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HomeMy WebLinkAboutResolution - 2550 - Agreement Amending GPA - Power Tex Joint Venture - Natural Gas Purchase - 03_26_1987Resolution #2550 March 26, 1987 Item #19 DGV:da RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Agreement amending Gas Purchase Agreement dated March 8, 1984 by and between the City of Lubbock and Power -Tex Joint Venture, attached herewith, which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this __26th day of Marrb , 1987. ATTEST: Ranett`6 Boyd, City Secretary`" APPROVED AS TO CONTENT: Robert Massengale,Assistant City Manager APPROVED AS TO FORM: 7 c ver, First Assistant City Attorney c B.C. McMINN, MAYOR Resolution #2550 March 26, 1987 Item #19 AGREEMENT AMENDING GAS PURCHASE AGREEMENT DATED MARCH 8, 1984 THIS AGREEMENT, made and entered into this 18th day of March, 1987, by and between the CITY of LUBBOCK, hereinafter referred to as "BUYER", and POWER-TEX JOINT VENTURE, hereinafter referred to as "SELLER". W I T N E S S E T H WHEREAS, Buyer and Seller entered into a Gas Purchase Agreement dated March 8, 1984, which shall henceforth be known as the Base Gas Purchase Agreement, and which shall hereinafter be referred to as "said Agreement"; and WHEREAS, Concurrently herewith Buyer and Seller entered into a letter Agreement setting forth the terms and conditions under which Seller will sell and deliver into Buyer and Buyer will purchase and receive from Seller certain volumes of gas in addition to the volumes of gas Buyer is required to purchase from Seller pursuant to said Agreement; and WHEREAS, Buyer and Seller now desire to amend certain provisions of said Agreement. NOW, THEREFORE, in consideration of the premises, the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, Buyer and Seller covenant and agree as follows: Article III of said Agreement is amended by deleting Subparagraph (b) of Paragraph 3.01 in its entirely and substituting in lieu thereof the following: "(b) Commencing January 1, 1990, and continuing through December 31, 1990, Buyer agrees to receive and purchase, or pay for if available for delivery and not taken, and Seller agrees to deliver and sell a quantity of gas equal to the greater of (1) seventy-five percent (75%) of the total requirements of Buyer for the operation of its Holly Avenue Generation Plant, or (2) 2.5 BCF." II Article III of said Agreement is further amended by adding Subparagraph (c) to Paragraph 3.01 as follows: "(c) Commencing January 1, 1991, and continuing for the remaining term of said Agreement, Buyer agrees to receive and purchase, or pay for if available for delivery and not taken, and Seller agrees to deliver and sell, during each Accounting Period a quantity of gas equal to seventy-five percent (75%) of the total requirements of Buyer for the operation of its Holly Avenue Generation Plant. a III Article VII of said Agreement is amended by deleting Paragraph 7.1 in its entirety and substituting in lieu thereof the following: "7.01 Commencing May 1, December 31, 1988, Buyer gas delivered hereunder $2.60 per MMBtu. IV 1987, and continuing through shall pay to Seller for all each month a price equal to Article VII of said Agreement is further amended by deleting the date "January 1, 1988" on the first line of Paragraph 7.02 and substituting in lieu thereof the date "January 1, 1989". V Article VII of said Agreement is further amended by deleting Paragraph 7.04 in its entirely and substituting in lieu thereof the following: "7.04 Commencing January 1, 1989, Buyer and Seller agree that Buyer shall have the right to purchase all or a portion of its natural gas requirements from third party suppliers provided that the price Buyer pays to third party suppliers is less than the price charged by Seller hereunder. Buyer and Seller further agree that in the event Buyer purchases gas from third party suppliers, such gas shall be transported to Buyer by Seller, and Buyer shall pay to Seller a firm transportation fee of $0.49 per MMBtu for such service. Buyer and Seller further agree that the quantities of gas which Buyer is required to purchase from Seller during each Accounting Period, pursuant to Paragraph 3.01 of Article III of said Agreement, shall be reduced by an amount equal to the quantity of gas purchased by Buyer from third party suppliers during each such Accounting Period and transported to Buyer by Seller as provided in this Paragraph 7.04. In the event buyer receives a bonafide offer from a third party or parties to supply certain volumes of gas at a price less than that being charged hereunder by Seller from time to time, Buyer shall promptly notify Seller giving full particulars of such bonafide offer or offers. Buyer and Seller agree the Seller shall have a preferential right to provide such volumes of gas to Buyer at a price equal to that contained in such bona fide offer or offers. In the event Seller does not exercise its preferential right within ten (10) days of Buyer's notice to Seller, such preferential right shall be deemed to have been waived by Seller and buyer shall have the right to accept such bonafide offer or offers." This Amendatory Agreement shall become effective on May 1, 1987 and shall be binding upon the parties hereto and upon their respective successors, assigns, heirs, legal representatives, administrators and executors. Except as amended herein, all other terms and provisions of said Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate originals on the date first hereinabove written. This Agreement may be executed in counterpart and shall have the same effect as if all parties executing counterparts had executed the same instrument. "SELLER" POWER-TEX JOINT VENTURE ByAz? __C__ 7. K. Freeman Vice President & General GGSI GAS CO. AUTHORIZED REPRESENTATIVE POWER-TEX JOINT VENTURE r- Attest: c, ames L. Wilson Asst. Secretary "BUYER" CITY OF LUBBOCK By: /I;e B. C. McMinn, Mayor Manager OF 1� Attu: Rangtte Boyd City Secretary Page 3 Appro ed as to form: By: //'J,6hn C. Ross ity Attorney