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HomeMy WebLinkAboutResolution - 5819 - Purchase Contract - TMGC - Natural Gas - 04_09_1998RESOLUTION NO.5819 Item #32 April 9, 1998 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 a Purchase Contract for the purchase of natural gas, by and between the City of Lubbock and Texas Municipal Gas Corporation ("TMGC"), attached hereto, which Contract 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 9 th ATTEST: Kaythiep4mell, City AS TO CONTENT: Paul Thompson, Managing Director of Electric Utilities da1ccdocs/rMGCpurchcon.res March 31,1998 day of April , 1998. RESOLUTION NO. 5819 Item #32 April 9, 1998 PURCHASE CONTRACT 1. Joint Purchase Contract. The Buyer specified below hereby becomes a party to and assumes all rights and obligations of a 'Buyer' under the Joint Gas Purchase Contract, dated as of April 1, 1998 (the 'Joint Contract"), among TMGC (specified below), the Agent (specified below), and Local Governments, as therein defined, who become parties thereto, and TMGC and the Agent hereby consent thereto. The terms of the Joint Contract are hereby incorporated herein by reference. 2. Purchase of Gas. The Buyer agrees to receive and buy from the Agent, and the Agent agrees to sell and deliver to the Buyer, at the Delivery Point, the Buyer's Nominated Quantities of Gas during the term of this Purchase Contract, which shall not exceed the Buyer's Requirements in any Contract Year. The Buyer agrees to nominate Gas for purchase so that it will buy from the Agent not less than the Buyer's Annual Quantity or the Buyer's Requirements, whichever is less, in any Contract Year, to the extent Gas is available for delivery to the Buyer under the Joint Contract and except as otherwise provided therein, at the price specified below. 3. Annual Quantity. The Annual Quantity of Gas that the Buyer agrees to nominate for purchase hereunder, up to its Requirements, in each Contract Year is as specified in Schedule A attached hereto. 4. Price. The Buyer will pay for all Gas purchased and received by it hereunder in any period at a price equal to the Index identified herein for such period less the Discount determined by TMGC in accordance with the Joint Contract and then in effect, unless the Joint Contract provides for a lower price. The Buyer will be entitled to a partial rebate of such payments when, as, and to the extent that rebates are declared by TMGC under the Joint Contract. 5. Delivery and Index. The Buyer's Delivery Point is the delivery points specified in Buyer's Supply Contracts. The Buyer's Redelivery Point is: the delivery points specified in Buyer's Supply Contracts. [Check and complete one. ] A Balancing Agreement between TMGC and a Balancer will be used by TMGC to deliver Gas to the Buyer. The Buyer's existing supplier has agreed to sell to the Balancer, rather than to the Buyer, the quantities of Gas to be purchased by the Buyer under the Joint Contract. The Buyer's Index for each month will be the price payable by the Buyer, under its existing or any substitute Supply Contracts, for Gas delivered to the Buyer in such month, for so long as such balancing and supply arrangements are maintained. Thereafter, the Buyer's Delivery Point and Index will be as provided in the Joint Contract. ❑ The Transporter with which the Buyer has contracted for the delivery of Gas purchased hereunder is: . The Buyer's Index for each month will be: [complete or alter:] the first of the month index price for Gas delivered in such month at the Buyer's Delivery Point that is published in Inside FERC's Gas Market Report or any substitute index determined in accordance with the Joint Contract. [Insert special previsions for payment of transportation costs to Delivery Point, if any.] 6. Use. The Buyer will use all Gas purchased hereunder in accordance with Article Thirteen of the Joint Contract in its [check one or both]: 0612473 ® electric utility system to generate electric power and/or ❑ gas utility system or enterprise. -1- The Buyer agrees that all Gas sold and delivered to it under the Joint Contract will be consumed in, or to produce electric energy consumed in, qualified service areas and qualified annexed areas and that no such Gas will be used in a private trade or business or to make a private loan, as provided more fully and except as permitted by the Joint Contract. 7. Address. The address of the Buyer for notices received under the Joint Contract is: Director of Electric Utilities City of Lubbock Telephone No. (806) 775-2500 P. O. Box 2000 Facsimile No. (806) 775-3112 Lubbock, TX 79457-2000 Internet: 8. Resolution of Disputes. The arbitration provisions of the Joint Contract (check one): ❑ will apply /® will not apply to the Buyer. 9. Term. This Purchase Contract shall extend for a term of 20 years, beginning on the Effective Date hereof, which is the latest of the effective dates of the Balancing Agreement and Supply Contract arrangements referred to above and May 1, 1998. This Purchase Contract may be phased out at the election of the Buyer as described in the Joint Contract. The parties hereto have caused this Purchase Contract to be duly executed, effective as of the Effective Date described above. BUYER: CITY OF L �CK, Attest/Countersign: l By: . Name:. ame: ...Wind4-1 on .................... Title: City. 8 retary • • • . • • • • • Title: .....Mayor v -Gity •of •L•ubbock ...... • • • • AGENT: CITY OF LA GRANGE, TEXAS Attest/ tersign: �f By: &041)e.. 94 ............... Name:.. V. o 1 et.44kanek Name: . David . R.. Noal...................... . Title:... City, SecretarY...... Title: Mayor .............................. 0612473 TMGC: TEXAS MUNICIPAL GAS CORPORATION By: ec:lr�. ............... Name: .. Glen 0.. Pa$e...................... Title: ... Press.dent......................... APPROVED AS TO CONTENT: 4d%�M_� Paul Thom son, Managing Director Electric Utilities -2- Schedule A to Exhibit A of the Joint Gas Purchase Contract The Buyer hereby subscribes for the following Annual Quantities and represents that such amount is not greater than such Buyer's good estimate for its Requirements for such year. Year 1998 1999 2000 2001 2002 Each Successive Year F.IALLMERMTMGMCHMULA.DOC Annual Quantity 6.228 Bcf 7.011 Bcf 7.290 Bcf 7.560 Bcf 7.830 Bcf 7.830 Bcf