NATURAL GAS AGREEMENTS (037)
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SERVICE AGREEKENT
FOR
INTERRUPTIBLE COKPRESSED NATURAL GAS SERVICE
J.,~ -:f-.~
06 day Of~,
1992, by and between the CITY OF CLEARWATER, FLORIDA, a municipal
THIS AGREEMENT, entered into this
corpora t ion, hereinafter called the "Se ller" and FLORIDA POWER
CORPORATION, hereinafter called the "Buyer",
WITNESSETH:
WHEREAS, the Buyer wishes to obtain the special gas rate
provided herein for interruptible gas service, to be used to
produce Compressed Natural Gas (CNG), and the Seller is willing
to sell and deliver natural gas, when available, to the Buyer:
NOW, THEREFORE, Seller and Buyer agree as follows:
1. The Buyer hereby agrees that all gas purchased under this
agreement will be used exclusively to produce Compressed Natural
Gas.
2. The Seller agrees to furnish an adequate supply of
natural gas to the Buyer except when necessary to interrupt said
supply as provided herein.
3. Whenever a curtailment of gas delivered herein 1S
required, the Seller shall issue a curtailment order to the Buyer
specifying the quantity of gas to be curtailed, and the time at
which such curtailment shall take effect.
When restoration of
service
is
permissible, seller
shall similarly
issue a
restoration order.
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A curtailment order may be issued by verbal or written
notice at least two hours in advance of its effective time,
except that
if curtailment or
interruption is occasioned by an
event of "force Majeure" affecting the Seller's system, Seller
shall be obligated to give only such notice as is practical under
the circumstances.
Seller hereby warrants that such curtailment orders will
only be issued in the event of unforeseeable pipeline disruptions
which require emergency repairs; curtailment orders that Seller
receives from Florida Gas Transmission Company, Seller.s pipeline
supplier; or temperatures below 32 degrees Fahrenheit, requiring
excessive demands for heating. Seller agrees to utilize the
curtailment capability only when necessary and to restore full
service as soon as possible after any such curtailment.
4. Gas taken by the Buyer under this Agreement by reason of
Buyer's failure to comply with curtailment order shall be
considered as overrun gas, and Buyer shall pay for such overrun
gas at the rate of $1.00 per therm in addition to the current
billing rate. The Seller shall have a meter reading taken at the
effective time of a curtailment order, and any gas recorded on
meter after said time and before restoration of service shall be
considered overrun gas.
5. All gas furnished by the Seller under the terms of this
Agreement shall be separately metered by metering equipment
furnished by the Seller.
6. Under the terms of this Agreement, the Buyer agrees to
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pay Seller in accordance with Seller's standard prices for
interruptible CNG service.
Billing will be on monthly basis. The current unit price
per therm, excluding franchise fees and taxes, is $.53088 per
thermo This unit price may adjusted up or down to reflect
changes in the Seller's cost of purchased gas. The unit price
charged to the Buyer may also be changed by the Clearwater City
Commission, but only as approved for all interruptible gas
customers of the System.
7. In consideration of the special interruptible rate
afforded by this agreement, Buyer agrees:
a) To relinquish any claim Buyer might have for damage to
any product, process or machinery as a result of gas service
interruption or curtailment pursuant to this Agreement.
b) That Seller may use Buyer's name in promotions and
advertising for Compressed Natural Gas only with Buyer's written
approval of copy or graphic.
c) To share information regarding operational problems or
successes, to the extent that such information might be relevant
to Seller's CNG marketing efforts.
d) To grant Seller the right to use Buyer's CNG facility to
refuel Seller's CNG vehicles under such terms and conditions as
Buyer may determine. Buyer shall have the right to determine
prices, times, and other conditions so that Seller's refueling
does not interfere with Buyer's normal operations.
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8. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and
assigns.
9. Either party may terminate this Agreement upon (30) days
written notice to the other party.
Said notice must be by
certified mail, return receipt requested.
IN WITNESS WHEREOF, the parties hereto have executed this
Agreement by their duly-authorized officials on the date set
forth above.
Countersigned:
~
Rita
issioner
Approved as
City
M. A.
BY:
CITY OF CLEARWATER, FLORIDA
City Manai'!
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correctness: AtteSLt; ..::-:~ :-
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Cynthia E, G6ud0>u :
Witnesses as to Buyer
~~~~~._ By:
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- City Attorney J ~ )1~--..--/
Super intendent f ,./ /
Director
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M. A. Galbraith, Jr.
J. Terry Neenan - Gas
COPIES:
Dan Deignan - Finance
SUBJECT:
Interruptible Compressed Natural Gas Contract
DATE:
January 16, 1992
Please review and comment on the proposed Interruptible
Compressed Natural Gas Contract with Florida Power Corporation.
Their attorneys have already looked at it and approved it.
If you agree with the wording of this contract, I will take it
forward to the appropriate officials.
Thank you.
JTN:nt
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RECEIVED
JAN 1 71992
CITy Arro ~
ANt~y
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Clea! wate! Gas SysteIll
Natural Gas - The Premium Fuel
January 2l, 1992
p r; ""FTVED
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GAS DIVISION
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Mr."James B. Law
Direc~or of Transportation
Flor ida-'"Power Corporation
Fleet service Administration-SP22
Post Offic~Box 14042
St. petersb0~g, Florida 33733
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Dear Mr. Law: '"
We are enclosing .~~q copies of the Service Agreement for
Interruptible Compre.s{led Natural Gas Service which our attorney
have reviewed, and the~is one change on Page 2 that eliminated
the word absolutely. Sl ce that is the only change to the
contract, I believe this ~ll meet with your approval.
,
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Please have the appropriate mpany officials sign and return
both copies to us for executio. We will then return a fully
executed copy to you for your r ords.
Sincerely,
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/jJ. Terry Neenan
V Gas Superintendent
cc:
B. Deptula, Asst. City Manager
Dan Deignan - Finance Director
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Hours: Monday - Friday, 7:00 a.m. - 4:30 pm.
400 N. Myrtle Avenue - Clearwater, Florida 34615 - Telephone (813) 462-6630 Fax (813) 462-6636
The City of Clearwater is an Equal Employment and Affirmative Action Employer
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FROM:
J. Terry Neenan - Gas Superintendent
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TO:
Michael Wright - City Manager
COPiES:
File
SUBJECT:
Interruptible Gas Sales Agreement
DATE:
February 4, 1992
Please find attached Service Agreement for Interruptible Compressed
Natural Gas Service for Florida Power Corporation, which needs your
signature.
RECEIVED
FEa 1 07992
CITY ATTORNEY