English Translation) Methane Supply Agreement
EXHIBIT
10.12
(English
Translation)
Methane
Supply Agreement
Party
A: Fuxin Hongdi New Energy Co. Ltd
Party
B: Tianjin Singocean Gas Engineering Co. Ltd
On
the
basis of mutual benefit and development, Party A and Party B (each a “Party” and
together the “Parties”) entered this agreement (“Agreement”) through friendly
negotiation.
| 12. |
Supply
amount, gas quality, measure, pricing and
settlement
|
| 1) |
Supply
amount. The amount shall be basically subject to the quarter consuming
plan agreed by the Parties. Party B shall provide the next quarter
consuming plan before the 20th day of the last month of each quarter.
Party A will supply the gas according to the quarter consuming plan
and
with the consideration that Party B’s increasing gas consuming based upon
its market growth, the gas is estimated to be needed in May with
the
minimum consumption of 2000M⒊/day.
|
| 2) |
The
quality of the gas supplied by Party A shall be in compliance with
national standard specified in Natural Gas
(SY7541).
|
| 3) |
Measure.
The measure condition for the gas 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. Under normal
circumstances, the measure equipment shall be checked and adjusted
each
year with inspection certificate issued and inspection fees paid
by the
Parties (Party A shall provide supplementary facilities regarding
the
temperature auto control). Any disputes can be solved with re-inspection
at any time by particular inspection institution appointed by the
Parties.
The fees for the inspection shall be paid by the Party liable for
the
dispute.
|
| 4) |
Pricing.
The Parties agree that the price of Methane is 1.10 RMB/m3 which
shall be
stable. The Parities may negotiate in case of price
change.
|
ŸParty
B
shall make the payment each time when the unpaid consumption by Party B reaches
50000 2000M⒊.
ŸParty
B
shall pay supplied gas to Party A by bills of exchange or cash.
| 13. |
Obligations
of the Parites
|
| 1) |
Obligations
of the Party A
|
| i. |
Supply
gas according to the quarter consuming plan agreed by the
Parties.
|
| ii. |
Allow
Party B to build a temporary compression station of 40 to 60 square
meters
on Party A’s gas collection area, for the convenience of compression
delivery.
|
| iii. |
Provide
electricity for Party B’s temporary compression station and set separate
measure equipment based upon which the fees shall be collected from
Party
B for electricity consumed.
|
| iv. |
Compensate
for Party B’s losses due to Party A’s
fault.
|
| 2) |
Obligations
of the Party B
|
| i. |
Provide
accurate minimum consumption plans(quarter and month) for Party A’s
collection of gas.
|
| ii. |
Independently
responsible for the construction of temporary compression station
and
relevant equipments which shall be owned by Party
B.
|
| iii. |
Provide
various and enough facilities for safety and protection in the compression
station, and forbid any operation that violates applicable
rules.
|
| iv. |
Compensate
for Party A’s losses due to Party B’s
fault.
|
| 14. |
Others
|
| 1) |
Anything
uncovered in this agreement will be settled through friendly
consultation
|
| 2) |
The
Agreement shall take effect upon the date of Parties’ execution. The
supplementary agreement entered into by the Parties, will have equal
legal
effect as this Agreement.
|
| 3) |
The
Parties shall try to reach an agreement if any dispute occurs during
the
performance of this Agreement. In case of the failure in solving
the
disputes by negotiation, each Party is entitled to file a lawsuit
where
the plaintiff is located.
|
Representative
of Party A(sign):__________________________
Representative
of Party B(sign):__________________________
Date:
March 4, 2004
