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LONE STAR GAS COMPANY
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GAS
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NATURAL OAS
TOTAL ENERGY SYSTEM NATURAL GAS
LIONFORiINGNO, ° ENERGY FOR
AND AIR CONDITIONING OIL FIELD OPERATIONS,
GRILLING AND PRODUCTION
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NATURAL. GAS
ENEROYFOR
INDUSTRIAL PLANTS NATIIRAL GAS
ENERGY AS
PRIME MOVERS
FOR AIR CONDITIONING,
WATER PUMPING, Ail AND
REFRIGERATION COMPRESSORS
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Lone Star Gas Company
DIVISION Of DISiMNUTION
1.1 ceim, IP, 319 West Ouk Street
R.p;on01 Maooo..' Denton, Texas 76202
July 30, 1970
City of Denton
Municipal Building
215 E. McKinney
Denton, Texas
Attentiont Mr. Brooks Holt, Secretary
Rot Waste Water Treatment
Plant located 0.5
miles east of Loop 288
and 0.25 north of
Spencer Drive, Denton,
Gent] ement Texas
Fhclosod is your copy of Contract for Iniustrial Gas Service,
Rate 1-H, executed May 26, 1970 for the contract year commenc-
ing July 20, 1970. It covers the terms and conditions of
service to your facility at the above location.
We very much appreciate this opportunity to be of service to
you and hope you will let us know whenever we might be of
assistance in any matters involving the utilization of gas.
Sincerely yours,
J1~ : Crim, Jr.
JJCtet
Fhc,
cct Mr. D. G. Hoff
Mr. S. C. Nelson
Mara !horn rS,Of~ (nnn/I !o .
Y AC"'~ 'l lry~fug4'1}irJ tv ',Gh c„~~ i,.i qi WJicS io!t.
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CONTRACT FOR INDUSTRIAL GAS SERVICE
LON1i SI AR (iAS COMPANY, called "Company", agrees to sell and deliver natural gas to
culled uslnincr," abuse mailing address is-Munioipa1 Duilding
215 L:. 11oKinney, Denton} . Texan
and C'uslomer agrees to purchase and receive such gas from Company if) meet Customer's natural
gas requirement at Customer's premises located in Ponton County,
State of Texas, and more fully described as: Wasto trator trorlltmon'i plant
looatod 0.5 ulloo oaot of Loop 2$$ and M5 north of
4p9tkgor _ Drivojj Do ntons Texao
subject to and in accordance ~Nilh all the terms and conditions contained in this conttaO.
'Ihis contract shall be effective as of the date of execution shoHn hereon and shall cover
service for a period of one (11 contract year and from year to year thereafter; provided that either
party may temtinale this contract at the end of any contract dear by givingg written notice to the
other party at least fifteen (15) days prior to the end of any ct,nttact year. 't'he first contract year
shall commence on the first official meter reading date after the date gas is first delivered to
Customer hereunder and shall terminate at the end of the twelfth (121h1 monthly billing period
thereafter,
This contract comers Customer's entire natural gas requirements in the aforesaid premises,
and Customer shall n-)t use gas under this contract for service other than that classified by Com-
pany as industrial. Customer has elected to receive and,pay ~r gas under this contracl during
the first contract year in ac.ordance with Rate within the attached
Schedule of Industrial Rates which is incorporated hcretn and maSc a part of this contract. For
any t:ucceeding contract year Customer may, at his option, and upon written notice to Col,- any
of"his intent to do so, elect to receive service under this contract at any rate Ailhin the Com-
pany's then app?-cable Schedule of Industrial Rates, provided Customer makes such election and
giv;s such notice within twenty (20) days after the beginning of such contract year. During the
term of this contract the rate selected by Customer shall remain to effect until changed by Cus-
tomer or the Company in the manner herein provided.
Bills rendered for gas delivered hereunder shall be payable at Company's office locatt:d at
I Aontori Texas.
Ihis contract includes the additional terms, provisions and conditions contained in Articles
l through V1, entitled "General Terms," which are attached hereto and shall be a part of this
agreement and such "General 'f eons" shall be appiicable to the service rendered hereunder.
`his contract shall be binding upon Company, its successors and assigns. but shall not he
assignable by Customer ttithout the arllten consent of Company.
M"I NESS 'I HE. EXECUTION HE'RE.OF as of the - l- - tv F ti y day
LONE SPAR GAS C ,1PANY
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Soles Tna Exempt-Yee No Cuatnmer'e U 9oeit -rfY44
Innlde Outside City Limits Approve l _ o) 1_ : ► y'•
[ Is not measured thru Tt'S18 Contract Year Commen,~ee,..~/- .7G.L 91t~
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GENERAL TERMS
1.
(a) Company may revise its schedule of industrial Rnte.'~ in the fut.ire, and Any such
revised schedule of Industrial Rates shall be applicable to the was purchased and sold under
this contract from and after the end of any contract year in which such revision is made, pro-
vided that the Company shAll give Customer not less than for( y•five (45) drys' notice prior
to the end of th^ contract year of such rev.aed Schedule of lndustrial hates. If Customer does
not desire to continue the purOhase of gas under this contract In accordance with such revised
Schedule of Industrial Itntes, Customer shall give th Company written notice cancelling this
contract not less than fifteen (15) days prior to the end of the then current contract year, as
provided nbove. If Customer fails to give the Company such written notice of cancelIntion,
(lien this contract shall be continued ns provided above. The notices herein provided for shall
be deemed to have been given when forwarded by the party giving the same addressed to the
other party at the address shown in this contract by first class mail, postage prepaid.
(b) At Company's request Customer shall from time to time deposit with Company such
amount of money As Company may determine is reasonably necessary to guarantee the pay-
ment of gas bills hereunder and all other bills due by Customer to Company. All money depos-
ited byy Customer with Company shall bear interest at the rate prescribed by law. Interest
shall be payable annually at Company's office from which bills Are rendered under !.his con.
tract. Upon the termination of this contract, said deposit, plus Any accrued interest thereon,
less any Amount due Company by Customer, shall be refunded to Customer.
if.
(a) The gas shall be measured at a sinfle meter local.+on by standard meter or meters
furnished and installed by and at Company s expense at a arc mutually agreed upon. Cus-
tomer shall provide, in accordance with Company's specificatp]ions, the necessary service line on
Custor..er's premises to connect with Company's line and suitable space and easement fcr Com-
pany's lines and other equipment. Customer shall use due care to protect Company's property
which is located on Customer's premises from damage and shall permit no person other thin
an agent of Company, or a person Aherwise lawfully authorized, to tamper with, inspect or
remove same. All property belonging to Company and located on Customer's premises shall be
removable by Company at any time during the term of this contract and within a reasonable
time After its termination or after reasonable notice of Customers desire to have such property
removed, title thereto remaining in Company at all times. Company shall have full and free
ingress to and egress from Customer's premises for the construction, inspection, maintenance,
repair and removal of Company's property thereon or for any purpose connected with the serv-
ice of gas hereunder.
(b) Customer agrees to keep the gas-burning equipment and aprurtenances which may be
located on the aforesaid premises in good condition And in conforTn'ty with the requirements of
any Applicable city ordinance, state law, rule, order or regulation of Any governmental Authority
having jurisdiction and to comply with all of Company's reasonable rules and regulatiuris.
(c) For the purpose of this contract the unit of measurement shall be 1 000 cubic feet of
gas at the pressure at which it is measured, except when such gas is measured at a gauge pres.
sure in excess of 4 ounces per square inch. The volume of gas measured at a gauge pressure in
excess of 4 ounces per square inch shall he adjusted by computation In nccordance with the
Ideal Gas Laws, corrected for deviation, to the volume that it would occupy at a gauge pressure
of 4 ounces per square inch. In such computations a value of 14.4 pounds per square inch shall
be used for atmospheric pressure and a value of 60 degrees Fahrenheit shall be used for the
base and flowing temperature of the gas.
(d) Meter measurements computed by Company according to its standard operating prac-
tices shall be conclusive except where meter Is found to be Inaccurate by as much As 3 per cent
fast or slow or failed to register, in either of which cases Company shall repair or replace the
meter. The quantity of gas delivered while the meter was Inaccurate or failed to register shall
be determined by correcting the error if the percentage 3f error is ascertainable by calibration test
or mathematical calculation. If not so ascertainable, then it shall be determined by estimating the
quantity on a basis of deliveries under similar conditions when the meter was registering accur-
ately. No adjustment or correction for meter inaccuracy or failure shall be made for it period
longer than 00 days.
Ill.
Gus shall be delivered to Custoner at Company's operating; pressure at the point of deliv-
ery. The point of delivery of gas to Customer hereunder shall be at the 1W,int where tike gas
first passes from Company's equ pment into Customer's equipment, at which point the title to
And ownership of the gas shall vest in Customer. Company shall not be liable for any loss,
damage, or injury resulting from the gas or its use after it leaves the aforerhnld point of deliv-
ery, all risks thereof and therefrom being hereby assumed by Customer.
IV.
(a) Company shall 'have the right at any And All times, with or without notice, to imme-
diately discontinue, in whole or in part, the supply of gas hereunder if In the opinion of Com-
pany a continuation of tike supply under this contrnet would adversely affect, jeopardize or
threaten adequate service to Company's domestic or commercial customers or hazard, jeop-
nrdize or threaten adequate service to other industrial gas customers. having priority of se, vice
under Company's Schedule of Industrial Rates; and Customer herpity authorizes Company so to
do and agrees that Company shall never be liable in dfimnges or otherwise on acc, mt of
having exercised such rights.
(b) Gas sold and service rendered hereunder shall be subj:et to the priority of service
provided in the Schedule of Industrial Rates, and Customer agrees to ::elect hereunder the rate
which affords priority of service necessary and best suited to Cu:tomer's particular type of
operations. When notified by Company to do 3o, Customer agrees to curtail or discontinue the
use of gas hereunder in conformity with the service priority provided for In this contract a-sd
in the Schedule of Industrial Rates. If Customer classifies his business and operations as being
essential to the public health and safrty and considers continuity of his fuel service essential to
the public welfare, then he shall provide staml-by fuel and equipment adequate to meet his fuel
requirements during periods of interruption of gas service under this contract. Company cannot
and does not guarantee a constant supply of gas hereunder. Inability or failure of Company
to deliver or Customer to receive gas or perform this contract shall not be the basis of claims
for damages sustained by either party or for breach of contract whehs duo to Act of God or
governmental authority, the elements, labor troubles, fires, accidents, breakage, repair or change
of or obstructions in pipelines, equipment or machinery, depletion or failure of gas supply, fluctua-
Vons in gas pressure, demands in excess of the capacity of Company's equipment, pipelines, or
sources of gas supply, or other causes or contingencies reasonably beyond the control of either
tarty hereto.
If Customer shall fail to pay bills for service within twenty (20) days from date they are
rendered hereunder or shall otherw'se default under this contract, Company may without
notice, suspend service and deliveries of gas, and such suspension shall not prevent enforcement
by Company of any other of Its legal rights. Waiver by Company of a particular default here-
under shall not be deemed a waiver of subsequent defaults whether similar or dissimilar.
VI.
'Phis contract supersedes and extinguishes fill prior contracts between the parties, or their
respective predecessors in interest, for gas at the location and for the purposts herein desig-
nated; find constitutes the entire contract between the parties. No representation or statement
of any representative of Company shall be a part of this contract nor an inducement to the exe-
cution hereof unless incorporated fully herein.
Yom I180 (1.60)
LONE STAR GAS COMPANY
SCHEDULE OF INDUSTRIAL RATES-H
STATE OF TEXAS
The riilev hereinafter quoted are available to any gas cusiorner who can be served by
Company's existing system upoa the terms and conditions recited herein and in the contract
of which this Schedule of industrial Rates forms it part. The rates shall not be available for
stand-by use, but shall h-, available only to customers purchasing from Company their entire
natural gas requirements at the premises or location set out in the contract, The gas delivered
hereunder is for the individual use of customer and shall not be resold.
This full months ldu during ale ntracitlyeaRai es is based on r. However, Customer's use of
InlustrialaRates may for twelve
appiicnbla to temporary service (less than twelve full months during a contract yer.r) by the
payment by Customer to Company of a non-refundable sum of $125.00 upon execution of suc;r
a temporary contract.
The gn shall I)c measured at a single mets;r location. Bills will be rendered at both gross
and net gates. The net rates shall apply to MIN paid within ten (10) days from monthly billing
date; thereafter, thr. gross rates shall apply.
The minimum bill provisions shall be waived when the service period for which bill is
rendered is for 19 days or less. Whenever the initial service period is for 10 days or less, no
bill will be rendered and the customer's consumption shall be rarr;ed forward and added to cus-
tomer'e consumption during the next succeeding monthly service period for billing purposes.
Gas Service under this Schedule of Industrial Rates shall be subject to curtailment, in-
terruption or discontinuance in any particular service area when necessary in the judgment
of the Company for it to maintain residential and commercial ,iervice, and Industrial service
in accordance with the following order of priority:
(1) Residential and commercial service.
(2) Rate 1 service under this schedule.
(8) Public School Rate service.
(4) Rate 2 service under this schedule.
(b) Agricultural Irrigation set-vice.
(G) Rate 3 service under this schedule.
(7) Oil Field Rate service.
For No purposo of priority of service, Rates 1 and 2 of Company's Schedules of Industrial
Rates F and/or C shall be equivalent to bate 1 service under this Schedule Rate 3 of said
Schedules Industrial Rates shall be equivalent to Rate 2 service under this Schedule, and
Rate 4 of said Schedules of Industrial Rates shnil W equivalent to Rate 8 under this Schedule.
These rates shall not be available to residential customers where fewer than five dwelling
units are served through one meter. Rates 2 and 3 under this Schedule shall not be available to
rooming or boarding houses, orphanages, old people's homes, dor:,titorics, hospitals, tourist
camps, hotels, apartment buildings or other buildings used primarily as living quarters unless
Customer provides stand-by equipment, for the use of other fuel, of at least equal capacity to
that normally require[ by the Customer and fuel in slorag-a in nn amount adequate to fulfill
Customer's fuel requirements during periods of Interruption of gas .2rvice in accordance with
the above curtailment provision.
Customer shall receive service under its choice of one of the following rates in accordance
with the rate selected by Customer as provided in the contract. Winter rate shown below are
for the December, January, Februa);', and March billing months. Summer rates are for all
other billing months.
RATE 1
Rurilurr WInGr
Gross Net Gross Net
First 100 Dicf @ $178 $.70 $.956 S.86 per Mcf
Next 100 Mcf @ .456 .11 .567 .51 per Mcf
Next 300 Dicf @ .411 .17 .500 .45 per Mcf
Next 600 Mcf @ .378 31 AM .40 per Mcf
Next 1 600 Mcf @ .356 .32 .422 .38 per Mcf
All Over 2.500 Mcf L .311 .31 .111 .37 per Mcf
Minimum Monthly Rill $40.00 $40.0
min 2
Summer W1 der
Gross Net Groan Net
First 750 Mcf @ $.411 $.37 $.489 $.41 per Mcf
Next 2 260 Mcf @ .3-14 .31 .411 .37 per Mef
Next 7 000 MCI! @ .313 .30 .389 .35 per Ild
Next 1.3 000 Mcf tr .322 .29 .367 .33 per Mef
All Over 213 000 Mcf @ .311 .28 .356 .32 per Mcf
Minimum Monthly Bill $275.00 $275-00
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RATE 3
Summer Winter
Gross Net Gross Net
First 1000 hlcf @ $.8389 $.305 $.4000 $360 per Mcf
Next 4 000 Mcf @ .3000 .270 .3500 .315 per Mc£
Next 5 000 Dicf @ .2889 .260 .3333 .300 , 4 110
Next 10000 Mcf @ .2833 .285 .3222 .290 p:
Next 15 000 hlcf @ .2778 .250 .3111 .280 per Mcf
Next 15 000 Mcf @ .2723 .215 .3056 .275 per Ater
All Over 60000Alef @ .2667 .240 .3000 .270 per Mcf
hlinirnum Monthly Rill $400.00 $10<I.00
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ADJUSTMENT FOR HEAT CONTENT
Fhe hedule of Indust rial Rates is based upon the delivery of gag having an average total
f 1000 British thermal units (BTU) per cubic foot, Should the ave rage total heat-
gas delivered in any monthly period be more or less than 1000 BTU per cubic foot,
d volume for such period shall be increased or decreased, respectively, in the per-
hich the average heating value of such gas is greater or less than 1000 BTU per
t'he monthly average total heating value of the gas at a pmwwre of four ounces plus
and 4.4 poundq pyecxp enseebyntl e u eaot standard ratmothure nag roceFurca,nhcit shall be determined
ADJUSTMENT FOR GAr- COST
The foregoing , tes rre based upon a weighted average coat of gas purchased by Lone Stnr
Gas Company of 1G cents her MCF based on a pressure of four ounces per square inch above
an assumed atmospheric pressure of 19.4 pounds per square inch. The tenn, "weighted Aver-
Age cost of etas purchased", as used herein, shall be the weighted average price per MCF, ad-
justed to a four ounce base, paid or accrued by Company to producers, processors, transporters
or other sellers for gas purchase by duction,esevCompan (luring erance, latest Availae
ng tax'paid orelac-
months and shall include any y pro lewith respect to gas
creed by Company directly or by way of reimbursement to its gas suppers
purchased by Company.
Whenever the weighted average cost of gas purchased is more or less than 1G cents per
MCF, the net rates shall be incniased or decreased by the amount of such difference and the gas j shall the computed }ptopthelneares one-hundredth
rof one cent,~'(ustment clause, the
Adjustment
ADJUSTMENT FOR TAXES, LICENSES, FEES,
CHARGES, AND RENTALS taxes Customer shall pay Company an ye levied, ncliarged or mposedrbynany governmental bode
rentals which now are or which may b
under authority o; any law, ordinance or contract for the use of the public streets, alleys and
thoruuylifares in the conduct of Company's business, or because of Company's occupation; and
Customer shall pay Company an amount equivalent to a proportionate part of any new tax or
increased tax or any other governmental imposition, rental, fee or charge levied or charged
after July 1, 1969 (except State, county, city, and special district ad valorem taxes, taxes on
net income and tiny production or similar tax included in the weighted average cost of gas as
provided in the gas cost adjustment clause).
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LONE STAR GAS COMPANY, an investor owned utility, serves
home and industry with natural gas energy in more than 540
Texas and Oklahorna communities. Supporting this service is a
network of company-owned and maintained transmission and
distribution pipelines totaling over 24,000 miles. Gas Is supplied
from 20,000 wells In 700 reservoirs.
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