Contract for Supply and Use of Natural Gas (CNG Users Applicable)
Contract
for Supply and Use of Natural Gas
(CNG
Users Applicable)
Supplier:
Hebei Natural Gas Co.,Ltd.
User:
Beijing Zhong Ran Wei Ye, Co.,Ltd
Annual
Contract for Supply and Use of Natural Gas 2007
Supplier:
Hebei Natural Gas Co., Ltd. (hereinafter called “the Supplier”)
User:
Beijing Zhong Ran Wei Ye Gas Co., Ltd. (hereinafter called “the
User”)
According
to national
laws and regulations,
both
Parties agree to enter into this Contract for sale and purchase of compressed
natural gas through consultation, with terms and conditions hereinafter set
forth:
1. Term
of
Contract:
1.1
The
term of this Contract
is one year.
1.2
Period
of gas supply: from
January 1, 2007 to December 31, 2007.
2. Mode
of Gas Supply and Delivery Point
2.1
Mode of Gas Supply: the User uses its own trailers
for
gas-filling at the Supplier’s CNG mother station.
2.2
Delivery Point
2.2.1
The
delivery point is gas-filling posts where the Supplier fills gas into the User’s
trailers, measurement figures at this delivery point shall be the basis for
payment.
2.2.2
When the Supplier delivers CNG to the user at delivery point, ownership and
risk
of CNG is thus shifted from the Supplier to the User.
3. Quantity
and Quality of Gas Supply
3.1
Quantity of Gas Supply
Sale
and
Purchase of CNG in 2007 is 1.008 million standard cubic meters, with monthly
proportion as follows:
Unit
of
Measurement: 10 thousand standard cubic meters
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JAN
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FEB
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MAR
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APR
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MAY
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JUN
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JUL
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AUG
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SEP
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OCT
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NOV
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DEC
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18
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18
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10.8
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3.6
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3.6
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3.6
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3.6
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3.6
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3.6
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3.6
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10.8
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18
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3.2
Quality of Gas Supply
Gas
quality shall meet the
standards of CategoryⅡ
natural
gas set forth in GB17820-1999 Natural
Gas,
the
national standards of the People’s Republic of China.
4.
Designated
Procedure
4.1
During the term of this Contract, the User shall provide the Supplier with
“ten-day-period demand” for the next ten days 5 days before the present
ten-day-period ends, and provide the Supplier “annual demand” for the next year
before the first day of October each and every year. A Contract for sale and
purchase of CNG shall be signed before using gas in the next year through
consultation between the two Parties.
4.2
Gas
supply shall have monthly plan, ten-day-balance and daily
designation.
5.
Price,
Measurement and Payment
5.1
The
Supplier provides natural gas at a price of RMB 1.90 per standard cubic meter
(tax included).
During
the term of this Contract, should the price of natural gas be adjusted, the
adjusted price shall be adopted pursuant to the time designated in such
documents.
5.2
Measurement
5.2.1
Under this Contract, CNG shall be measured in volume (standard cubic meter)
at
delivery point.
5.2.2
Standard reference condition for natural gas volume is: temperature: 293,15K
(20℃),
pressure: 101.325Kpa (standard atmospheric pressure).
5.2.3
Measuring instruments which are the basis for payment shall be natural gas
filling posts which have passed tests by government-authorized measurement
and
testing institutions.
5.2.4
Measurement of CNG shall be based on the Supplier’s gas filling
posts.
5.2.5
CNG
delivery measurement vouchers shall be executed in six copies (two for the
User
and four for the Supplier). Such vouchers shall be signed and sealed by
designated personnel from both Parties after each time of gas filling. If any
Party has any objection to the measurement, such Party shall sign the voucher
while noting down disputes on vouchers. But it shall not exempt such Party
from
its obligation to supply gas or make payment. Such disputes shall be resolved
through dispute settlement methods agreed between the two Parties. And whether
to adjust gas amount and payment or not shall be decided by results of such
settlements. Under all circumstances, should any Party refuse to sign
measurement vouchers, such Party shall be deemed as breaching this
Contract.
5.2.6
Should any party has objection to the measurement value, such objection shall
be
resolved through dispute settlement methods agreed under this Contract. Should
any Party regard the measuring instruments as faulty, the Parties shall
negotiate a time to schedule tests on the measuring instruments by
government-authorized measurement and testing institutions. Testing fees shall
be borne by the liable Party. Delivery figures shall be corrected from the
day
when disputes arise according to test results by Government-authorized
measurement and testing institutions.
5.2.7
Should this provision contradict with relevant natural gas measurement
regulations of the People’s Republic of China, the national measurement
regulations shall prevail.
5.3
Payment
5.3.1
Gas
payment shall be made based on the measurement values at the Supplier’s
gas-filling posts. Delivery measurement receipts shall be the Supplier’s voucher
when settling payment with the User.
5.3.2
Payment is done through deposit under this Contract. The deposit period is
10
days. The User must pay deposit for the next week before the 10th,
20th
and
30th
of each
month. The Supplier shall provide the User with gas consumption plan for the
next week 3 days before each period ends, as vouchers for the User to pay
deposit for the next period.
5.3.3
the
User shall pay deposit for 10 days of gas consumption through telegraphic
transfer or transfer cheque. The User shall make full payment based on the
gas
consumption plan for the next period provided by the Supplier. If the User’s
deposit fails to cover gas consumption in such period, the Supplier has the
right to xxxxx or suspend gas supply when gas of the deposit value has been
consumed. All the responsibilities and losses arise from such process shall
be
borne by the User. If the User’s deposit exceeds the due payment for actual use
of gas in such period, the excessive amount of deposit can be used for the
next
period. The Supplier provides the User with CNG Sales Invoice according to
actual consumption on delivery measurement receipts. Such invoices shall be
sent
to the User before the end of each month.
6.
The
Supplier’s Rights and Obligations
6.1
The
Supplier has the obligation to supply gas to the User in accordance to the
quantity and quality as agreed in this Contract.
6.2
The
Supplier shall suggest the User to prepare back-up energy based on production
needs.
6.3
Should gas supply need to be restricted or suspended due to limited upstream
gas
source, equipment inspection or major changes in production and organization
on
the Supplier’s side, the Supplier shall inform the User 24 hours in advance.
Should accidents affect gas supply, the Supplier shall rush-repair promptly,
and
shall inform the User within 2 hours.
6.4
Should the User’s gas facilities or safety management have safety hazards which
may lead to damage or loss, and should the User fail to make payment as agreed
in this Contract, the Supplier has the right to suspend gas supply. But the
Supplier has the obligation to notify the User before the suspense.
6.5
The
Supplier has the obligation to keep all terms and relevant information in this
Contract confidential. Without the User’s written approval in advance, the
Supplier shall not reveal any terms and information in this
Contract.
7.
The
User’s Rights and Obligations
7.1
The
User has the right to supervise the quantity and quality of gas provided by
the
Supplier. The User has the obligation to provide the Supplier with periodical
gas consumption plans in time. Should the User need to increase or decrease
or
suspend gas consumption due to its changes in production and organization or
equipment inspection, the User has the obligation to inform the Supplier two
days in advance.
7.2
The
User has the obligation to make payment promptly as agreed in this Contract.
7.3
The
User has the obligation to keep all terms and relevant information in this
Contract confidential. Without the Supplier’s written approval in advance, the
User shall not reveal any terms and information in this Contract.
8.
Liabilities for Breach of Contract, Settlement of Disputes, Applicable
Law
8.1
Liabilities for Breach of Contract
8.1.1
Should the Supplier restrict or suspend gas supply, it shall inform the User
within an agreed time range. The User shall promptly adjust its production
accordingly; otherwise, the Supplier shall not be liable for any losses thus
incurred.
8.1.2
Should the User fail to use gas safely as designated in this Contract, which
leads to the Supplier’s direct loss, the User shall be liable and compensate
such direct loss.
8.1.3
Should the User use gas illegally, the User shall pay 30% of annual contract
payment as penalty.
Should such conducts cause damage to the Supplier, the User shall make
compensation. Should such conducts be criminal, the User shall be subjected
to
criminal liabilities in accordance with relevant laws and
regulations.
8.1.4
Should the Supplier or the User not be able to supply or use gas normally due
to
Force Majeure, which leads to loss, neither Party shall be liable for the
compensation.
8.2
Settlement of Disputes
Should
any disputes arise from the implementation of this Contract, the Parties shall
attempt in the first instance to resolve such dispute through friendly
consultations. Should such consultation fail, any Party shall file litigation
at
People’s Court of Shijiazhuang.
8.3
Applicable Law
8.3.1
Both Parties must comply with and obey all the applicable laws, regulations
and
rules of the People’s Republic of China.
8.3.2
This Contract shall be construed and governed by national laws and industrial
norms.
9.
Effectiveness, Amendment and Termination
9.1
Effectiveness and Amendment
9.1.1
This Contract shall enter into force when being signed and sealed by both
Parties. This Contract is executed in four originals, the Supplier and the
User
hold two originals respectively.
9.1.2
During the term of this Contract, should changes occur to national laws,
regulations, relevant policies or contract terms of upstream gas supply, and
such changes do have impact on this Contract; the relevant provisions in this
Contract shall be adjusted accordingly.
9.1.3
Should any Party need to amend terms of this Contract or make agreement on
matters not covered in this Contract, such Party shall notify the other party
of
the amendment or agreement in writing, and the other Party must respond within
15 days upon receiving such notice. Supplementary agreements shall be made
through consultation. Such supplementary agreements shall have the same legal
effect as this Contract. If the other Party does not reply within agreed time,
the amendment or supplementary agreements shall be deemed as having been
accepted by the other Party.
9.2
Termination
9.2.1
This Contract shall terminate automatically when its term is due.
9.2.2
During the term of this Contract, if this Contract is no longer enforceable
or
is no longer necessary to be enforced due to major changes in production or
organization on both sides or either side, or due to Force Majeure, this
Contract can be terminated in advance through equal
consultation.
10.
Documents
Before
formal gas supply commences, The User shall provide such documents and materials
according to the Supplier’s requirement as follows:
Copies
of
Gas Company Business Certificate, Enterprise Legal Person Business License,
Tax
Certificate, Organization Code Certificate, Bank Account License. For gas
filling vehicles, the User shall provide: Whole Vehicle Product Certificate,
Air-tightness Test Report, Nitrogen Replacement Report, Certificate and Test
Report for safety valves; Penetration Test Report for welded joints and coilers;
Certificates and Test Reports for all valves, Certificates for all meters,
Certificates for gas cylinders, Product Safety and Quality Supervision and
Inspection Certificates for gas cylinders, Quality Inspection Certificates
for
gas cylinders. All the abovementioned certificates shall be made into booklets
designated to each gas filling vehicle.
11.
Service
Supervision Hotline:
Customer
Service: 0311-85278700
12.
Other
Agreements:
Supplier:
Hebei Natural Gas Xx.Xxx.
Address:
Xx.000, Xxxxxxxxxxxxx Xxxx, Xxxxxx Xxxxxxxx, Xxxxxxxxxxxx
Legal
Representative:
Signature
Agent:
Signed
at: Shijiazhuang
Bank:
Zhongnan Branch of China Construction Bank
Account
No.: 00000000000000000000
Contact
Department: CNG Company
Contact
Person: Xxxxx Xxxx
TEL:
0000-00000000
Date:
December, 30, 2006
User:
Beijing Zhong Ran Wei Ye, Co.,Ltd
Address:
Room2008, Tower A, Caizhi International Plaza, Xx.00, Xxxxxxxxxxxx Xxxx Xxxx,
Xxxxxxx Xxxxxxxx, Xxxxxxx
Legal
Representative:
Signature
Agent:
Signed
at:Shijiazhuang
Bank:
Huibin Division, Yayuncun Branch, Agricultural Bank of China.
Account
No.: 000000000000000
Contact
Department: Operation Department
Contact
Person: Xxxx Xxxxxxx
TEL:
000-00000000-000
Date:
December,29,2006.
