NATURAL GAS AGREEMENTS (027)
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SERVICE AGREEMENT
FOR
INTERRUPTIBLE GAS SERVICE
THIS AGREEMENT entered into this
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day
Of~
municipa corporation,
1986,by and between the CITY OF CLEARWATER, FWRIDA, a
hereinafter called the "Seller" and
Plasti-Kraft CorP.
hereinafter
called the IIBuyer".
WIT N E SSE T H
A. "Interruptible" rate shall mean other than firm and subject to
curtailment, a commodity rate with a minimum charge.
In general, the Buyer is required to maintain standby facilities to
qualify for Interruptible ser~ice.
It is the general practice in administering Interruptible rates
to prorate the minimum charge according to the fuel days service offered without
curtailment.
(DEFINITIONS)
1.~ IIDay" shall mean a period of twenty-four (24) consecutive hours
beginning and ending at 8:00 A.M. local time.
2. "Month" shall mean a period of time beginning at 8:00 A.M. local
time on the first (1st) day of a calendar month and ending at 8:00 A.M. local time
on the first (1st) day of the next succeeding calendar month.
WHEREAS, the Buyer wishes to obtain the special gas rate provided
herein for Znterruptible gas service 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 to install and maintain an alternate
fuel supply and apparatus for same, in good working order, for all equipment and
appliances to be served with Interruptible Natural ,Gas unaer this Agreement, during
the life of this Agreement. Equipment without such stand-by apparatus shall not
be served with 9as under the terms of this Agreement.
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2. The Seller agrees to furnish an adequate supply of Natural Gas
to uforesaid equipment and appliances except when necessary to interrupt said
supply as provided herein.
3. Whenever a curtailment of gas delivered hereunder is required,
the Seller, through Seller's Superintendent of Gas Distribution, shall issue a
curtailment order to the Buyer, through Buyer's Superintendent of Building
Maintenance, specifying the quantity of gas to be curtailed and the time at
which such curtailment shall take effect~ When restoration of service is per-
missible, Seller shall similarly issue a restoration order a
A curtailment order may be issued either 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" affectinq the
Seller's system, Seller shall be obligated to give only such notice as is
practicable in the circumstances.
4a Gas taken by the Buyer under this Agreement.by reason of.Buyer's
failure to comply with curtailment order shall be considered as over-run gas
and Buyer shall pay for such over-run gas at the rate of $1.50 per Therm.
The Seller shall have a meter reading taken at the effective .time of a .curtail-
ment order and any gas recorded on meter after said time and before restoration
of service shall be considered as over-run gas.
5. All gas furnished by the Seller under the terms of this Agreement
shall beseparately"'metered by metering equipment furnished by the Seller.
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6. Under the terms of this Agreement, the Buyer agrees to pay the Seller
[or a minimum of 20.0 thcrms per calendar day regardless of the actual consumption
except during periods of curtailment when there shall be no minimum consumption.
Billing will be on a monthly basisa The current unit price per therm excluding
franchise fees and taxes is $
.40972
This unit cost is subject
to adjustment, upwards or downwards, as appropriate to reflect, dollar for
dollar, any changes, upwards or downwards, in the base rate for interruptible
gas furnished to the Seller by'the Florida Gas Transmission Company. Notwith-
standing the provisions of paragraph 7, a unit cost increase for the gas in
excess of 10\ in any 12 month period shall allow the Buyer to terminate the
Agreement within 90 days following such an increase.
7. Gas service under this Rate Schedule shall be for a minimum period
of five years, and shall continue from year to year after the expiration of
the term stated in the Service Agreement, unless either party shall, at
least ninety (90) days prior to the end of any yearly period, give the other
party notice of its intention to terminate the Service Agreement.
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B. This Agreement shall be binding upon and inure to the benefit of
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the parties hereto and their respective successors and assigns.
9. In consideration of the service and rate structure provided for
the service defined herein, Buyer agrees to relinquish any claim Buyer might
have for damage to any product process or machine as the result of interruption
of gas service pursuant to this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement
by their
authorized officials on the date set forth above.
Approved as to form and
'Hd-~7t
City Attorney /
By
At~test: ~ -1"1" "-'
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City ':;lerk :", " ::::'
PLmA~_<p
BY~
Attest:
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