Exhibit
10.17
CONFIDENTIAL TREATMENT
[Logo]
Air Products and Chemicals,
Inc.
7201 Hamilton Boulevard
Allentown, PA 18195-1501
Telephone (610) 481-4911
Amendment No. 1
This Amendment Number 1 (the
“Amendment”) is made as of the 30th
day of January 2004 by and between Air Products and Chemicals, Inc.
(“Buyer”), and Keyes Helium Company,
LLC ( “Seller” ).
Whereas , Buyer and Seller are parties to that Contract
for Sale and Purchase of Liquid Helium as Amended and Restated
dated as of 1 January 1999 (the “Original
Contract” ), under which Seller is obligated to sell
to Buyer, and Buyer is obligated to purchase from Seller, all
liquid helium processed at Seller’s Facility (as defined in
the Original Contract) (capitalized terms used in this letter
agreement but not defined herein shall have the meanings given them
in the Original Contract); and
Whereas , Seller is currently contemplating upgrades and
repairs to Seller’s Facility, which repairs and upgrades, if
undertaken, would be provided by Buyer under a separate contract
for the compensation rates stated therein; and
Whereas , the parties now desire to make certain
amendment to the Original Contract to provide for the sale of crude
helium by Seller to Buyer, to amend the price re-openers, to
facilitate payments for said repairs and upgrades to Seller’s
Facility, and make certain other changes.
Now Therefore, in
consideration of the mutual promises of the parties set forth below
and for other for good and valuable consideration, the receipt of
which is hereby acknowledged, Buyer and Seller, intending to be
legally bound, hereby agree as follows:
1.
Amendments to Original
Agreement. The
Original Agreement is hereby amended as follows:
(a) Article 1 is hereby amended to add the
following definitions are added in the correct alphabetical
location:
“ Capacity
Limitation Crude” means
crude helium owned by Seller
in excess of that, which can be
refined at Seller’s Facility as set forth in the
Original Agreement Article 2.3 as
the capacity limitation.
“ Facility
Services Agreement” means
the contract entered into by Seller and Buyer under which Buyer,
during calendar year 2004, provides various upgrade and upgrade
parts and services for Seller’s Facility for a
fee.
“Facility Services
Fee” means the
total amount payable by Seller to Buyer under the Facility Services
Agreement, whether for fees, expenses or otherwise.
“Keyes
Crude” means,
collectively, the Capacity Limitation Crude and the Outage Crude
and Shutdown Crude, if any.
“Outage
Crude” means
crude helium owned by Seller that would typically be refined at
Seller’s Facility pursuant to Article 2 but cannot be due to
Seller’s Facility’s undergoing upgrades and repairs,
including the Upgrades.
“Reimbursement
Period” means
the period of time in which Seller is required to reimburse Buyer
for the Facility Service Fee, as set forth in Section
5.8.
“ Shutdown
Crude” is defined in Section
4.3.1.
“ Upgrades
” meaning the improvements and repairs that are to be made to
Seller’s Facility in calendar year 2004 under separate
contract between Seller, as purchaser, and Buyer, as provider, of
the upgrade and repair services.”
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(b)
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Article 4 is
hereby amended to add the following new Sections to the end of
such
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Article:
“4.3 Crude Helium Sales
. Keyes hereby agrees to sell to APCI, and APCI hereby agrees to
purchase from Keyes, for the applicable Crude Helium Price set
forth in Section 5.7, all Outage Crude and all
Capacity Limitation Crude. All Outage Crude sold hereunder shall
constitute “Sales Volumes” for purposes hereof. All
deliveries of Keyes Crude shall be FOB the BLM System or if the BLM
System is unavailable, into Buyer’s tube trailer at
Seller’s Facility. Seller will provide Buyer, through the BLM
System, 1.02 units of Crude Helium for each unit of Liquid Helium
delivered into Buyer’s container from Keyes Crude.
4.3.1 If Seller at any time shuts
down and does not restart Seller’s Facility, Buyer shall be
entitled to purchase Crude Helium from Seller in amounts equivalent
to that required to produce 160 MMcf per year of Liquid Helium (the
“ Shutdown C