Exhibit 10.16
FUEL PURCHASE AGREEMENT
THIS AGREEMENT, entered into this 3rd day of September 1996, by and between
FERRELLGAS hereinafter called the "COMPANY", and ABLE OIL COMPANY,
hereinafter called the "CUSTOMER," whose mailing address is 000 Xxxxx 00,
Xxxxx, Xxx Xxxxxx 00000.
1. It is expressly agreed between the parties that this contract is for the
purchase of Liquefied Petroleum Gas (L.P.G.) only and does not include
any lease or rental equipment.
2. The Company agrees to sell and the Customer agrees to buy L.P. Gas for
use by the Customer. The Customer agrees to pay the Company for the
same at the time of delivery, or in accordance with prearranged terms
established between the Company and the Customer.
3. The L.P. Gas may be picked up by the Customer at the Company's location
in Franklin, New Jersey. The Customer will give at least six (6) business
hours notice. The Customer will be responsible for notifying the Company
of the Customer's intention to purchase L.P. Gas. If the Company is
unable to supply L.P. Gas at the Company's location in Franklin, New
Jersey the Company will notify and make available, L.P. Gas at the
Company's Three Company's Three Bridges, New Jersey location. It is
understood that the Company's Franklin, New Jersey location will be the
primary point of purchase for L.P. Gas under this agreement, and the
Three Bridges location will only be necessary when business conditions do
not permit purchase from the Franklin location.
4. The price for L.P. Gas purchased by the Customer from either the
Franklin, New Jersey location or the Three Bridges, New Jersey will be
The Company's "Laid-In" cost of product + (plus) .05 (five cents) per
gallon. "Laid-In" cost will be determined by the cost of product from the
Hess Port Reading facility in New Jersey as listed in the most recent BPN
Weekly Newsletter + (plus) transportation which is currently .0280 per
gallon.
5. L.P. Gas may also be delivered directly to the Customer's Dispenser in
Rockaway, New jersey at the Customer's request. The price for such a
delivery will be "Lain-In" cost of product + (plus) .20 (twenty cents)
per gallon. Delivery will be made in a reasonable amount of time.
6. L.P. Gas may be filled into D.O.T. cylinders (such as the typical 20#
grill type cylinder), when brought to the Company's Franklin, New Jersey
location by the Customer. The cost for this will be "Laid-In" cost of
product + (plus) .27 (twenty seven cents) per gallon. This price will
include purging and recertification when necessary.
7. Both parties agree that this agreement shall renew yearly & be in effect
until cancelled according to the terms herein. Either party may cancel
this agreement at any time with 60 (sixty) days written notice.
For "Ferrellgas" (The Company) For "Able Oil Co" (The Customer)
00 Xxxxxx Xxxxxx, Xxxxxxxx, N.J. 000 Xxxxx 00 Xxxxx, Xxx Xxxxxx
/s/ ILLEGIBLE /s/ ILLEGIBLE
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Accepted at Franklin, N.J. Date 09-05-96
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