall be adjusted upward or downward three one -hundredths of one cent
(3/100ths of 1�) per Mcf for each point that the Consumers Price Index, as
published by the Bureau of Labor Statistics, is above or below 120 (such index
using the 1967 base of 100). In the event.the 1967 base of 100 used in determining
the consumer price index is amended or supplemented, then the factors used in
determining the price adjustment pursuant to this Section 3 shall be appropriately
amended or supplemented. In the event the Consumers Price Index is•terminated,
then the parties shall adopt another method of price adjustment which is mutually
agreeable to both parties. The consumer price index for the purpose of this
section shall be rounded off to the nearest whole number. It is agreed between
the parties that the price adjustment, pursuant to this Section 3, for the
preceding month's deliveries shall be based on the Consumers Price Index for the
third preceding month.
Section 4. The above price provisions, as adjusted, are based on the
delivery of natural-gas having an average heating value of 1,000 British
thermal units per cubic foot. Should the average total heating value of the gas
delivered.in any billing period be more than 1,000 British thermal units per
cubic foot, or less than 1,000- British thermal units per cubic foot, the total
charge for such month shall be increased or decreased respectively in the percentage
by which the average total heating value of such gas is greater than 13000
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71872 - LUB
British thermal units per cubic foot, or less than 1.000 British thermal units
per cubic.foot.
Section 55. For the purpose ofthis agreement the"term "weighted average
price" of -gas purchased by Seller shall mean the average price per one thousand
(1,000) cubic feet of all gas purchased by Seller, for utilization in Seller's
West Texas Transmission and/or Delaware Basin Divisions, computed to the nearest
one-hundredth of one cent and shall be determined by divining the total dollar
amounts paid or accrued on Seller's books for all such gas purchased by Seller
during the applicable twelve month period by .the total number of thousands of
cubic feet of gas purchased by Seller during such twelve month period, adjusted
to the same pressure base as gas sold hereunder and shall include in addition
to the cost of gas itself, amounts expended which are accrued by Seller to
parties other than Seller for the purchase, transportation, gathering, treating;
or handling of gas, taxes attributable to the purchase or production of such
gas and other similar actual amounts borne by Seller and paid or payable to
parties other than Seller, but shall not include any charges attributable to
Sellerrs.amortization of its own facilities, Seller's overhead charges, Seller's
direct labor -or maintenance expense, or similar expenses of Seller; provided,
however, if any gas purchased by Seller requires treating by Seller for the.
removal of hydrogen sulphide and/or organic sulphur and/or carbon dioxide
and/or water vapor, Seller's total cost of treating such gas, including
shrinkage, amortization of facilities, overhead charges, direct labor and
maintenance expense, shall be added to the cost of such gas. Should Seller pur-
chase gas for utilization in Seller's West Texas Transmission and/or Delaware Basin
Divisions under a contract or contracts containing a Btu adjustment clause, the
volumes of gas purchased under such contract or contracts shall be adjusted in
determining the total number of thousands of cubic feet of gas purchased by Seller
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71872 - LUB
during such month for the purpose of this Section 5 of Article VIII by multiplying
the volumes of gas purchased under any such contract by a fraction, the numerator.
of which is the average Btu per thousand cubic feet of gas purchased under such
contract and the denominator of which is 11000. If any portion of the cost of
gas or of any taxes which have been paid by Seller is refunded to Seller, or if
Seller is required by the Terms of any gas purchase contract, or of any agreed
settlement of a disputed claim, or by a determination or judgment of a regulatory
body or.court having or asserting jurisdiction, to make retroactive payments with
respect to gas previously purchased by Seller, then appropriate adjustments to
compensate therefor shall be made in the price payable for gas delivered by Seller
to Buyer hereunder as soon as practicable after the time of such cancellation,
refund or retroactive payment, provided, that the period during which such
adjustments are to be made shall be determined by Seller subject only to the con-
dition that the same shall be made within a reasonable period of time, taking
into consideration the total amount of any such cancellation, refund or retroactive
payment, but no adjustments as provided for herein shall be made after this contract
has terminated except with respect to items cancelled, refunded or paid prior to
the date of such termination, nor shall any adjustments as provided for herein
be made with respect to any gas purchased by Seller prior to the first delivery`
of gas to Buyer hereunder. Nothing contained in this contract shall prevent Seller
from entering into any amendment, modification, renewal, extensions or replacement
of any existing or future gas purchase contract or contracts between Seller and
any of its gas suppliers. In the'event Seller appears as a party before a regulatory
agency in a matter which will affect the rates established in this contract, Seller
shall give the City reasonable notice of such hearing to enable the City to prepare
and appear at such hearing. An appearance by the City shall not waive any rights
under this contract or prejudice its position under this contract.
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Section 6. During the month of July 1973 and each succeeding month of
July, Buyer and Seller will meet to determine the base price to be effective under
Section l of this Article VIII for gas to be purchased and sold hereunder during
the second succeeding accounting year from such date. When Buyer and Seller
agree on such base price the definite term of this agreement as set forth in
Article XVII shall be extended for�the accounting year during which such base
price is applicable.
Sec_ tion 7. In addition to the price to be paid for gas delivered
hereunder Buyer agrees to pay Seller an amount equal to all of any increased,
additional or new production, severance, gathering, processing, transmission,
sales or delivery taxes in excess of or in addition to those in existence on
January 1, 1971, which are levied upon or attributable to all or any portion of
such gas, the value thereof or the processing or handling thereof before the
delivery of such gas to Buyer or in connection with such delivery, but only to
the extent such taxes are not included in the "weighted average price" as defined
in Section 5 of this Article VIII. All taxes levied on such gas after delivery
shall be paid by Buyer.
Section 8. Applicable rulings or orders of governmental representatives
in charge of the administration of any law or ordinance,increasing or creating any.
such tax shall be binding and conclusive upon Buyer until such time as the
invalidity thereof has been finally established by the decision of a court of
competent jurisdiction. .
Section 9.' Buyer shall be entitled to reimbursement from Seller to the
extent of any payments made by it to Seller pursuant to this Article VIII which may
subsequently be refunded to Seller by the taxing authority.
Section 10. Buyer shall not be obligated to reimburse Seller for any
ad valorem taxes on properties or for taxes which are based upon or measured by
71872 LUB
the 'natural gasoline or other liquefied hydrocarbon content extracted from the
gas before delivery to Buyer.
Section 11. For the purpose of billing and accounting for gas delivered
hereunder, Seller will use its usual calculations in Seller's determination of the
weighted average price, as defined in Section 5 of this Article VIII, of gas
purchased by Seller during any applicable period and nothing herein shall be
construed so as to require Seller to change such procedure.
ARTICLE IX
HEATING VALUE
Section 1. The Btu content of the gas delivered hereunder shall be
determined for a cubic foot of gas at a temperature of sixty (60) degrees
Fahrenheit.. at an absolute pressure equivalent to that of thirty (30) inches of
mercury, and at the moisture content of the gas delivered. Such total heating
value of the.gas delivered shall be determined by a continuous sampling device
to be installed, maintained and operated by Seller at its sole cost,' risk and
expense. The moisture content of the gas delivered shall be determined by Seller
as often as is found necessary in practice.
Section 2. The average total heating value per cubic foot of gas shall
be determined for any billing period by taking the arithmetic average of the
heating value as determined pursuant to Section 1 of this Article, and such.
average total heating value shall be used in adjusting the price provisions
hereunder. In the event Seller has, or shall in the future install, a
recording calorimeter at a point on its system which properly records the
heating value of the total stream a portion of which is sold hereunder, said
calorimeter may be used to ascertain the heating value for which correction is
to be made.
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ARTICLE X
BILLING AND PAYMENT
Section 1. On or before the 10th day of each calendar month, Seller
shall render a statement to Buyer giving the total volume of gas purchased here-
under during the preceding monthly period, such statements to be rendered in
accordance with this contract, and shall include any amounts due for tax
reimbursement under the provisions of Article VIII hereof; provided, however,
if the amount of reimbursement to Seller cannot be determined currently, Seller
may bill Buyer and Buyer shall make payment therefor within a reasonable period
after such amount becomes determinable.
Section 2. Payment shall be made by Buyer to Seller within ten (10)
days after receipt of the statement.
Section 3. Seller shall render to Buyer on or before the first day
of March each year a statement setting out the amount of gas, if any, by which
Buyer failed to take Buyerts minimum annual purchase obligation during the
preceding accounting year as provided in Article II hereof, and Buyer shall pay
to Seller the amount due within thirty (30) days after receipt by Buyer of such
statement.
Section Q. All statements, bills and payments shall be subject to
correction of any errors contained therein until the expiration of one year
after date of payment.
Section 5. Any amounts due for gas hereunder remaining unpaid after
the due date for each payment provided for herein shall bear interest at the
rate of seven per cent (7,%) per annum until paid.
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71872 - LUB
ARTICLE XI
UALITY -
Section
1. Gas delivered by Seller hereunder shall conform to the•
following specifications;
(a)
Liquids; The gas shall be commercially free from water
and hydrocarbons in liquid form.
(b)
Hydrogen Sulphide; The gas shall not contain more than
one (1) grain of hydrogen sulphide per one hundred (100)
cubic feet.
(c)
Organic Sulphur; The gas shall not contain more than
twenty (20) grains of organic sulphur per one hundred
(100) cubic feet.
(d)
Carbon Dioxide: The gas shall not contain more than
three per cent (3%) carbon dioxide by volume.
(e)
Dust. Gums. etc; The gas shall be commercially free
of dust, gums, and other solid matter.
(f}
Water Vapor; The gas shall not contain more than nine
(9) pounds of water in the vapor phase per million
cubic feet.
(g)
Heating Value; The gas shall have a gross heating
value of not more than twelve hundred fifty (1250)
and not less than nine hundred fifty (950) British
thermal units per cubic foot.
(h)
Temperature; The temperature of the gas shall not
exceed one hundred twenty (120) degrees Fahrenheit.
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7167id - LUb
ARTICLE XII
SLE
Section 1. Seller shall be in control and possession of the natural
gas delivered hereunder and responsible for any damage or injuries caused thereby
until the same shall have been delivered to Buyer at the point of delivery,
after which delivery Buyer shall be deemed to be in exclusive control and
possession thereof and responsible for any such damages or injuries.
Section 2 Seller expressly warrants its title to and rights
to'sell-the gas to be delivered hereunder 'free and clear of all liens and Seller
will hold Buyer harmless against adverse claims thereon.
ARTICLE XIII
FORCE MAJEURE
Section 1. The obligations of either party hereto shall be suspended
during such time as such party is prevented from complying therewith in whole or
in part by acts of. God, strikes, war, lockouts, orders or decrees of any lawfully
constituted state, federal or local body, temporary failure of Seller's gas supply
due to causes or conditions beyond Seller's control, or other causes or conditions
reasonably beyond the control of either party, whether like or unlike those herein
enumerated, or on account of either party making necessary repairs to or replace-
ments of facilities used in the delivery, receipt, transmission or utilization of
gas, or because of any other cause, except financial, beyond the reasonable
control of such party.
Section 2. In.the event'of either Buyer or Seller being rendered unable
wholly or in part by force majeure to carry out its obligations under this -agree-
ment., other than to make payments due hereunder, it agreed that on such party
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71872 - LUB
y
giving notice and full particulars of such force majeure in writing or by telegraph
to the other party as soon as possible after the occurrence of the cause relied
on, then the obligations of.the parties insofar as they are affected by such force
majeure,.shall be suspended during the continuance of any inability so caused but
for no longer period, and such cause shall as far as possible be remedied with
all reasonable dispatch.
Section 3. The settlement of strikes or lockouts shall be entirely
within the ,discretion of the party having the difficulty, and the above require-
ments that any force majeure shall.be remedied with all reasonable dispatch shall
not require the settlement of strikes or lockouts by acceding to the demands of
opposing party when such course is inadvisable in the discretion of the party
having the difficulty.
ARTICLE.XIV
NOTICES
Section 1. Notices to be given.hereunder, unless otherwise designated
in writing, shall be deemed sufficiently given and served when deposited in the
United States mail, postage prepaid and certified or registered to the following
addresses:
To Seller: Pioneer Natural Gas Company
Pe 0. Box 511
Amarillo, Texas 79105
To Buyer: City of Lubbock
Lubbock, Texas
Section 2. Routine communications, including monthly statements and
payments, shall be considered duly delivered when mailed, postage prepaid, by
17 -
71872 - LUB
either first class or certified mail to the above addresses, or to such other
address as may be mutually agreed upon.
ARTICLE XV
SUCCESSORS AND ASSIGNS
Section 1. This agreement may not be assigned by either party without
the written consent of the other party.
Section 2. Either party may assign its rights, title and interest in,
to and under this agreement to a trustee or trustees, individual or corporate,
as security for bonds or other obligations or securities, without such trustee or
trustees assuming or becoming in any respect obligated to perform the obligations
of the assignor under this agreement, and, if any such trustee be a corporation,
without its being required to qualify to do business in any state in which any
performance of this agreement may occur. However, such assignment, for security
purposes, shall not relieve the assigning party of any of its obligations under
this agreement.
ARTICLE XVI
MAINTENANCE OF FACILITIES
Section 1. Each party hereto shall maintain the equipment, including
meters and facilities owned by it and used in its performance hereof in good,
safe, efficient operating condition and repair.
ARTICLE XVII
DURATION OF AGREF LENT
Section 1. This agreement shall be effective as of the date hereof and
shall continue and remain in full force and effect for a term ending the 31st
day of December , 1974.
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71872 - LUB
ARTICLE XVIII _
INDENIldI FI CATI ON
Section 1. Seller agrees to indemnify and hold harmless Buyer against -
any and all loss, cost, claim or demand on account of any damage to property or
injury to persons arising or resulting from Seller's operations hereunder. Buyer
agrees to indemnify and hold harmless Seller against any and all loss, claim or
demand ,on account of any damage to property or -injury to persons arising or
resulting fr am Buyer's operations hereunder.
ARTICLE XIX
DESCRIPTIVE HEADINGS
Section 1. The descriptive headings of the provisions of this agreement
are formulated and used for convenience only and shall not be deemed to affect
the meaning or construction` of any such provisions
ARTICLE XX
MISCELLANEOUS
Section 1. It is.agreed and understood that the supply and delivery of
gas from Seller's lines as contemplated by this contract isnot within the objects
or purposes of Seller in constructing, operating and maintaining said lines but is
merely incidental to the construction, operation and maintenance of such lines to
furnish domestic and commercial service in cities and towns connected to its
system.
ARTICLE XXI
GOVERNMENTAL REGULATIONS
Section 1. This agreement is made subject to all present and future
valid laws of the State of Texas and the United States, and regulations or orders
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71872 - LUB
of duly constituted governmental authorities having jurisdiction which are
applicable to the subject matter hereof and effective from time to time, and
to the provisions of the applicable franchise, if arty; under which Seller
operates
EXECUTED as of the day and year first above written.
CITY OF LUBBOCK
ATTEST
Its Mayor
Seer ary roved as 3o torte
rCity of Lubbock' ��
Fred 0. Senter, Jr., City Atto
_ PIONEER NATURAL GAS COMPANY
ATTEST; _
� by -
_ By
Vice President
Secre
HARRY H. WALDEN
Vice President
PIONEER
NATURAL GAS COMPANY
POST OFFICE BOX 511, AMARILLO, TEXAS 79105
November 203, 1972
City of Lubbock
Box 2000
Lubbock, Texas 79408
Attention Ms. Lavenia Lowe
City Secretary -Treasurer
Gentlemen:
As per your request, we are returning to you herewith
an executed copy of Gas Sales Agreement dated July 18, 1972,
between The City of Lubbock, Texas, and Pioneer Natural Gas
Company. We are also enclosing_a Xerox copy for your files.
We at Pioneer certainly appreciate your business and
thank you for the manner in which you have handled this contract.
If we can be of any service to you, please feel free to
call on us.
HHW/pm
enclosures
Very truly yours,
Har H. Walden
MIENDMENT TO GAS SALES AGREATNT
THIS AGRMTENT made and entered into as of the 1st day of January,
A.D. 1976, by and between PIONEER NATURAL GAS CMTANY, a division of Pioneer
Corporation, a Texas corporation (hereinafter referred to as "Seller"), and
CITY OF LUBBOCK, a municipal corporation (hereinafter referred to as "Buyer");
MMEAS, Seller and Buyer have heretofore on the 2nd day of May,
1974 entered into an agreement relating to the purchase and sale of gas for
use in Buyer's municipally owned power plants located in Lubbock County, Texas;
and,
W1iMEA.S, the parties desire to amend said Agreement;
NOW, THEREFORE, in consideration of the mutual covenants and agree-
ments contained in the original Agreement and contained herein, and other and
further valuable considerations, the parties do hereby mutually covenant and
agree as follows:
r
I.
Sections 3 and 4 of Article I of said Agreement are hereby deleted
in their entirety and the following Sections 3 and 4 are substituted in lieu
thereof:
ARTICLE I
DEFINITIONS
Section 3. "Accounting Year" shall mean a yearly period commencing
at 7:00 a.m. on January 1 and ending at 7:00 a.m. on the next succeeding
January 1. In the event deliveries commence hereunder on a date other than
January 1, the period of time from the date of first deliveries until the next
following January 1 shall be considered as the first accounting year. In the
event deliveries permanently cease on a date other than a January 1, the period
of time from the January 1 immediately preceding the date of such delivery ces-
sation shall be considered as the final accounting year.
Section 4. The term "Mcf" shall mean one thousand cubic feet at a
temperature of degrees Fahrenheit and an absolute pressure of 14.65 pounds
per square inch.
II.
Section l of Article II of said Agreement is hereby deleted in its
entirety and the following Section 1 is substituted in lieu thereof:
ARTICLE II
QUANTITY
Section 1. Except as provided in Section 6 of Article VII hereof,
Seller agrees to deliver to Buyer up to 36,000 Mcf/day.
Buyer agrees to take and receive from Seller each day during the
term hereof those volumes of natural gas which are made available by Seller
on such day up to the total volumes required by Buyer for consumption in
Buyer's municipal power plants on such day; provided, however, Buyer's obliga-
tion to take and receive from ,Seller shall be 6,000,000 Mcf during each Account-
ing Year, or if tendered to Buyer and not received, to nevertheless pay for such
minimum volumes at the price then in effect; provided, however, if Buyer and
Seller fail to agree on price as provided in Section 6 of Article VII, then
Buyer's obligation to take and receive gas shall be reduced in the same propor-
tion as Seller's obligation to deliver such gas as provided in said section.
Sections 1, 2, 5, 6, 7 and 8 of Article VII are hereby deleted in their
entirety and the following is substituted in lieu thereof:
ARTICLE VII
PRICE
Section 1. Commencing January 1, 1976 and continuing through the re-
maining term of this Agreement, Buyer shall pay Seller for gas delivered here-
under and measured as herein provided for a price equal to the sum of: (1)
Seller's weighted average cost of purchased gas as defined in Section 5 of this
Article VII, plus (2) an increment of fifteen cents (15�) per Mcf which increment
shall increase one cent (1�) per Mcf on February 1, 1976 and shall increase an ad-
ditional one cent (1¢) per Mcf each month thereafter for the next eight (8) months.
Section 2. The prices as provided for in Section 1 of this Article
VII shall be adjusted upward or downward three one -hundredths of one cent
(3/100ths of 1¢) per Mcf for each point that the Consumer Price Index, as pub-
lished by the Bureau of Labor Statistics, is above or below 165.6 (such Index
using the 1967 base of 100). In the event the 1967 base of 100 used in deter-
mining the Consumer Price Index is amended or supplemented, then the factors
used in determining the price adjustment pursuant to this Section 2 shall be
appropriately amended or supplemented. In the event the Consumer Price Index
is terminated, then the parties shall adopt another method of price adjustment
which is mutually agreeable to both parties. The Consumer Price Index for the
-2-
purpose of this section shall be rounded off to the nearest whole number. It
is agreed between the parties that the price adjustment pursuant to this Section
2 for the preceding month's deliveries shall be based on the Consumer Price
Index for the third preceding month.
Section 5. For the purpose of this Agreement the term "weighted average
cost of purchased gas" shall mean the average price per one thousand (1,000)
cubic feet paid by Seller for all gas purchased by Seller, for utilization in
Seller's Vest Texas Transmission and Delaware Basin Divisions, computed to the
nearest one-hundredth of one cent and shall be determined by dividing the total
dollar amounts paid or accrued on Seller's books for all such gas purchased by
Seller during the applicable billing month by the total number of .,4cf of gas
purchased by Seller during such applicable billing month, adjusted to the same
pressure base as gas sold hereunder and shall include in addition to the cost
of gas itself: (1) Interest charged at the prime rate in effect on the first
day of each month upon funds advanced for gas development or dedicated volumes
based upon the outstanding portion of such advancements; (2) Amortization over
a five-year period of advances for gas supply development which is non-productive;
and (3) Amounts expended which are accrued by Seller to parties other than Seller
for the purchase, transportation, gathering, compressing, treating, or handling
of gas, taxes attributable to the purchase or production of such gas and other
similar actual amounts borne by Seller and paid or payable to parties other
than Seller, but shall not include any charges attributable to Seller's amortiza-
tion of its own facilities, Seller's overhead charges, Seller's direct labor or
maintenance expense, or similar expenses of Seller; provided, however, if any
gas purchased by Seller requires treating by Seller for the removal of hydrogen
sulfide and/or organic sulfur and/or carbon dioxide and/or water vapor, Seller's
total cost of treating such gas, including shrinkage, amortization of facilities,
overhead charges, direct labor and maintenance expense, shall be added to the
cost of such gas. Should Seller purchase gas for utilization in Seller's Iffest
Texas Transmission and Delaware Basin Divisions under a contract or contracts
containing a Btu adjustment clause, the volumes of gas purchased under such
contract or contracts shall be adjusted in determining the total number of Mcf
of gas purchased by Seller during such month for the purpose of this Section 5
of Article VII by multiplying the volumes of gas purchased under any such con-
tract by a fraction, the numerator of which is the average Btu per thousand
cubic feet of gas purchased under such contract and the denominator of which is
1,000. If any portion of the cost of gas or of any taxes which have been paid
by Seller is refunded to Seller, or if Seller is required by the terms of any
gas purchase contract, or of any agreed settlement of a disputed claim, or by
a determination or judgment of a regulatory body or court having or asserting
jurisdiction, to make retroactive payments with respect to gas previously pur-
chased by Seller then appropriate adjustments to compensate therefor shall be
made in the price payable for gas delivered by Seller to Buyer hereunder as
soon as practicable after the time of such cancellation, refund or retroactive
payment, provided, that the period during which such adjustments are to be
made shall be determined by Seller subject only to the condition that the
same shall be made within a reasonable period of time, taking into consideration
the total amount of any such cancellation, refund or retroactive payment, but
no adjustments as provided for herein shall be made after this Agreement has
terminated except with respect to items cancelled, refunded or paid prior to
-3
the date of such termination, nor shall any adjustments as provided for herein
be made with respect to any gas purchased by Seller prior to the first delivery
of gas to Buyer hereunder. Nothing contained in this Agreement shall prevent
Seller from entering into any amendment, modification, renewal, extension or
replacement of any existing or future gas purchase contract or contracts between
Seller and any of its gas suppliers.
Section 6. It is the intention of the parties that so long as Buyer
requires gas supplies for Buyer's municipal power plants which may be satisfied
in whole or in part by Seller upon terms and conditions acceptable to both
parties, the parties shall endeavor to reach agreement to continue the contract
so that it will have a termination date five years from each January 1. To
that end, the parties will meet within 180 days prior to each January 1, the
first such meeting to take place during the 180 day period prior to January 1,
1977, in order to meet and determine whether or not the contract is to be con-
tinued and the terms of any such continuation. In the event that the parties
reach agreement, then such contract shall be deemed to be continued for a five-
year term commencing the succeeding January 1 and Seller will deliver the volumes
for such five-year period as set forth in Article II. In the event that the
parties do not agree upon such continuation, then the contract shall be deemed
to continue for the five-year period commencing from the succeeding -January -l.
By way of example, and without expanding or limiting the above and
foregoing, the parties shall meet within 180 days prior to January 1, 1977.
If, during that period the parties agree that Buyer shall require the volumes set
forth in Article II which Seller can deliver and the terms of any such delivery,
then the deliveries under the contract shall continue for a period of five years
commencing January 1, 1977 at the volumes set forth in Section 1 of said Article II.
In the event the parties do not agree, then the contract shall expire at the end
of five years commencing January 1, 1977 and Seller shall deliver up to 36,000
Mcf per day for the accounting years 1977, 1978 and 1979, 24,000 Mcf per day
for the accounting year 1980 and 12,000 Mof per day for the accounting year 1981.
Section 7. In addition to the price to be paid for gas delivered here-
under Buyer agrees to pay Seller an amount equal to all of any increased, addi-
tional or new production, severance, gathering, processing, transmission, sales
or delivery taxes in excess of or in addition to those in existence on January 1,
1975 which are levied upon or attributable to all or any portion of such gas,
the value thereof or the processing or handling thereof before the delivery of
such gas to Buyer or in connection with such delivery. All taxes levied on
such gas after delivery shall be paid by Buyer. Applicable rulings or orders
of governmental representatives in charge of the administration of any law or
ordinance increasing or creating any such tax shall be binding and conclusive
upon Buyer until such time as the invalidity thereof has been finally established
by the decision of a court of competent jurisdiction. Buyer shall be entitled
to reimbursement from Seller to the extent of any payments made by it to Seller
pursuant to this Article VII which may subsequently be refunded to Seller by
the taxing authority. Buyer shall not be obligated to reimburse Seller for
any ad valorem taxes on properties or for taxes which are based upon or measured
by the natural gasoline or other liquefied hydrocarbon content extracted from
the gas before delivery to Buyer or for any taxes which are included in the
computation of Seller's weighted average cost of purchased gas pursuant to Sec-
tion 5 of this Article VII.
-4-
S
Section 8. For the purpose of billing and accounting for gas de-
livered hereunder, Seller will use its usual calculations in Seller's deter-
mination of the weighted average cost of purchased gas, as defined in Section 5
of this Article VII, of gas purchased by Seller during any applicable period and
nothing herein shall be construed so as to require Seller to change such procedure.
IV.
Article XVI is hereby deleted in its entirety and the following is
substituted in lieu thereof:
ARTICLE XVI
DURATION OF ACTRE111ENT
Section 1. This Agreement shall be effective as of the date hereof
and shall continue and remain in full force and effect until and including
December 31, 1981, and from year to year thereafter as the.parties may agree
as provided in Section 6 of Article VII hereof.
V.
Article XX is hereby deleted in its entirety and the following is
substituted in lieu thereof:
ARTICLE XX
GOVERIOTNTAL REGULATIONS
Section 1. This Agreement is made subject to all present and future
valid laws of the State of Texas and the United States, and regulations or orders
of duly constituted governmental authorities having or asserting jurisdiction
which are applicable to the 'subject matter hereof and effective from time to time.
In the event any such authority shall establish a price at the point of delivery
provided herein, or a point related to a point of delivery, different from the
price applicable pursuant to this contract, then the price as provided herein
shall be adjusted as required in view of such established price.
VI.
This Amendatory Agreement shall be a binding agreement as of the
date hereof but the amendatory provisions contained herein shall not become
operative or effective until January 11 1976.
Any portion of any other article or Amendatory Agreement in conflict
with the provisions hereof shall be deleted or amended so as to be in agreement
herewith.
-5-
Except as hereby amended the original Agreement dated the 2nd day of
May, 1974, shall continue in force and effect in accordance with its terms.
EXECUTED as of the 22nd day of January , 1976.
PIONEER NATURAL GAS COMPANY, a
division of PIONEER CORPORATION
. ?a&rry
H. al en, Vice President/
CITY OF LUBBOCK
ATTEST:
= ,y By
ilu ?219
Secretary Its ARayo
Approved as to form:
Fred 0. Senter, Jr., City Attorney,
Q
4
I•
Except as hereby amended the original Agreement dated the 2nd day of
May, 1974, shall continue in force and effect in accordance with its terms.
EXECUTED as of the 22nd day of January , 1976.
PIONEER NATURAL GAS COMPANY, a
division of PIONEER CORPORATION
. ?a&rry
H. al en, Vice President/
CITY OF LUBBOCK
ATTEST:
= ,y By
ilu ?219
Secretary Its ARayo
Approved as to form:
Fred 0. Senter, Jr., City Attorney,
Q