COAL-BED METHANE (CNG) SUPPLY AGREEMENT
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Party
A:
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JIYUAN SALES
BRANCH OF JINCHENG MINGSHI COALBED METHANE UTILIZATION CO.,
LTD
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Party
B:
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XI’AN
XILAN NATURAL GAS CO., LTD
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Contract date:
March 20, 2008
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Party
A:
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JIYUAN SALES
BRANCH OF JINCHENG MINGSHI COALBED METHANE UTILIZATION CO.,
LTD
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Party
B:
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XI’AN
XILAN NATURAL GAS CO., LTD
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Based on the
principle of honesty, creditability, fair and mutual benefit, after
sufficient consultation, both parties have reached the following
agreement:
Article
1: Party A agrees to
provide coal-bed methane to Party B by the CNG method.
Article 2:
Gas supply period
Term: From
April 1, 2008 to March 31, 2013
Article 3:
Transfer mode and gas quantity
Party A will be
responsible to transport the coal-bed methane to Party B’s
CNG station and connect to its equipments.
Article 4:
Quality of the coal-bed methane
The coal-bed
methane provided by Party A to Party B at the delivery place shall
conform to the relevant technical standard related to standard
GB17820-1999. The minimum low calorific value is 8150
kcal.
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Project
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Technical Indicators
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Methane
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More than 93%
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Gross calorific value, MJ/m
3
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More than 31.4
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Ethane
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Trace
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Hydrogen sulfide
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Less than 6 mg/ Nm3
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Sulfur dioxide
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Below 3.0%
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Low calorific value
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More than 8100 calories
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Under pressure
and temperature at the delivery location, at least 5 degrees higher
than the lowest environmental temperature.
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Article 5:
Price of coal-bed methane
The settlement
of coal-bed methane should be in accordance with Party A's upstream
gas supply. Considering the strategic cooperation
relationship with Party B, the price during the contract period
should be RMB 1.75/m 3
The parties
shall settle the account monthly based on actual usage.
Article 7:
Responsibilities and obligations
1. Party A’s responsibilities and
obligations
(1) Party A
should provide steady supply of qualified gas to Party B in
accordance with the provisions of this contract, and Party A is
responsible for the safety in the period from the time the car
leaves the compressed station till the unloading of natural gas at
Party B’s station.
(2) Other than
the annual maintenance of the equipments, Party A also needs to
perform regular maintenance for the power lines and equipments to
guarantee the normal supply of gas; if Party A needs to suspend gas
supply due to regular maintenance, it shal
