Valero Interstate Transmission Company
First Revised Volume No. 2
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Effective Date: 11/01/1991, Docket: GT91- 42-000, Status: Effective
Original Sheet No. 30 Original Sheet No. 30 : Superseded
2. Buyer shall have the right to vary its daily purchase volumes
from Interstate each month within the range of 5,000 MMBtu/day to 50,000
MMBtu/ day.
3. Buyer shall purchase an average daily volume of gas each month of
each calendar quarter equal to the volume nominated in the Buyer's notice
to Interstate which shall be provided to Interstate not less than thirty
(30) days prior to the commencement of each calendar quarter during the
term of this contract.
4. In the event Buyer does not purchase sufficient quantities of
natural gas under the provisions of this Article to permit Interstate to
receive reimbursement from Buyer for fifty percent (50%) of the take-or-pay
buy out and buy down cost totalling $15,740,000 including interest, through
gas purchases over three (3) consecutive periods of twelve (12) months each,
Buyer shall pay the remaining take-or-pay settlement sum to Interstate by
lump sum payment in accordance with paragraph 2(b) of Article VII below.
ARTICLE IV
QUALITY
1. The gas delivered by Interstate to Buyer shall be of such quality
that it shall meet the following specifications:
(a) Be commercially free of grease, dust, gum, gumforming constit-
uents, and other foreign substances, and gasoline, and other solid and/or
liquid matter that can be removed with dehydrators and ordinary field
separators;
(b) Contain not more than one-quarter (.25) grain of hydrogen
sulfide per one hundred (100) cubic feet, as determined by the cadmium
sulfate quantitative test as presently prescribed by the regulations of
the Railroad Commission of Texas;
(c) Contain not more than five (5) grains of total sulfur per one
hundred (100) cubic feet;
(d) Contain not more than three percent (3%) by volume of a combined
total of carbon dioxide and nitrogen;
(e) Contain not more than one percent (1%) by volume of oxygen;