WWTP Natural Gas Service
Sent By: Mountain Energy;
816 472 1780;
Mar-23-00 4:26PM;
Page 2/4
.
"I r--', ," '_ .
~\ ,MOYNTA!N_~N~R?;yGASSALESAGREEMENT
~ CORPORATION
SELLER: Mountain Energy
1508 SWTopeka Blvd
Suite 202
Topeka, KS 66612
BUYER: Salina Wastewater Plant
596 North Ma~ount
Salina, KS 67401
Tel:
785.232.11 O~
Attn: Trac Hill
Fax: 785.232.1902
Tel:
785.8~.7315
Attn: Rick Fischer
"7 JiJ ~
Fax: 785.82.1.4-'H6
Send Payments to:
Mountain Energy
2600 Grand Avenue
Suite 520
Kansas City, MO 64108
Send Invoices to:
Tel:
816.842.7337
Fax: 816.472.1780
5C1/p IV /'t')or'tm~L/.;nt-
SaHra) j(S 67#0/
AfIJ,: R~(he/I~ wrhow
Start of Service: Twelve (12) months beginning December 1, 1999, and from year to year thereafter unless tenninated by
written notice to either party one hundred eighty (180) days prior to anniversary date.
QuantIty: One hundred percent of Buyers full requirements.
Point of Deliverv: Existing Interconnect between
Kansas Gas Service in Salina, KS.
Price:
Fixed Price: Price will be fixed at $2.43 per MMBtu, plus fuel charges.
Soecial Provisions: Seller will be responsible for any penalties associated with Imbalances or periods of dally balancing.
This agreement is subject to the terms and Conditions on the reverse side hereof.
Buyer Signature:
PrInted Name:
Title:
Date:
Seller Signatur .
Printed Name: Michael Eichenberc
Title: President I CEO
Date: <<_.:} .;2. -7'r;
, '. ... -..., '. . -.-'.. ..~ ", '... .;"',
Rick Fischer
~~.;";~4:r .
/1-07-7/
:'; ..'Y.~:;."''-; ;,.: r. ,: . . ".' '.r.:....,... ~..:>::~'" r~'e- ....~. .p",,:t:.:~ ";~'.:t...:.-:..'. .',1,',."
2600 Gra'ld Ave. Suite 520
_ . _. ~~~~_C?.ty._MO_~~l~_ _ _.
1508 SW Topeka Blvd. SuIte 202
TOPeka. tS 6661 2 .
200 N Broadway. Suite 320
Wichita. KS 67202
Sent By: Mountain Energy; 816 472
> WHEREAS 6l.lyer desirn 10 bu)' ill'ld SeUer is I" llIe business of
~urcnuing. dis_tributing ilnd selhl'lg natural gu. ar' 'sires 10 sefll'\alural
';u. Suyer ilno Seller enter intOl1llS Agreement ilS'.._ .ut bel.ow:
'I. Definirion; ~ melns enU.s1'l Thennlll WI'llr aM is the I'Iltallng
vlIlue of natu.ral gill. Bl'itlsl'l Thermal Unil means tl'le amount a' enet;y
~eqUl(ed I~ raise Il'Ie lemperarurt at one (1) pound ol....ilter one (1) O"eq~
"inrennel!. ~ means one I/'Iousar.d. (tOOO) cutlic feel. A c:ullic fllOr 01 gas
means lhe value of gas conlalned In one (1) COJbic rcol or Spice al a
c:ons:anl pressure bas. of '4,65 psia ar a temp.rature 01 SO. ~anren/'lelt.
~ mul'ls mallon eTU 1M IS Il'le sum ~f Met mulliDIit!d by me BiU 01
~ne glS. PIDelin~ means an'llranSDO~et. ...hether inl.r'Sllle or in~-Slilte.
ra or from aelivery "oint. !..Q!;, means ttle Loc:al Oislrieulion Comoal'lY. more
cllrnmonl)' known lIS your local utility.
2. arm: Unlesr; orllelWise slaled on the tronl of U'lill Agreeme/'ll.
t~IS ':"greemenl sl'lall renew Pric:e based upon pllragraCI! (7), \Jnleu
tllrT:lir:ated by wrillen notifteation to eittler patty onl! hUl1dred eigl'l\)" (180)
days pnor to tne annj".ruf)' Clate.
3" Quanrity: Seller agfllu 10 :lttl 10 Buyer. and Buyer agrees to
pcrCllaso! the volumels} of nallJrl' gas set fOrln In 11Ie l:luantilY prcvision on
Ir.e front ~t ll'\IS Agre.ment. The p.rll85 snail uu tl'leir besr efforts to
ensure rllat Il'le qUIl'lrity. QispatCf1ecl lly Seller. is dellver.a and received at
. relatiVIty C:Ol'l'I.n! rale.
- 01 Oualilv Measuremenl & Healina Valu~; All nalural gis ~eIivlr8d
pllrsuant to U'\is Allreeme/'lt snail tie of pipeline quality. Measurem.nt ofth.
VOlume and lne heating value ot l/'le natural gas ptm:hlsed hereunder shall
e" mad.. at tne delive/)' poll'll in Iccordance with the delivering pipeline',
~r"c.aourc. .
5 TransoartatlOI'l: Seller ~/'la/l arrange for transpOrlallon 12 tile
a-!!iVllty pOint and Buyer sl'lall arrlnge tor SUl)s~qud';l transpartatlon !'rom
Ine delivery po.,,\. .
E. ImOalal'lees; 6uyer and Seller snail use tneir besl efforts to
!void imllilances and imllalance penal lies (if any]. S/'Iourd eit/'ler auyer Or
S!!ler recei",~ an imbalance llenalt)' c;harge frem t/'l~ tran3CO~Jng pipeline.
Seile- shall determine tl1e validity Of suctI Charge. It Il'le imoalanr:e penallY
is a (@sull \If Buyers 'failure to ilccepI a quantity of gall ElQUII to Sen,,!"!
Il:l((li/'latlon. then Buyer shall ~ay for or reimcurse Saller for suc/'l imbalance
;~nalry eMar;es. and indemfllfy Seiler from ..ny enar~es or COStS inC\llTed
~y :1 in dflterminln9 Its liSl)ility ~ereunder If Irle imOalance ,enaflY is a
r~5ult ~f Sltlle"'s (ailure to ~eliver a Quanrity Of gas equal to Itle 8uyers
:c:~fimned' nomination. tne Seiler shall pay sue." imbalance ~."nalrl' c.'1li(ge
anO il $1'1111 indemnIfy Buy.w for any c",;argas :r eos:s !ncl"l""o ~y Buyer in
eEl lltrmlning Seller's liability lIeflllJnCler. Buyer. il :ne end of (/'115 "'greemefll
aM it Agreement is 1'101 renewed wittl Seller. shail Ila)' Seiler for any gas
.:elj",ered to B\.lyer's aceounr wit" his Lee, l)u: not ye! consvmed (if any).
i, etis!:, Buyer Sll.111 !)ay Seller for 311 gas dltlj"ered to anCl
:.cceptlld lly it dunflg Il'Ie ini!i.l term of this Agre~men! uo 10 trle delivered
anolor consumed volumes. a sum eQual to t/'te price as outlilleCl on Ihe ~nl
e,f chi:> Agreement. Buyer snail ilIa Pi'f an amoul'lt ellual to tn. losl and
lin3Cc:;unted tor line loss (if any) on t/'le LDC system. Utlleu olller'oWise
Slalil~ on tMe front of l/'lis Agreemenl. all pipeline and LOe cnarges Ire
MCI:honal, it any. All transponation rate5. fuel ellarges. IIl'le loSS.
~lJfCI'.arges .ssocialed with tl'le delivery 01 Buyers' gas art subject to
cna,.,ge IS tilBCl from time 10 tIme ....111't Ine appropriate regulalOI)' agency.
2l!;le: agroees 10 charge au)'er tanff incruses cnarged by, il'lterstale
;lio,llt'les \Ornicl'l were 8lllimaltCl 10 calculare Seller6 F;nn delivery F'l'Ice.
D\<l~n'i perioes of daily lla1ancrng. curtailment. operational "c,," order. or
ol"e,...,isa :efTTlec event ano :.:nless otherwise ;:rQvide-::: lor on Ir'le trenl of
,r.is ;"~tgtmenl, all ;as sUIlPlies nominaled aeove fr'le ~'Sl of the month's
hi~,..ri;'al uuge will be billell al tl'll!! l'Iig".r 01 r/le COl'llrac:: price or lIle
avtrage of Gas Oail)"$ ira:ex "rica far :ne aays in ouestlor'l (Saturday and
S<tnoay will be calc""ete~ on Friday's pries). p:us 10~~, pillS all pipeline and
lee c:'l:lrges (il any). All sue:., gas will be considered ~rst gas Ihrougn l1le
",~l". For any rene....lIllerm. unless Qtl'lerwise !greed il'l wn!ing. the pnce
",i:l be e'tl1er (1) the rligner 01 Ihe base C:O~lrilct ;lnce gr. (2) Irle currenr
Il'l".lu:lus 11)%, Fuel. Une Iou. and all Iriln3Do"aCiofl COSIS a"Cl CI'Iar;es
wi;! ~t ac:aed to Ine pnce.
8. Billino Il':,d Favme"!: The tlillil'lg penca 5:'lall :. l1'le same periOd
as ;fle llilli"g periOd Gl tne IranSllonir.9 ::lill~line Seller Sl1ill bill Buy~r on
!~e o'1.!r!lI!sr prac:ic:aOle Clate eacll monll'1 snowing rru~ :;uanllty ill gas tllllatlle
tor the prll!ViOloS motltl'l', bill !:eriod and tnll sum <:\,;11 to S"tler rrem S~ye(.
S-.:yer sh:lll pay to Seller t"e sum s/'lowI'l tly uel'l Ililli,g. il'lc!udlno ules.
'JSI. francl'lise llr.d excse lues and all Dt"er govemmenlal imllositiCrls
relati',e to tl'le ute or consUm!)tiofl of r'larural gu. will'lir'll.1'l (IC) day, from
r~: balino dllle. Billings UflClilid whel'l due snail tle subject Ie a late c:'Iarge
of Ten Callars (:51 O.QO) plus interest al ,ne rale of one JflCl one hll' pe'cent
1780; Mar-23-00 4:26PM; Page 3/4
(1 Ya'~) Der mon~h or. tfl~ maxu'llum rate allowed by 11lW, wl'liGrle\rer is leu.
Snould Ir~/'lspol'llng. plpe"n" "Qt provide Seller with timely VOlume informa~on.
Seller .at '~S dlscretlon \ofII, Buyer on nomination and sucliequenlly i1d.ust.
furure InVOice far tne Buye~ .ctual volume. ., )
Q. . Cr.";t Reauiremllnts; Buyer shall malee credit amsr.gements
sallsfactol)' Co Ine Sellor, whic:l'l may inClUCle provl(lin9 I deposit prwpa t
Letter of Credit or 011'1.( security as requesled by Seller. Sell~r res.=~~
ngMt TO requesr su~ c:r~lt arra"gltment3 before or during tne lerm of l1Iis
COnlraCI. I.' BUY8r falls 10 mak~ paYIT'1..nt on or bcrofl~ tne due Qale or tails to
make C~.dJI Irra.ngement' ut1sfae:ory 10 Seller. Seller al its sole diScrelion,
may term,nate tnlS eOl'\lrac: and/or immedialely Suspend deliveries P\ereu~~.t.
to. nne 3. PossesslOI'l; Buyer snail l'lav~ lille. POSSession and c:ontrol of
fhe gas a.t :ne POt';! of OeU...ety. Seller Snll/ 1'lave res"onsibility tor any :;liS up
10 Ine POInt of Cel'lorery. and Buyer sl'Jall have ...sponsibillty lor any gas al ang
from tne Pomt of o.ll\oel)'. Eilc;rI party hereutl<lltr indemnifies' ana Plolds
hamnless U'le oll'\er trQm ~1I dllmage. toss. cosr or upen,e lor ...nien l1le Olr-If
is held responsll:n. arising trom ltle indemnifyitlQ patty's 0"'" act or C:On(Jl.lc:t.
SelJer warrant3 lille 10 lias is free and cisar of all liens and enc;umllran~s.
- 11. " Forc:e'Milieur.: If.'eilller patty .s;,allbe, wholly Of in gall. unallle 10
perform any or gart elf lis duties or /uncions unCer ll'\is A!ilreemenl tleQuse of
forc:e ma,eure. rnen upon nOlice ll)' telephone. telefu or in ...rilln; ..,;lIlin a-
reasonable time .nd in reasonaOly full detail sug, dulles or functians snail lle
Suspended duril"lO Sl.lC/'l.nabilily ~ul lot no longe~ ltIan reasonably necesuf)',
Neilner PittY shall be 1I1lole 10 lIle other for an)' damages c.alJsec or
occaSioned by force mlj.ufll. Force miljeUnt meal'll acs of GOd. strikes.
IOCk,OUI3 Ot Ot/'ler inclu.slJial dlsl1.IfUanc:.es il'lCludlng... those involving or a".ellng
plrtles prOduCing or !rilInsporting gas for Seller. .
1.2, ~~...j!1.9...8.~ula!lons: Tl'Iis Agreennenl.eae.ll or ils proviSions. and_
all Supplements. ilmenClmenrs or addenda to it are SubjeCT to all ...alld.
applicaOle ~ederal ane Slate laW$ and 10 Il'Ie ofUe~. I\lles and regulations of
any duly cOn~lill,j18d (eguliltory body or aulhDrity. Slale or federal. I'JIVI/'lg
jurisdlctic.n. _' _
13. ,ran5ier -,f Tille: This ~!freemenl ,hill exten~ to and be binCling
upon Irle sue;essors. luigna. neirs, pe~onar ~gresel1lalj"es al'ld
representatives in ;ankruprcy l;f ltle pa(!jes l'lereto. No sale. Issignment
mortgilge. c."sng8 in OWl1l!rship or any, oll'ler transfer of litle to an interest of
eitl'ler "arty S/'lall ee ~indir.g upon rile Oll'ler llat'!y unrll l/'le nrst dax. of tile
calendar monln next fOllOWIng ::-:e dale upon ...."icIl such othl!!r !)arty stlall /'Ialle
Men rum/Sileo .....nrt.n 1'I0Uc:e .na witll c:ertitiea copies of suc:h inSl1\lmen15
properlY elt1dlll'lC:lng SIlC.'1 sale. assignmenl, mOl\gage. c;nan~ in owne~hip or
o~her Irllnsfer olti'tJe.
14. ~: eil/'l.t plarty S/'lal/ I'Ilve lhe righl at all reasonallle times to
exarTliI'le tl'le rec::lrds of :l1e olller :0 the exrentnetl!lssar'j 10 vellly 1"18 ac:c:uracy
of an)' :otalement ararge or i;.;lmputatiOn made under or PUI'SUlr'lt to any
provision. of Ihill C::ntnlct. 90lh parties agree to cooperate to negotiate any
dllPute wilh Irar'lScor:er(s) on err::m. in measurwmenl or regorting, Eilher pal'ly
may reQuest and wiiJ receive payment for any venfiatlle SlaTemenr adjUStment
during tne te/T'/l of !/'Iis agrMmen! and lWo yea~ trQm ttle !liVing in lIul!srion.
1.5. Conlidentlalil'i: llle parues shall keep tile farms 01 ,hi~ Agreement
confidential. except as may Il. r.quirel:l to effectuate rraflsporlaciol'l' of Ihe gas
or tel meet ll'le requiremenr5 ot a regUlatory agenC'1 having jurisaictlon over tile
matter for w/lICl'1lntormation is sought.
16. Misceltal'leaus: TIle non-exerCIse of llny rig I'll or rigl'lt! gi"en 0., l/'li,
Agreement s/\all nat be a ....aLvsr or IUd'! ng/'ll or righls as to tfle Mur.. _ny
c.ancellation of lIlia Agreement. I)ur$uant 10 IN !)rovisions of trlis "greemel'll,
,hall be ....ill'lcul ::re/l"ldice 10 11'Ie ngPlI of lhe parry not in defaulllo collect any
amounls Il'len due ;1 al'ld will'lour .,ai",.r of any other rem'!"y to IIorhic., the Pill'ty'
..,01 in defaUlt may oe enritled tar vlolal!on of this Agreemenl. This ,\greemenl is
BJlIICuled in multiple e:C)ies. eac;n 0' wfllc/'l shall tle Cl.emeCl 01 equal forc~ .nd
dignity as if ~ac:r. suc.'1 eopy is an original.
17_ Rial'll to Marc/'l: aefore Buyer ac:~pts al\ offer rrom, or enters 11'I10
any agreement 'Nllr'l. a Ifl.rd !)arty 10 sUDply Buye"s gas n!lQuiremenls Ig,
!)erioos commenCIng after I/le eXll'rl,lon of lIle lel'T'l'l at this Aglllsmel'll. Buyer
will fir'l sucmit :he Offer :0 S.II,r. Witl'lin !1llrty {:30l days after receipr of 11\.
Offer. Seller may, at its ollticn. elee: 10 Dro',iae Buyer's requirements ~n tr.e
same or similar preVIsion i5 contained ill the Otter. If Seller so ele~s. a'Jyer
Will enter inter a ll~reennenl wilr. Seller. Seifer will alSo nave tne fignt to .uPply
Buyer's elec:lrie power Qt c:apa;;ty reQuirements at Sllen time as allo~!1 ul'der
rr:en curren! regulatory ~I,s. Before 8~r accepts ,n offer f~om. Q~ enters
into any agreemenr ...itn a mird party to supply Buyer's elec:::ric Do....r c:r
capaciry requirements. Buyer ""n "rsl svllmit '!'le Otter to Seifer. 'Nilhin Thil'!'f
(:30) days atler tl'le reCltiDI ot the Offer. Seller may. at its opllon. elect to provide
Buyer's ~lll.:iremel'\IS on the same or simlllr !)'o..islons as contained :1'1 the
Offer. II Sellsr so elaCl's. Buyer will erller inlO an agreement ....Ill Seller
R.. 1.Q2 C!l2:199
Sent By: Mountain Energy;
816 472 1780;
Mar-23-00 4:28PM;
Page 4/4
MEC ACT
Salina Waste Water Plant
MOUNTAIN ENERGY
SavIngs AnalysIs
KANSAS GAS SERVICES (KGS) CHARGES
KGB COST OF KGS METER MONTHLY
MONTHLY KGS COST OF GAS/MCF GAS COST CHARGE FRANCHISE COST OF GAS
MONTH USAGE PGA SERVICE FROM KGS FROM KGS $10IMETER FEE FROM KGS
Jan-OO 943 $ 2.6224 $ 1.9250 $ 4.5454 $ 4.289.14 $ 10.00 $ 214.96 $ 4,514.10
r eb-OO 651 $ 2.7096 $ 1.9260 $ 4.6356 $ 3,017.78 $ 10.00 S 151.39 $ 3.179.16
Mar-99 - $ - $ . $ . $ . $ . $ . $ -
Apr-99 . $ - $ - $ - $ - S . S - $ -
May-99 . $ - $ - $ - $ . $ - $ - $ -
Jun-99 - $ . $ . $ - S - $ - $ - S -
Jul.99 . $ . $ - $ . $ . $ - $ - $ -
Aug.9Q . $ - $ - S $ - S - $ - $ -
Sep-99 - $ - $ - $ . $ - $ - $ . $ .
Oct-ge . $ . $ - $ . $ - $ - $ - $ .
Nov.99 - S - $ . $ - $ - $ . $ - $ .
Dee-i9 690 $ 2.6275 $ 1.9260 $ 4.5535 $ 3,141.92 $ 10.00 $ 157.60 $ 3,309.51
Total 2,284
TOTAL COST OF GAS FROM KGS: S 11,002.77
Apr-Oct 1st 100 GTS $ 1.9260
APT-Oct 1st 100+ GTS $ 1.1680 AVERAGE COST OF GAS FROM KGS: $ 4.82
Nov.Mar GTS S 1.9260
MOUNTAIN ENERGY CHARGES:
MONTHLY
MTN KGS KGS METER COST OF GAS
ENERGY MTN ENERGY TRANSF'ORT CHARGE FROM MT
MONTH USAGE GAS COST INVOICE CHARCE $15/Meter ENERGY
Jan-OO 943 $ 2,391.12 $ 1.816.22 $ 15.00 $ 4,222.34
Feb-OO 651 $ 1,649.97 $ 1.253.83 $ 15.00 $ 2.918.80
Mar-SS $ $ $
Apr-99 $ $ $
May-99 $ $ $
Jun-99 $ $ $
Jul.99 $ S $
Aug-9Q $ $ $
Sep-gg $ $ $
Oct-99 $ $ $
Nov.99 $ $ $
Dec-99 690 $ 1,749.60 $ 1,328.94 $ 15.00 $ 3.093.54
Total 2.284
TOTAL COST OF GAS FROM MT ENERGY: S 10,234.67
AVERAGE COST OF GAS FROM MT ENERGY: $ 4.48
SAVINGS OFF OF KGS RATES: $ 768.10
PERCENTAGE SAVINGS: 7%
Phnc.A1 S~ L-vCc, ~ ~2. 5,.9(-
Mountain Energy Conndential 3/23/00