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PORTIONS OF THIS EXHIBIT IDENTIFIED BY "***" HAVE BEEN DELETED PURSUANT TO A
REQUEST FOR CONFIDENTIAL TREATMENT FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED,
AND THE FREEDOM OF INFORMATION ACT.
EXHIBIT 10(e)-4
GAS SALE AND PURCHASE CONTRACT
BETWEEN
CORAL ENERGY RESOURCES, L.P.
AS SELLER
AND
MOBILE GAS SERVICE CORPORATION
AS BUYER
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TABLE OF CONTENTS
ARTICLE I.
DEFINITIONS .........................................................1
ARTICLE II.
SOURCES OF GAS ......................................................2
ARTICLE III.
RESERVATIONS ........................................................2
ARTICLE IV.
QUANTITY ............................................................3
ARTICLE V.
PRICES ..............................................................4
ARTICLE VI.
DELIVERY POINTS .....................................................5
ARTICLE VII.
DELIVERY CONDITIONS .................................................5
ARTICLE VIII.
FORCE MAJEURE .......................................................6
ARTICLE IX.
ACCOUNTING ..........................................................7
ARTICLE X.
TERM ................................................................8
ARTICLE XI
INDEMNIFICATION .....................................................8
ARTICLE XII
WARRANTY ............................................................8
ARTICLE XIII.
ADDRESSES AND NOTICES ...............................................8
ARTICLE XIV.
SUCCESSORS AND ASSIGNS ..............................................9
ARTICLE XV.
MISCELLANEOUS ......................................................10
ARTICLE XVI.
CONFIDENTIALITY ....................................................11
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GAS SALE AND PURCHASE CONTRACT
THIS CONTRACT, entered into as of July 1, 2000, by and between CORAL
ENERGY RESOURCES, L.P. ("Seller") and MOBILE GAS SERVICE CORPORATION ("Buyer").
WITNESSETH:
WHEREAS, Seller desires to sell and deliver natural gas to Buyer and
Buyer desires to purchase and receive natural gas from Seller upon the terms and
conditions set out herein.
NOW, THEREFORE, in consideration of the mutual benefits and covenants
contained herein, Seller and Buyer agree as follows:
ARTICLE I.
DEFINITIONS
1.1 DEFINITIONS. Except where the context otherwise indicates
another or different meaning or intent, the following words and terms
as used herein shall be construed to have the meanings indicated:
(a) "Btu" means British Thermal Unit and, if appropriate, also
means the plural thereof.
(b) "Commodity Price" means the base price per MMBtu as
determined pursuant to Sections 5.2, 5.3, 5.4, hereof.
(c) "Daily Contract Entitlement" or "DCE" means the daily
quantity of gas to be made available to Buyer for nomination pursuant
to Section 4.1 hereof.
(d) The word "day" means 24 consecutive hours, coextensive
with a "day" as defined by the Transporter. The date of a day shall be
that of its beginning.
(e) "FERC" means the Federal Energy Regulatory Commission and
any successor thereto.
(f) The word "gas" means natural gas, whether produced with
oil or from gas or gas-condensate xxxxx.
(g) "MMBtu" means 1,000,000 Btu.
(h) The word "month" means a period beginning on the first day
of a calendar month and ending immediately prior to the first day of
the next succeeding calendar month.
(i) "Nominated Quantity" means the quantity of gas, in MMBtu
per day, nominated by Buyer for a given month pursuant to Section 4.3
hereof.
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(j) "Reservation Charge" means the fee paid Seller to make
available for Buyer's nomination a quantity of gas equal to the DCE for
the term of this Contract. Such fee shall be calculated pursuant to the
provisions of Section 5.1 hereof.
(k) "Transporter" means the pipeline used by Buyer to
transport gas delivered hereunder.
(l) The word "year" means a period of 365 consecutive days
from the first day of the month following the month in which the
initial nomination is made hereunder, provided that any year which
contains the date February 29 shall consist of 366 days.
(m) "Yellowhammer Plant" means the Yellowhammer Treating Plant
located approximately fifteen miles south of Interstate 10 or xxxxx
xxxx 000 xxxx Xxxxxx, Xxxxxxx.
ARTICLE II.
SOURCES OF GAS
2.1 POOL COMPOSITION. The gas delivered hereunder will be
provided from any or all of Seller's sources of gas (the "Pool"). Buyer
understands and agrees that Seller may, at any time and from time to
time, add to or subtract from the sources comprising the Pool, at
Seller's sole discretion and for any reason. Buyer shall have no rights
whatsoever with respect to any particular source of gas in the Pool at
any time.
2.2 SUPPLY SHORTAGE MITIGATION. Notwithstanding the provisions
of Section 2.1, the parties intend that deliveries hereunder will be
made at the Yellowhammer Plant. Each party agrees to work to mitigate
the effect of any reduction in deliveries at the Yellowhammer Plant
resulting from force majeure events by seeking alternate supplies and
by seeking to arrange for deliveries at other locations on Buyer's
pipeline system. Seller may, but shall not be obligated, to deliver gas
at any other delivery locations.
2.3 REMEDY. Anything in this Contract to the contrary
notwithstanding, Buyer's sole and exclusive remedy, whether at law or
in equity, against Seller for Seller's failure to tender gas for
delivery under this Contract shall be for the remedies set forth in
Section 4.4 hereof.
ARTICLE III.
RESERVATIONS
3.1 RIGHTS. With respect to any lands from which gas in the
Pool is produced, Seller expressly reserves to itself, its successors
and assigns, and to each of its gas suppliers, the following rights and
such quantities of gas sufficient to satisfy such rights:
(a) The right to operate such lands free from any control by
Buyer, including, without limitation, the right (but never the
obligation) to drill new xxxxx, to repair and rework
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old xxxxx, to abandon any well and to renew, surrender, release or
terminate any lease (in whole or in part), covering such lands,
(b) The right to deliver gas to lessors of leases on such
lands in quantities sufficient to fulfill lease obligations from time
to time,
(c) The right to use gas for development and operation of such
lands, including (but not limited to) the use of gas for fuel, drilling
(including gas drilling), deepening, reworking, compressing, gas
lifting, processing, treating, cycling, repressuring or other
supplemental recovery operations,
(d) The right to form or participate in the formation of any
unit or units, including (but not limited to) any fieldwide unit or
units, and thereafter to increase or decrease the size of any unit so
formed and to dissolve any unit or units so formed.
(e) The right to process gas prior to delivery and to extract
components other than methane.
ARTICLE IV.
QUANTITY
4.1 DAILY CONTRACT ENTITLEMENT. Seller agrees that it shall
have available for nomination by Buyer each month a Daily Contract
Entitlement of *** MMBtu's per day ***. Seller's obligation to deliver
gas shall not exceed, on any day, the Nominated Quantity.
4.2 MINIMUM QUANTITY. Subject to the provisions of Sections
4.3, 4.4, and 4.5, Buyer shall, on each day during the term hereof,
take the Nominated Quantity.
4.3 NOMINATION. Buyer shall notify Seller, at least six work
days prior to the beginning of each month in which deliveries are to
occur, of the quantity of gas in MMBtu per day Buyer desires to take
delivery of during the succeeding month ("Nominated Quantity") not to
exceed the DCE. *** Buyer may, on any *** days of each month, at its
sole option and on 24 hours' prior notice to Seller, request an
increase in the Nominated Quantity by an amount up to*** ("Call
Quantity"). Buyer shall not have the right to vary the Nominated
Quantity ***.
4.4 FAILURE TO DELIVER. If Seller fails to tender for delivery
all or part of the Nominated Quantity and if such failure is not the
result of force majeure, then the parties shall remedy the failure to
tender for delivery solely and exclusively through the actions set out
below:
(a) Buyer may charge Seller, and Seller shall pay after
billing thereof, the difference between the Commodity Price or the
Alternate Commodity Price, as applicable, which would have been paid
hereunder for the undelivered gas and such higher price, if any,
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which Buyer reasonably paid to obtain gas supplies to replace the
undelivered gas from third party suppliers.
4.5 FAILURE TO TAKE. If Buyer fails to take delivery, when
available, of the Nominated Quantity and if such failure is not the
result of force majeure, then:
(a) as to any *** during any month of *** of the Nominated
Quantity, *** shall *** to ***, *** of the Nominated Quantity and the
quantities actually delivered *** of the Commodity Price or Alternate
Commodity Price, whichever is applicable;
(b) as to failures to nominate the maximum DCE and failures to
take the Nominated Quantity, any and all such gas shall be deemed
released for the month or the remainder thereof by Buyer for Seller to
dispose of as Seller sees fit.
4.6 LIMITATION OF LIABILITY. NOTWITHSTANDING ANYTHING TO THE
CONTRARY, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL,
PUNITIVE, EXEMPLARY, OR INDIRECT DAMAGES, LOST PROFITS, OR OTHER
BUSINESS INTERRUPTION DAMAGES, IN TORT OR CONTRACT.
ARTICLE V.
PRICES
5.1 RESERVATION CHARGE. Buyer shall pay Seller each month a
Reservation Charge calculated as *** multiplied by the DCE for the
relevant month, multiplied by the number of days in the month.
5.2 COMMODITY PRICE. Subject to the further provisions hereof,
for each MMBtu of gas delivered or for which payment is due hereunder,
Buyer shall pay Seller a price to be agreed upon between the parties on
or before the sixth working day prior to the end of a month preceding
deliveries ("Commodity Price"), provided that if the parties fail to
reach agreement as to a Commodity Price, such price shall be determined
in accordance with Section 5.3.
5.3 ALTERNATE COMMODITY PRICE. If the parties fail to agree on
a Commodity Price pursuant to Section 5.2, Buyer and Seller agree to
use an alternate price ("Alternate Commodity Price") to be determined
monthly for the Nominated Quantity which shall be based on the index of
*** as published by *** in the first issue of each month of deliveries.
Buyer and Seller also agree to use an alternate price for the Call
Quantity ("Call Quantity Alternate Commodity Price") to be determined
daily based on the average of the high and low common prices of the***
as published by *** in the issue on the day of delivery***.
5.4 REDETERMINATION OF ALTERNATE COMMODITY PRICE OR CALL
QUANTITY ALTERNATE COMMODITY PRICE. If at any time and from time to
time *** ceases publication or materially changes the index of prices
on which the Alternate Commodity Price or Call Quantity Alternate
Commodity Price is based, then the Parties agree to select a different
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publication or index from which to derive a pricing index, as similar
as possible to the indices selected under this Contract.
5.5 BUYER'S PRICE OPTION. If, at any time and from time to
time, any regulatory agency having jurisdiction over Buyer specifically
disallows the inclusion in Buyer's resale rates of an amount per MMBtu
paid for gas hereunder, then Buyer may elect to terminate this Contract
effective upon a date at least 30 days after written notice to Seller.
If Buyer's election to terminate falls between November 1 and the next
succeeding April 1, the parties agree to continue performance of this
Contract until April 1, or such earlier date as is set forth in notice
from Buyer to Seller. In no event, however, shall Seller be required to
reduce any price, to refund any amount paid, or to bear any interest or
other cost as a result of any such disallowance.
5.6 SELLER'S PRICE OPTION. If, at any time, Seller is not
permitted by applicable law, order or rule to collect any part of a
price effective hereunder or any part of such price is subject to a
possible refund obligation, then Seller may reduce such price, or part
thereof, to that which is collectible without refund or Seller may
terminate this Contract by giving 30 days' prior written notice to
Buyer. If Seller's election to terminate falls between November 1 of a
year and April 1 of the next succeeding year, the parties agree to
continue performance of this Contract until April 1, provided, however,
if the applicable law, order or rule is from an Alabama regulatory or
legislative body, this Contract shall be terminable, on Seller's
notice, effective as of the date of such law, order or rule.
ARTICLE VI.
DELIVERY POINTS
6.1 DELIVERY POINTS. Gas shall be delivered at the
interconnection of the facilities of Transporter and Shell's
Yellowhammer Plant or at such other points as are agreed (each of which
shall be a "Delivery Point").
6.2 TITLE. Title to the gas delivered, sold, and purchased
hereunder shall pass from Seller to Buyer at the Delivery Point.
ARTICLE VII.
DELIVERY CONDITIONS
7.1 FACILITIES. Neither Seller nor Buyer shall be required to
construct additional facilities at the Delivery Point.
7.2 CONDITIONS OF DELIVERY. Gas delivered hereunder shall meet
the applicable conditions of quality as defined in *** pipeline tariff
and pressure as required from time to time by the operator of the
facilities at the Delivery Point. Neither Party has the obligation to
compress gas for delivery or receipt hereunder. EXCEPT FOR THE
FOREGOING EXPRESS QUALITY SPECIFICATIONS OF THIS SECTION BUYER ACCEPTS
THE
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GAS "AS-IS" AND "WITH ALL FAULTS" AND SELLER EXPRESSLY NEGATES ALL
OTHER WARRANTIES, INCLUDING MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, EXPRESS OR IMPLIED WITH RESPECT TO THE GAS."
7.3 METERING. Gas delivered hereunder shall be measured in
accordance with the standards used by the operator of the facilities at
the Delivery Point.
7.4 BTU CONTENT. The Btu content of the gas delivered
hereunder shall be determined at the Delivery Point each month based
upon the average Btu content per cubic foot of all gas delivered during
such month. The results of tests for Btu content per cubic foot of gas
shall be adjusted to reflect actual conditions of gas at the Delivery
Point. The parties agree to rely upon the results of tests conducted by
Transporter.
ARTICLE VIII.
FORCE MAJEURE
8.1 DEFINITION. The term "force majeure" means acts of God,
strikes, lockouts or other industrial disturbances, acts of the public
enemy, wars, blockades, insurrections, riots, epidemics, landslides,
lightning, earthquakes, fires, hurricanes, (and evacuations of
platforms due to threats of hurricanes) storms, floods, washouts, civil
disturbances, explosions, breakage, accidents to machinery or lines of
pipe, freezing of xxxxx or lines of pipe, delay in obtaining or failure
to obtain materials, equipment, easements, franchises, or permits,
failure or refusal of any person to transport gas delivered or to be
delivered hereunder, and any other causes, (except financial), whether
of a kind herein enumerated or otherwise, not reasonably within the
control of the party claiming suspension by reason of force majeure and
which, by exercise of due diligence, such party is unable to prevent or
overcome. The term "force majeure" also means actions of any
governmental authority having jurisdiction over Buyer or Seller (or
over a person transporting gas for or selling gas to either of them)
which result in conditions, limitations, rules, or regulations that
materially impair either Buyer's or Seller's ability to perform,
including, but not limited to, actions effecting the emergency
diversion of gas or limiting uses of gas, but such term does not
include actions of any governmental authority affecting the price or
prices paid or payable hereunder.
8.2 EFFECT. If either party is rendered unable, wholly or in
part, by force majeure to carry out its obligations (other than
financial obligations) under this Contract, it is agreed that, on such
party's giving notice and reasonably full particulars of such force
majeure in writing or by telegram or telecopy to the other party within
a reasonable time after the occurrence of the cause relied upon, the
obligations of both parties, insofar as they are affected by such force
majeure, shall be suspended during the continuance of any inability so
caused, but for no longer period, and such cause shall so far as
possible be remedied with all reasonable dispatch. When Seller gives
notice of force majeure, the obligation of Buyer to pay a portion of
the Reservation Charge under Section 5.1 shall be waived in an amount
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equal to the Reservation Charge multiplied by the Nominated Quantity
which was scheduled but not delivered.
8.3 STRIKES AND LOCKOUTS. The settlement of strikes, lockouts,
or industrial disputes or disturbances shall be entirely within the
discretion of the party having the difficulty, and the above
requirement that any force majeure shall be remedied with all
reasonable dispatch shall not require the settlement of strikes,
lockouts, or industrial disturbances by acceding to the demands of any
opposing party therein when that course is deemed inadvisable in the
sole discretion of the party having the difficulty.
ARTICLE IX.
ACCOUNTING
9.1 PAYMENTS FOR GAS. Seller shall furnish or cause to be
furnished, by the 15th day of the month next following the month in
which a charge is incurred, a xxxx setting forth the Reservation
Charge, the quantity of gas nominated and the amount due therefor, and
any other charges or fees owed by Buyer. Not later than the 25th day of
the month in which Seller has so billed Buyer, Buyer shall pay Seller
by wire transfer all undisputed amounts; provided, if Seller's xxxx is
delayed beyond the 15th day of such month, Buyer's payment of such xxxx
shall not be due until ten days after receipt of such xxxx. All
disputed amounts shall be resolved and paid or credited as soon as
possible.
9.2 AUDITING. Each party shall have the right at reasonable
hours to examine the books, records, and charts of the other party to
the extent necessary to verify the accuracy of any statement, payment,
calculation or determination made pursuant to the provisions of this
Contract provided that neither party shall be required to reveal
documents or information which it deems confidential. If any such
examination shall reveal, or if either party shall discover, any error
or inaccuracy in its own or the other party's statement, payment,
calculation or determination, then proper adjustment and correction
thereof shall be made as promptly as practicable after notice thereof,
except that no adjustment or correction shall be made unless notice of
any such error or inaccuracy is given within twelve months of the end
of the year during which such error or inaccuracy occurred.
9.3 FAILURE TO PAY. Unless based on a good faith dispute, if
either party fails to pay the full amount payable to the other party
hereunder when due, interest on undisputed amounts shall accrue and be
payable from the date on which payment was due until the date payment
is made. The rate of such interest shall be two percent above the prime
rate quoted from time to time by the Chase Manhattan Bank, N.A., or
successor thereto, provided that the interest rate hereunder shall
never exceed the highest rate of interest permitted by applicable law.
If any such failure to pay continues for 30 days after written protest
by the party entitled to such payment, such party may suspend its
deliveries or receipts of gas hereunder, as the case may be, and may
terminate this Contract with prior written notice to the non-paying
party, provided that such termination shall not be effective prior to
the date of suspension of deliveries or receipts of gas. Subject to
Article II Section 2.3, the exercise
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of any such right shall be in addition to any and all remedies
available to the party to which payment is due.
ARTICLE X.
TERM
10.1 CONTRACT TERM. This Contract shall be effective on July
1, 2000, and shall extend through ***.
10.2 TERMINATION RIGHTS. If, at any time, either party or its
parent or affiliate is materially affected by any law, order or rule in
a manner which such affected party, in its sole discretion, finds
unacceptable, then the party so affected may suspend performance under
this Contract for the duration of such law, order, or rule by written
notice to the other party. The party receiving notice of suspended
performance shall have the right, on thirty days' prior written notice,
to cancel this Contract.
10.3 NOTICES OF CANCELLATION. Notwithstanding any provision to
the contrary, any notice of cancellation by either party hereto shall
be effective on the first day of the month following the end of any
specified notice period.
ARTICLE XI.
INDEMNIFICATION
11.1 INDEMNIFICATION. As between the parties hereto, Seller
shall be in control and possession of gas and responsible for any
injuries, claims, liabilities or damages caused thereby until the gas
has been delivered to Buyer at the Delivery Point, and, after such
delivery, Buyer shall be in control and possession of the gas and
responsible for any injuries, claims, liabilities or damages caused
thereby. The party so in possession and control of the gas shall
indemnify the other party in respect to any injuries, claims,
liabilities or damages occurring while the gas is in the former party's
possession and control.
ARTICLE XII.
WARRANTY
12.1 WARRANTY. Seller warrants title to the gas delivered
hereunder, the right to sell the same, and that it is free from all
liens and adverse claims.
ARTICLE XIII.
ADDRESSES AND NOTICES
13.1 ADDRESSES. All notices to be given hereunder shall be in
writing via mail or fax and shall be addressed to the respective
parties at the addresses stated below or to such other addresses as
they shall respectively designate hereafter in writing from time to
time:
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To Seller: Coral Energy Resources, L.P.
000 Xxxxxx, Xxxxx 000
Xxxxxxx, Xxxxx, 00000
Attention: Trading Administration
& Analysis
Facsimile: (000) 000-0000
To Buyer: Mobile Gas Service Corporation
ATTN. Xx. X. Xxxxxx Xxxxxx
X.X. Xxx 0000
Xxxxxx, XX 00000
Facsimile: (000) 000-0000
For the purpose of payments as described in Section 9.1:
To Seller: Coral Energy Resources, L.P.
by wire transfer: Chase Manhattan Bank, NY
ABA Number 000000000
Account No. 323863876
To Buyer: Mobile Gas Service Corporation
X.X. Xxx 0000
Xxxxxx, XX 00000
13.2 NOTICES. All notices required or permitted to be given
under this Contract shall be in writing and addressed as set forth
above or to such other address as either party may designate by like
notice and shall be given by personal delivery or transmitted by telex,
or other electronic medium, or by mail, postage prepaid, to the
addresses of the parties shown above. Notice by personal delivery or
electronic medium shall be effective when received, and notice by mail
shall be effective when deposited, postage prepaid, with the United
States Postal Service.
ARTICLE XIV.
SUCCESSORS AND ASSIGNS
14.1 BINDING OF TERMS. All the terms and conditions of this
Contract shall extend to and be binding upon the respective successors
and assigns of the parties hereto.
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14.2 ASSIGNMENTS. The rights and obligations of either party
hereunder shall not be assigned without the prior written consent of
the other party, which consent shall not be unreasonably withheld.
ARTICLE XV.
MISCELLANEOUS
15.1 WAIVER. No waiver by Buyer or Seller of any default of
the other party under this Contract shall operate as a waiver of any
subsequent default, whether of a like or a different character.
15.2 PERFORMANCE. Any provision herein which requires action
by either party where a performance date is not specified shall require
performance of such action within a reasonable time.
15.3 DRAFTING. As between the parties hereto, it shall be
conclusively presumed that each and every provision of this Contract
was drafted jointly by Seller and Buyer.
15.4 PARTIES' AGENTS. The parties recognize that persons other
than Seller or Buyer may perform some of the obligations imposed upon
Seller or Buyer in this Contract. Any reference to either Buyer or
Seller herein shall be deemed to include such other persons, but each
party hereto shall remain at all times responsible to the other for the
performance of all obligations. Notwithstanding the above, in the event
that Buyer should at any time during the term of the Contract allow a
third party, whether an affiliate or otherwise, to manage the Contract
on Buyer's behalf, then Seller at its sole option, may demand a
redetermination of the Reservation Charge upon prior written notice to
Buyer. The parties agree to negotiate in good faith to arrive at a
mutually agreeable redetermined Reservation Charge within thirty (30)
days of Seller's demand.
15.5 MERGER. This Contract sets forth all understandings
between the parties respecting the subject matter of this transaction,
and all prior agreements, understandings,
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and representations, whether oral or written, representing this
subject matter are merged into and superseded by this Contract. No
modifications or amendment of this Contract shall be binding on either
party unless in writing and signed by the party to be bound.
ARTICLE XVI.
CONFIDENTIALITY
16.1 CONFIDENTIALITY. Each Party agrees that it will maintain
this Contract and all parts and contents thereof in strictest
confidence and that it will not cause or permit disclosure to any third
party of this Contract or of the contents thereof, except for such
information as may be necessary to arrange for transportation, without
the prior express written consent of the other party; provided,
however, that such third party restriction does not apply to an
affiliated company of either party. Disclosure to a third party is
restricted by and permitted only to the extent to which either party is
required to disclose all or part of this specific Contract by a statute
or by a court, or agency, or other governmental body exercising
jurisdiction over the subject matter hereof, by order, or by regulation
or other compulsory process (including, but not limited to, deposition,
subpoena, interrogatory, or request for production of documents). A
party may file the contract with its Form 10-K and other applicable
filings with the Security and Exchange Commission of the United States
of America to the extent the disclosure is required by applicable laws
or regulations; provided, however, such party shall delete pricing and
volume information from the filing if allowed by such applicable laws
and regulations.
16.2 NOTICE. If either party is or becomes aware of a statute,
regulation, order, other compulsory process, or a judicial or
governmental proceeding that has resulted or may result in such
compulsory disclosure, it shall so notify the other party immediately
and shall provide a copy of the order, regulation or compulsory process
as soon as it is available. Each party further agrees to cooperate to
the fullest extent in seeking confidential status to protect any
material so disclosed.
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16.3 COUNSEL. The parties hereto acknowledge that independent
legal counsel may, from time to time, be provided with a copy of the
Contract and agree that such disclosure does not require express
written consent, provided that such counsel affirms in writing to its
client that it agrees to abide by the terms and conditions of this
Article XVI.
16.4 This Agreement is subject to approval by the Alabama
Public Service Commission ("APSC") . Buyer shall notify Seller of such
APSC approval or disapproval with ten (10) days of Buyer's
notification. Seller and Buyer shall each have the opportunity for
(thirty) 30 days after receipt of Buyer's notice to offer to the other
changes to the Contract to remedy the reasons for the disapproval. If
no mutual agreement is reached within such thirty (30) days, then this
Contract shall terminate on the last day of the month following one
month after receipt of such notification from Buyer. Buyer shall remain
liable to seller in accordance with all provisions of the Contract
prior to such termination.
REMAINING PAGE LEFT BLANK INTENTIONALLY
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IN WITNESS WHEREOF, this Contract is executed as of the date first
above written.
CORAL ENERGY RESOURCES L.P.
By: /s/ Xxxxx Xxxxxxx
Vice President
MOBILE GAS SERVICE CORPORATION
By: /s/ Xxxxxx X. Xxxx
Vice President, Operations
Signature page to Gas Sale and Purchase Contract dated July 1, 2000.
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