English Translation) Compressed Coal Bed Methane Supply Agreement
EXHIBIT
10.11
(English
Translation)
Party
A: Fuxin Dali Gas Co. Ltd
Party
B: Tianjin Singocean public utilities development Co. Ltd
With
the
purpose of further cooperation in developing coal bed methane (“Methane”)
market, Party A and Party B(each a “Party” and together the “Parties”) reach
this agreement (“Agreement”) under friendly negotiation.
| 1. |
The
Parties agree that, Party A will supply Party B with compressed coal
bed
methane on the basis of long term, within a radius of 300 kilometers
of
the Party A gas source. Party B shall be responsible for the transport
equipments of Methane.
|
| 2. |
The
amount of Methane shall be subject to the quarter consuming plan
agreed by
the Parties. Party B shall provide the quarter consuming plan before
the
20th
day of the month before the starting day of each quarter. Party A
will
supply the Methane according to the quarter consuming plan. The amount
of
Methane shall be increased gradually based upon the growth of Party’s B
and be supplied in compliance with the quarter consuming
plan.
|
| 3. |
Whereas
the amount of Methane consumed by Party B reaches the utmost capacity
of
Party B, the Parties may negotiate the investment expansion of the
Methane
project (the investment details to be further
negotiated).
|
| 4. |
Quality
of the Methane
|
| 1) |
The
quality of the Methane supplied by Party A shall be in compliance
with
national standard specified in Natural Gas
(SY7541).
|
| 2) |
Party
B recognizes the coal bed methane quality test report provided by
Party A
as the supply standard for Methane
quality.
|
| 5. |
Measure
|
| 1) |
The
measure standard for the Methane shall be: 20 Centigrade below, absolute
pressure 101.31 Kpa (one standard atmospheric pressure). The sum
of the
calculation shall be subject to the one determined by the departments
of
the Parties in charge of Methane delivery and
acceptance.
|
| 2) |
The
measure equipment shall be checked and adjusted each year with inspection
certificate issued. The Parties shall decide the qualification of
the
inspection institution as well as appoint the particular inspection
institution. Any dispute shall be negotiated by the Parties. In case
of
inspecting the measure equipment due to any dispute, the fees for
inspection shall be paid by the Party liable for the
dispute.
|
| 6. |
Price
|
| 1) |
The
Parties agree that the price of Methane is 1.6 RMB/m3 which shall
be kept
relatively fixed. If the price is adjusted due to cost change, the
Parties
may negotiate on the price with further
agreement.
|
| 2) |
Price
adjustment----The guideline for price adjustment shall be based upon
the
cost, market price and price of other relative
products.
|
| 7. |
Settlement
|
| 1) |
Party
B shall pay supplied gas to Party A by accepted notes, xxxx of exchange
or
cash.
|
| 2) |
Party
A shall issue value added tax invoice to Party
B.
|
| 3) |
Party
B shall settle accounts with Party A periodically according to actual
monthly gas consumption.
|
| 8. |
The
Agreement shall take effect from the date when the Parties execute
and
stamp the company chop on the agreement.
|
| 9. |
The
Parties shall try to reach an agreement if any dispute occurs from
the
Agreement. In case of the failure in solving the disputes by negotiation,
each Party is entitled to file a lawsuit where the breaching Party
is
located.
|
| 10. |
Anything
uncovered in this agreement will be settled through friendly consultation
by supplementary agreement entered into by the Parties. The supplementary
agreement will have equal legal effect as this
Agreement.
|
| 11. |
This
Agreement shall be executed in four counterparts. Each Party shall
hold
two counterparts with equal legal
effect.
|
Representative
of Party A(sign):__________________________
Party
A(chop):_________________________
Representative
of Party B(sign):__________________________
Party
B(chop):_________________________
