HomeMy WebLinkAboutResolution - 2020 - Agreement - Power Tex - Gas Purchase For Electricty Generation, Holly Ave Plant - 05/09/1985JCR: da
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
Resolution #2020
May 9, 1985
Agenda Item #25
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 Gas Purchase
Agreement 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 9th day of May , 1985.
ALHENRY,'MAYO
ATTEST:
anette tsoya, pity secretary
APPROVED AS TO CONTENT:
Rod Bouffardp/Kssistant Director of
Finance
APPROVED AS TO FORM:
G
hn C. Ross, Jr.'OCity Attorney
Resolution #2020
AGREEMENT AMENDING
GAS PURCHASE AGREEMENT
DATED MARCH 8, 1984
THIS AGREEMENT, made and entered into this 9th day of
May, 1985, by and between the CITY OF LUBBOCK, hereinafter
referred to as "Buyer", and POWER-TEX JOINT VENTURE, herein-
after 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
"said Agreement", covering the sale and purchase of gas for
the purpose of providing fuel for the generation of electri-
city at Buyer's Holly Avenue Electric Generation Plant; and
WHEREAS, Seller expects to have additional volumes .of
gas for sale upon placing in service its Post Lateral; and
WHEREAS, Buyer desires to purchase additional volumes
of gas available from Seller's Post Lateral; 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
Article III of said Agreement is amended by the
deletion of Paragraph 3.01 in its entirety and substituting
in lieu thereof the following:
"3.01 Buyer agrees to purchase during the term of this
Agreement the following quantities of gas:
(a) Commencing July 1, 1985, 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 the greater of (1) one hundred percent
(100X) of the total daily requirements of Buyer for
the operation of its Holly Avenue Electric Generation
Plant, or (2) 5.2 BCF per year.
(b) Commencing January 1, 1990, and continuing for
the remaining term of this 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 (75X) of the total
daily requirements of Buyer for the operation of its
Holly Avenue Generation Plant."
II
Article VII of said Agreement is amended by the
deletion of Paragraphs 7.01, 7.02, 7.03, 7.04 and 7.05 in
their entirety and substituting in lieu thereof the
following:
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"7.01 Commencing on July 1, 1985, Buyer shall pay to Seller
for all gas delivered hereunder an amount determined as
follows:
(a) For all gas in excess of the first seventy-seven
million five hundred thousand cubic feet (77.5 MMCF)
purchased by Seller from Mid -Plains, Inc. and
delivered to Buyer through Seller's Post Lateral,
Buyer shall pay Seller a price equal to $2.9375 per
MMBtu.
(b) For the first seventy-seven million five hundred
thousand cubic feet (77.5 MMCF) of gas purchased by
Seller from Mid -Plains, Inc. and delivered to Buyer
through Sel'ler's Post Lateral and for all gas
purchased by Seller from any and all sources other
than Mid -Plains, Inc. and delivered to Buyer here-
under, Buyer shall pay Seller a price equal to $3.275
per MMBtu.
7.02 Commencing on January 1, 1987, Buyer shall pay to
Seller for all gas delivered hereunder each month an amount
determined as follows:
(a) For all gas purchased each month by Seller from
Mid -Plains, Inc. and delivered to Buyer through
Seller's Post Lateral, Buyer shall pay Seller a price
per MMBtu equal to the sum of: (1) Seller's Weighted
Average Cost of Gas for all gas purchased from Mid -
Plains, Inc. during such month, and (2) $0.3375.
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Buyer and Seller agree that the price per MMBtu
determined pursuant to this Paragraph 7.02 (a) shall
never be more than the price per MMBtu determined
pursuant to Paragraph 7.02 (b) below.
(b) For all additional gas delivered each month by
Seller to Buyer, Buyer shall pay Seller a price per
MMBtu equal to Seller's Weighted Average Cost of Gas
for all gas purchased during such month from any and
all sources other than Mid -Plains, Inc. multiplied by
1.125.
(c) For the purposes of said Agreement, the term
Weighted Average Cost of Gas" shall be defined as
the total amount of monies paid by Seller to each
supplier of gas in connection with gas purchased by
Seller from any source wherever located and delivered
into Seller's Power -Tex Transmission Line, located in
Hockley and Lubbock Counties, Texas, and Seller's
Post Lateral, located in Lubbock, Lynn and Garza
Counties, Texas, divided by the total number of
MMBtu's contained in the gas so purchased. As used
herein, the term "total amount of monies paid" shall
include any third party transportation fees and all
taxes, excluding income taxes, paid by Seller in
connection with'a gas purchase.
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7.03 Commencing on.January 1, 1990, for all gas delivered
hereunder each month Buyer shall pay Seller a price per
MMBtu equal to Seller's Weighted Average Cost of Gas for all
gas purchased during such month multiplied by 1.11.
7.04 Notwithstanding any of the provisions set forth in
this Article VII, commencing January 1, 1987, Buyer and
Seller agree that the price per MMBtu to be paid by Buyer to
Seller shall never exceed one hundred ten percent (110X) of
the average cost of gas per MMBtu to a select group of
electric utility plants, located in the State of Texas, as
reported to the Department of Energy (DOE) on Federal Energy
Regulatory Commission (FERC) Form 423 and summarized in the
Energy Information Administration (EIA) publication Electric
Power Quarterly at Table 14. It is understood that the
Electric Power,Quar-terly is published each January, April,
July and October and presents statistical information for
the second preceding calendar quarter (i.e., the January,
1985 publication presents data for the months of July,
August and September, 1984). As soon as practicable after
the first working day of each February, May, August and
November, Buyer shall determine the weighted average cost of
gas per MMBtu to the select group of electric utility plants
for the most recently reported calendar quarter and provide
such information to Seller. The price to be paid by Buyer
for gas delivered by Seller during the month in which such
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weighted average cost of gas is received, and during the
ensuing two months, shall not exceed 110% of such price
(i.e., the average cost per MMBtu to the utility plants
during the months of July, August, and September, 1984 would
be used to determine the maximum price payable for gas
delivered during the months of February, March and April,
1985). The select group of electric utility plants to be
used as herein provided shall be those plants listed on
"EXHIBIT A" attached hereto.
7.05 On or about the tenth (10th) working day of each
month, Seller shall deliver to Buyer an invoice showing the
quantity of gas delivered during the immediately preceding
month and the amount due therefor. Invoices shall be due
and payable on the twentieth (20th) day of the month in
which they are delivered to Buyer unless such day falls on a
Saturday, Sunday, or generally recognized holiday, in which
case the invoice shall be due and payable on the next
business day. Buyer shall make payment, at Seller's option,
either by mailing its check to any address specified by
Seller by ordinary United States mail, postage prepaid, or
by bank transfer of funds to a bank account to be designated
by Seller."
III
Article VII of said Agreement is amended by the
addition of the following new Paragraph 7.07:
"7.07 On or after January 1, 1990, upon written request of
Buyer, Seller agrees to use its Post Lateral to transport
gas purchased by Buyer from third parties for an initial fee
not to exceed twenty cents ($0.20) per MCF."
IV
Article XII of said Agreement is amended by the
deletion of Paragraph 12.01 in its entirety and substituting
in lieu thereof the following:
"12.01 This Agreement shall be effective from the date
hereof and shall remain in full force and effect through
December 31, 1994."
This Amendatory Agreement shall become effective on
the date first hereinabove written 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 the Gas Purchase Agreement shall remain in
full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed in duplicate originals as of
the date first hereinabove written. This Agreement may be
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signed in counterpart and shall have the same effect as if
all parties signing counterparts had executed the same
instrument.
"SELLER"
POWER -TER JOINT VENTURE
B y : ,�. . L -u � ,
Loy Whitley
Pre Zdent
GGSI Gas Co.
Authorized Representative of
Power -Tex Joint Venture
Attest:
. B. Freeman
Secretary
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"BUYER"
CITY OF LUBBOCK
By:
Atte s • ,
Ra nette Boyd
City Secretary
Approved as to form:
ohn C. Ross, Jr.
City Attorney
EXHIBIT "A"
SELECT GROUP OF ELECTIC POWER
GENERATING STATIONS IN TEXAS
This Exhibit "A" is for all purposes attached to and made
a part of that certain Agreement Amending Gas Purchase Agreement
July 1, 1985, between The City of Lubbock, BUYER and Power -Tex
Joint Venture, SELLER.
1. The following stations operated by Central Power and Light:
Joslin, Bates, Loredo, Hill, Nueces Bay, La Palma, Victoria,
Davis.
2. The following stations operated by Dallas Power and Light:
Dallas, Lake Hubbard, Mountain Creek, North Lake, Parkdale
3. The following stations operated by Houston Lighting and Power:
Cedar Bayou, Deepwater, Green Bayou, Clarke, Robinson, Bertron,
Wharton, Parish, Webster
4. The following stations operated by West Texas Utilities:
Concho, Oak Creek, Paint Creek, San Angelo, Fort Phantom
5. The following stations operated by Texas Electric Service:
Eagle Mountain, Graham, Handley, Morgan Creek, North Main,
Permian Basin
6. The following stations operated by Texas Power and Light:
Collin, Lake Creek, River Crest, Tradinghouse, Trinidad,
Valley, Decordova, Stryker
7. The following stations operated by Lubbock Power and Light &
Water: Holly Street Station
THE STATE OF TEXASS
COUNTY OF MIDLANDS
BEFORE ME, the undersigned authority , on this day personally
appeared Loyd Whitley, known to me to be the person who
executed the foregoing instruments as President of GGSI Gas
Co., Authorized Representative of Power -Tex Joint Venture
and acknowledged to me that he executed the same as the act
and deed of said corporation, for the purpose.and
consideration therein expressed, in the capacity therein
stated, and that said corporation executed said instruments
for itself and in the capacities therein specified.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this 1st day of
May, 1985..,
Notary Public in and for the
State of Texas
My Commission Expires:9/28/86
TOE STATE OF TE%ASS
COUNTY OF LUBBOCRS
BEFORE ME, the undersigned authority, on this day personally
appeared Alan Henry, 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.
CIVEN-., UNDER MY HAND AND SEAL OF OFFICE, this 9th day of
May,,,
My Commission Expires:
Notary Public in and for the
State �o'f, Texas