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Home My WebLink AboutC-6254 - Crude Oil Purchase ContractJanuary 24, 2012 CITY OF NEWPORT BEACH GEORGE MURDOCH MUNICIPAL OPERATIONS DEPT P 0 BOX 1768 NEWPORT BEACH CA 92659 -1768 NM MARKETING, LP, To: Domestic Lease Crude Operators and Sellers Subject: Plains Marketing, L.P.'s Contract Change - Rejected Load Fee m JAN 31 2012 Plains Marketing, L.P. ( "Plains ") continues to experience an excessive number of rejected loads in all our service areas. Due to the growth of domestic crude oil production, the supply of crude oil transports and qualified drivers has become scarce. In an effort to improve service to our customers and reduce rejected loads, Plains will begin charging customers for rejected loads. All contracts will be amended effective April 1, 2012 to include the following provision after the payment clause: Rejected Load Fee: Plains will assess Seller a fee in an amount of $150.00 per rejected load, which amount shall be deducted from the payment due by Plains to Seller. This rejected load fee will be deducted from revenue payments and will appear as a separate item on the payment detail provided by Plains. This amendment is made part of your current contract(s) effective April 1, 2012. If you have any questions please contact your Plains crude oil representative no later than March 1, 2012. Regards, lb6_11�11 Robert Sanford Vice - President — Lease Supply Representative Name McCurdy, Edward G Plains Marketing GP Inc., General Partner 333 Clay Street, Suite 1600 (77002) ■ P.O. Box 4648 ■ Houston, Texas 77210 -4648 - 713 -646 -4100 Plains Marketing L.P. P.O. Box 4648 Houston, Texas 77210 -4648 To Whom It May Concern: •' • • October 28, 2011 The City of Newport Beach requests that Plains Marketing, L.P. update the mailing address for the operator, the City of Newport Beach; property number 147345. Please mail all future correspondences, and statements to the following: City of Newport Beach George Murdoch Municipal Operations Department P.O. Box 1768 Newport Beach, CA 92659 If there are any further questions please call 949 - 644 -3011. Thank you, George Murdoch General Manager Corporation Yard: 592 Superior Ave, Newport Beach, CA 92663 - Telephone: (949) 644 -3055 Fax: (949) 650 -0747 Utilities Yard: 949 West 16th Street, Newport Beach, CA 92663 - Telephone: (949) 644 -3011 Fax: (949) 646 -5204 Mailing Address: PO Box 1768, Newport Beach, CA 92658 -8915 - www. newportbeachca .gov /municipaloperations M ."t' -15 -2 -007 TUE 02:31 PM FAX N0, P. 02 Plains Marketing, L.P. 333 Clay Street Suite 1600 1 Houston, Texas 77002 1 Phone: (713) 646 -4100 1 Fax: (713) 646 -4114 Crude Oil Purchase Contract CONTRACT NO. 70341001 May 15, 2007 This contract by and between City Of Newport Reach ( "Newport Beach "), with an address of P.O. Box 1768, Newport, CA 92659 -1768 and Plains Marketing, L.P., ( "PNII_P "), covering the sale and delivery by Newport Beach and the purchase and receipt by PMLP of the hereinafter specified oil is entered into in accordance with the following terms and conditions: I . TERM: The Primary Term shall be a period of one month from January 01, 2007 to February 01, 2007. The Term shall be automatically extended for a Secondary Term month to month thereafter unless notice of non - renewal is given by elther party hereto upon not less than ninety (90) days advance written notice to the other party. 2. QUALITY Newport Beach crude oil. AND CRUDE TYPE: 3. QUANTITY: An amount equal to actual lease receipts from lease(s) indicated on Exhibit "A" attached hereto and made a part hereof. (Approximately 165 barrels per day). 4. DELIVERY. Shall be made at the well tankage into PMl_P's designated transportation facilities. 5. PRICE: For the crude oil sold and delivered hereunder, PMLP agrees to pay a price per barrel equal to PACIFIC MARKETING & TRANSP LLC NEWPORT Crude Oil Posting, API gravity, plus an additional $0.2600 premium as indicated on Exhibit "A" attached hereto and made a part hereof. For pricing purposes, deliveries will be calculated on equal daily quantities. 6. PAYMENT: Payment shall he made by check on or about the twentieth (20th) day of the month following the month of delivery. PMLP's General Provisions dated February 01, 2001 are incorporated herein by reference and made a part hereof. To the extent of any conflict between the provisions herein and the General Provisions, the provisions herein shall govern. if Division Orders have been issued to Newport Beach by PMLP and executed by Newport Beach covering the well(s) on Exhibit "A ", the Division Orders are incorporated herein and made a part hereof. MU -15 -2007 TUE 02 :31 PM FAX N0, P. 03 The provisions of this Agreement, including but not limited to those relating to term, rights of termination, price and otherwise, shall be applicable and govern, notwithstanding any provision In the Divlsion Orders to the contrary. This fax evidences our understanding of the entire agreement and shall constitute the formal contract. Please acknowledge by return fax your acceptance of and agreement to the terms stated herein. If no response from the Counterparty Is received within five (5) business days, the contract is considered binding. These terms and conditions will be deemed accepted if City Of Newport Beach begins performance of its obligations hereunder. The parties agree that faxed documents shall be deemed to be admissible as primary evidence in a court of law as original or as counterparts of the original documents, elther of which is to be retained and available 'for inspection. All invoices and notices given pursuant to this agreement shall be in writing, telex or faxed and shall be deemed delivered when received by the other party at the address specified below: Notices and all other correspondence to PMLP shall be mailed or faxed as follows' Plains Marketing, L.P. 333 Clay Street Suite 1600 Houston, Texas 77002 Phone: (713) 6464100 Pax: (713) 646 -4114 Invoices shall be mailed or faxed to PMLP as follows: Plains Marketing, L.P. 333 Clay Street Suite 1600 Houston, Texas 77002 Phone: (713) 646 -4100 Fax: (713) 646 -4114 Notices and all other correspondence to Newport Beach shall be mailed or faxed as follows: City Of Newport Beach P.O. Sox 1768 Newport, CA 92659 -1768 Phone:(949) 644 3010 Fax:(949) 646 6204 Very truly yours, PLAINS MARKETING, L.P. By Plains Marketing GP Inc. its G(e�ner�ai Partner h tavAJ..JC+ -[ -. 1� "C Edward G McCurdy Senior Crude Oil Representative Log No.: 2649 MnY -15 -2007 TUE 02:31 PM FAX N0. 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