EXHIBIT 10.34
MULTITRADE GROUP, INC. AND XXXXXXX-XXXXXX, INC.
STEAM AGREEMENT
STEAM AGREEMENT dated as of March 1, 1993, between Multitrade Group,
Inc. a corporation organized and existing under the laws of the Commonwealth of
Virginia ("Multitrade"), and Xxxxxxx-Xxxxxx, Inc., a corporation organized and
existing under the laws of the Commonwealth of Virginia ("Xxxxxxx-Xxxxxx").
R E C I T A L S
WHEREAS, Multitrade is the owner of a steam production facility and
steam distribution system (collectively, the "System") located in Xxxxx County,
Virginia and capable of generating 100,000 pounds of steam per hour for 24 hours
per day;
WHEREAS, Multitrade and Xxxxxxx-Xxxxxx are parties to a Steam
Agreement dated January 15, 1992 (the "Initial Agreement") pursuant to which
Multitrade has supplied Xxxxxxx-Xxxxxx with Xxxxxxx-Xxxxxx'x steam energy
requirements for its manufacturing and warehouse facilities located at Rivermont
Heights, Xxxxx County, Virginia (the "Xxxxxxx-Xxxxxx Facilities");
WHEREAS, the term of the Initial Agreement consists of a 1-year
period ending on February 28, 1994; and
WHEREAS, Multitrade and Xxxxxxx-Xxxxxx desire to continue the
provision of steam energy services to Xxxxxxx-Xxxxxx following the expiration of
the 1-year term under the Initial Agreement, for an additional period of 1 year
from March 1, 1994 through February 28, 1995.
NOW, THEREFORE, in consideration of the foregoing premises and the
mutual agreements hereinafter set forth to be kept and performed, the parties
hereto agree as follows:
A G R E E M E N T
SECTION 1. DEFINITIONS.
Unless the context otherwise requires, the following terms have, for
purposes of this Agreement, the respective meanings set forth below:
"AAA" means the American Arbitration Association and any successor
organization.
"Adjustment Date" has the meaning assigned to such term in Section
5.3 of this Agreement.
"Agreement" and "this Agreement" means this Steam Agreement dated as
of March 1, 1993, between Multi-trade and Xxxxxxx-Xxxxxx.
"Applicable Law" means any law, rule, regulation, ordinance,
judgment, decree, permit or similar decision of any federal, state or local
governmental authority, agency, court or similar body having jurisdiction, which
is applicable to or affects the ownership, operation, testing, maintenance,
leasing or use of the System, the Xxxxxxx-Xxxxxx Facilities or the sites upon
which the System and Xxxxxxx-Xxxxxx Facilities are located.
"Xxxxxxx-Xxxxxx" means Xxxxxxx-Xxxxxx, Inc., a Virginia corporation.
"Xxxxxxx-Xxxxxx Facilities" means the manufacturing and warehouse
facilities owned by Xxxxxxx-Xxxxxx located at Rivermont Heights, Xxxxx County,
Virginia.
"Capacity Component" means the component of the steam price which
takes into account the capacity cost to Multitrade of producing steam for
delivery to Xxxxxxx-Xxxxxx under this Agreement, as calculated in accordance
with Exhibit 5.2 and subject to adjustment pursuant to Section 5.3(c) of this
Agreement.
"Commencement Date" means March 1, 1994.
"Condensate Return" has the meaning assigned to such term in Section
7.1 of this Agreement.
"Dedicated Capacity" means 100,000 pounds of dry saturated steam per
hour at pressures up to 200 PSIG to be made available to Xxxxxxx-Xxxxxx from the
System during the Term.
"Fuel Component" means the component of the steam price which takes
into account the cost incurred by Multitrade for wood, coal and other fuel used
in producing steam for delivery to Xxxxxxx-Xxxxxx under this Agreement, as
calculated in accordance with Exhibit 5.2 and subject to adjustment pursuant to
Section 5.3(a) of this Agreement.
"Multitrade" means Multitrade Group, Inc., a Virginia Corporation.
"O&M Component" means the component of the steam price which takes
into account the fixed and variable costs to Multitrade of operations and
maintenance for the System, as calculated in accordance with Exhibits 5.2 and
5.3 and subject to adjustment pursuant to Section 5.3(b) of this Agreement.
"Operating Year" means any applicable one-year period during the
Term from March 1 through and including the next succeeding February 28 or 29 as
may be applicable.
"Point of Delivery" means the discharge side of the steam meter.
"PSIG" means pounds per square inch gauge.
"Steam Meter" means the steam flow, pressure recording and
totalizing steam meter located on the low pressure side of the pressure reducing
station in the System.
"System" means the steam production facility and steam distribution
system, owned and operated by Multitrade and located in Xxxxx County, Virginia,
capable of generating up to 100,000 pounds per hour of steam for 24 hours per
day, subject to interruptions as contemplated by Section 9 of this Agreement.
"Technician" means an independent technician, reasonably acceptable
to Multitrade and Xxxxxxx-Xxxxxx, who has expertise in the operation and
maintenance of steam production facilities similar to the System.
"Term" means the one-year period commencing March 1, 1994 and ending
February 28, 1995, during which Multitrade will provide steam energy services to
Xxxxxxx-Xxxxxx in accordance with the provisions of this Agreement, and any
additional one-year periods which both parties mutually agree to extend this
Agreement in accordance with Section 13 hereof.
SECTION 2. COMMENCEMENT DATE AND TERM.
Steam energy services shall commence under the terms of this
Agreement on March 1, 1994 (the "Commencement Date"), and shall run continuously
from such date until February 28, 1995 (such one-year period referred to herein
as the "Term"), unless this Agreement shall have been terminated at an earlier
date pursuant to the terms hereof. This Agreement may be renewed by the parties
in accordance with Section 13 hereof.
SECTION 3. PURCHASE AND SALE OF STEAM ENERGY.
3.1 PURCHASE AND SALE OBLIGATIONS. Subject to Section 4.2, 9.1 and
9.2, Xxxxxxx-Xxxxxx agrees to purchase and pay for and Multitrade agrees to sell
steam energy generated by the System during the Term in an amount equal to 100
percent of the steam requirements for the Xxxxxxx-Xxxxxx Facilities; provided,
however, that Multitrade shall not be obligated to sell to Xxxxxxx-Xxxxxx steam
in excess of the Dedicated Capacity for such energy. The cost to Xxxxxxx-Xxxxxx
for steam delivered to it shall be calculated in accordance with Section 5
hereof.
3.2 DEDICATED CAPACITY. Subject to Section 9, Multitrade will make
available to Xxxxxxx-Xxxxxx at the Point of Delivery on a daily 24-hour basis at
least 100,000 pounds per hour of dry saturated steam at pressures up to 200 PSIG
(the "Dedicated Capacity") during the Term of this Agreement.
3.3 ADDITIONAL CAPACITY. Multitrade shall have the right to sell to
others any steam produced by the System which is in excess of the Dedicated
Capacity and Xxxxxxx-Xxxxxx'x steam requirements. If at any time during the
period of this Agreement Multitrade installs additional steam generating
capacity, Xxxxxxx-Xxxxxx shall have the option to purchase any or all of the
additional capacity at a rate and under terms similar to those set forth in this
Agreement, subject to such adjustments as may be necessary to reflect additional
costs associated with the additional capacity so purchased.
3.4 XXXXXXX-XXXXXX'X RIGHT TO PRODUCE OWN STEAM. Xxxxxxx-Xxxxxx may
operate its own boilers for the production of steam energy only (a) during an
interruption of the steam supply as contemplated by Section 9.1, (b) during the
existence of incompatible additives in the steam supply as contemplated by
Section 4.2, (c) during testing, preventative maintenance and safety checks, (d)
for the purpose of testing and maintaining its boilers while using natural gas
as a fuel, and (e) any time steam from Multitrade is not adequate to fulfill
Xxxxxxx-Xxxxxx'x steam requirements, and in each case only for so long as and to
the extent that such conditions or circumstances continue; provided, however,
that in no circumstances shall Xxxxxxx-Xxxxxx operate its own boilers while
using No. 6 fuel oil as a fuel at times when the System is in operation.
SECTION 4. METERING; INSPECTIONS AND QUALITY CONTROL.
4.1 QUALITY OF STEAM; METERING. Multitrade agrees to deliver to
Xxxxxxx-Xxxxxx high quality steam, with standards of at least pH 9 (plus or
minus 0.5) and 3 parts per million or less carryover, and to maintain a suitable
steam flow, pressure recording and totalizing meter ("Steam Meter") located on
the low pressure side of the pressure reducing station. Multitrade agrees to
inject into the steam, to the satisfaction of Xxxxxxx-Xxxxxx, neutralizing
and/or filming amine to reduce corrosion in the Condensate Return system.
4.2 ADDITIVES. Multitrade recognizes that the steam purchased from
it by Xxxxxxx-Xxxxxx will be injected into Xxxxxxx-Xxxxxx'x dye process.
Accordingly, Multitrade agrees that no additives shall be injected into the
steam which it produces unless such additives are among those set forth on
Exhibit 4.2 or are otherwise compatible with Xxxxxxx-Xxxxxx'x dye process and
prior approval for such additives is received from Xxxxxxx-Xxxxxx. If additives
are found in the steam produced by Multitrade which are not compatible with
Xxxxxxx-Xxxxxx'x dye process, Xxxxxxx-Xxxxxx shall not be obligated to purchase
any steam containing such additives and shall have the right to operate its own
boilers until the incompatible additives are removed.
4.3 CALCULATION; INSPECTION. Multitrade will calculate
Xxxxxxx-Xxxxxx'x monthly steam usage based on steam meter readings.
Xxxxxxx-Xxxxxx will be entitled to adequate notice and opportunity to have its
representative present at any time the meter is read and may inspect the steam
meter charts at any time. If there is any dispute as to the steam meter's
accuracy or condition, the disputing party may, at its own expense, engage the
services of the Technician to test the Steam Meter, and the Technician's
determination will be binding on the parties hereto. If the Technician
determines that the Steam Meter is in need of repair or replacement, such repair
or replacement will be made as soon as practicable at Multitrade's expense. The
cost of the Technician will be borne by Multitrade if the meter is found to be
in need of repair. Local representatives of Multitrade and Xxxxxxx-Xxxxxx, by
mutual agreement, will determine the amount of steam furnished by Multitrade to
Xxxxxxx-Xxxxxx for any period during which the Steam Meter is malfunctioning,
and invoices will be adjusted in accordance with Exhibit 4.3.
4.4 CALIBRATION. Multitrade agrees, at no expense to Xxxxxxx-Xxxxxx,
to have the Steam Meter calibrated by the Technician at the end of 180 calendar
days. A written report of the Technician's findings and calibrations will be
submitted to Xxxxxxx-Xxxxxx.
SECTION 5. PAYMENT RATES AND TERMS.
5.1 BASIS FOR PAYMENT. Xxxxxxx-Xxxxxx will pay monthly for the steam
energy it purchases from Multitrade based on a unit price per 1,000 pounds
of delivered, dry saturated
steam, as hereinafter set forth and measured in accordance with Section 4.3.
All steam costs will be based on the steam actually delivered to the Point of
Delivery at the Steam Flow Meter located in Xxxxxxx-Xxxxxx'x existing boiler
room.
5.2 RATE SCHEDULE. Subject to adjustment pursuant to Sections 5.3
and 7.3, the monthly rate which Xxxxxxx-Xxxxxx will pay for steam energy
delivered by Multitrade will be determined in accordance with Exhibit 5.2. To
the extent Xxxxxxx-Xxxxxx operates its own boilers for the production of steam
energy during an interruption of Multitrade's supply of steam as contemplated by
Section 9.1, such monthly rate will be determined on the basis of the aggregate
amount of steam supplied during such month by both Multitrade and
Xxxxxxx-Xxxxxx. In all other circumstances where Xxxxxxx-Xxxxxx operates its own
boilers for the production of steam energy, the monthly rate will be determined
on the basis of the amount of steam supplied during such month by Multitrade
alone.
5.3 ADJUSTMENT OF STEAM RATES.
(a) The rates used in Exhibit 5.2 for Fuel, Fixed O&M, and Variable
O&M are stated in 1991 values. These components of the Steam Energy Price will
be adjusted March 1, 1992, and on one-year anniversaries thereafter during the
Term of this Agreement and any renewals thereafter. The 1992 adjustment will use
the inflation rate published in the Producers Price Index "All Commodities" for
1991.
(b) The Fuel, Fixed O&M and Variable O&M components will be
increased or decreased on the March 1 anniversary dates using the rate of change
in the Producers Price Index as published by the United States Department of
Labor; "All Commodities" average index shall be used as the basis for adjustment
of the Fuel and O&M components. Each adjustment in the steam component rates
will use the inflation rate from the previous year. (See example of the
Producers Price Index in Exhibit 5.3)
Calculation Example:
Producers
PRICE INDEX x MULTIPLIER = RATE
----------- ---------- ----
Fuel Component 1989: $2.22 112.2 (1989) x 1.9786096 = 2.22
Fuel Component 1990: 116.3 (1990) x 1.9786096 = 2.30
(rates rounded after three decimals, multiplier is used for example only.)
The actual multiplier will be established using the Fuel Component
Rate of $2.22 divided by the 1991 Producers Index. The multiplier established
using the 1991 data will remain constant through the term of this Agreement.
(c) The Capacity Component will remain firm during the Term of this
Agreement.
5.4 BILLING. The charges for steam energy consumed by Xxxxxxx-Xxxxxx
will be billed monthly to Xxxxxxx-Xxxxxx by Multitrade and payments will be due
within 15 days after receipt of an invoice substantially in the form of Exhibit
5.4. Multitrade may charge a 1.5% late charge on any xxxx not paid within 30
days of the due date. If any xxxx is not paid, including the late charge, within
30 days after the due date, Multitrade may discontinue service upon written
notice to Xxxxxxx-Xxxxxx or exercise any other remedy provided in accordance
with Section 10.2(a) hereof. No such discontinuation of service shall render
Multitrade liable for damages or relieve Xxxxxxx-Xxxxxx from performance of its
obligations hereunder as long as Multitrade is not in default under this
Agreement at the time service is discontinued.
5.5 TITLE TO STEAM. Title to and full responsibility for all steam
energy sold and delivered by Multitrade to Xxxxxxx-Xxxxxx shall pass to
Xxxxxxx-Xxxxxx at the Point of Delivery.
5.6 ENERGY TAX. In the event any governmental authority imposes any
new energy tax following the date of this Agreement that is applicable to or
increases the cost of Multitrade's operation of the System or its delivery of
steam energy to Xxxxxxx-Xxxxxx hereunder (whether imposed on the basis of fuel
use, BTU content, energy produced or otherwise, and whether imposed directly on
Multitrade or otherwise), (i) Multitrade shall absorb the cost associated with
fifteen percent (15%) of any such tax, and (ii) Xxxxxxx-Xxxxxx shall reimburse
Multitrade for the cost to Multitrade of eighty-five percent (85%) (the
"Reimbursement Portion") of any such tax so as to hold Multitrade harmless from
the imposition of the Reimbursement Portion of any such tax. The parties agree
to negotiate in good faith, within 30 days following the end of the first
calendar years in which any such tax is imposed, to determine the precise manner
in which such Reimbursement Portion and amount will be determined and paid.
Multitrade shall be entitled to recover from Xxxxxxx-Xxxxxx the actual cost to
Multitrade of the Reimbursement Portion of any such tax, without any xxxx-up or
xxxxx-up (other than any such adjustment that is required to hold Multitrade
harmless from the imposition of the Reimbursement Portion of such tax);
provided, that Xxxxxxx-Xxxxxx shall be required to reimburse Multitrade only
with respect to that portion of the Reimbursement Portion of any such tax that
is properly allocable to the steam produced by the System that is delivered to
Xxxxxxx-Xxxxxx hereunder.
SECTION 6. OPERATION OF SYSTEM.
6.1 MANNER OF OPERATION; NOTIFICATION. Multitrade agrees to use
diligence to maintain and operate the System in such a manner as to avoid any
interruption of service to Xxxxxxx-Xxxxxx. Multitrade shall notify
Xxxxxxx-Xxxxxx in writing of its normal operating schedule, start-up and
shut-down times and any changes thereto.
6.2 XXXXXXX-XXXXXX'X OBLIGATIONS. Xxxxxxx-Xxxxxx shall, at no
expense to Multitrade, ensure at all times that Xxxxxxx-Xxxxxx'x equipment is
appropriate for operation with the System and that a proper interface is
maintained between such equipment and the System on Xxxxxxx-Xxxxxx'x side of the
Point of Delivery.
SECTION 7. STEAM CONDENSATE RETURN.
7.1 STEAM CONDENSATE. Xxxxxxx-Xxxxxx agrees to return and deliver to
Multitrade steam condensate ("Condensate Return") of a quality reasonably
satisfactory to Multitrade consistent with the standards of pH, hardness, level
of dissolved solids and conductivity set forth in Exhibit 7.1. Multitrade agrees
to provide and maintain during the Term, at no expense to Xxxxxxx-Xxxxxx, the
Condensate Return system currently in use in connection with the System,
including, but not limited to, piping, insulation, pump system and
flow/temperature recorder.
7.2 PROVISION OF ELECTRICITY. Xxxxxxx-Xxxxxx agrees to furnish, at
no cost to Multitrade, adequate electricity to operate the Condensate Return
pump located on the premises of Xxxxxxx-Xxxxxx.
7.3 CREDIT FOR THERMAL AND LIQUID VALUE OF CONDENSATE RETURN. During
the Term, Xxxxxxx-Xxxxxx will be given credit on a monthly basis for the thermal
value and liquid value of Condensate Return delivered to Multitrade by
Xxxxxxx-Xxxxxx during the month covered by any invoice furnished pursuant to
Section 5.4. The amount of the thermal value credit to Xxxxxxx-Xxxxxx will be
equal to the displaced fuel value (initially $2.22 per 1.2 million BTUs), as
adjusted annually during the Term commensurate with any increase in the Fuel
Component of the steam price. The amount of liquid value of Condensate Return
credited to Xxxxxxx-Xxxxxx will be equal to $1.00 per thousand gallons of
Condensate Return and will remain fixed for the Term.
SECTION 8. PURCHASE OF MAKE-UP WATER.
8.1 TRANSPORT AND METERING. Multitrade agrees to purchase make-up
water from Xxxxxxx-Xxxxxx when such water is available. Multitrade shall provide
and maintain, at its own expense, the piping, pumps and equipment necessary to
transport water from Xxxxxxx-Xxxxxx to the System's boiler. Multitrade shall
provide and maintain the necessary metering or
recording instrumentation required to determine the quantity and temperature of
water furnished to Multitrade. Xxxxxxx-Xxxxxx agrees to provide, at no cost to
Multitrade, the electricity required to operate any pumps necessary for the
make-up water system.
8.2 CREDIT FOR WATER. Multitrade shall credit Xxxxxxx-Xxxxxx for all
make-up water received from Xxxxxxx-Xxxxxx in the amount of $1.00 per thousand
gallons of water delivered. Credit for water received from Xxxxxxx-Xxxxxx during
any one-month period shall be included in the invoice for steam covering such
period. If such water is not available, or such water is unfit for use due to
contamination, Multitrade shall have the right to seek other sources of make-up
water.
8.3 THERMAL CREDIT FOR MAKE-UP WATER. In the event make-up water
received by Multitrade is heated above 80 degrees Fahrenheit, Multitrade will
credit Xxxxxxx-Xxxxxx for the displaced fuel value of the BTUs contained in the
hot water. Displaced fuel value will be equal to the Fuel Component of the steam
rate in effect during the billing period. Thermal value of make-up water will be
calculated using the method shown in Exhibit 5.4.
SECTION 9. INTERRUPTION OF SERVICE OR OPERATIONS.
9.1 Multitrade agrees to give Xxxxxxx-Xxxxxx immediate notice by the
fastest means possible of any unplanned interruption of the steam supply and to
give as much written notice as possible of all planned interruptions of the
steam supply. Any planned interruption of the steam supply will be coordinated
with Xxxxxxx-Xxxxxx. The parties hereby acknowledge that, in accordance with
state regulations, service will be interrupted annually for a period of one week
to conduct a boiler inspection. An unplanned interruption of service that is
attributable to any cause beyond Multitrade's control will not constitute a
breach of this Agreement, and Multitrade will not be liable to Xxxxxxx-Xxxxxx
for any damages arising out of or related to any such interruption, provided
Multitrade exercises diligent efforts to restore normal operations as soon as
possible. The shutdown of steam services is normally scheduled during the Week
of July 4th each year; however, other periods may be used in lieu of July 4th
Week as may be mutually agreeable.
9.2 BUSINESS INTERRUPTION INSURANCE. If either party desires to
obtain business interruption insurance for its respective facilities, each
agrees, upon reasonable written notice to the other, to permit inspection of its
facilities by representatives of the insurance company during reasonable working
hours.
SECTION 10. INDEMNIFICATION AND LIMITATIONS OF LIABILITY.
10.1 RECIPROCAL INDEMNIFICATION. Multitrade and Xxxxxxx-Xxxxxx,
respectively, as indemnitor, will indemnify the other, as indemnitee, and hold
harmless it, its partners, officers, directors, agents and affiliates, and their
respective successors and assigns, from and against any and all losses
(excluding consequential losses), damages, expenses and liabilities suffered or
paid as a result of any and all claims, demands, suits, causes of actions,
proceedings, judgments and liabilities, including reasonable counsel fees
incurred in litigation or otherwise, assessed, incurred or sustained by or
against any such party with respect to or resulting from injuries to or death of
persons, including, but not limited to, employees of either party hereto, and
damage to
or destruction of property, including, but not limited to, the property of
either party hereto, arising out of, or in any way connected with, the failure
to comply with any Applicable Law of any authority having proper jurisdiction,
or the performance or non-performance of any provision of this Agreement, or any
operations conducted hereunder, by indemnitor, its agents or employees,
excepting only such injury, death, damage or destruction as may be caused by the
gross negligence or willful misconduct of the indemnitee, its agents or
employees. Each indemnitee shall, upon the indemnitor's request, (a) defend any
suit asserting a claim covered by this indemnity and (b) if the indemnitor
elects to control the defense of such suit, cooperate with the indemnitor in
respect of any matter related to such defense. The indemnitor shall pay all
costs that may be incurred by the indemnitee in enforcing this indemnity,
including reasonable attorneys' fees, within 20 days of any written request
therefore.
10.2 LIMITATION OF LIABILITY. Neither Multitrade, Xxxxxxx-Xxxxxx,
nor their respective partners, officers, directors, employees, representatives,
agents or independent contractors, because of any of their respective acts or
omissions relating to the ownership, use, construction, operation or maintenance
of the System, or because of their respective compliance or noncompliance with
this Agreement, shall have any liability, whether in contract, warranty, tort,
strict liability, or other legal theory, for any indirect, incidental or
consequential damages of the party, including but not limited to loss of
anticipated profits, or revenues; loss of use of the System; non-operation or
increased expense of operation of the System or the Condensate Return system, as
applicable; and, increased cost of capital or cost of purchased or replacement
steam.
SECTION 11. ADDITIONAL COVENANTS AND OBLIGATIONS.
11.1 PRIMARY OBLIGOR. Multitrade shall have the right to contract
with third parties for performance of all or part of its obligations under this
Agreement, but Multitrade shall remain primarily responsible for the performance
of its obligations thereunder.
11.2 INSURANCE. Multitrade shall maintain in full force and effect,
at its expense, casualty and liability insurance on the System and liability
insurance for its undertakings hereunder equal to at least the amounts required
by statute and the amounts customarily maintained in the industry for steam
generating facilities of similar size and type as the System. Multitrade shall
also maintain excess liability coverage with a minimum limit of $2,000,000.
SECTION 12. ARBITRATION OF DISPUTES; ATTORNEY'S FEES.
12.1 ARBITRATION.
(a) Any dispute between Multitrade and Xxxxxxx-Xxxxxx arising
under or out of this Agreement shall, if not resolved amicably between the
parties within 30 days after written notice of such dispute from one party to
the other, be settled by arbitration pursuant to the rules of the American
Arbitration Association ("AAA"). After the initial 30-day period following
notice of a dispute, any party who has not obtained a satisfactory resolution of
such dispute may be given written notice of arbitration hereunder to the other
party. Within 30 days after the date of such notice of arbitration, each of
Multitrade and Xxxxxxx-Xxxxxx shall appoint an arbitrator, which two arbitrators
shall jointly select a third arbitrator who shall serve as
chairman of the arbitration panel. If either Multitrade or Xxxxxxx-Xxxxxx does
not select its arbitrator within 30 days after written notice of arbitration is
given, or if the two arbitrators cannot agree upon a third arbitrator within 30
days after the appointment of the later of such two initial arbitrators, the AAA
shall make the appointment or appointments from its panel of arbitrators. The
arbitration proceedings shall take place in the state of Virginia or such place
as may otherwise be mutually agreed to by the parties.
(b) The decision of the arbitrator shall be binding upon the
parties and conclusive as to disputes relating to this Agreement. Upon rendering
a decision, the arbitrators shall promptly execute and acknowledge the decision
and deliver a copy to each party. A judgment confirming the decision may be
rendered by any court that has jurisdiction over the matter.
(c) Pending resolution of any controversy or dispute,
performance by each party shall continue so as to maintain the status quo as it
existed prior to the initial notice of intention to request arbitration.
Resolution of any controversy or dispute involving the payment of money by one
party to the other shall include payment of interest, compounded monthly on all
outstanding payments, at a rate per annum equal to the "prime interest rate"
quoted from time to time by Chase Manhattan Bank, N. A. , or any successor bank
thereto, plus one percent (1%).
12.2 ATTORNEY'S FEES AND COST. In any arbitration or court
proceeding to enforce any arbitration award made pursuant to this Section 13,
each party shall be responsible for its respective legal costs. The cost of
arbitration shall be split equally between the parties participating in the
arbitration.
SECTION 13. RENEWAL.
The steam energy services provided hereunder may be renewed by
agreement of the parties hereto for successive periods of 1-year's duration.
Provided the notifying party is not in default under any of the terms of this
Agreement, either party wishing to negotiate for a renewal of this Agreement
shall notify the other in writing of its desire to so negotiate on or before the
last day of February, 1994 and by the last day of February for each renewal
anniversary thereafter.
SECTION 14. MISCELLANEOUS.
14.1 COMPLIANCE WITH LAWS. Multitrade agrees to operate the System
up to the Point of Delivery in accordance with the requirements of all
applicable municipal, state and Federal laws, ordinances, rules and regulations.
Multitrade shall be primarily responsible for compliance with all present and
future local, state or Federal laws, ordinances or regulations related to air
quality, odor, noise, waste water disposal, solid waste disposal, or other
conditions for the protection of the environment, or otherwise, which may apply
to the System.
14.2 AMENDMENT; ENTIRE AGREEMENT. This Agreement contains the entire
understanding of the parties and supersedes all prior negotiations and oral
understandings, if any, and may not be amended, supplemented or modified except
by a written instrument signed by the parties hereto.
14.3 ASSIGNMENT AND DELEGATION.
(a) Neither party may voluntarily assign all or any portion of
its rights, nor delegate its duties, under this Agreement, without the written
consent of the other party, except in connection with (i) a mortgage,
hypothecation or pledge of a party's interest in this Agreement, or (ii) merger
or sale of a substantial portion of a party's properties, which consent shall
not be unreasonably withheld or delayed. Any such assignment or delegation made
without such written consent shall be null and void. The addition of additional
partners or investors to either party does not require consent pursuant to this
Section 14.3. For purposes of financing, each party consents to the other's
assignment to a lender or lenders of its right, title, interests, powers and
benefits under this Agreement, as security for a loan and the obligations of
such party to such lender or lenders.
(b) If Xxxxxxx-Xxxxxx or its permitted successors shall
transfer, sell, assign, convey or otherwise dispose of the site upon which
Xxxxxxx-Xxxxxx'x operations are located (the "Site"), such disposition shall be
subject to the express condition that the transferee, assignee, purchaser or
recipient of such conveyance or disposition shall assume all obligations of
Xxxxxxx-Xxxxxx to be performed under this Agreement.
(c) The assignor shall be relieved of all further liability
under this Agreement from and after the date of such transfer, assignment, sale
or conveyance if the transferee, assignee, purchaser or recipient of such
conveyance shall own the Site or System, as the case may be, and shall be
successor to the obligations of the assignor.
14.4 BINDING EFFECT; SUCCESSORS AND ASSIGNS. The terms and
provisions of this Agreement and the respective rights and obligations hereunder
of Multitrade and Xxxxxxx-Xxxxxx shall be binding upon, and inure to the benefit
of, their respective permitted successors and assigns.
14.5 INDEPENDENT SELLER. Multitrade shall perform hereunder as an
independent seller and neither Multitrade nor Xxxxxxx-Xxxxxx shall be deemed in
any way or for any purpose, by nature of this Agreement or otherwise, a partner,
joint venturer, agent, employer or employee of the other.
14.6 CHOICE OF LAW. This Agreement and any dispute arising herefrom
shall be governed and interpreted in accordance with laws of the State of
Virginia as applied to contracts made and wholly performed within said state.
14.7 SECTION HEADINGS AND SUBHEADINGS. All Section headings and
subheadings are inserted for convenience only and shall not affect any
construction or interpretation of this Agreement.
14.8 SEVERABILITY. In the event that any provision of this Agreement
becomes or is declared by a court of competent jurisdiction to be illegal,
unenforceable, or void, this Agreement shall continue in full force and effect
without said provision; provided that no such severability shall be effective if
it materially changes the economic benefit of this Agreement to either party.
14.9 NOTICE. Except as otherwise specifically provided for in this
Agreement, all notices or other communications required or permitted hereunder
will be in writing and deemed given (a) if delivered personally, (b) if sent by
facsimile copy and receipt thereof is confirmed, or (c) if (i) deposited in the
U.S. mail, registered mail, postage prepaid, return receipt requested or (ii)
delivered to a nationally recognized express mail service which requires a
receipt from the recipient, and, in either case, a receipt is obtained, and (d)
in any case addressed as follows:
To Multitrade: To Xxxxxxx-Xxxxxx:
Mr. B. E. Brammer Xx. Xxxxxxx X. Xxxxx
President Vice President, Finance
Multitrade Group, Inc. Xxxxxxx-Xxxxxx, Inc.
Post Xxxxxx Xxx 000 Xxxx Xxxxxx Xxx 0000
Xxxxxxxx, XX 00000 Xxxxxxxxxxxx, XX 00000
Such addresses and personnel designations may be changed from time
to time by either party by serving written notice as provided above.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.
MULTITRADE GROUP, INC.
By /s/ B.E. Brammer
-------------------------------
Its President
XXXXXXX-XXXXXX, INC.
By /s/ Xxxxxxx X. Xxxxx
-------------------------------
Its Vice President-Finance
EXHIBIT 4.2
PERMITTED ADDITIVES
To Boiler: Nalco 1720 Feedwater Oxygen Control
Nalco No. 7200 Scale Control
Caustic Soda Liquid Silica Control
Steam Main: Nalco No. 354 To Condensate for pH Control
EXHIBIT 4.3
Method of Adjusting Steam Invoice
To Compensate for Malfunctioning Steam Meter
(No Adjustment for one percent plus or minus
of correct reading.)
STEP 1. Determine percentage meter error, either plus or minus, from
calibration by independent Technician.
STEP 2. Total the volume of steam purchased by Xxxxxxx-Xxxxxx from the time
of previous calibration to the time the meter was determined to be
inaccurate. Example: If an October calibration indicated meter was
2% in error - total steam usage from previous calibration through
the month of October.
STEP 3. Multiply the total steam consumed by Xxxxxxx-Xxxxxx (the sum of STEP
2) by the percentage of meter error, less the one percent plus or
minus dead band.
STEP 4. Determine the average sale price of steam to Xxxxxxx-Xxxxxx during
the period in question.
STEP 5. Multiply the product of STEP 3 by the average price determined in
STEP 4.
STEP 6. Multiply the product of STEP 5 by 50% and the result equals the
total credit or debit.
EXAMPLE:
September, 1984, calibration indicated three percent "plus" steam reading.
Previous calibration accomplished in March, 1984.
STEP 1. Plus three percent (3%) meter reading.
STEP 2. 34,495,200 September 1984
36,257,200 August 1984
27,172,400 July 1984
35,243,659 June 1984
39,248,699 May 1984
35,248,489 April 1984
----------
207,665,647 Total Pounds
STEP 3. Sum of STEP 2: 207,665,647
Total from STEP 1
less 1% Dead Band: x 2% (3% - 1%)
-----------
4,153,313 MLbs.
STEP 4. Average Price for Steam:
$ 5.40 September 1984
5.49 August 1984
5.55 July 1984
5.47 June 1984
5.37 May 1984
5.43 April 1984
-------
$ 32.71 divided by 6 = $5.45 avg. price per 1000 Lbs.
STEP 5. Product of STEP 3: 4,153,313 Mlbs.
Total from STEP 4 x $5.45 per Mlb.
------------
$22,635.56
STEP 6. Product of STEP 5: $22,635.56
x 50%
-------------
($11,317.78) Net (credit) or debit
EXHIBIT 5.2.
XXXXXXX XXXXXX MONTHLY STEAM VOLUME DISCOUNT RATES
March 1. 1993
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000
0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001
Gross Lbs. Steam to to to to to to
Delivered Monthly 2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000
--------- --------- --------- ---------- ---------- ----------
Fuel 2.23 2.23 2.23 2.23 2.23 2.23
Fixed O&M 49.23 16.63 9.85 7.03 5.47 4.48
Variable O&M 0.54 0.54 0.54 0.54 0.54 0.54
Capacity 0.35 0.35 0.35 0.35 0.35 0.35
---- ---- ---- ---- ---- ----
Total Steam
Billing Rate $52.35 $19.75 $12.97 $10.15 $8.59 $7.60
Table (continued)
Annual Production 138,125,000 159,375,000 180,625,000 201,875,000 223,125,000 244,375,000
15,000,001 17,500,001 20,000,001 22,500,001 25,000,001 27,500,001
Gross Lbs. Steam to to to to to to
Delivered Monthly 17,500,000 20,000,000 22,500,000 25,000,000 27,500,000 30,000,000
---------- ---------- ---------- ---------- ---------- ----------
Fuel 2.23 2.23 2.23 2.23 2.23 2.23
Fixed O&M 3.78 3.28 2.90 2.60 2.34 2.13
Variable O&M 0.54 0.54 0.54 0.54 0.54 0.54
Capacity 0.35 0.35 0.35 0.35 0.35 0.35
---- ---- ---- ---- ---- ----
Total Steam
Billing Rate $6.90 $6.40 $6.02 $5.72 $5.46 $5.25
==================== =================== ================== ==================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 367,526,000
30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001
Gross Lbs. Steam to to to to to to
Delivered Monthly 32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000
---------- ---------- ---------- ---------- ---------- ----------
Fuel 2.23 2.23 2.23 2.23 2.23 2.23
Fixed O&M 1.97 1.82 1.70 1.59 1.49 1.42
Variable O&M 0.54 0.54 0.54 0.54 0.54 0.54
Capacity 0.35 0.35 0.35 0.35 0.35 0.35
---- ---- ---- ---- ---- ----
Total Steam
Billing Rate $5.09 $4.94 $4.82 $4.71 $4.61 $4.54
Table (continued)
Annual Production 393,125,000 414,375,000 435,625,000 456,875,000 478,125,000 499,375,000
45,000,001 47,500,001 50,000,001 52,500,001 55,000,001 57,500,001
Gross Lbs. Steam to to to to to to
Delivered Monthly 47,500,000 50,000,000 52,500,000 55,000,000 57,500,000 60,000,000
---------- ---------- ---------- ---------- ---------- ----------
Fuel 2.23 2.23 2.23 2.23 2.23 2.23
Fixed O&M 1.33 1.26 1.20 1.15 1.10 1.04
Variable O&M 0.54 0.54 0.54 0.54 0.54 0.54
Capacity 0.35 0.35 0.35 0.35 0.35 0.35
---- ---- ---- ---- ---- ----
Total Steam
Billing Rate
$4.45 $4.38 $4.32 $4.27 $4.22 $4.17
CONDENSATE CREDIT:
Thermal Value: equal to the displaced fuel value - $2.23 per 1,200,000
BTUs in 1991 Dollars
Liquid Value: $1.00 per thousand gallons
MAKE-UP WATER CREDIT:
Thermal Value: equal to the displaced fuel value - $2.23 per 1,200,000
BTUs in 1991 Dollars
Liquid Value: $1.00 per thousand gallons
EXHIBIT 5.3
SURVEY OF CURRENT BUSINESS
------------------------------------------------------------- ----------------- ----------------------------------------------------
----------------------------------------
----------------------------------------
---------------------------------------- Average 1990
1989 1990 Jan. Feb. Mar. Apr. May June
------------------------------------------------------------------------------------------------------------------------------------
COMMODITY PRICES
------------------------------------------------------------------------------------------------------------------------------------
-------- -------- -------- -------- -------- -------- -------- -------
-------- -------- -------- -------- -------- -------- -------- -------
-------- -------- -------- -------- -------- -------- -------- -------
-------- -------- -------- -------- -------- -------- -------- -------
PRODUCER PRICES
(U.S. Department of Labor Indexes)
-------- -------- -------- -------- -------- -------- -------- -------
-------- -------- -------- -------- -------- -------- -------- -------
All commodities --------------------- ------------ ----- 112.2 116.3 114.9 114.4 114.2 114.1 114.6 114.3
-------- -------- -------- -------- -------- -------- -------- -------
TABLE (CONTINUED)
COMMODITY PRICES--Continued
PRODUCER PRICES
U.S. Department of Labor Indexes)--Continued
1990
July Aug. Sept. Oct. Nov. Dec. _____
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
------- -------- -------- -------- -------- -------- --------
All commodities --------------------- ------------ ----- 114.5 116.5 118.4 120.8 120.1 118.7
------- -------- -------- -------- -------- -------- --------
EXHIBIT 5.4
SAMPLE INVOICE
November 1, 0000
Xxxxxxx Xxxxxx, Inc.
X.X. Xxx 0000
Xxxxxxxxxxxx, Xxxxxxxx 00000
INVOICE NO: Sample
BILLING PERIOD: 10-01-91 thru 10-31-91
GROSS STEAM DELIVERED 40,000,001 Lbs
STEAM RATE (per thousand pounds) $4.59
Sub-Total $183,600.00
THERMAL VALUE OF CONDENSATE CREDIT:
20,000,000 Lbs metered @ 200 F - 80 F ambient = 120 Xxx/Xx
000 Xxx/Xx x 20,000,000 Lbs = 2,400,000,000 Btu
2,400,000,000 Btu / 1,200,000 = 2,000
2,000 x $2.22 displaced fuel rate = ($4,440.00)
LIQUID VALUE OF CONDENSATE
20,000,000 Lbs metered / 8.00 Lbs/Gal = 2,500,000 Gal.
2,500,000 Gal. @ $1.00 per X.Xxx = ($2,500.00)
LIQUID VALUE OF MAKE-UP WATER
20,000,000 Lbs metered / 8.33 Lbs/Gal = 2,400,960 Gal.
2,400,960 Gal. @ $1.00 per X.Xxx = ($2,400.96)
THERMAL VALUE OF MAKE-UP WATER (if any)
20,000,000 Lbs metered @ 132 F - 80 F ambient = 52 Xxx/Xx
00 Xxx/Xx x 20,000,000 Lbs = 1,040,000,000 Btu
1,040,000,000 Btu / 1,200,000 = 867
867 x $2.22 Displaced Fuel Rate = ($1,924.74)
NET AMOUNT THIS REQUEST: $172,334.30
TERMS: Net Due November 15, 1991
NOTE: The conversion factor of 8.00 lbs. per gallon was used to convert
pounds of condensate to gallons of condensate. 8.00 Lbs/Gal was
based on a condensate temperature of 210 degrees Fahrenheit. In the
event actual condensate temperatures increase or decrease more than
10% plus or minus the conversion factor will be adjusted to reflect
the actual temperature.
EXHIBIT 7.1
CONDENSATE PARAMETERS
Parameter Maximum Limit
---------------------------- ------------------------------
Total Hardness 1.0 parts per million
Sodium .1 parts per million
Silica .2 parts per million
Conductivity 100 micromos
Total Iron .05 parts per million
Total Copper .02 parts per million
Total Organic Carbon Non Detectable
Ph 6.5 - 8.0 Range
[Letterhead of Multitrade Group, Inc.]
March 24, 1994
Xx. Xxxxx Xxxx
Xxxxxxx Xxxxxx, Inc.
XX Xxx 0000
Xxxxxxxxxxxx, XX 00000
RE: STEAM AGREEMENT RENEWAL
MARCH 1, 1995 THRU FEBRUARY 28, 1996
******************************************************************************
Dear Xxxxx:
Enclosed are the steam rates offered for the period starting March 1, 1995 thru
February 28, 1996. All other provisions, terms, and conditions contained in our
Steam Agreement dated January 15, 1992 will remain in effect.
Your acceptance of this letter agreement is a commitment, on the part of both
parties, to extend the term of the existing Agreement thru February 28, 1996
except using the steam rates indicated on the attached rate schedule.
We appreciate the business relationship which has been in existence over the
past 11 years. I look forward to providing future steam services to the Xxxxxxx
Xxxxxx organization.
Sincerely,
/s/ B. E. Brammer
---------------------------------
B. E. Brammer
President, Multitrade Group, Inc.
BEB:msm
Enclosure
[Letterhead of Xxxxxxx Xxxxxx, Inc.]
March 31, 1994
Xx. Xx Xxxxxxx
MULTITRADE GROUP, INC.
P. X. Xxx 000
Xxxxxxxx, XX 00000
RE: STEAM CONTRACT MAR 95 - FEB 96
Dear Ed:
Xxxxxxx-Xxxxxx is in receipt of your steam rate schedule for the
period of March 1, 1995 thru February 28, 1996. The rate schedule has been
reviewed by the Facilities Engineering Department. We understand that M.T.G.
desires to not issue a new formal contract, instead allowing acceptance of your
letter of March 24, 1994 and the steam rate schedule to serve as contractual
commitment by both parties to extend our existing agreement. Please accept this
letter as a formal contractual commitment by Xxxxxxx-Xxxxxx to extend the
agreement through February 28, 1996.
Xxxxxxx-Xxxxxx looks forward to the excellent service in the future
that has been experienced in the past from M.T.G., Inc.
Sincerely,
/s/ Xxxxxxx X. Xxxxx
--------------------------
Xxxxxxx X. Xxxxx
Vice President-Finance
SMF:jsm
cc: Xxxxxx Xxxxx
VP Manufacturing
Xxxxx Xxxx
Dir. Facilities Engineering
1993 Index: 118.9
BASSET-XXXXXX, INC. STEAM RATES
Effective March 1, 1995 through February 28, 1996
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000 159,375,000
0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001 17,500,001
Gross Lbs. Steam to to to to to to to to
Delivered Monthly 2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000 20,000,000
--------- --------- --------- ---------- ---------- ---------- ---------- ----------
Fuel 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
Fixed O&M 49.95 16.87 9.99 7.13 5.55 4.54 3.84 3.33
Variable O&M 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
--------- --------- --------- ---------- ---------- ---------- ---------- ----------
Total Steam
Billing Rate $53.12 $20.04 $13.16 $10.30 $8.72 $7.71 $7.01 $6.50
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.4200858 0.1418884 0.0840343 0.0600000 0.0466953 0.0381974 0.0322747 0.0279828
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity FIXED FIXED FIXED FIXED FIXED FIXED FIXED FIXED
==========================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 367,526,000 393,125,000 414,375,000
30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001 47,500,001
Gross Lbs. Steam to to to to to to to to
Delivered Monthly 32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000 50,000,000
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Fuel 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
Fixed O&M 2.00 1.85 1.72 1.61 1.51 1.44 1.35 1.28
Variable O&M 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
---- ---- ---- ---- ---- ---- ---- ----
Total Steam
Billing Rate $5.17 $5.02 $4.89 $4.78 $4.68 $4.61 $4.52 $4.45
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0168240 0.0155365 0.0145064 0.0135622 0.0127039 0.0121030 0.0113305 0.0107296
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity FIXED FIXED FIXED FIXED FIXED FIXED FIXED FIXED
==========================================================================================================================
Annual Production 180,625,000 201,875,000 223,125,000 244,375,000
20,000,001 22,500,001 25,000,001 27,500,001
Gross Lbs. Steam to to to to
Delivered Monthly 22,500,000 25,000,000 27,500,000 30,000,000
---------- ---------- ---------- ----------
Fuel 2.27 2.27 2.27 2.27
Fixed O&M 2.94 2.63 2.38 2.17
Variable O&M 0.55 0.55 0.55 0.55
Capacity 0.35 0.35 0.35 0.35
---------- ---------- ---------- ----------
Total Steam
Billing Rate $6.11 $5.80 $5.95 $5.34
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0247210 0.0221459 0.0200000 0.0182833
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352
Capacity FIXED FIXED FIXED FIXED
==========================================================================
Annual Production 435,625,000 456,875,000 478,125,000 499,375,000
50,000,001 52,500,001 55,000,001 57,500,001
Gross Lbs. Steam to to to to
Delivered Monthly 52,500,000 55,000,000 57,500,000 60,000,000
---------- ---------- ---------- ----------
Fuel 2.27 2.27 2.27 2.27
Fixed O&M 1.21 1.16 1.11 1.06
Variable O&M 0.55 0.55 0.55 0.55
Capacity 0.35 0.35 0.35 0.35
---- ---- ---- ----
Total Steam
Billing Rate $4.38 $4.33 $4.28 $4.23
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0102146 0.0097854 0.0093562 0.0089270
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352
Capacity FIXED FIXED FIXED FIXED
==========================================================================
Condensate Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
Make-up Water Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
[Letterhead of Multitrade Group, Inc.]
January 13, 1995
Xx. Xxxxx Xxxx
Xxxxxxx Xxxxxx, Inc.
XX Xxx 0000
Xxxxxxxxxxxx, XX 00000
RE: Steam Rate March 1996 through February 1997
Dear Xxxxx:
Enclosed are the proposed steam rates for the period commencing March 96 through
February 97. Rates would apply to our existing steam agreement dated January 15,
1992; all other terms and conditions would remain.
As we discussed, the format of the producers price index has been changed and
escalation, using the method which was previously used, is no longer feasible. I
enclose a copy of November 1994 "Survey of Current Business" for your
information. Perhaps we should use the consumer price index for future changes
(see page C-43).
Our proposed price changes are approximately 1 1/2% increase. It is my
understanding that the producer price index increased over 3% during 1994.
We appreciate your business and look forward to continuing to provide your steam
needs.
Sincerely,
/s/ B. Xxxxxx Xxxxxxx
---------------------
B. Xxxxxx Xxxxxxx
CEO-Chairman
BEB/esc
Enclosures
[Letterhead of Xxxxxxx Xxxxxx, Inc.]
March 31, 1995
Mr. B. Xxxxxx Xxxxxxx
Multitrade Group, Inc.
P. X. Xxx 000
Xxxxxxxx, XX 00000
RE: Steam Contract March 1996 through February 1997
Dear Xx. Xxxxxxx:
Xxxxxxx-Xxxxxx is in receipt of your proposed steam rate schedule for
the period of March 1, 1996 through February, 1997. We understand that M.T.G.
desires to not issue a new formal contract, instead allowing acceptance of your
letter of January 13, 1995 and the steam rate schedule to serve as a contractual
commitment by both parties to extend our existing agreement. Please accept this
letter as a formal contractual commitment by Xxxxxxx-Xxxxxx to extend the
agreement through February 28, 1997.
Xxxxxxx-Xxxxxx looks forward to the excellent service in the future
that has been experienced in the past from M.T.G.
Sincerely,
/s/ Xxxxx X. Xxxxxx
------------------------
Xxxxx X. Xxxxxx
Vice President-Finance
RHG:jsm
cc: Xxxxxx Xxxxx
Xxxxx Xxxx
Effective March 1, 1996 through February 28, 1997
XXXXXXX-XXXXXX MONTHLY STEAM VOLUME DISCOUNT RATES
JANUARY 13, 1995
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000 159,375,000
================================================================================================================
Gross Lbs. Steam 0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001 17,500,001
Delivered Monthly to to to to to to to to
2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000 20,000,000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
Fixed O&M 51.76 17.49 10.35 7.39 5.75 4.71 3.98 3.45
Variable O&M 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 54.94 $ 20.67 $ 13.53 $ 10.57 $ 8.93 $ 7.89 $ 7.16 $ 6.63
===================================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 371,875,000 393,125,000 414,375,000
================================================================================================================
Gross Lbs. Steam 30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001 47,500,001
Delivered Monthly to to to to to to to to
32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000 50,000,000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.27 2.27 2.27 2.27 2.27 2.27 2.27 2.27
Fixed O&M 2.07 1.92 1.78 1.67 1.57 1.48 1.40 1.33
Variable O&M 0.56 0.56 0.56 0.56 0.56 0.56 0.56 0.56
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 5.25 $ 5.10 $ 4.96 $ 4.85 $ 4.75 $ 4.66 $ 4.58 $ 4.51
===================================================================================================================================
Annual Production 180,625,000 201,875,000 223,125,000 244,375,000
======================================================
Gross Lbs. Steam 20,000,001 22,500,001 25,000,001 27,500,001
Delivered Monthly to to to to
22,500,000 25,000,000 27,500,000 30,000,000
------------ ------------ ------------ ------------
Fuel 2.27 2.27 2.27 2.27
Fixed O&M 3.04 2.72 2.46 2.25
Variable O&M 0.56 0.56 0.56 0.56
Capacity 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 6.22 $ 5.90 $ 5.64 $ 5.43
=========================================================================
Annual Production 435,625,000 456,875,000 478,125,000 499,375,000
======================================================
Gross Lbs. Steam 50,000,001 52,500,001 55,000,001 57,500,001
Delivered Monthly to to to to
52,500,000 55,000,000 57,500,000 60,000,000
------------ ------------ ------------ ------------
Fuel 2.27 2.27 2.27 2.27
Fixed O&M 1.26 1.20 1.15 1.10
Variable O&M 0.56 0.56 0.56 0.56
Capacity 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 4.44 $ 4.38 $ 4.33 $ 4.28
=========================================================================
CONDENSATE CREDIT: Thermal Value: Equal to the displaced fuel value - $2.27
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
MAKE-UP WATER CREDIT: Thermal Value: Equal to the displaced fuel value - $2.27
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
[Letterhead of Multitrade Group, Inc.]
August 21, 1996
Xx. Xxxxx Xxxx
Xxxxxxx Xxxxxx, Inc.
XX Xxx 0000
Xxxxxxxxxxxx, XX 00000
RE: Steam Rates March 1997 through February 1998
Dear Xxxxx:
Enclosed are the proposed steam rates which would apply to steam purchased from
March 1, 1997 through February 1998. The fuel, fixed and variable O&M components
have been adjusted to conform with the Producer's Price Index, 1995 average for
all commodities.
All other terms and conditions, as spelled in the existing steam agreement dated
January 15, 1992, will remain in full force and effect during the term of any
extension.
We appreciate your business and look forward to continuing to provide your steam
needs.
Sincerely,
/s/ B. E. Brammer
-----------------
B. E. Brammer
Chairman and CEO
[Letterhead of Xxxxxxx Xxxxxx, Inc.]
January 29, 1997
Mr. B. Xxxxxx Xxxxxxx
Multitrade Group, Inc.
X.X. Xxx 000
Xxxxxxxx, XX 00000
RE: STEAM CONTRACT
Dear Xx. Xxxxxxx:
Xxxxxxx-Xxxxxx, Inc. is in receipt of your proposed steam rate schedule for the
period of March 1, 1997 through February, 1998. We understand that Multitrade
Group desires to not issue a new formal contract, instead allowing acceptance of
your letter of August 21, 1996 and the steam rate schedule to serve as a
contractual commitment by both parties to extend our existing agreement. Please
accept this letter as a formal contractual commitment by Xxxxxxx-Xxxxxx to
extend the agreement through February 28, 1998.
Xxxxxxx-Xxxxxx looks forward to the excellent service in the future that has
been experienced in the past from Multitrade Group.
Sincerely,
/s/ Xxxxx Xxxxx
---------------
Xxxxx Xxxxx
Vice President
Finance
pb
c: Xxxxxx Xxxxx
Xxxxx Xxxx
Effective March 1, 1997 through February 28, 1998
1995 Index: 125.8
Basset-Xxxxxx, Inc. Steam Rates
XXXXXXX-XXXXXX MONTHLY STEAM VOLUME DISCOUNT RATES
RATE SHEET PRODUCED AUGUST 21, 1998
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000
Xxxxx Xx. Steam 0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001
Delivered Monthly to to to to to to to
2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.40 2.40 2.40 2.40 2.40 2.40 2.40
Fixed O&M 52.85 17.85 10.57 7.55 5.87 4.81 4.06
Variable O&M 0.58 0.58 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 56.18 $ 21.18 $ 13.90 $ 10.88 $ 9.20 $ 8.14 $ 7.39
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.4200858 0.1418884 0.0840343 0.0600000 0.0466953 0.0381974 0.0322747
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
============================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 371,875,000 393,125,000
Xxxxx Xx. Steam 30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001
Delivered Monthly to to to to to to to
32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.40 2.40 2.40 2.40 2.40 2.40 2.40
Fixed O&M 2.12 1.95 1.82 1.71 1.60 1.52 1.43
Variable O&M 0.58 0.58 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 5.45 $ 5.28 $ 5.16 $ 5.04 $ 4.93 $ 4.85 $ 4.76
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0168240 0.0155365 0.0145064 0.0135622 0.0127039 0.0121030 0.0113305
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
============================================================================================================================
Annual Production 159,375,000 180,625,000 201,875,000 223,125,000 244,375,000
Xxxxx Xx. Steam 17,500,001 20,000,001 22,500,001 25,000,001 27,500,001
Delivered Monthly to to to to to
20,000,000 22,500,000 25,000,000 27,500,000 30,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.40 2.40 2.40 2.40 2.40
Fixed O&M 3.52 3.11 2.79 2.52 2.30
Variable O&M 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 6.85 $ 6.44 $ 6.12 $ 5.85 $ 5.63
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0279828 0.0247210 0.0221459 0.0200000 0.0182833
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
==================================================================================================
Annual Production 414,375,000 435,625,000 456,875,000 478,125,000 499,375,000
Xxxxx Xx. Steam 47,500,001 50,000,001 52,500,001 55,000,001 57,500,001
Delivered Monthly to to to to to
50,000,000 52,500,000 55,000,000 57,500,000 60,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.40 2.40 2.40 2.40 2.40
Fixed O&M 1.35 1.28 1.23 1.18 1.12
Variable O&M 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 4.68 $ 4.62 $ 4.56 $ 4.51 $ 4.45
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0107296 0.0102146 0.0097854 0.0093562 0.0089270
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
==================================================================================================
CONDENSATE CREDIT: Thermal Value: Equal to the displaced fuel value - $2.40
per 1,200,000 BTUs in 1997 Dollars
Liquid Value: $1.00 per thousand gallons
MAKE-UP WATER CREDIT: Thermal Value: Equal to the displaced fuel value - $2.40
per 1,200,000 BTUs in 1997 Dollars
Liquid Value: $1.00 per thousand gallons
[Letterhead of Multitrade Group, Inc.]
May 1, 1997
Xx. Xxxxx Xxxx
Xxxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000
RE: Steam Rate Adjustment
Dear Xxxxx:
Attached is the proposed steam rate schedule for steam delivered between March
1, 1998 and February 28, 1999.
The rates were changed based on the rate of change in the Producer's Price "all
commodities" index. The index changed from 125.8 to 127.6 (1996 average). The
change in the index means an approximate 1.4% increase in steam pricing.
Request the rates on the attached sheet be approved for steam delivered during
the time period indicated.
I appreciate the opportunity to serve you and the Xxxxxxx-Xxxxxx organization. I
hope the attached rates meet your early approval.
Sincerely,
/s/ B. E. Brammer
-----------------
B. E. Brammer
CEO
[Letterhead of Xxxxxxx Xxxxxx, Inc.]
May 12, 1997
Mr. B. Xxxxxx Xxxxxxx
Multitrade Group, Inc.
X.X. Xxx 000
Xxxxxxxx, XX 00000
Re: Steam Contract
Dear Xx. Xxxxxxx:
Basset-Xxxxxx, Inc. is in receipt of your proposed steam rate schedule for the
period of March 1, 1998 through February 28, 1999. We understand that Multitrade
Group desires to not issue a new formal contract, instead allowing acceptance of
your letter of May 1, 1997 and the steam rate schedule to serve as a contractual
commitment by Xxxxxxx-Xxxxxx, Inc, to extend the agreement through February 28,
1999.
Xxxxxxx-Xxxxxx, Inc. looks forward to the excellent service in the future that
has been experienced in the past from Multitrade Group, Inc.
Sincerely,
/s/ Xxxxxx Xxxxx
----------------
Xxxxxx Xxxxx
Vice President
Manufacturing
cc: Xxxxx Xxxxx
Xxxxx Xxxx
Effective March 1, 1998 through February 28, 1999
1996 Index: 127.6
Basset-Xxxxxx, Inc. Steam Rates
XXXXXXX-XXXXXX MONTHLY STEAM VOLUME DISCOUNT RATES
RATE SHEET PRODUCED MAY 1, 1997
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000
Gross Lbs. Steam 0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001
Delivered Monthly to to to to to to to
2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Fixed O&M 53.60 18.10 10.72 7.66 5.96 4.87 4.12
Variable O&M 0.59 0.59 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 56.98 $ 21.48 $ 14.10 $ 11.03 $ 9.33 $ 8.25 $ 7.49
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.4200858 0.1418884 0.0840343 0.0600000 0.0466953 0.0381974 0.0322747
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 371,875,000 393,125,000
Gross Lbs. Steam 30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001
Delivered Monthly to to to to to to to
32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Fixed O&M 2.15 1.98 1.85 1.73 1.62 1.54 1.54
Variable O&M 0.59 0.59 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 5.52 $ 5.36 $ 5.22 $ 5.10 $ 4.99 $ 4.92 $ 4.82
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0168240 0.0155365 0.0145064 0.0135622 0.0127039 0.0121030 0.0113305
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 159,375,000 180,625,000 201,875,000 223,125,000 244,375,000
Gross Lbs. Steam 17,500,001 20,000,001 22,500,001 25,000,001 27,500,001
Delivered Monthly to to to to to
20,000,000 22,500,000 25,000,000 27,500,000 30,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43
Fixed O&M 3.57 3.15 2.83 2.55 2.33
Variable O&M 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 6.94 $ 6.53 $ 6.20 $ 5.92 $ 5.71
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0279828 0.0247210 0.0221459 0.0200000 0.0162333
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Annual Production 414,375,000 435,625,000 456,875,000 478,125,000 499,375,000
Gross Lbs. Steam 47,500,001 50,000,001 52,500,001 55,000,001 57,500,001
Delivered Monthly to to to to to
50,000,000 52,500,000 55,000,000 57,500,000 60,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43
Fixed O&M 1.37 1.30 1.25 1.19 1.14
Variable O&M 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 4.74 $ 4.68 $ 4.62 $ 4.57 $ 4.51
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0107296 0.0102146 0.0097854 0.0093562 0.0089270
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Condensate Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
Make-up Water Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
[Letterhead of Multitrade Group, Inc.]
March 11, 1998
Xx. Xxxxx Xxxx
VF Knitware, Inc.
Xxxxxxxxxxxx, XX 00000
RE: Steam Rate Adjustment
Dear Xxxxx:
Attached is the proposed steam rate schedule for steam delivered between March
1, 1999 and February 28, 2000.
There is NO change in the actual steam rate. The Producers Price Index "All
Commodities Index" remained at 127.6 (see the attached copy).
Request the rates on the attached sheet be approved for steam delivered during
the time period indicated.
I will also prepare an amendment to the steam agreement that formalizes and
binds both parties to the terms and conditions. This is necessary in view of the
name change to VF Knitware, Inc.
Sincerely,
/s/ B. E. Brammer
-----------------
B. E. Brammer
CEO
[Letterhead of VF Knitwear (formerly Xxxxxxx Xxxxxx, Inc.)]
March 13, 1998
Mr. B. Xxxxxx Xxxxxxx
Multitrade Group, Inc.
X.X. Xxx 000
Xxxxxxxx, XX 00000
RE: Steam Contract
March 1, 1999 - February 28, 2000
Dear Xx. Xxxxxxx:
VF Knitwear, Inc. is in receipt of your proposed steam rate schedule for
the period of March 1, 1999 through February 28, 2000. VF Knitwear, Inc. agrees
to the steam rate schedule as submitted.
VF Knitwear, Inc. looks forward to the excellent service in the future that
has been experienced in the past from Multitrade Group.
Sincerely,
/s/ Xxxxxx Xxxxx
----------------
Xxxxxx Xxxxx
Vice President
Manufacturing
cc: Xxxxx Xxxx
Effective March 1, 1999 through February 28, 2000
1997 Index: 127.6
Basset-Xxxxxx, Inc. Steam Rates
XXXXXXX-XXXXXX MONTHLY STEAM VOLUME DISCOUNT RATES
RATE SHEET PRODUCED MARCH 11, 1998
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000
0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001
Gross Lbs. Steam to to to to to to to
Delivered Monthly 2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Fixed O&M 53.60 18.10 10.72 7.66 5.96 4.87 4.12
Variable O&M 0.59 0.59 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 56.98 $ 21.48 $ 14.10 $ 11.03 $ 9.33 $ 8.25 $ 7.49
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.4200858 0.1418884 0.0840343 0.0600000 0.0466953 0.0381974 0.0322747
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 371,875,000 393,125,000
Gross Lbs. Steam 30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001
Delivered Monthly to to to to to to to
32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43 2.43 2.43
Fixed O&M 2.15 1.98 1.85 1.73 1.62 1.54 1.54
Variable O&M 0.59 0.59 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 5.52 $ 5.36 $ 5.22 $ 5.10 $ 4.99 $ 4.92 $ 4.82
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0168240 0.0155365 0.0145064 0.0135622 0.0127039 0.0121030 0.0113305
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 159,375,000 180,625,000 201,875,000 223,125,000 244,375,000
17,500,001 20,000,001 22,500,001 25,000,001 27,500,001
Gross Lbs. Steam to to to to to
Delivered Monthly 20,000,000 22,500,000 25,000,000 27,500,000 30,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43
Fixed O&M 3.57 3.15 2.83 2.55 2.33
Variable O&M 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 6.94 $ 6.53 $ 6.20 $ 5.92 $ 5.71
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0279828 0.0247210 0.0221459 0.0200000 0.0182833
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Annual Production 414,375,000 435,625,000 456,875,000 478,125,000 499,375,000
Gross Lbs. Steam 47,500,001 50,000,001 52,500,001 55,000,001 57,500,001
Delivered Monthly to to to to to
50,000,000 52,500,000 55,000,000 57,500,000 60,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.43 2.43 2.43 2.43 2.43
Fixed O&M 1.37 1.30 1.25 1.19 1.14
Variable O&M 0.59 0.59 0.59 0.59 0.59
Capacity 0.35 0.35 0.35 0.35 0.35
------------ ------------ ------------ ------------ ------------
Total Steam
Billing Rate $ 4.74 $ 4.68 $ 4.62 $ 4.57 $ 4.51
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0107296 0.0102146 0.0097854 0.0093562 0.0089270
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Condensate Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
Make-up Water Credit: Thermal Value: Equal to the displaced fuel value - $2.43
per 1,200,000 BTUs in 1998 Dollars
Liquid Value: $1.00 per thousand gallons
[Letterhead of Multitrade Group, Inc.]
February 25, 1999
Xx. Xxxxx Xxxx
VF Knitwear, Inc.
X.X. Xxx 0000
Xxxxxxxxxxxx, XX 00000
RE: Steam Rate Adjustment
Dear Xxxxx:
Please find enclosed a rate sheet for steam sales for the period of March 1,
2000 through February 2001. The rates have been reduced in accordance with the
Producer's Price Index -- All Commodities for 1998 as required in Section 5.3b
and 5.3c in the Steam Agreement dated March 1, 1993. The condensate credit was
changed to the fuel component rate in accordance with Section 7.3.
As allowed in Section 13 in the Steam Agreement, Multitrade requests that the
acceptance of the rate schedule and this letter serve as a contractual
commitment by both parties to extend the agreement through February 2001.
Multitrade looks forward to providing your steam energy needs!
Sincerely,
-----------------------------------
Xxxx X. Xxxxxx
Vice President Virginia Operations
[Letterhead of VF Knitwear (formerly Xxxxxxx Xxxxxx, Inc.)]
February 26, 1999
Xx. Xxxx X. Xxxxxx
Multitrade Group, Inc.
X.X. Xxx 000
Xxxxxxxx, XX 00000
RE: Steam Contract: March 1, 2000 - February 28, 2001
Dear Xx. Xxxxxx:
VF Knitwear, Inc. has received your proposed steam rate schedule for the
period of March 1, 2000 through February 28, 2001. VF Knitwear, Inc. accepts the
rate schedule and will continue our contract for the covered period.
VF Knitwear, Inc. looks forward to the excellent service in the future that
has been experienced in the past from Multitrade Group.
Sincerely,
/s/ Xxxxx Xxxx
--------------------------
Xxxxx Xxxx
V.P. Textile Manufacturing
cc: Xxx Xxxxxx
Xxx Xxxxxxx
Xxxxx Xxxx
Effective March 1, 2000 through February 28, 2001
1998 Index: 124.4
Basset-Xxxxxx, Inc. Steam Rates
VF KNITWEAR MONTHLY STEAM VOLUME DISCOUNT RATES
STEAM PURCHASED FROM KTI ENERGY OF VIRGINIA
RATE SHEET (PRODUCED FEBRUARY 24, 1999)
Annual Production 10,625,000 31,450,000 53,125,000 74,375,000 95,625,000 116,875,000 138,125,000
0 2,500,001 5,000,001 7,500,001 10,000,001 12,500,001 15,000,001
Gross Lbs. Steam to to to to to to to
Delivered Monthly 2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.37 2.37 2.37 2.37 2.37 2.37 2.37
Fixed O&M 52.26 17.65 10.45 7.46 5.81 4.75 4.01
Variable O&M 0.58 0.58 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 55.56 $ 20.95 $ 13.75 $ 10.76 $ 9.11 $ 8.05 $ 7.31
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.4200858 0.1418884 0.0840343 0.0600000 0.0466953 0.0381974 0.0322747
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 265,625,000 286,875,000 308,125,000 329,375,000 350,625,000 371,875,000 393,125,000
Gross Lbs. Steam 30,000,001 32,500,001 35,000,001 37,500,001 40,000,001 42,500,001 45,000,001
Delivered Monthly to to to to to to to
32,500,000 35,000,000 37,500,000 40,000,000 42,500,000 45,000,000 47,500,000
------------ ------------ ------------ ------------ ------------ ------------ ------------
Fuel 2.37 2.37 2.37 2.37 2.37 2.37 2.37
Fixed O&M 2.09 1.93 1.80 1.69 1.58 1.51 1.41
Variable O&M 0.58 0.58 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 5.39 $ 5.23 $ 5.10 $ 4.98 $ 4.88 $ 4.81 $ 4.71
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0168240 0.0155365 0.0145064 0.0135622 0.0127039 0.0121030 0.0113305
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed Fixed Fixed
==============================================================================================================================
Annual Production 159,375,000 180,625,000 201,875,000 223,125,000 244,375,000
17,500,001 20,000,001 22,500,001 25,000,001 27,500,001
Gross Lbs. Steam to to to to to
Delivered Monthly 20,000,000 22,500,000 25,000,000 27,500,000 30,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.37 2.37 2.37 2.37 2.37
Fixed O&M 3.48 3.08 2.75 2.49 2.27
Variable O&M 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 6.78 $ 6.37 $ 6.05 $ 5.79 $ 5.57
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0279828 0.0247210 0.0221459 0.0200000 0.0182833
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Annual Production 414,375,000 435,625,000 456,875,000 478,125,000 499,375,000
Gross Lbs. Steam 47,500,001 50,000,001 52,500,001 55,000,001 57,500,001
Delivered Monthly to to to to to
50,000,000 52,500,000 55,000,000 57,500,000 60,000,000
------------ ------------ ------------ ------------ ------------
Fuel 2.37 2.37 2.37 2.37 2.37
Fixed O&M 1.33 1.27 1.22 1.16 1.11
Variable O&M 0.58 0.58 0.58 0.58 0.58
Capacity 0.35 0.35 0.35 0.35 0.35
Total Steam
Billing Rate $ 4.63 $ 4.57 $ 4.51 $ 4.46 $ 4.41
CALCULATION OF MULTIPLIERS
--------------------------
Fuel 0.0190558 0.0190558 0.0190558 0.0190558 0.0190558
Fixed O&M 0.0107296 0.0102146 0.0097854 0.0093562 0.0089270
Variable O&M 0.0046352 0.0046352 0.0046352 0.0046352 0.0046352
Capacity Fixed Fixed Fixed Fixed Fixed
================================================================================================
Condensate Credit: Thermal Value: Equal to the displaced fuel value - $2.37
per 1,200,000 BTUs
Liquid Value: $1.00 per thousand gallons
Make-up Water Credit: Thermal Value: Equal to the displaced fuel value - $2.37
per 1,200,000 BTUs
Liquid Value: $1.00 per thousand gallons
Accepted and Approved:
/s/ Xxxxx Xxxx
------------------------------------
V.F. Knitwear, Inc.
/s/ Xxxx X. Xxxxxx
------------------------------------
KTI Energy of Virginia, Inc.
