Southside Natural Gas SOW.pdf

STATEMENT OF WORK

1. SUPPLIES AND/OR SERVICES TO BE FURNISHED

The contractor shall deliver uninterruptible natural gas (Gas) supplies to the existing metering station of the National Aeronautics and Space Administration' s John C. Stennis Space Center, Stennis Space Center (SSC), MS.

2. POINT OF D ELIVERY

The point of delivery of natural gas shall be the North Fee Area Boundary of SSC (Station Location Number - 2568).

3. CONTRACT PRICING

The Contractor shall supply natural gas in accordance with the terms and conditions of this contract for an annual fixed coefficient plus the monthly natural gas supply market price as identified in the McGraw Hill publication "Inside FERC' s Gas Market Report" Prices of Spot Gas Delivered to Pipelines Index for South Louisiana Henry Hub (monthly index). The price of Gas per MMBTU (dry) under this contract shall be the sum of the monthly index and the annual coefficient. The total monthly bill shall be the sum of the monthly index and the annual coefficient multiplied by the actual MMBTUs delivered each month. The Contracting Officer will approve the economic price adjustment by unilaterally issuing a contract modification annually reflecting actual prices paid during the contract year.

4. TAXES AND ROYALTIES

The Government shall not be obligated to pay any severance taxes, royalties, overriding royalties or any payments out of production due on such gas required by SSC. The Contractor shall cooperate with the Government to determine whether present or prospective state and/or local taxes applied to natural gas sales consistent with the principle that the property, functions, and instrumentalities of the Federal Government are immune from state taxation, provided that the Government shall be responsible for determining the appropriateness of any taxes. Immunity from taxation is clearest when the incidences of such taxes are directly traceable to the Government and are applied to the Government as the end user. To the extent such taxes are included in the contractor's price and are thereafter found to be improper, the Contractor's price shall be adjusted accordingly.

5. FILINGS WITH REGULATORY AUTHORITIES

The Contractor shall file and pay for any filings covering this Contract with the applicable Federal, State, or local regulatory authorities on behalf of the Government and itself, and shall diligently prosecute all applications, notices, or reports required with respect to this Contract.

6. DATA REQUIREMENTS

With each monthly bill, the Contractor, in written and Microsoft Excel electronic format, shall provide the following data:

a. Volume of Gas provided, in Mcf.

b. Average Heating Value of Gas provided, in BTUs per cubic foot.

c. Energy provided, in MMBTUs.

d. Average Gas Temperature, in degrees Fahrenheit.

e. Daily Specific Gravity, an arithmetic average of hourly measurements.

f. Test data to validate that the gas quality requirements in Section 11 have been met.

For each contract year, the Contractor shall provide a subscription to "Inside FERC's Gas Market Report", to be delivered to the Contracting Officer Representative.

7. DEFINITIONS

a. Natural Gas - "Natural Gas" (Gas) shall mean any mixture of hydrocarbons or of hydrocarbons and non-combustible gases, in a gaseous state, consisting essentially of methane.

b. British Thermal Unit (BTU) - One BTU is defined as the quantity of heat required to raise the temperature of one-pound avoirdupois of pure water from fifty-eight and five-tenths degrees Fahrenheit to fifty-nine and five-tenths degrees Fahrenheit at a constant pressure of fourteen and seventy-three hundredths pounds per square inch absolute (14.73 psia).

c. Heating Value - "Heating Value" shall mean the number of BTUs produced by the complete combustion, at a constant pressure, of the amount of dry (saturated) gas which would occupy a volume of one (1) cubic foot at a temperature of sixty degrees Fahrenheit (60°F), at a constant pressure of fourteen and seventy-three hundredths pounds per square inch absolute (14.73 psia) and under standard gravitational force (acceleration of 980.665 cm per second per second) expressed in BTUs per cubic foot.

d. One Thousand Cubic Feet (Mcf) - "Mcf' shall mean the quantity of natural gas occupying a volume of one thousand (1,000) cubic feet at a temperature of sixty degrees Fahrenheit (60°F) and at a pressure of fourteen and seventy-three hundredths pounds per square inch absolute (14.73 psia).

e. MMBTU - "MMBTU" means one million (1,000,000) BTUs.

f. Assumed Atmospheric Pressure - The average atmospheric pressure shall be assumed to be fourteen and seventy-three hundredths (14.73) pounds per square inch, irrespective of actual elevation or location of the point of delivery above sea level or variations in such atmospheric pressure from time to time.

8. QUALITY

All natural gas (Gas) supplied under this contract shall be of pipeline quality, and shall conform to the following specifications:

a. Heating Value - The Gas delivered shall contain a monthly average heating content between nine hundred fifty (950) and eleven hundred seventy-five (1175) BTUs per cubic foot.

b. Temperature - The Gas shall be delivered at a temperature between forty degrees (40°) and one hundred twenty degrees (120°) Fahrenheit.

c. Methane - The Gas shall contain a minimum of ninety-five percent (95.0%) of methane by volume.

d. Oxygen-The Gas shall not contain more than two tenths of one percent (0.2%) of uncombined oxygen by volume. The contractor shall make reasonable efforts to remove all oxygen from the Gas.

e. Carbon Dioxide -The Gas shall not contain more than three percent (3.0%) carbon dioxide by volume.

f. Nitrogen - The Gas shall not contain more than three percent (3.0%) nitrogen by volume.

g. Hydrogen - The Gas shall not contain more than four hundred parts per million (400 ppm) of hydrogen.

h. Isopentane - The Gas shall not contain more than two-tenths (0.20) gallons of isopentane or heavier hydrocarbons per Mcf.

1. Hydrogen Sulfide - The hydrogen sulfide content shall not exceed sixteen (16) parts per million (PPM) by volume.

J. Total Sulfur -The total sulfur content shall not exceed three hundred and twenty (320) parts per million (PPM) by volume.

k. Other Gases - The Gas shall not contain carbon monoxide, halogens, or unsaturated hydrocarbons.

1. Water Vapor - The Gas shall in no event contain water vapor in excess of seven (7) pounds per one million (1,000,000) cubic feet.

m. Liquids - The Gas shall not contain water and other objectionable liquids at the temperature and pressure at which the Gas is delivered. The Gas shall not contain any hydrocarbons that might condense to free liquids in the pipeline under normal pipeline conditions.

9. MEASUREMENT

a. Unit of Measurement Metering Base: The volumetric measurement base shall be one (1) cubic foot of gas at a pressure base of fourteen and seventy-three hundredths pounds per square inch absolute (14.73 psia), at sixty degrees Fahrenheit (60°F), and without adjustment for water vapor content. To determine the volume of gas delivered, factors for pressure, temperature, specific gravity and deviation from Boyle's Law shall be applied. The measurement shall be corrected for deviation from Boyle's law at the pressures and temperatures under which gas is measured by use of the NX-19 formula appearing in the manual entitled "PAR Research Project NX-19, Extension of Range of Supercompressibility Tables", AGA Catalogue No. 48/PR, published by the AGA in 1963, or as supplemented or amended from time to time.

b. Temperature: The temperature of the natural gas flowing through the meter or meters shall be the arithmetic average of the hourly temperature record; or read from established tables of monthly averages for the service location.

c. Specific Gravity: The specific gravity of the gas flowing through the meter or meters may be determined using a recording gravitometer furnished and installed by the contractor so that it will properly record the specific gravity of the gas flowing through the meter or meters, or using a chromatograph, continuous gas sampler, or by the taking of gas samples. The arithmetic average of hourly specific gravity measurements recorded each day shall be used in computing the volume of gas for that day. The specific gravity of the composite sample taken from a continuous gas sampler shall be considered as the specific gravity of the gas delivered during the applicable period of sampling. If the specific gravity is determined by a portable gravitometer or chromatograph, or from the taking of samples, the result shall apply to gas deliveries for the day of the test and for all flowing days until a new test is taken. All specific gravity determinations made with a chromatograph shall use physical gas constants for gas compounds as outlined in the most recent edition of ANSI/API 2530 on "Orifice Metering of Natural Gas".

d. Measuring Equipment: The Contractor shall furnish, install, maintain, operate, calibrate, and read, at its expense, a measuring station properly equipped with displacement or orifice meters and other necessary measuring equipment of standard manufacture by which the volume and heating value of the gas delivered to the metering point hereunder shall be measured. The Contractor may utilize the measurement facilities provided by Gulf South Pipeline Company at the delivery point to the extent allowed by Gulf South. Where measurement is by orifice meter, all fundamental constants, observations, records, and procedures involved in the determination and/or verification of the quantity and other characteristics of gas delivered shall be in accordance with the standards prescribed in the most recent edition of ANSI/API 2530 on "Orifice Metering of Natural Gas". Measurement by turbine meter shall be in accordance with the most recent edition of AGA Report No. 7.

Where measurement is by other than orifice meter, standards commonly acceptable in the industry shall be used in determination of all factors involved in the computation of gas volumes.

The Government may install check-measuring equipment, as it shall desire, provided that such equipment shall be so installed as not to interfere with the operations of the Contractor.

The contractor shall have access to such check-measuring equipment at all reasonable hours, but the reading, calibration, and adjustment thereof and the Government shall do the changing of charts unless otherwise agreed upon.

Both the Contractor and the Government shall have the right to be present at the time of installation, reading, cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting done in connection with the other' s measuring equipment used in measuring deliveries. The records from such measuring equipment shall be made available upon request in which case each will submit to the other its records and charts, or true copies thereof, together with calculations there from, for inspection and verification.

Reasonable care shall be exercised in the installation, maintenance and operation of any pressure regulating equipment to avoid any inaccuracy in the determination of the volume of gas delivered.

e. Meter Tests: The Contractor shall inspect, test, and calibrate the measuring equipment upon installation, and periodically thereafter, at the Contractor's expense. The Contractor shall notify the Government Contracting Officer one (1) week prior to such inspections and tests in order that a representative of the Government may be present. Whenever any meter or measurement device is found to be defective, the Contractor shall take immediate steps to replace or repair the defective equipment. The Government shall have the right to request a special meter test at any time. If any test made at the Government's request discloses that the equipment tested is registering within the established standards, the Government shall bear the expense of such test. The expense of other tests shall be borne by the Contractor. In any event, at its option, the Government may, subject to an arrangement satisfactory to the Contractor and at the Government's expense, have such meter or meters, as it deems inaccurate, tested by the National Institute of Standards and Technology (NIST), the findings of which shall be conclusive.

f. Correction of Metering Errors: If upon any test the measuring equipment in the aggregate is found to be inaccurate by three percent (3.0%) or more, registration thereof and any payments based upon such registration shall be corrected at the rate of such inaccuracy for any period of inaccuracy which is definitely known or agreed upon, but in case the period is not definitely known or agreed upon, then for a period extending back one-half (1/2) of the time elapsed since the last day of calibration.

g. Meter Reading: The Contractor, so far as possible, shall read all meters at periodic intervals of approximately thirty (30) days, unless otherwise agreed upon. All billings based upon meter readings of less than twenty-seven (27) days, or more than thirty-three (33) days shall be prorated accordingly.

h. Failure of Meters: If for any reason the measuring equipment is out of service or out of repair so that the quantity of gas delivered through such measuring equipment cannot be ascertained or computed from the readings, the quantity of gas so delivered during the period in which the measuring equipment is out of service or out of repair shall be estimated and agreed upon by the Contracting Officer and the Contractor, using the best available data, using the first of the following methods which is feasible:

(i) By using the registration of any duplicate measuring equipment installed by the

Contractor if installed and registered correctly.

(ii) By correcting the error if the percentage of error is ascertainable by calibration, test, or mathematical calculation;

(iii) By using the registration of any check measuring equipment of the Government if installed and registering accurately;

(iv) By estimating the quantity of deliveries by deliveries during preceding periods under similar conditions when the measuring equipment was registering accurately.

10. PIPELINE AGREEMENT

The Successful Offeror must have a current transportation agreement or the ability to have an agreement in place prior to contract effective date, with Gulf South Pipeline Company, LP, owner of the pipeline.

Additionally, the Successful Offeror shall include if their monthly invoice to NASA, the applicable charges from Gulf South Pipeline Company, LP per the agreement. The Successful Offeror shall develop their own transportation usage agreement with Gulf South Pipeline Company, LP which shall be maintained throughout the entire period of performance of the contract to ensure uninterrupted service. Additionally, the successful Offeror shall provide the Contracting Officer with a copy of the most current agreement on an annual basis as well as maintain a current copy for their files throughout the performance of the contract.