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HomeMy WebLinkAboutResolution - 987 - Letter Agreement & 2 Amendments To Gas Sales Agreement-Pioneer Corp-Power Plants - 12/10/1981-, r % 3.410 DGV:da T?VQAT.TTTTn7J RESOLUTION 987 - 12/10/81 Amends Reso. 366 - 12/12/79 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 letter agreement and two Amendments to Gas Sales Agreement between the City of Lubbock and Pioneer Corporation, copies of which agreements are attached hereto and 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 10th day of December ,1981. BTLL McALISTE , MAYOR ATTEST: E elyn Ga fga, City e r ary-Treasurer APPROVED AS TO CONTENT: A-46�� �42�- Robert Massengale, irector of Finance APPROVED AS TO FORM: - %U, !e . N. % � - NX-/ wX I v \ G. Vandiver, Assistant City Attorney r i6 RESOLUTION 987 12/10/81 ' Amends Reso. 366 - 12/12/79 l 1' TARY-TREASURER 1� AMENDMENT TO GAS SALES AGREEMENT'. THIS AGREEMENT, made and entered into as the> h day of -December, 1981, by and between ENERGAS COMPANY, a Division of Pioneer Corporation, a Texas corporation hereinafter referred to as "Seller" and CITY OF LUBBOCK, a municipal corporation, hereinafter referred to as "Buyer." W I T N E S S E T H WHEREAS, Pioneer Natural Gas Company and Buyer are parties to a Gas Sales Agreement dated December J9)k, 1979, as amended, providing for the sale and delivery to Buyer of certain quantities of gas for municipal use; and WHEREAS, Seller has succeeded to the interests of Pioneer Natural Gas Company under said agreement for purposes of sales (1) to Buyer's power plants located at 5th and Avenue J and Municipal Hill within the City of Lubbock, and, (2) for general municipal consumption; and WHEREAS, the parties hereto desire to amend said agreement as hereinafter provided; NOW, THEREFORE, it is mutually agreed between Buyer and Seller that effective as of January 1, 1982, the said Gas Sales Agreement shall be amended and so as amended shall provide: Article II, Quantity, Section 1 shall be deleted in its entirety and there is substituted therefor the following Article II, Quantity, Section IA. ARTICLE 11 QUANTITY Section IA. Commencing January 1, 1980 and continuing the remaining term of this Gas Sales Agreement., Seller agrees to sell and deliver to Guyer the volume of gas as may be requested by Buyer -for general municipal use and for consumption in Buyer's power plants located at 5th and Avenue J and Municipal Hill; provided, however, Seller shall not be obligated to make deliveries of gas to Buyer in excess of 5,000 mcf on any one day. Article II, Quantity, Section 2 shall be deleted in its entirety and there is substituted therefor the following Article 11, Quantity, Ccrtinn 9a_ ARTICLE II QUANTITY Section 2A. Commencing January 1, 1982, Buyer agrees to take and pay for, or nevertheless pay for if not taken, a minimum of 750,000 mcf of gas during each accounting year thereafter during the term hereof for general municipal use and consumption in Buyer's power plants located at 5th and Avenue J and Municipal Hill. In the event any accounting year does not contain twelve (12) billing months, then Buyer shall be obligated to accept 1/12 of such volume for each complete billing month contained in such accounting year. Article II, Quantity, Section 3, shall be amended to hereafter read as follows: ARTICLE II QUANTITY Section 3 In the event Buyer fails to take from Seller during any accounting year of the term hereof the minimum volume of gas which Buyer is obligated to take and pay for from Seller during such accounting year pursuant to the applicable provisions of Section 2A or 2B of this Article II, then within ninety (90) days after the end of such accounting year when there is a deficiency in takes, Buyer shall pay Seller for that quantity of gas which equals the difference between the minimum volumes Buyer was obligated to take and pay for and the volume which Buyer did actually take and pay for. The price which Buyer shall pay Seller for such deficiency shall be the price in effect at the time the deficiency occurred. i IV. Article VII, Price, Section 1, shall be deleted in its entirety and there is substituted therefor the following Article VII, Price, Section 1. ARTICLE VII PRICE Section 1. Commencing January 1, 1982, and continuing through December 31, 1983, Buyer shall pay Seller for gas delivered hereunder and measured as herein provided for a price to be the sume of: (1) Seller's weighted average cost of purchased gas as defined in Section 4 of this Article VII, plus (2) an increment of Fifty and Six Hundredths Cents (50.061) per mcf. Such price is subject to the adjustment as provided for in Section 3 of this Article VII. Except as hereby amended the original agreement dated December 14, 1979, as amended, shall continue in force and effect in accordance with its terms. IN WITNESS WHEREOF, the parties hereto have caused this agreement to -,be duly executed on this the day and year first above written. ENERGAS COMPANY, A ATTEST:- Division of Pioneer Corporation '( BY: ! ,Assistaqt Secret r President ZAS BY. SecretaryMayor Bill McAlister APPROVED AS TO CONTENT: Robert Massengale, Direc or of Finance APPROVED AS TO FORM. ohn C. Ross, Jr., City Attorney !► RESOLUTION 987 — 12/10/81 Amends Reso. 366 — 12/12/79 AMENDMENT TO GAS SALES AGREEMENT THIS AGREEMENT, made and entered into as the MOMP day of De x5gtt� er 1981, by and between ENERGAS COMPANY, a Division of Pioneer Corporation, a Texas corporation hereinafter referred to as "Seller" and CITY OF LUBBOCK, a municipal corporation, hereinafter referred to as "Buyer." W I T N E S S E T H WHEREAS, Pioneer Natural Gas Company and Buyer are parties to a Gas Sales Agreement dated December �' 1979, as amended, providing U- for the sale and delivery to Buyer of certain quantities of gas for municipal use; and WHEREAS, Seller has succeeded to the interests of Pioneer Natural Gas Company under said agreement for purposes of sales (1) to Buyer's power plants located at 5th and Avenue J and Municipal Hill within the City of Lubbock, and, (2) for general municipal consumption; and WHEREAS, the parties hereto desire to amend said agreement as hereinafter provided; NOW, THEREFORE, it is mutually agreed between Buyer and Seller that effective as of January 1, 1982, the said Gas Sales Agreement shall be amended and so as amended shall provide: Article 11, Quantity, Section 1 shall be deleted in its entirety and there is substituted therefor the following Article 11, Quantity, Section ]A. ARTICLE II QUANTITY Section IA. Commencing January 1, 1980 and continuing the remaining term of this Gas Sales Agreement, Seller agrees to sell and deliver to Guyer the volume of gas as may be requested by Buyer for general municipal use and for consumption in Buyer's power plants located at 5th and Avenue J and Municipal Hill; provided, however, Seiler shall not be obligated to make deliveries of gas to Buyer in excess of 5,000 mcf on any one day. Article Il, Quantity, Section 2 shall be deleted in its entirety and there is substituted therefor the following Article II, Quantity, iPrtinn 9A ARTICLE II QUANTITY Section 2A. Commencing January 1, 1982, Buyer agrees to take and pay for, or nevertheless pay for if not taken, a minimum of 750,000 mcf of gas during each accounting year thereafter during the term hereof for general municipal use and consumption in Buyer's power plants located at 5th and Avenue J and Municipal Hill. In the event any accounting year does not contain twelve (12) billing months, then Buyer shall be obligated to accept 1/12 of such volume for each complete billing month contained in such accounting year. Article ll, Quantity, Section 3, shall be amended to hereafter read as follows: ARTICLE II QUANTITY Section 3 In the event Buyer fails to take from Seller during any accounting year of the term hereof the minimum volume of gas which Buyer is obligated to take and pay for from Seller during such accounting year pursuant to the applicable provisions of Section 2A or 2B of this Article II, then within ninety (90) days after the end of such accounting year when there is a deficiency in 'takes, Buyer shall pay Seller for that quantity of gas which equals the difference between the minimum volumes Buyer was obligated to take and pay for and the volume which Buyer did actually take and pay for. The price which Buyer shall pay Seller for such deficiency shall be the price in effect at the time the deficiency occurred. IV. Article VII, Price, Section 1, shall be deleted in its entirety and there is substituted therefor the following Article VII, Price, Section 1. ARTICLE VII PRICE Section 1. Commencing January 1, 1982, and continuing through December 31, 1983, Buyer shall pay Seller for gas delivered hereunder and measured as herein provided for a price to be the sume of: (1) Seller's weighted average cost of purchased gas as defined in Section 4 of this Article VII, plus (2) an increment of Fifty and Six Hundredths Cents {50.061) per mcf. Such price is subject to the adjustment as provided for in Section 3 of this Article VII. Except as hereby amended the original agreement dated December 14,1/ 1979, as amended, shall continue in force and effect in accordance with its terms. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be duly executed on this the day and year first above written. ATTEST: Assistant Secretary ENERGAS COMPANY, A Division of Pioneer Corporation BY: Vice President BY. ..Secretary' ayor Bill McAlister APPROVED'AS TO CONTENT: ')-) . Robert Massengale, Direc or of Finance APPROVED ASS TO FORM: John C. Ross, Jr., City Attorney