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Lone Star Gas-CS 891011JAMES D. NELSON District Manoger Mr. Alan D. Ratliff City Manager City of Coppell P.O. Box 478 Coppell, Texas 75019 Dear Mr. Ratliff: Lone Star Gas Company is filing the attached tariff to give formal notice of the Commercial Contract Public School Rate. This new contract rate is made available to the Coppell Independent School District in order to reduce its susceptibility to curtailment during prolonged periods of extreme cold weather. No action on this filing is required. Please be informed that approximately 300 out of 500 school districts served by Lone Star Gas are on the regular commercial rate. As commercial customers, these school districts pay their full cost of service and are not subject to curtailment. Although Coppell ISD is not on this regular commercial rate, it is our intent to allow the district to receive service under the new commercial contract rate until Lone Star Gas files for an overall general rate increase. At that time, we will request elimination of the contract rate in favor of the cost-supported commercial rate that fully covers the cost of providing gas service to the public schools. Please feel free to contact me if you have any questions or desire further information. Respectfully, Attachment 1.' Company Name: Lone Star Gas Company ,_.2. Customer Identification: Coppell 1SD 3. Type of Service: Commercial Contract Public School Rate 4. Date of Original Contract or Initial Service: November 10, 5. Date of Current Amendment: 6. Rate: The following rates are applicable and shall be the terms of the contract: Rate Schedule 1:o. 31 1989 charged for gas sold under First 150 Mcr @ $1.71 per Mcf Over 150 Mcr @ $1.66 per Mcf Minimum monthly bill will be $10.00 per meter installation. This rate is based upon the delivery of gas having an average total heat value of l~000 British thermal units per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 British thermal units per cubic foot, the measured volume for such period shall be increased or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than i,000 British thermal units per cubic foo~. The monthly average total heating value of the gas at a pressure of four ounces plus 14.4 pounds per square inch and at a temperature of 60 degrees Fahrenheit shall be determined at Company's expense by the use of standard tests or the use of recording calorimeters. The foregoing rates are based upon a weighted' average cost of gas purchased by Lone Star Gas Company of $1.00 per 1,000 cubic feet (Ncf) based on a pressure of four ounces per square inch above an assumed atmospheric pressure of 14.4 pounds per square inch and at a temperatur? of 60 degrees Fahrenheit. The "weighted average cost of gas purchased," as used herein, shall be computed by dividing the total amount paid or accrued by Company (as reflected by Company's Gas Purchase Accounts), including any production, severance, dedication or gathering tax paid or accrued by Company directly or by way of reimbursement to its gas suppliers, to producers, processors, transporters, or other sellers of gas in the latest available fiscal month by the total volume of pipeline quality gas in Mcr purchased by Company during said periods. ~%enever the weighted average cost of gas purchased is more or less than $1.00 per Mcf, the amount billed under this schedule shall be increased or decreased by the amount of such difference multiplied by the consumption in Mef, without adjustment for heating value. In applying the gas cost adjustment clause, the adjustment shall be computed to the nearest one-hundredth of one cent. Company, from time to time, may be required by the terms of a gas purchase contract (including an agreed settlement of a disputed claim) or by a determination of a regulatory body or court to make additional payments with respect to gas previously purchased by Company. In such case, appropriate adjustments to compensate therefor shall be made in the price payable for gas hereunder as soon as practicable after the time of such pa)went so that Customer shall bear a proportionate part of any such payment which has not been previously included in the weighted average cost of gas purchased as defined above. Issued: June 27, 1989 Rate Schedule No. 31 Page 12 Customer shall pay Company an amount equivalent to a proportionate part of all taxes or rentals which now are or which may be levied, charged or imposed by any governmental body under authority of any law~ ordinance or contract for the use of the public streets, alleys and thoroughfares 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, 1976, (except state, county, city, and special district ad valorem taxes, taxes on net income and any production or similar tax included in the weighted average cost of gas as provided in the gas cost adjustment clause). 7. Rate Adjustment Provisions: N/A 8. Reason for Filing: New contract rate available to public free school rate (Rate Schedule Number 52-N) commercial service with a curtailment priority public free school classifications. 9. Expiration Date: 10. Delivery Points: '11. Pressure Base: 14.65 psia 12. Contact Person: Hr. P. ?. McKenzie, Rate Manager Lone Star Gas Company 301 S. Harwood Dallas, TX 75201 customers presently on the to provide for public school higher than the industrial and 214/573-3251 Issued: June 27, 1989 ~ STAR ~%S CC~PANY, calle4 ,,O~an~,, agrees to sell and deliver natural gas to O~5 ~I~m~NT ~,~)L DI~,~/CT called ,,Customer,, whose mailing address is (~p~_11, Tez~s 75~19 a~d C~st~a~er agrees to purchase and receive such gas from Company to meet customer,s natural g~s requirement at Custxm~_r,s premises located in Dallas County, State of Texas, and more fully described as: T~oee public school buil~qs subject to and in accordance with all the terms and conditions contained in this and shall cover service until the end of the first contract year, and then f~ year to year thereafter until either party gives written notice of termination of this contract at least 15 days before the expiration of any contract year. Not- wlthstandin~ the above, however, this contract shall terminate at the end of any contract year during which the local regulatory authority approves or allows the discontinuance of the Lone Star Public Free School Rate and the Cc~nercial Contract for Public School Gas Service Rate. The first contract year hereunder shall co,hence on the first official meter reading date after the date gas is first delivered to Cust~ner hereunder and shall terminate at the and of the twelfth (12th) monthly billing period thereafter. This contract covers Customer,s entire natural gas requirements in the aforesaid premises. Custumer has elected to receive and pay for gas under this contract in accordance with the rate specified in the attached Schedule of Rates which is incorporated herein and made a part of this contract; provided, however, it is understood the Rate Schedule applicable to such service may be changed frc~ time to time as provided in Article I of the General Tenns. Bills rendered for gas delivered hereunder shall be payable at O~,~any,s office located at De~t. 3043, De/las, Te~s 75284-3043. This contract includes the additional terms, provisions and conditions contained in Articles I through VII, entitled ,,General Terms,,, which are attached hereto and shall be a part of this agre~nent, and such ,,General Te~ns,, shall be applicable to the service rendered hereunder. This contract shall be binding upon C~,%~ny, its successors and assigns, but shall not be assignable by Custc~-r without the written consent of C~%~any. -CUSTOME~ ~ / ,,COMPANY, (a) Company,s Schedule of Rates may be revised from time to time in the future and any such revised or new Schedule of Rates, when lawfully established, shall be applicable to gas purchased and sold under this contract c~L~L~ncing with gas delivered after the effective date of s~ch change. Company shall give Customer written notice of any such change, together with a copy of the revised SchedLhle of Rates. If the rate is incr-~ed, Custcmer may cancel this contract by written notice to C~any within thirty (30) days following the date of c~,~any,s notice, which cancellation shall be effective fifteen (15) days after receipt of such notice by Oa%~any; provided the new or revised rate shall be payable for gas service during any applicable period before cancellation. If Cust~ner fs/ls to give the C~,~e_ny such notice of cancellation, this contract shall continue. The notices herein prcvlded for shall be de~ned 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 Cc~%~ny,s request Customer shall from time to time deposit with Cc~pany s~ch amount of money as Cc~pany may determine is reasonably necessary to guarantee the payment of gas bills hereunder and all other bills d~e by Custc~ner to C~_ny. All money deposited by custc~ner with Cc~pa~y shall bear interest at the rate prescribed by law. Interest shall be payable ann~,~lly at C~any,s office f~c~,~ which bills are rendered under this contract. Upon the teImination of this contract, said deposit, plus any accrued interest thereon, less any amount due C~%~ny by customer, shall be refunded to Customer. (a) The gas shall be measured at a single ~eter location at each school facility by a staD~d mater furnished and installed by and at Cc~pany,s ~pense. Customer shall provide, in accordance with C~ny, s specifications, the necessary service line on Custcmer,s premises to connect with C~,~ny,s line and suitable space and ease~_nt for C~any's lines and other equi~anent. Customer shall use due care to protect Oumpany,s property which is located on Custc~er,s premises frc~ damage end shall pen~t no person other than an agent of or a person otherwise lawfully authorized, to tamper with, inspect or remove same. Ail property belonging to Company and located on Custc~er,s premises shall be removable by C~any at any time during the tenn of this contract and within a reasonable time after its termination or after reasonable notice of Customer,s desire to have such property r~cved, title thereto r~ning in C~,%~%ny at all times. C~L~any shall have full and free ingress to and egress f;~,L custc~er,s pr~ises for the construction, inspection, ma{ntenance, repair and removal of Oc~pany,s property thereon or for any purpose connected with the service of gas hereunder. (b) Customer agrees to keep the gas-burning equi~ent and appurtenances which may be located on the aforesaid premises in good condition a~d in confonnity with the requirements of any applicable city ordinances, state law, rule, order or regulation of any governmental authority having jurisdiction and to c~,~ly with all of C.~%~ny,s reasonable rules and regulations. (c) For the purpose of this contract the unit of measurement shall be 1,000 cubic feet of gas at an absolute pressure of 14.65 pounds per scf~e inch and a base temperature of 60 degrees Fahrenheit. All volumes of gas measured shall be adjusted by computation in accordance with the Ideal Gas Laws, corrected for deviation frc~ the pressure and temperature conditions set forth in the immediate preceding sentence. In such c~utations, a value of 60 degrees Fahrenheit shall be used for the flowing t=~%~_rature of the gas; however, cc~pany, at its sole option, may install standard t~erature recording instruments on C~any,s meter end correct the volume measured based on the act~l flowing t=:,%~erature of the (d) Meter measurements c~i~uted by Company according to its standard operating practices shall be conclusive except where meter is found to be inaccurate by es much es i per cent fast or slow or failed to register, in either of which cases C~any shall repair or replace the meter. The quantity of gas delivered while the meter was inaccurate or failed to register shall be detexmlned by correcting the e~zur if the percentage of e~zur 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 accurately. No adjustment or correction for meter inaccuracy or failure shall be made for a period longer than 90 days. Gas shall be delivered to Customer at C~,~any,s operating pressure at the point of delivery. The point of delivery of gas to Customer hereunder shmll be at the point where the gas first passes fr~n Company,s equilm~-nt into Cust~mer,s equ/pment, at which point the title to and ownership of the gas shall vest in Customer. Cc~pany shall not be liable for any loss, damage, or injury resulting fz~L~ the g~s or its use after it leaves the aforesaid point of delivery, ali risks thereof end therefrc~ being hereby assumed by Cust~ner. (a) C~any shall have the right at any end all times, with or without notice, to immediately discontinue, in whole or in part, the supply of gas hereunder if in the opinion of Cc~pany a continuation of the supply under this contract would adversely affect, jeopardize or threate~ adequate service to Company's residential or higher priority c~,~rcial customers; and Cust~mmr hereby authorizes C~any so to do and agrees that C~any shall never be liable in damages or otherwise on account of having exercised such rights. (b) Gas sold and service rendered hereunder shall be subject to the priority of service provided in the Schedule of Rates. When notified by to de so, Cust~ner agrees to curtail or discontinue the use of gas hereunder in confozmity with the service priority provided for in this contract and in the Schedule of Rates. Company cannot end does not guarantee a constant supply of gas hereunder. Inability or failure of Om~pany to deliver or Customer to receive gas or perform this contract shall not be the basis of claims for damages susta/ned by either party or for breach of contract when due to Act of God or Z governmental authority, the elements, labor troubles, fires, accidents, breakage, repair or change of or obstructions in pipelines, equilanent or machinery, depletion or failure of gas supply, fluctuations in gas pressure, de~m~nds in excess of the capacity of Copy's equi~anent, pipelines, or sources of gas supply, or other causes or contingencies reasonably beyond the control of either party hereto. In the event Customer fails to pay bills for service when due, and litigation on any of these amounts be required, Customer agrees to reLmburse Company for its reasonable attorneys fees. Additionally, if Customer shall fail to pay bills for service within twenty (20) days fi~LL date they are rendered hereunder or shall otherwise default under this Contract, C~any may suspend service and deliveries of gas and such suspension shall not prevent enforc~anent by C~ny of any other of its legal rights. Waiver by C~any of a particular right or default hereunder shall not be de~ed a waiver of other s%lbsec~t rights or defaults whether similar or dissimilar. This contract is expressly made subject to all present or future valid rules, orders or regulations of duly constituted governmental authorities having jurisdiction over the subject matter hereof. This contract supersedes and extinguishes all prior contracts between the parties, or their respective predecessors in interest, for gas at the location and for the purposes herein designated; and constitutes the entire contract between the parties. No representation or statement of any representative of C~any shall be a part of this contract nor an inducement to the execution hereof unless inccrporated fully herein. 3 Upon the tenms and conditions recited herein and in the contract of which this ~ate Schedule forms a part, the rate set out below shall be available to any fully tax supported public free school, including high school and lower grades, using gas for building heat and other uses incidental to the operation of the school facilities, provided that all usage is through a single meter installation. Gas delivered hereunder shall not be available for residential dwelling use, for standby use, nor for redelivery or resale to others, nor to private schools or tax supported schools above the high school ~z=de level. Amounts billed shall be due and payable within ten (10) days from monthly billing date. Service rendered under this rate schedule shall be subject to curtailment, interruption or discontinuance in any particular service area when necessary in the judgment of the Company for it to ma{ntain adequate service to its Residential and higher priority O~L~ercial rate custc~ers, service hereunder shall be curtailed before curtailment of any other cc~mercial service, but shall receive preference over service rendered under Rates 1,2, and 3 in the Cc~pany's Schedule of Industrial Rates. First 150 Mcf @ $1.71 per }{cf Over 150 Mcf @ $1.66 per M~f Minimum Monthly Bill $10.00 per Meter Installation for Heat O0n~mt: This rate is based upon the delivezy of gas having an average total heat value of 1,000 British thermal units per cubic foot. Should the average total heating value of gas delivered in any monthly period be more or less than 1,000 British thenmal units per cubic foot, the measured volumes for such period shall be incr-~ed or decreased, respectively, in the percentage by which the average heating value of such gas is greater or less than 1,000 British thezmal units per cubic foot. The monthly average total heatln~ value of the g~s at a pressure of four ounces plus 14.4 pounds per scab-ye inch and at a t~erature of 60 degrees Fahrenheit shall be determined at Ccmpany.s e~pense by the use of standard tests or the use of recording c~lorimeters. Adju~! ..~-t for Gas Cost: The foregoing rates are based upon a weighted average cost of gas purchased by Lone star Gas (k~pany of $1.00 per 1,000 cubic feet (Mcr) based on a pressure of four ounces per square inch above an assumed atmospheric pressure of 14.4 pounds per square inch and at a t~erature of 60 degrees Fahrenheit. The ,Weighted average cost of gas purchased,,, as used herein, shall be c~uted by dividing the total amount paid or accrued by C~any (as reflected by Cc~pany,s Gas Purchase Accounts),. including any production, severance, dedication or gathering tax paid or accrued by C~ny directly or by way of relmburse~ent to its gas suppliers, to producer, processors, transporters, or other sellers of gas in the latest available fiscal month by the total volume of pipeline quality gas in Mcr purchased by c~%~ny during said period. Whenever the weighted average cost of gas purchased is more or less than $1.00 per Mcr, the amount billed under this schedule sh~ll be increased or decreased by the amount of such difference multiplied by the consumption in }{cf, without adjustment for heating value. In applying the gas cost adjustment clause, the adjustment shall be c~uted to the nearest one-hundredth of one cent o C~ny, frc~ time to time, may be required by the terms of a gas purchase contract (including an agreed settlement of a disputed claim) or by a determination of a regulatory body or court to make additional pa~nents with respect to gas previously purchased by C~,~any. In such case, appropriate adjustments to compensate therefor sh~ll be made in the price payable for gas hereunder as soon as practicable after the time of such payment so that Customer shall bear a proportionate part of any such pa!a~ent, which has not been previously included in the weighted average cost of g~s purchases as defined above. for T~-~ Lic~-~es, Fees, ~vges, Az~ R~nta/s: Customer shall pay C~any an amount equivalent to a proportionate part of all taxes or rentals which now ere or which may be levied, charged or imposed by any governmental body under authority of any law, ordinance or contract for the use of the public streets,, alleys and thoroughfares in the conduct of Oa~any,s business, or because of Cc~pany,s occupation; and Customer shall pay C~,~any an amount equivalent to a proportionate part of any new tax or increased tax or any other gove~.~_ntal imposition, rental, fee or charge levied or charged after Ja~,a~y 1, 1989, (except state, county, city, and special district ad valorem taxes, taxes on net inccme and any production or similar tax included in the weighted average cost of g~s as provided in the gas cost adjustment clause).