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Original Sheet No. 30 Original Sheet No. 30 : Superseded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;