English Translation) Compressed Coal Bed Methane Supply Agreement
EXHIBIT
10.7
(English
Translation)
Party
A:
Fuxin Dali Gas Co., Ltd
Party
B:
Tianjin Singocean Public Utility Development Co., Ltd
For
strengthening cooperation and expanding coal bed methane market together, both
parties reached agreement, through friendly consultation, as
follows:
| 1. |
Within
a radius of 300 miles of the Party A gas source, Party A will provide
compressed coal bed methane to Party B in a long term. The transport
vehicle and equipment should be solved by Party B on its own.
|
| 2. |
Supplied
gas content is according to the season plan. Party B will submit
quarterly
gas consuming plan on 20th
the month before every quarter. Party A will arrange gas source supply
according to plan. The supply shall increase as Party B, and gas
shall be
supplied as plan.
|
| 3. |
When
Party A gas consumption achieve the maximum that Party A can supply,
both
parties can consult about investing to enlarge the gas production
scale.
(concrete investing matters will be work out later through
consultation)
|
| 4. |
Supplied
gas quality:
|
| a. |
The
gas source and gas quality supplied by Party A shall conform to the
rules
of state standard Natural
Gas (SY7541).
|
| b. |
Party
B confirms the test report about coal bed methane quality provided
by
Fuxin Dali Gas Co., Ltd, and look this report as quality
assurance.
|
| 5. |
Agreement
measurement:
|
| a. |
Compressed
coal bed methane measurement standard is under 20 degrees Centigrade,
absolute pressure is 101.31Kpa (1 standard atmosphere), measurement
is
subject to the delivery department of both parties.
|
| b. |
Measuring
meter is calibrated once a year, quality certificate is submitted,
both
parties entrust inspection department and confirm the qualification
of
inspection organization. Any dispute is consulted to solve by both
parties. The cost for inspecting measuring meter is afford by responsible
party.
|
| 6. |
Agreement
price:
|
| a. |
Agreement
price is 1.6 yuan/m3,
and the price is kept relative fixed. If cost changes to cause price
adjusted, both parties consult to establish the supplied gas price
later.
|
| b. |
Price
change----both parties’ guiding principle is according to cost, market and
other relative products to adjust
appropriately.
|
| 7. |
Mode
of settlement:
|
| a. |
Party
B should pay supplied gas to Party A by acceptance xxxx, xxxx or
cash.
|
| b. |
Party
A should issue value added tax invoice to Party
B.
|
| c. |
Party
B should settle accounts with Party A periodically according to monthly
actual gas consumption.
|
| 8. |
The
agreement shall come into force as from the date when both parties
sign
and stamp the company chop on the
agreement.
|
| 9. |
Both
parties shall firstly try to reach an agreement if any dispute occurs
during the contract implementation. Any Party has right to lodge
a lawsuit
in case no agreement could be reached.
|
| 10. |
Anything
not covered in this agreement will be settled through friendly
consultation, both parties should sign a supplementary agreement,
supplementary agreement will have equal legal effect as this
agreement.
|
| 11. |
This
agreement shall be held in four copies of the same form. Each party
shall
preserve two copies with equal legal
effect.
|
