HomeMy WebLinkAboutResolution - 2891 - Amendment To Agreement - Power Tex Joint Venture - Rerouting Gas Line, TTU Plant - 08_11_1988Resolution #2891
August 11, 1988
Item 21
DGV:js
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 a 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 11th
ATTEST:
, city secretary
APPROVED AS TO CONTENT:
day of August , 1988.
C.
& 6. w
B. C. McMI N, MAYOR
Carroll McDonald, Director o Electric
Utilities
APPROVED AS TO FORM:
Do ald G. Vandiver, First Assistant
City Attorney
Resolution #2891
AGREEMENT AMENDING
GAS PURCHASE AGREEMENT
DATED MARCH 8, 1984
THIS AGREEMENT, made and entered into this 15th day of June,
1988, 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, hereinafter referred to as
"Agreement" or "said Agreement", covering the sale and purchase
of gas to be used for the generation of electricity at Buyer's
Holly Avenue Electric Generation Plant; and
WHEREAS, Buyer and Seller 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 are
hereby mutually acknowledged, the parties hereto covenant and
agree as follows:
I.
Said Agreement is amended by deleting Article XII.
TRANSPORTATION SERVICES in its entirety and substituting in lieu
thereof the following:
"XII. TRANSPORTATION SERVICES
12.01 Buyer has entered into an "Energy Agreement"
dated March 21, 1988, with Texas Tech University which
provides for the construction and operation of a
cogeneration project on the campus of Texas Tech University.
At Buyer's request, Seller agrees to construct, own,
operate and maintain approximately nineteen (19) miles of
six inch (6") pipeline extending from an interconnection
with Enron Corp.'s Northern Natural Gas Company thirty inch
(3011) pipeline located in Hockley County, Texas, to a
mutually agreeable point on the campus of Texas Tech
University for the primary purpose of transporting and
delivering a sufficient and adequate supply of gas for use
by such cogeneration project under the terms and conditions
set forth in Exhibit "C" attached hereto and made a part
hereof for all purposes. With regard to this Article XII.,
it is the intent of the parties hereto that, in the event of
a conflict between the provisions of this Agreement and
those contained in Exhibit "C" attached hereto, the
provisions of Exhibit "C" shall control."
N
II.
Said Agreement is further amended by deleting Section 14.08
of ARTICLE XIV. MISCELLANEOUS in its entirety and substituting
in lieu thereof the following:
"14.08 Market Value shall be determined in the
following manner:
A. One appraiser shall be appointed by Buyer.
B. One appraiser shall be appointed by Seller.
C. The two appraisers so appointed shall appoint a
third appraiser.
The three appraisers shall thereafter determine the market
value of the pipeline system (excluding the portion of the
new six inch (61') pipeline extending from the discharge side
of the pressure regulator to be installed in the vicinity of
the intersection of Erskine Street and Quaker Avenue in the
city limits of Lubbock, Texas to the campus of Texas Tech
University) which determination shall be binding on the
parties hereto."
Said Agreement is further amended by deleting ARTICLE II.
PRELIMINARY ACTS OF THE PARTIES of EXHIBIT "C" in its entirety
and substituting in lieu thereof the following:
3
"2.01 Transporter does hereby agree to
construct, own, operate and maintain approximately
nineteen (19) miles of six inch (6") pipeline extending from
an interconnection with Enron Corp. Is Northern Natural Gas
Company thirty inch (30") pipeline located in Hockley
County, Texas, to a mutually agreeable point on the campus
of Texas Tech University for the primary purpose of
transporting and delivering a sufficient and adequate supply
of gas to Shipper for use by the cogeneration facility to be
constructed at or near such point.
2.02 It is further agreed between the parties
hereto that Transporter will not allow additional taps on
this new six inch (6") pipeline without the express written
concurrence of Shipper; and, that Transporter will allow
Shipper additional taps as Shipper may require.
2.03 Shipper and Transporter agree that time is of
the essence in the construction of the new six inch (61')
pipeline to be built by Transporter under this Agreement.
Transporter agrees that the pipeline extension will be in
service prior to initial startup of the cogeneration
facility which is currently projected to occur during the
last quarter of 1989, or the first quarter of 1990."
4
IV.
Said Agreement is further amended by deleting Section 6.02
of ARTICLE VI. TERM of EXHIBIT "C" in its entirety and
substituting in lieu thereof the following:
"6.02 At the end of the term of this Agreement,
Transporter agrees to transfer to Shipper ownership of the
portion of the new six inch (6") pipeline extending from the
discharge side of the pressure regulator to be installed in
the vicinity of the intersection of Erskine Street and
Quaker Avenue in the city limits of Lubbock, Texas, to the
cogeneration facility located on the campus of Texas Tech
University, provided, Shipper provides to Transporter at
lease three (3) Month's prior written notice of its desire
to acquire ownership of such portion of pipeline, and
Shipper is ready, willing and able to assume full ownership
and operation of such portion of pipeline within one (1)
Month after the expiration of the term hereof."
V.
Said Agreement is further amended by deleting paragraph F.
of Section 9.01. of ARTICLE IX. QUALITY of EXHIBIT "C" in its
entirety and substituting in lieu thereof the following:
"F. Water Vapor: The gas shall not contain more
than seven (7) pounds of water in the vapor phase per
million cubic feet."
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed in duplicate originals effective as of
the day and date first hereinabove written. This Agreement may
be executed in counterpart and each such counterpart shall have
the same effect as if all parties had executed the same
instrument.
SELLER
POWER-TEX JOINT VENTURE
By:
AK.'-Freeman, President
obe Gas Co.
Managing Venturer
ATTEST:
Id)i Carlin
Secretary
0
BUYER
CITY OF LUBBOCK
TEST:
APPROVED AS TO FORM:.
f�55.tC±fy Attorney
APPROVED AS TO CONTENT:
Director of
Electric Utilities
THE STATE OF TEXAS
COUNTY OF LUBBOCK
BEFORE ME, the undersigned authority, on this day personally
appeared B. C. McMinn, Mayor for the CITY OF LUBBOCK, known to me
to be the person whose name is subscribed to the foregoing
instrument, and acknowledged to me that he executed the same for
the purposes and consideration therein expressed, in the capacity
therein stated, and as the act and deed of said city.,
GIVE UNDER MY HAND AND SEAL OF OFFICE THIS% — day of
a � 1988.
dk'�� 4 a, -
Notitry Public i and for
The State of Texas
My Commission Expires:
MY C9MMISSiON EXPIRE:,
NOVEMBER- 30, 1989
OLIVIA R. SOLIS
THE STATE OF TEXAS
COUNTY OF MIDLAND
BEFORE ME, the undersigned authority, on this day personally
appeared J. K. Freeman, President of Adobe Gas Co., a corporation
known to me to be the person whose name is subscribed to in the
foregoing instrument, and acknowledged to me that he executed the
same for the purposes and consideration therein expressed, in the
capacity therein stated, and as the act and deed of said
corporation.
GIV UN R MY HAND AND SEAL OF OFFICE this
1988.
of
OANA G. KIM®LI '`
3 Notary Pubic, Stott of Tmi
µy eaturission exores
7
day
Notary Public in and for
the State of Texas
My Commission Expires: 1 W�