HomeMy WebLinkAboutResolution - 2021 - Purchase & Sale Agreement - Gas Marketing Inc - Gas Supply, Plant 2 - 05/09/1985JCR:da
RESOLUTION
Resolution #2021
May 9, 1985
Agenda Item #26
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 and
Sale Agreement by and between the City of Lubbock and Gas Marketing, Inc.,
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 a
ATTEST:
anetue,boya, pity becretar
APPROVED AS TO CONTENT:
-Rodou ard, sis ant irec or of
Finance
APPROVED AS TO FORM:
o n C. Ross, Jr., City Attorney
f May , 1985.
AL E RY4jA R
P
Resolution #2021
PURCHASE AND SALE AGREEMENT
THIS AGREEMENT, made and entered into as of this 1st day of
June, 1985, by and between the City of Lubbock hereinafter referred to
as "Buyer", and Gas Marketing Inc., hereinafter referred to as "Seller".
WITNESSETH:
WHEREAS, Buyer has advised Seller that it is interested in
purchasing natural gas for its Plant Two; and
WHEREAS, Seller has a short term supply of natural gas
available for sale to Buyer; and
WHEREAS, Westar Transmission Company ("Intrastate
Transporter") will transport such gas to Energas pursuant to a
transportation agreement; and
NOW THEREFORE, for and in consideration of these premises the
parties hereto do mutually agree as follows:
1. Definitions
The term "Btu" as used herein means British Thermal
Unit.
The term "MMBtu" as used herein means one million
British Thermal Units.
The "Btu content" of the gas sold hereunder shall be
the number of Btu's produced by the complete combustion,
at a constant pressure, of the amount of gas which would
occupy a volume of one (1.0) cubic foot at a temperature
of sixty degrees (600) Fahrenheit, free of water vapor
and under a pressure of fourteen and sixty-five
hundredths (14.65) pounds per square inch absolute with
air of the same temperature and pressure as the gas, when
the products of combustion are cooled to the initial
temperature of the gas and air, and when the water formed
by such combustion is condensed to a liquid state.
'J
2. Term of Agreement
This agreement shall be effective June 1, 1985 and
shall continue in effect for 120 days.
3. Purchase and Sale
Subject to all of the terms, conditions, and
limitations set forth herein, Seller agrees to sell to
Buyer and Buyer agrees to purchase from Seller natural
gas identified and described below.
4. Daily Quantity
Subject to the other provisions hereof, Seller
agrees to maintain on a best efforts basis for sale and
delivery hereunder gas volumes up to 5,000 MMBtu's of gas
per day each day. Buyer agrees to purchase and receive
hereunder from Seller on a best efforts basis, and
without any other obligation to take gas hereunder, a
volume of up to 5,000 MMBtu's of gas per day.
Both parties hereto recognize that this is a best
efforts contract, and that either sales by Seller or
purchases by Buyer under this Contract may be partially
or totally interrupted by either party hereto on
twenty-four (24) hours notice for so long as either party
may desire.
5. Delivery Point and Measurement
Seller represents that the gas to be purchased and
sold hereunder will be transported by Intrastate
Transporter for Seller for redelivery to Buyer. Seller
shall be responsible for all costs of transportation
provided by Intrastate Transporter. Intrastate
Transporter shall deliver the gas sold hereunder at
existing point(s) of delivery to Energas for the account
of the City of Lubbock. Volumes of gas delivered under
this Purchase and Sale Agreement shall be measured and
accounted for in the same manner as volumes sold under
the provisions of that certain Gas Purchase and Sales
contract dated February 1, 1985 between Seller and
Buyer. Buyer represents that it has obtained approval of
Energas Company to accept gas from Intrastate Transporter
for the account of Buyer and to transport and redeliver
said volumes to Buyers Plant Two. Buyer shall be
responsible for all costs of transportation provided by
Energas Company.
6. Pri ce
Buyer agrees to pay Seller for all gas purchased and
delivered hereunder an amount equal to three dollars
($3.00) per MMBtu.
7. Billing and Payment
Seller shall render an invoice to Buyer on or before
the tenth (10th) day of each month for gas purchased by
Buyer during the preceeding month. Buyer shall pay such
invoice within ten (10) days after its receipt. Late
payments of invoices shall bear interest from the date
the payment is due computed at the lesser of the maximum
rate allowed by law or two percent (2%) over the prime
rate established by the Citibank, N.A.
8. Warranties, Indemnifications
Seller represents and warrants to Buyer that it has
full and unqualified title and authority to sell all gas
delivered hereunder, that such gas is free from all liens
and adverse claims, and that Seller will indemnify Buyer
against all suits, debts, damages, costs and expenses
arising from every claim of any person against such gas
prior to its delivery to Buyer hereunder.
9. Quality of Gas
Seller warrants that gas tendered to Intrastate
t
Transporter for delivery to Buyer shall be pipeline
quality gas delivered at temperatures, pressures and
other conditions acceptable for transportation by
Intrastate Transporter.
10. Governing Law
This agreement is subject to all valid rules and
regulations of duly constituted governmental authorities
having jurisdiction or control over the parties hereto or
the subject matter hereof.
11. Notices
All notices, invoices and other correspondence sent
pursuant to this Agreement shall be addressed to the
following parties:
Seller: Gas Marketing Inc.
P.O. Box 9832
Amarillo, Texas 79105
Buyer: City of Lubbock
P.O. Box 2000
Lubbock, Texas 79457
IN WITNESSETH WHEREOF, the parties have hereunto
subscribed their names:
Gas Marketing Inc.
ce res ent CRo--
SELLER
City of Lubbock
zkBY:
Its:
BUYER
JE/id/0613A