Natural Gas Purchase Agreement
Natural
Gas Purchase Agreement
Party A:
Xi’an Xilan Natural Gas Co., Ltd.
Party B:
PetroChina Xxxxx Xxxx Oil Field Branch
According
to the CONTRACT LAW OF THE PEOPLE’S REPUBLIC OF CHINA, the MUNICIPAL GAS
MANAGEMENT REGULATION, as well as the MUNICIPAL GAS SECURITY MANAGEMENT
REGULATION, for the purpose of confirming the obligations and rights for the
supplier and the user in the process of natural gas supply and usage, after
mutual negotiation, Party A and Party B reach this agreement which should be
strictly followed.
Article
1: Party B provides compressed natural gas to Party A through fueling stations
operated by Party B.
Article
2: Measuring unit and measuring method of natural gas:
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1.
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Unit:
Cubic meters
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2.
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Method:
Based on the indication of fueling machine at the fueling station owned by
Party B
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Article
3: Price of natural gas and settlement:
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1.
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Price
of natural gas: According to the pricing standard of natural gas set by
the Price Control Administration of Xi’an City, the price of natural gas
supplied by Party B is RMB 1.10 per NM3.
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2.
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Settlement:
The payment for natural gas must be settled before the twenty-fifth of
every month, negotiable under special
circumstances.
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3.
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The
actual settlement amount is based on the reconciliation
numbers.
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Article
4: Obligations and duties of Party A:
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1.
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Party
A shall make payment within the stated date, (negotiable under special
circumstances). If payment was not made as stated, Party B has the right
to terminate the supply of natural
gas.
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2.
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Party
A should instruct its drivers to comply with all the regulations at the
fueling stations owned by Party B. If, due to the misconduct of the staff
of Party A, damages are caused to the equipments, Party A must reimburse
Party B for the damages
accordingly.
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Article
5: Obligations and duties of Party B:
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1.
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Party
B must guarantee to provide Party A with quality compressed natural gas.
If there are any disagreements between Party A and Party B regarding the
quality of the natural gas, the natural gas should be tested by the
National Quality Supervision Department. If according to the test results,
Party A sustained any loss from unqualified natural gas provided by Party
B, Party A should be reimbursed by Party
B.
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2.
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Party
B must guarantee the accuracy of measurement of the fueling equipments and
has the responsibility to assist Party A in testing the measurement of the
fueling equipments.
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3.
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Party
B has the responsibility to provide quality service to Party A. The
quantity and quality of the compressed natural gas supplied by Party B
must not be false, if inconsistencies are discovered, Party B must
compensate Party A according to related national
regulations.
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4.
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Party
B must provide Party A with clear and accurate quantity information of the
supplied natural gas. If Party A generates any loss as a result from the
information given, Party A should be reimbursed by party
B.
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5.
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In
order to guarantee Party A’s operation, Party B should inform Party A
during times when there is insufficient supply of natural gas or when
equipments are under testing and
maintenance.
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Article
6: Dispute Resolution:
Both
parties will negotiate to solve any disputes which occur during the execution of
the agreement. If the two parties could not reach an agreement, any party may
commence proceedings at the local People's Court.
Article
7: This agreement is in quadruplicate and each party holds two
copies.
Party
A: Xian Xilan Natural Gas Co., Ltd.
Xxx
Xxxxx (signature)
Date:
July 30, 2006
Party B:
PetroChina Xxxxx Xxxx Oil Field Branch
Xxx
Xxx (signature)
Date:
July 30, 2006
