Enron Mail

From:eric.gillaspie@enron.com
To:roger.balog@enron.com
Subject:Gas Quality Specs from our hpmtrani form doc
Cc:
Bcc:
Date:Tue, 27 Jun 2000 04:17:00 -0700 (PDT)

8. Pressures.
The Gas delivered by Shipper to the Receipt Points hereunder shall be=20
delivered at a pressure sufficient to overcome the operating pressure=20
existing in Houston's facilities from time to time; provided, however, in n=
o=20
event shall such pressures ever exceed the Maximum Allowable Operating=20
Pressure ("MAOP") and Shipper shall at its sole cost and expense ensure tha=
t=20
all documentation and data required by the applicable regulatory authority=
=20
with regard to Shipper's or Shipper's supplier's overpressure protection=20
facilities upstream of the Delivery Point are made available and updated on=
=20
an annual basis throughout the term of this Agreement. If Shipper fails to=
=20
comply with the foregoing covenant, Houston may, at Shipper's sole cost and=
=20
expense, install such overpressure protection facilities (either upstream o=
r=20
downstream of the metering facilities, as Houston may elect) in order to=20
ensure compliance with applicable laws and regulations. The Gas delivered =
by=20
Houston to the Delivery Points shall be delivered at the pressure existing =
in=20
Houston's facilities from time to time.
9. Quality.
Shipper agrees that all Gas received by Houston at the Receipt Points=20
hereunder and Houston agrees that all Gas delivered hereunder to or for the=
=20
account of Shipper at the Delivery Points hereunder shall be merchantable G=
as=20
which shall:
a. Have a total heating value of not less than nine hundred fifty (950)=20
British Thermal Units per cubic foot when saturated with wator vapor (gross=
=20
basis);
b. Be commercially free of all dust, hydrocarbon liquids, water, suspended=
=20
matter, all gums and gum forming constituents and any other objectionable=
=20
substances;
c. Not contain more than twenty (20) grains of total sulfur, nor more than=
=20
one-fourth (1/4) grain of hydrogen sulfide per one hundred (100) standard=
=20
cubic feet at the Receipt Points nor more than one (1) grain of hydrogen=20
sulfide per one hundred (100) standard cubic feet at the Delivery Points;
d. Contain no more than two percent (2%) by volume of carbon dioxide, two=
=20
tenths of one percent (0.2%) by volume of oxygen, and three percent (3%) by=
=20
volume of total inerts;
e. Have a temperature of not more than one hundred twenty degrees Fahrenhei=
t=20
(120F.) or less than forty degrees Fahrenheit (40F.);
f. Not contain more than seven (7) pounds of entrained water vapor per=20
million cubic feet; and
g. Have a hydrocarbon dewpoint of 45=01"F or less at pipeline operating=20
pressures between 200 psig and 1100 psig.
Shipper shall be responsible for odorizing any part of the Gas delivered=20
hereunder to or for Shipper's account which is diverted and/or used by=20
Shipper for any purpose for which odorization is required pursuant to=20
regulations of the Railroad Commission of Texas.
Should the Gas delivered to either party hereunder fail to meet the quality=
=20
specifications above, either party shall notify the other and the party=20
responsible for the deficiency shall make a diligent effort to correct such=
=20
failure. The party receiving the deficient Gas shall have the right to=20
refuse to accept such Gas for so long as the other party is unable to deliv=
er=20
Gas conforming to such specifications, or either party may accept delivery =
of=20
such Gas or any part thereof during such period. Should either party's=20
tender of deficient Gas hereunder extend for a period greater than sixty (6=
0)=20
Days, the receiving party shall have the right and option at the end of suc=
h=20
sixty (60) Days, and as long thereafter as the other party continues to=20
tender such non-conforming Gas, to terminate this Agreement on twenty-four=
=20
(24) hours advance written notice to the other party stating the effective=
=20
date of such termination.
10. Metering Facilities and Measurement.
Except as otherwise agreed by Houston, the metering facilities to measure t=
he=20
volumes of Gas delivered at each Receipt Point and Delivery Point shall be=
=20
maintained and operated or caused to be maintained and operated by Houston.=
=20
The Btu content of the Gas shall be determined by the facilities at the=20
Receipt Points and Delivery Points. Such facilities and measurement data=
=20
with respect to the Gas covered hereby shall at all reasonable times be=20
subject to joint inspection by the parties hereto. Gas volumes measured wi=
th=20
the use of orifice meter(s) shall be determined in accordance with the=20
provisions of the Gas Measurement Committee Report No. 3 of the American Ga=
s=20
Association, as revised in 1985 and as amended and/or supplemented from tim=
e=20
to time, and Gas volumes measured with the use of positive meter(s) shall b=
e=20
determined on the basis of Gas Measurement Committee Report No. 7 of the=20
American Gas Association, as revised in 1981 and as may be amended and/or=
=20
supplemented thereafter from time to time. The unit of volume for=20
measurement of Gas delivered hereunder shall be one (1) cubic foot of Gas a=
t=20
a base temperature of sixty degrees Fahrenheit (60F.) and at an absolute=20
pressure of fourteen and sixty-five one hundredths (14.65) pounds per squar=
e=20
inch absolute. Atmospheric pressure for each of the Receipt Points and=20
Delivery Points shall be assumed to be the pressure value determined by=20
Houston for the county in which such point is located pursuant to generally=
=20
accepted industry practices (but not less than 14.1 psia nor more than 14.7=
=20
psia) irrespective of the actual atmospheric pressure at such points from=
=20
time to time. Temperature shall be determined by a recording thermometer o=
f=20
standard make. If recording charts are used, the arithmetical average of t=
he=20
temperature recorded during periods of flow for each chart, the factor for=
=20
specific gravity according to the latest test therefor, and the correction=
=20
for deviation from Ideal Gas Laws applicable during each chart period shall=
=20
be used to make proper computations of volumes hereunder. If electronic fl=
ow=20
measurement is used, continuous temperature, static pressure and differenti=
al=20
pressure monitoring will be applicable. If electronic measurement is used =
in=20
conjunction with on-site chromatograph, continuous monitoring of specific=
=20
gravity will be applicable; otherwise the volumes computed using a fixed=20
value specific gravity factor shall be corrected to reflect the actual=20
specific gravity of the flowing Gas as determined by a chromatographic=20
analysis of the sample accumulated during the same period of flow or, in th=
e=20
case of spot samples, the specific gravity factor determined by=20
chromatographic analysis shall be applied to volumes delivered during the=
=20
succeeding chart periods. The correction for deviation from the Ideal Gas=
=20
Laws shall be computed and applied to volumes calculated by electronic=20
measurement devices. Specific gravity and Btu shall be determined by such=
=20
methods as may be developed by Houston through use of a continuous Gas samp=
le=20
accumulator, on premises analysis, or by spot samples taken at the Receipt=
=20
Points and Delivery Points at intervals determined to be appropriate by=20
Houston. Results from a continuous sampler shall be used to calculate=20
volumes delivered during the same period in which the sample was accumulate=
d;=20
provided, however, that Houston reserves the right to adopt the practice of=
=20
using the Btu content measured for a period prior to the Month of Gas flow =
in=20
calculating the quantity of Gas transported during a given Month. Results=
=20
from a spot sample shall be used to calculate volumes during the subsequent=
=20
period until another sample is taken. The arithmetical average of the=20
continuous temperature recorded during each chart period, the factor for=20
specific gravity according to the latest test therefor, and the correction=
=20
for deviation from Ideal Gas Laws applicable during each chart period shall=
=20
be used to make proper computations of volumes hereunder. The gross heatin=
g=20
value (Btu content) used shall be determined by adjusting the Btu content=
=20
measured to reflect the actual water vapor content of the Gas delivered at =
a=20
temperature of sixty degrees Fahrenheit (60F.) at an absolute pressure of=
=20
fourteen and sixty-five one-hundredths (14.65) pounds per square inch=20
absolute. If the water vapor content of the Gas delivered is equal to or=
=20
less than seven (7) pounds per one million cubic feet (1,000 Mcf), the Gas=
=20
shall be considered dry. The volume of Gas measured shall be multiplied by=
=20
the applicable Btu content for such Gas (either that measured for the Month=
=20
of Gas flow or for the designated period of Btu measurement that may occur=
=20
prior to the actual Month of Gas flow) to determine the total volume of Gas=
=20
in MMBtu. In the event that the aggregate quantity of Gas tendered by=20
Shipper and accepted by Houston under this Agreement during any Month at a=
=20
given Receipt Point equals a quantity less than the product of (i) 300 MMBt=
u=20
per Day times (ii) the number of Days in the Month during which Shipper=20
tendered Gas to Houston in accordance with a confirmed nomination, then=20
Houston may, at its election, charge Shipper a metering fee ("Metering Fee"=
)=20
of $350 for such Month with respect to each such Receipt Point.

Eric Gillaspie
713-345-7667
Enron Building 3886