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HomeMy WebLinkAboutOrdinance #1799ORDINANCE NO. 1799 AN ORDINANCE APPROVING A "WATER PURCHASE CONTRACT" BETWEEN THE CITY OF CANTON, SELLER AND CENTRAL ILLINOIS ENERGY, BUYER WHEREAS, the Finance Committee has determined that it is in the best interest of the City of Canton to sell water to Central Illinois Energy in conformity with a certain "Water Purchase Contract," Exhibit A hereto; and, WHEREAS, the City Council of the City of Canton, Fulton County, Illinois has made a similar determination; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, FULTON COUNTY, ILLINOIS as follows: 1. That certain "Water Purchase Contract," Exhibit A hereto attached and herein incorporated by reference, is hereby approved by the Canton City Council. 2. That the Mayor and City Clerk are hereby authorized and directed to execute and deliver the same on behalf of the City of Canton. 3. That this Ordinance shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Fulton County, Illinois and approval by the Mayor thereof. PASSED by the City Council of the City of Canton, Fulton County, Illinois at a regulaz meeting this 18th day of ~.y , 2004, upon a roll call vote as follows: AYES: Aldermen West, Reed, Hartford, i~~r5lleck,_.Fillingham. NAYS: Aldermen Carl, Hare, Sarff . ABSENT: Pdone. Attest: Nancy White` City Clerk Approved: J M. Bohler, Mayor ~- ~~ ~ ~ ~N~D o :~ r D ~ -1- WATER PURCHASE CONTRACT This Water Purchase Contract ("Contract"), for the sale and purchase of water, is entered into as of the day of , 2004, by and among the City of Canton ("Seller"), an Illinois municipal corporation, 2 N. Main, Canton, Illinois 61520, Central Illinois Energy , L.L.C. ("Purchaser"), a Delaware limited liability company, 23133 E. County Highway 6, Canton, Illinois 61520, and Central Illinois Energy Cooperative ("Property Owner"), an Illinois agricultural cooperative, P.O. Box 111, Canton, Illinois 61520. WITNESSETH: WHEREAS, the Purchaser, a limited liability company organized under the laws of the State of Delaware, which will create jobs in Fulton County, Illinois, through the construction and operation of an ethanol refining operation ("the Project"), requires a supply of treated water for use in that refining process; and WHEREAS, the Seller, a municipal corporation organized under the Illinois Municipal Code, owns and operates a water supply distribution system with a capacity currently capable of serving its present customers and the current estimated volume of water (200,278,080 gallons per year) the Purchaser will require; and WHEREAS, Property Owner, an agricultural cooperative organized under the Illinois Agriculture Co-Operative Act, 805 ILCS § 315/1 et seq., is one of the owners of Purchaser and owns certain real property located in the City of Canton/Fulton County Enterprise Zone (in Sections 13 and 24 of Buckheart Township, Fulton County, Illinois). THEREFORE, in consideration of the foregoing, the parties agree as follows: A. The Seller's Responsibilities. 1. The Seller will furnish to the Purchaser, at the point of delivery specified below, during the term of this Contract or any renewal or extension, potable treated water meeting applicable purity standards of the State of Illinois and United States of America in such quantity as the Purchaser may require up to 200,278,080 gallons per year. 2. The water will be furnished at a reasonably constant pressure calculated at 700 gallons per minute at 40 PSI from a 16-inch main supply to be constructed by the Purchaser at a connection point to the Seller's existing 24-inch supply point located at the intersection of East Chestnut and 20th Avenue, commonly known as Bradley Corners. If the Purchaser requires a greater pressure than that normally available at the point of delivery, the Purchaser shall bear the cost of providing the greater pressure. Rev. 4/30/04 -Final Draft -2- Emergency failures of pressure or supply resulting from main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. The Seller will accept conveyance of the required 16-inch PVC water line to be built by the Purchaser following successful passage and issuance of all necessary inspections, testing, permits and licenses required by the City of Canton and any other regulatory agency having jurisdiction over the line's construction and/or its subsequent use. 4. Following conveyance, the Purchaser will maintain, at its own expense, at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser, and to calibrate the metering equipment whenever the Seller requests, but not more frequently than once every 12 months. A meter registering not more than two percent (2%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the 12 months previous to the test in accordance with the percentage of inaccuracy registered by the test. If a meter fails to register for any period, the amount of water furnished during that period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, unless the Seller and the Purchaser shall agree upon a different amount. The metering equipment shall be read monthly. An appropriate official of the Seller shall have access to the meter at all reasonable times for the purpose of verifying its readings. 5. The Seller will furnish to the Purchaser at the above address, not later than the 30th day of each month, an itemized statement of the amount of water furnished to the Purchaser during the preceding month. 6. Seller shall provide water meeting the following quality standards: [INSERT STATE MINIMUM STANDARDS] Seller may deliver water which deviates from the foregoing quality standards, provided (i) it gives written notice to Purchaser of such change and the new water quality standards at least 365 days in advance, and (ii) the new water quality standard complies with all applicable federal and state laws and regulations. Rev. 4/30/04 -Final Draft -3- B. The Purchaser's Responsibilities. 1. The Purchaser shall pay the Seller, not later than the 10th day of each month following receipt of a water bill, for water delivered in accordance with the rate schedule in force by ordinance of the City of Canton. A copy of the rate schedule, attached as Exhibit A, is made a part of this Contract. The Purchaser understands that, except as provided in paragraph C(14) below, the schedule of rates for water delivered under the terms of this Contract is subject to modification from time to time as provided in this Contract. However, any increase or decrease in the rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder. 2. The Purchaser agrees to pay a connection fee of $25.00 to connect to the Seller's system, which shall cover any and all costs of the Seller for oversight of installation of the metering equipment and miscellaneous appurtenances. 3. The Purchaser will design, install and fund a 16-inch PVC water line of approximately four miles in length, to begin at the intersection of East Chestnut and 20ch Avenue (Bradley Corners) and terminate at the Purchaser's property line located on County Road 6, at a point located just south the "Duck Creek Road" intersection. The Purchaser will design, install and fund all necessary metering equipment, including a meter house or pit (one will be located at East Chestnut and 20th Avenue and one will be located at the termination point), and required devices of standard type for property measuring the quantity of water delivered to the Purchaser and any necessary back- flow and safety equipment as required by the City of Canton. Following construction and passage and/or issuance of all necessary inspections, testing, permits and licenses, the Purchaser shall convey to the Seller, without condition or exception, the water line and described support equipment. 4. The Purchaser will install a fiberoptic cable connected to its reverse osmosis equipment and running next to the water lines, ending at the ethanol plant. This cable will provide the Purchaser with the means to electronically monitor and control the reverse osmosis equipment. The Purchaser shall retain ownership of the fiberoptic cable and shall have sole responsibility for its operation and maintenance. C. Mutual covenants between Seller and Purchaser. 1. This Contract shall extend for a term of 10 years from the date of the initial delivery of any water, as shown by the first bill submitted by the Seller to the Purchaser, and may be renewed or extended for such term or terms as may be agreed upon by the parties. 2. Thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply system, the Purchaser will notify the Seller in writing of the date for the initial delivery of water. Rev. 4/30/04 -Final Draft -4- 3. This contract, all rate schedules, monthly billing and needed calculations shall be based on 100 cubic feet of water. 4. Upon the Purchaser's request, the Seller will make available to the Purchaser's. contractor, at the point of delivery or other reasonably close point, water sufficient for testing, flushing and trench-filling the Purchaser's system during construction, irrespective of whether the metering equipment has been installed at that time. The Purchaser's contractor shall pay a flat charge of $100.00. Should the contractor fail to pay within 30 days of delivery, the Purchaser shall pay. 5. The Seller will, at all times, operate and maintain its system in an efficient manner and will take such action as may be necessary to furnish the Purchaser with quantities of water it requires, up to 200,278,080 gallons per year. Additional water may be provided, from time to time, at the Purchaser's request, but only if the Seller has sufficient water at that time to meet the additional requirement without detriment to its water supply or harm to its other customers. Temporary or partial failures to deliver water shall be remedied with all possible speed. In the event of an extended shortage of water, or if the supply of water available to the Seller is otherwise diminished over an extended period of time, the supply of water to the Purchaser shall be reduced or diminished in the same ratio or proportion as the supply to the Seller's other consumers is reduced or diminished. 6. This Contract is subject to the rules, regulations and laws applicable to other similar agreements in this State and the Seller and the Purchaser will collaborate to obtain such permits, certificates and other documents as may be required to comply with those rules, regulations and laws. 7. In the event of any occurrence rendering either the Seller or the Purchaser incapable of performing under this Contract, any successor of the Seller or Purchaser, whether the result of legal process, assignment or otherwise, shall succeed to the rights and obligations of the Seller or the Purchaser respectively. 8. The Setter shall provide to the Purchaser a capital investment credit for a period not to exceed 10 years from the date of the initial delivery of any water as shown by the first bill submitted by the Seller to the Purchaser. The credit earned, which shall not exceed $16,190 during any monthly billing cycle, will be at a rate of $0.72556 per 100 cubic feet of water metered. 9. The Purchaser agrees to acquire and bear the expense of all easements required for this project. All easements must be transferable to the Seller upon conveyance of the necessary water line. If private easements are not obtained, but instead the water lines are installed within the County of Fulton's roadway rights-of-way, pursuant to an agreement between the Purchaser and Fulton County, which agreement Rev. 4/30/04 -Final Draft -5- will likely include a provision requiring that the water lines be moved in the event that the County widen or otherwise move the road, and if, as a result of that agreement, the Purchaser must at some time move the water lines, then the Purchaser, and not the Seller, will pay all costs of moving the water lines. 10. The Purchaser shall not sell or provide water. purchased from the Seller to any third-party or processing entity. 11. Except as provided in paragraph C(13) below, the Seller shall be the exclusive supplier of water to the Purchaser's property during the life of this Contract. 12. The Seller and the Purchaser agree to work cooperatively to efficiently provide water at the quantities the Purchaser desires. The Purchaser shall notify the Seller 30 days in advance of any anticipated increase in demand that will cause the Purchaser's water usage for the upcoming month to exceed 1/12 of its maximum yearly allotment, even if, at the time notice is given, the Purchaser's total water usage is below its maximum pro rata allotment. If the Purchaser anticipates an increase in demand in excess of 125% of its maximum monthly pro rata allotment, Purchaser shall notify Seller 270 days in advance of any such increase in demand. 13. In the event that the Seller is unable to deliver noticed demands in accordance with paragraph C(12) above, the Purchaser shall be allowed, for the duration of this contract, to satisfy its additional demand through alternate sources. If Seller later becomes capable of satisfying this additional demand, Purchaser shall have the option to either purchase such additional water from Seller, or to continue to satisfy its additional demand through its alternative sources. Under no circumstances shall the Purchaser mix or commingle the Seller's water with alternate source water without the required Seller-approved equipment to insure the safety of the City of Canton's water supply. The Purchaser shall provide the Seller with notice and reasonable time to inspect all of the Purchaser's equipment prior to any mixing or co-mingling of City of Canton water with water from an alternate source. 14. The Seller and the Purchaser agree that the schedule of rates for water under the terms of this Contract may be amended and adjusted from time to time over the life of this Contract. The parties agree that the initially attached rate schedule shall not be adjusted for a period of 36 months from the date of this Contract's execution. Rate adjustments following the initial 36-month period shall be made no more often than every 24 months throughout the remaining life of the Contract. Any increase or decrease in the rates shall be based on a demonstrable increase or decrease in the Seller's costs of production. Purchaser shall have the right to terminate this Contract in the event the amended and adjusted scheduled rate for water exceeds $1.88 per 100 cubic feet of water, unless the Seller provides water of a higher quality so that Purchaser's effective price, after adjustment for a decrease in water treatment costs, is $1.88 or less per 100 cubic feet of water. Rev. 4/30/04 -Final Draft -6- 15. In the event that the Seller's water source requires volume subsidization through the use of wells during periods of low water levels, the Purchaser shall be assessed aper-unit surcharge during that period. This surcharge shall be entitled "supplemental well surcharge" and shall be reflected on the rate schedule. The supplemental well .surcharge shall be assessed for each supplemental well used by the Seller; however, it shall not exceed the rate set for the Seller's industrial and bulk- volume customers. The Seller retains the sole right to make any and all determinations in the use and length of use of supplemental wells. The surcharge will not be assessed for those times of normally scheduled testing or maintenance of wells. 16. The parties acknowledge that the Seller shall incur no financial liability, whether actual or implied, associated with the construction of the necessary water lines or associated equipment. The Purchaser will convey the line to the Seller free of any and all encumbrances, after which the Seller shall assume all responsibility for maintenance of the water lines. 17. Seller agrees to accept Purchaser's reverse osmosis reject water at its East Side Waste Treatment Plant at the price to be paid by Purchaser that is set forth on the rate schedule attached as Exhibit A. The Purchaser shall install a meter to measure the amount of reverse osmosis discharge. This price shall be reduced to the extent that the operating costs for the East Side Waste Treatment Plant are reduced as a result of accepting Purchaser's reverse osmosis reject water. For an annual fee of $10,000, Purchaser shall have the right to locate its water treatment equipment at the East Side Waste Treatment Plant and pump treated water to its facility on East County Highway 6. The specific location of the water treatment equipment at the East Side Waste Treatment Plant shall be specified by Seller. Purchaser shall bear all costs and expense associated with its water treatment equipment, operating costs, utilities, maintenance, easements and pipeline costs, including installation of all necessary booster pumps and chlorinators. The Seller and Purchaser shall execute a License Agreement, which shall provide the Purchaser with 24-hour access to its reverse osmosis water treatment equipment seven days a week. If Purchaser elects to place its water treatment equipment at the East Side Waste Treatment Plant, the water line to be built by Purchaser, described in paragraph A(3) above, shall be a 16-inch water line for the Seller's cold lime softened water and a 6- inch water fine for Purchaser's treated water. Purchaser will convey the lines to Seller, free and clear of any and all encumbrances, upon successful passage and issuance of the inspections, testing, permits and licenses described in paragraph A(3) above. 18. This Contract shall be assignable to the Purchaser's Lender as collateral security for the financing of the Project. Rev. 4/30/04 -Final Draft -~- 19. This Contract shall be governed by the laws of Illinois. D. Mutual covenants between Seller and Property Owner. 1. To the extent that Seller is capable of supplying the water demands of all future entities and/or processes located on the Property Owner's original 280± acres and within the City of Canton/Fulton County Enterprise Zone, it shall be the exclusive supplier of water to Property Owner's property during the life of this Contract. This provision shall be included in all subsequent deeds conveying the Property or through covenants recorded with respect to the Property. IN WITNESS WHEREOF, the parties, acting under authority of their respective governing bodies, have caused this Contract to be duly executed in two counterparts, each constituting an original document. SELLER (CITY OF CANTON) Jerry Bohler, Mayor CENTRAL ILLINOIS ENERGY COOPERATIVE Michael Smith, President CENTRAL ILLINOIS ENERGY, L.L.C. By: Its Rev. 4/30/04 -Final Draft EXHIBIT A Water Rate Schedule: The minimum monthly charge for water services shall be two dollars fifty cents ($2.50). In addition to such minimum charge, the following rates shall be charged for water metered. AMOUNT METERED For each 100 cubic feet of water or portion thereof PRICE $1.57 APPLICABLE SURCHARGES Supplemental Well Surcharge REVERSE OSMOSIS DISCHARGE PRICE $0.40 per 100 cubic feet metered multiplied by the number of wells used $1.30 Qer 100 cubic feet metered Rev. 4/30/04 -Final Draft ~'LAU`D~N,~KOST, BARNHART, BEAL &WALTERS, LTD. ORAL C. KOST GARY E BARNHART CHESTER J. CLAUDON 121 W. Elm Street . BRUCE C. BEAL Of Counsel KEITH K. KOST P.O. Box 400 Canton Illinois 61520 CHRIS W. WALTERS Of Counsel , Telephone: (309) 647-6300 JUSTIN G. JOCHUMS -Associate 'Facsimile: (309) 647-0022 E-Mail: ckbbQwinco.net VERNON C. THOMSON, JR. -Paralegal & Title Examiner CATHY M. HUGHES -Paralegal May 18, 2004 Mike Smith 23133 E. Co. Hwy. 6 Canton, !L 61520 Dear Mike: 200 N. Main Street Lewistown, Illinois 61542 Telephone: (309) 547-2203 Facsimile: (309) 547-2207 E-Mail: kdst~winco.net Farmers State Bank Building Astoria, Illinois 61501 Hours: Each Wednesday Afternoon Please find enclosed a newly drafted Paragraph 16 for the Water Purchase Agreement. With this substitution I am satisfied with the contract as prepared. if you have any questions please feel free to contact me. CLAD Oly/KOST ~~~ BY.- BCB~oh cc: Mayor Bohler S, LTD. r, ~ MODIFICATION OF PARAGRAPH 76 -WATER PURCHASE CONTRACT 16. The parties acknowledge that the Seller shall incur no financial liability, whether actual or implied, associated with the construction of the necessary water lines or associated equipment. Purchaser agrees to indemnify and hold Seller harmless from any and all claims for damages, including reasonable attorney fees, during the construction of the necessary water lines or associated equipment provided the claims for damages are not due to the City's own negligence. The Purchaser will convey the line to the Seller fr~se of any and all encumbrances, aRer which the Seller shall assume all responsibility for maintenance of the water lines. Canton Community Resources Board of Directors Ethanol Plant Water Sales Resolution WHEREAS, the City of Canton proposes to enter into aten-yeaz contract to supply city water to the Central Illinois Energy ethanol plant at a negotiated bulk water rate and; WHEREAS, in exchange CIE proposes to fund the construction of at least one 16-inch water line and convey ownership of same to the City of Canton free of any encumbrances and install a Reverse Osmosis processor and; WHEREAS, the negotiated bulk rate is set at a level below above the incremental cost of producing additional water and therefore represents a potential profit of $2.9 million to the City of Canton over aten-yeaz period and; WHEREAS, the projected sale of 200 million gallons annually will not exhaust City of Canton water reserves under normal rainfall conditions and; WHEREAS, the proposed ethanol plant will create approximately 50 full-time positions with average salaries of $44,000 and have an economic impact to the surrounding area of $120 million annually once the plant is in operation; NOW THEREFORE, be it resolved that: l.) The Canton Community Resources boazd has examined and discussed the proposal presented by David Byerly to enter into a contract to sell city water to the Central Illinois Energy company and; 2.) The Canton Community Resources boazd supports this proposal as an important step in stimulating economic development in the greater Canton community and in securing a cornerstone for future value-added agricultural processing facilities and; 3.) The Canton Community Resources boazd unanimously voted to pass a resolution urging the Canton City Council to support the proposal to sell water to the Central Illinois Energy Company, as presented by Mr. Byerly. Motion for above-stated resolution was duly made by Jim Fassino, seconded by Dr. Tom Hines and approved unanimously by afifteen-member quo of the CCR board. Gary Baker, Pre ~ iden Attest: P.andy Wilson Randy Wilson, Secretary -1- WATER PURCHASE CONTRACT This Water Purchase Contract ~"Contract°}, for the sale and purchase of water, is entered into as of the _~ day of ~k ~, 2004, by and among the City of Canton ("Seller"), an Illinois municipal corporation, 2 N_ Main, Canton, IAinois 61520, Central Illinois Energy , t„L.C. ("Purchaser°), a Delaware limited liability company, 23133 E. County Highway 6, Canton, Illinois 61520, and Central Illinois Energy Cooperative (°Property Owner"), an Illinois agricultural cooperative, P.O. Box 111, Canton, Illinois 61520. WITNESSETH: WHEREAS, the Purchaser, a limited liability company organized under the laws of the State of Delaware, which will create jobs in Fulton County, Illinois, through the construction and operation of an ethanol refining operation (the Project'), requires a supply of treated water for use in that refining process; and WHEREAS, the Seller, a municipal corporation organized under the Illinois Municipal Code, owns and operates a water supply distribution system with a capacity currently capable of serving its present customers and the current estimated volume of water (200,278,080 gallons per year) the Purchaser will require; and WHEREAS, Property Owner, an agricultural cooperative organized under the Illinois Agriculture Co-operative Act, 805 ILCS § 315/1 et seq., is one of the owners of Purchaser and owns certain real property located in the Ciiy of CarrtoNFulton County Enterprise Zone (in Sections ~ 3 and 24 of Budcheart Township, Fulton Courrty, Illinois). THEREFORE, in consideration of the foregoing, the parties agree as follows: A. The SeUer's Responsibilities. 1. The Seller will furnish to the Purchaser, at the poinr of delivery speafied below, during the term of this Contractor any renewal or extension, potable treated water meeting applicable purity standards of the State of Illinois and United States of America in such quantity as the Purchaser may require up to 200,278,080 gallons per year. A copy of the current purity standards, aitached as Exhibit 8, is made a part of this contract. The Seller may deliver water that deviates from the afore mentioned quality standards provided (i) it gives written notice to Purchaser of such change and as to the new quality standard, and (ii) the new water quality standard complies with all appligble state and federal laws and regulations. 2. The water will be famished at a reasonably constant pressure calculated , at 700 gallons per minute at 40 PSI from a 16-inch main supply to be constructed by the iU~'"' Fina17l07104 2- Purchaser at a connection point to the Seller's existing 24-inch supply point located at the intersection of East Chestnut and 20"' Avenue, commonly known as 8radfey Comers. !f the Purchaser requires a greater pressure than that normally available at the point of delivery, the Purchaser shall bear the cost of providing the greater pressure. Emergency failures of pressure or supply resulting from main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake.or other catastrophe shall excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. The Seller will accept conveyance of the required 16-inch PVC water line to be built by the Purchaser following successful passage and issuance of all necessary inspections, testing, permits and licenses required by the City of Canton and any other regulatory agency having jurisdiction over the line's construcction andlor its subsequent use. 4. Following cenveyance, the Purchaser will maintain, at its own expense, at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser, and to calibrate the metering equipment whenever the Seiler requests, but not more frequently than once every 12 months. A meter registering not more than two percent (2°~) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the 12 months previous to the test in accordance with the percentage of inaccuracy registered by the test. ff a meter fails to register far any period, the amount of water furnished during that period shat! be deemed to b8 the amount of water delivered in the corresponding period immediately prior to the failure, unless the Salter and the Purchaser shall agree upon a different amount. The metering equipment shall be read monthly. An appropriate offiaal of the Seller shall have access to the meter at all reasonable times for the purpose of verifying its readings. 5. The Seller will famish to the Purchaser a# the above address, not later than the 30th day of each month, an itemized statement of the amount of water famished to the Purchaser during the preceding month. B. The Purchaser's Responsibilities. 1. The Purchaser shall pay the Seiler, not later than the 10th day of each month following receipt of a water bill, for water delivered in accordance with the rate schedule in force by ordinance of the City of Canton. A copy of the rate schedule, attached as Exhibit A, is made a part of this Contract. The Purchaser understands that, except as provided in paragraph C(14) below, th® schedule of rates for water delivered under the terms of this Contract is subject to modificafion from time to time as provided in this Contract. However, any incxease or decrease in the rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder. ~~, L'' Fina17107/04 -3- 2. The Purchaser agrees to pay a connection fee of $25.00 to connect to the Seller's system, which shall cover any and alt costs of the Seller for oversight of installation of the metering equipment and miscellaneous appurtenances. 3. The ~Purdiaser will design, install and fund a 16-inch PVC water line of approximately four miles in length, to begin at the intersection of East Chestnut and 20"' Avenue (Bradley Comers} and terminate at the Purchaser's property line located on County Road 6, at a point located just south the "Dude Creek Road" intersection. The Purchaser will design, install and fund ail necessary metering equipment, induding a meter house or pit (one wi11 be located at East Chestnut and 20th Avenue and one will be located at the termination point), and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser and any necessary badc- flow and safety equipment as required by the City of Canton. Following construction and passage andlor issuance of all necessary inspedtons, testing, permits and licenses, the Purchaser shall convey to the Seiler, without condition ~ exception, the water line and desatbed support equipment. 4. ~ The Purdlaser will install a fiber optic cable connected to its reverse osmosis equipment and running next to the water lines, ending at the ethanol plant. This cable will provide the Purchaser with the means to electronically monitor and control the reverse osmosis equipment. The Purchaser shall retain ownership of the fiber optic cable and shall have sole responsibility for its operation and maintenance. C. Mutual covenants between Seller and Purchaser. 1. This Contract shall extend for a term of 1 d years from the date of the initial delivery of any water, as shown by the first bill submitted by the Seller to the Purchaser, and may be renewed or extended for such term or teens as may be agreed upon by the parties. 2. Thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply system, the Purchaser will notify the Seller in writing of the date for the initial delivery of water. 3. This contract, all rate schedules, monthly billing and needed calculations shall be based on 100 cubic feet of water. 4. Upon the Purchaser's request, the Seller will make available to the Purchaser's contractor, at the point of delivery or other reasonably close point, water suffiaerrt for testing, flushing and trench~illing the Purd~aser's system during construction, irrespective of whether the meterir~ equipment has been installed at that time. The Purchaser's contractor shall pay a flat charge of $100.00. Should the contractor fail to pay within 30 days of delivery, the Purchaser shall pay. ~_ -4- 9. The Setfer will, at all times, operate and maintain its system in an efficient manner and will take such action as may be necessary to famish the Purchaser with quantities of water it requires, up to 200,278,080 gallons per year. Additional water may be provided, from time to time, at the Purchaser's request, but only if the Seiler has sufficient water at that time to meet the additional requirement without detriment to its water supply or hams to its other customers. Temporary or partial failures to deliver water shall be remedied with all possible speed. In the ever>i of an extended shortage of water, or if the supply of water available to the Seller is otherwise diminished over an extended period of time, the supply of water to the Purchaser shall be n3duc:ed or diminished in the same ratio or proportion as the supply to the Seller's other industrial consumers is reduced or diminished. 6. This Contract is subject to the rules, n~gulations and laws applicable to other similar agreements in this State and the Seller and the. Purchaser will collaborate to obtain such permits, certificates and other documents as may ~ required to comply with those rules, regulations and laws. 7. ~ In the event of any occurrence rendering either the Seller or the Purchaser incapable of performing under this Contract, any successor of the Seller or Purchaser, whether the result of legal process, assignment or otherwise, steal! succeed to the rights and obligations of the Seiler or the Purchaser respectively. 8. The Seiler shall provide to the Purchaser a capital investment credit for a period not to exceed 10 years from the date of the initial delivery of any water as shown by the first bill submitted by the Seller to the Purchaser. The cr+edi# earned, which shaft not exceed X16,190 during any monthly billing cyde, will be at a rate of $0.72556 per 100 cubic feet of water metered. 9. The Purchaser agrees to acquire and bear the expense of all easements required for this project. All easements must be tn~sferable #o the Seller upon conveyance of the necessary water line. !f priva#e easements are not obtained, but instead the water lines are installed within the County of Futton's roadway rights-of way, pursuant to an agreement between the Pur~chaser~and Fulton County, which agreement will likely indude a provision requiring that the water lines be moved in the event that the County widen or otherwise move the road, and if, as a result of that agreement, the Purchaser must at some time move the water lines, then the Pur~aser, and not the Seller, will pay all costs of moving the water lines. 10. The Purchaser shall not sail or provide water purchased from the Seller to any third-party or processing entity. 11. Except as provided in paragraph C(13) below, the Seller shall be the exclusive supplier of water to the Purchaser's property during the life of this Contract. ,~~ Fina17/07/04 -5- 12. The Seller and the Purchaser agree to work cooperatively to eff`iaently provide water at the quantities the Purchaser desires, The Putchaser shalt notify the Seller 30 days in advance of any antiapated increase in demand that will cause the Purchaser's water usage for the upcoming month to exceed 1/12 of its maximum yearly allotment, even if; at the time notice is given, the Purchaser's total water usage is below its maximum pro rata allotment. ff the Purchaser anticipates an increase in demand in excess of 12596 of its maximum monthly pro rata allotment, Purcthaser shall notify Seller 270 days in advance of any such increase in demand. 13. In the event that the Seiler is unable to deliver noticed demands in accordance with paragraph C(12) above, the Purchaser shall be allowed, for the duration of this cxurtract, to satisfy its additional demand through alternate sources. K Seller later becomes capable of satisfying this additional demand, Purchaser shall have the option to either purchase such additional water from Seller, or to continue to satisfy its additional demand through its alternative sources. Under no arcumstances shelf the Purchaser mix or commingle the Seller's water with alternate source water without the required Seller-approved equipment to insure the safety of'the City of Canton's water supply. The Purchaser shall provide the Seiler with notice and reasonable time to inspect all of the Purchaser`s equipment prior to any mixing or co-mingling of Clty of Carrton water with water from an alternate soun~. 14. The Seller and the Purchaser agree that the schedule of rates for wafer under the terms of this Contract may be amended and adjusted from time to time over the life of this Contract. The parties agree that the initially attacthed ra#e schedule shall not be adjusted for a period of 36 months from the date of this Contract's execution. Rate adjustments following the initial 36-month period shall be made no more often than every 24 months throughout the remaining life of the Contract. Any increase or decrease in the rates shall be based on a demonstrable increase or decxease in the Seller's costs of production. Purchaser shall have the right to terminate this Contract in the event the amended and adjusted scheduled rate for water exceeds $1.88 per 100 cubic feet of water, unless the Seller provides water of a higher quality so that Purchaser's effective price, after adjustment for a decrease in water treatment costs, is $1.88 or less per 100 cubic feet of water. 15. In the event that the-Seller's water source requires volume subsidization through the use of wells during periods of tow water levels, the Purchaser shall be assessed aper-unit surcharge during that period. This surcharge shall be entitled "supplemental well surcharge° and shall be reflected on the rate schedule. The supplemental well surcharge shall be assessed for each supplemental well used by the Seller; however, it shall not exceed the rate set for the Seller's industrial and bulk- volume customers. The Seller retains the sole right to make any and all determinations in the use and length of use of supplemental wells. The surcharge will not be assessed for those times of normally scheduled testing or maintenance of wells. Final 7J07/04 -6- 16. The parties acknowledge that the Seller shall incur no finanaal liability, whether actual or implied, associated with the construction of the necessary water lines or associated equipment. Purchaser agrees to indemnify and hold Seller harmless from any and all claims for damages, including reasonable attorney fees, during the construction of the necessary water lines or associated equipmen# provided the claims for damages are not due to the City's own negligence. The Purchaser will convey the line to the Seller free of any and all encumbrances, after which the Seiler shall assume all responsibility for maintenance of the water lines. 17. Seller agrees to accept Purchaser's reverse osmosis reject water at its East Side Waste Treatment Plant at the price to be paid by Purchaser that is set forth on the rate schedule attached as Exhibit A. The Purchaser shall install a meter to measure the amount of reverse osmosis discharge. This price shall be reduced to the exten# that the operating costs for the East Side Waste Treatment Plant are reduced as a result of accepting Purchaser's reverse osmosis reject water. For an annual fee of $10,000, Purchaser shall have the right to locate its water treatment equipment at the East Side Waste Treatment Plant and pump treated water to its facility on East County Highway 6. The specific location of the water treatment equipment at the East Side Waste Treatment Plant shall be specified by Seller. Purchaser shall bear all costs and expense associated with its water treatment equipment, operating costs, utilities, maintenance, easements and pipeline costs, inGuding installation of all necessary booster pumps and chlorinators, The SeAer and Purchaser shall execute a License Agreement, which shall provide the Purchaser with 24hour access to its reverse osmosis water treatment equipment seven days a week. tf Purchaser elects to place its water treatment equipment at the Eas# Side Waste Treatment Plant, the water line to be built by Purchaser, described in paragraph A(3) above, shall be a 16-inch water line for the Seller's cold lime softened water and a 6- inch water line for Purchaser's treated water. Purchaser will convey the lines to Seller, free and clear of any and all encumbrances, upon successful passage and issuance of the inspections, testing, permits and licenses described in paragraph A(3) above. 18. This Contract shall be assignable to the Purchaser's Lender as collateral security for the financing of the Project. 19. This Contract shall tie governed by the laws of Illinois. D. Mutual covenants between Seller and Property Owner. 1. To the extent that Seller is capable of supplying the water demands of all future entities and/or processes located on the Property Owner's origina1280t acres and within the City of CantonlFuiton County Enterprise Zone, it steal! be the exclusive ~-~~ Fist ~~o~~a~ -~- supplier of water to Property Owner's property during the life of this Corrtract. This provision shall be included in all subsequent deeds conveying the Property or through covenants re~rded with respect to the Property. IN WITNESS WHEREOF, the parties, acting under authority of their respective governing bodies, have caused this Contract to be duly executed in two counterparts, each constituting an original document. SELLER (CITY OF CANTON) Jerry ohler, Mayor ATTESTED: Nancy White ity Clerk CENTRAL ILLINOIS ENERGY COOPERATIVE Michael mith, President CENTRAL ILLINOIS ENERGY, L.L.C. LiC/ Micha Sm ~ ~£,~` ~,q~,,a,~ ~:..oi ~in~inn -8- EXHIBIT A Water Rate Schedule: The minimum monthly charge for water services shall be two dollars fifty cents ($2.50). In addition to such minimum charge, the following rates shall be charged for water metered. AMOUNT METERED For each 100 cubic feet of water or portion thereof PRICE $1.57 APPLiCABIE SURCHARGES Supplemental Wefl Surcharge REVERSE OSMOSIS DISCHARGE PRICE $0.40 per 100 cubic feet metered multiplied by the number of wells used $1.30 ger 100,~1bic feet metered Final 71117!(14 ~l- WATER PURCHASE CONTRACT This Water Purchase Contract ("Contract"), for the sale and purchase of water, is entered into as of the ~ a day of ~~_, 2004, by and among the City of Canton ("Seller"), an Illinois municipal corporation, 2 N. Main, Canton, Illinois 61520, Central Illinois Energy , L.L.C. ("Purchaser"), a Delaware limited liability company, 23133 E. County Highway 6, Canton, Illinois 61520, and Central Illinois Energy Cooperative ("Property Owner"), an Illinois agricultural cooperative, P.O. Box 111, Canton, Illinois 61520. WITNESSETH: WHEREAS, the Purchaser, a limited liability company organized under the laws of the State of Delaware, which will create jobs in Fulton County, Illinois, through the construction and operation of an ethanol refining operation ("the Project"), requires a supply of treated water for use in that refining process; and WHEREAS, the Seller, a municipal corporation organized under the Illinois Municipal Code, owns and operates a water supply distribution system with a capacity currently capable of serving its present customers and the current estimated volume of water (200,278,080 gallons per year) the Purchaser will require; and WHEREAS, Property Owner, an agricultural cooperative organized under the Illinois Agriculture Co-Operative Act, 805 ILCS § 315/1 et seq., is one of the owners of Purchaser and owns certain real property located in the City of CantoNFulton County Enterprise Zone (in Sections 13 and 24 of Buckheart Township, Fulton County, Illinois). THEREFORE, in consideration of the foregoing, the parties agree as follows: A. The Seller's Responsibilities. 1. The Seller will furnish to the Purchaser, at the point of delivery specified below, during the term of this Contract or any renewal or extension, potable treated water meeting applicable purity standards of the State of Illinois and United States of America in such quantity as the Purchaser may require up to 200,278,080 gallons per year. A copy of the current purity standards, attached as Exhibit B, is made a part of this contract. The Seller may deliver water that deviates from the afore mentioned quality standards provided (i) it gives written notice to Purchaser of such change and as to the new quality standard, and (ii) the new water quality standard complies with all applicable state and federal laws and regulations. 2. The water will be furnished at a reasonably constant pressure calculated at 700 gallons per minute at 40 PSI from a 16-inch main supply to be constructed by the ~~ Final 7/07/04 -2- Purchaser at a connection point to the Seller's existing 24-inch supply point located at the intersection of East Chestnut and 20m Avenue, commonly known as Bradley Comers. If the Purchaser requires a greater pressure than that normally available at the point of delivery, the Purchaser shall bear the cost of providing the greater pressure. Emergency failures of pressure or supply resulting from main supply line breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from this provision for such reasonable period of time as may be necessary to restore service. 3. The Seller will accept conveyance of the required 16-inch PVC water line to be built by the Purchaser following successful passage and issuance of all necessary inspections, testing, permits and licenses required by the City of Canton and any other regulatory agency having jurisdiction over the line's construction and/or its subsequent use. 4. Following conveyance, the Purchaser will maintain, at its own expense, at point of delivery, the necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser, and to calibrate the metering equipment whenever the Seller requests, but not more frequently than once every 12 months. A meter registering not more than two percent (2%) above or below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate shall be corrected for the 12 months previous to the test in accordance with the percentage of inaccuracy registered by the test. If a meter fails to register for any period, the amount of water furnished during that period shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, unless the Seller and the Purchaser shall agree upon a different amount. The metering equipment shall be read monthly. An appropriate official of the Seller shall have access to the meter at all reasonable times for the purpose of verifying its readings. 5. The Seller will furnish to the Purchaser at the above address, not later than the 30th day of each month, an itemized statement of the amount of water furnished to the Purchaser during the preceding month. B. The Purchaser's Responsibilities. 1. The Purchaser sha11 pay the Seller, not later than the 10th day of each month following receipt of a water bill, for water delivered in accordance with the rate schedule in force by ordinance of the City of Canton. A copy of the rate schedule, attached as Exhibit A, is made a part of this Contract. The Purchaser understands that, except as provided in paragraph C(14) below, the schedule of rates for water delivered under the terms of this Contract is subject to modification from time to time as provided in this Contract. However, any increase or decxease in the rates shall be based on a demonstrable increase or decrease in the costs of performance hereunder. ~, Final 7/07104 ~^ -3- 2. The Purchaser agrees to pay a connection fee of $25.00 to connect to the Seller's system, which shall cover any and all costs of the Seller for oversight of installation of the metering equipment and miscellaneous appurtenances. 3. The Purchaser will design, install and fund a 16-inch PVC water line of approximately four miles in length, to begin at the intersection of East Chestnut and 20~' Avenue (Bradley Corners) and terminate at the Purchaser's property line located on County Road 6, at a point located just south the "Duck Creek Road" intersection. The Purchaser will design, install and fund all necessary metering equipment, including a meter house or pit (one will be located at East Chestnut and 20th Avenue and one will be located at the termination point), and required devices of standard type for properly measuring the quantity of water delivered to the Purchaser and any necessary back- flow and safety equipment as required by the City of Canton. Following construction and passage and/or issuance of all necessary inspections, testing, permits and licenses, the Purchaser shall convey to the Seller, without condition or exception, the water line and described support equipment. 4. The Purchaser will install a fiber optic cable connected to its reverse osmosis equipment and running next to the water lines, ending at the ethanol plant. This cable will provide the Purchaser with the means to electronically monitor and control the reverse osmosis equipment. The Purchaser shall retain ownership of the fiber optic cable and shall have sole responsibility for its operation and maintenance. C. Mutual covenants between Seller and Purchaser. 1. This Contract shall extend for a term of 10 years from the date of the initial delivery of any water, as shown by the first bill submitted by the Seller to the Purchaser, and may be renewed or extended for such term or terms as may be agreed upon by the parties. 2. Thirty (30) days prior to the estimated date of completion of construction of the Purchaser's water supply system, the Purchaser will notify the Seller in writing of the date for the initial delivery of water. 3. This contract, all rate schedules, monthly billing and needed calculations shall be based on 100 cubic feet of water. 4. Upon the Purchaser's request, the Seller will make available to the Purchaser's contractor, at the point of delivery or other reasonably close point, water sufficient for testing, flushing and trench filling the Purchaser's system during construction, irrespective of whether the metering equipment has been installed at that time. The Purchaser's contractor shall pay a flat charge of $100.00. Should the contractor fail to pay within 30 days of delivery, the Purchaser shall pay. 1~(~ Final 7/07/04 V_ -4- 5. The Seller will, at all times, operate and maintain its system in an efficient manner and will take such action as may be necessary to furnish the Purchaser with quantities of water it requires, up to 200,278,080 gallons per year. Additional water may be provided, from time to time, at the Purchaser's request, but only if the Seller has sufficient water at that time to meet the additional requirement without detriment to its water supply or harm to its other customers. Temporary or partial failures to deliver water shall be remedied with all possible speed. In the event of an extended shortage of water, or if the supply of water available to the Seller is otherwise diminished over an extended period of time, the supply of water to the Purchaser shall be reduced or diminished in the same ratio or proportion as the supply to the Seller's other industrial consumers is reduced or diminished. 6. This Contract is subject to the rules, regulations and laws applicable to other similar agreements in this State and the Seller and the Purchaser will collaborate to obtain such permits, certificates and other documents as may be required to comply with those rules, regulations and laws. 7. In the event of any occurrence rendering either the Seller or the Purchaser incapable of performing under this Contract, any successor of the Seller or Purchaser, whether the result of legal process, assignment or otherwise, shall succeed to the rights and obligations of the Seller or the Purchaser respectively. 8. The Seller shall provide to the Purchaser a capital investment credit for a period not to exceed 10 years from the date of the initial delivery of any water as shown by the first bill submitted by the Seller to the Purchaser. The credit earned, which shall not exceed $16,190 during any monthly billing cycle, will be at a rate of $0.72556 per 100 cubic feet of water metered. 9. The Purchaser agrees to acquire and bear the expense of all easements required for this project. All easements must be transferable to the Seller upon conveyance of the necessary water line. If private easements are not obtained, but instead the water lines are installed within the County of Fulton's roadway rights-of-way, pursuant to an agreement between the Purchaser and Fulton County, which agreement will likely include a provision requiring that the water lines be moved in the event that the County widen or otherwise move the road, and if, as a result of that agreement, the Purchaser must at some time move the water lines, then the Purchaser, and not the Seller, will pay all costs of moving the water lines. 10. The Purchaser shall not sell or provide water purchased from the Seller to any third-party or processing entity. 11. Except as provided in paragraph C(13) below, the Seller shall be the exclusive supplier of water to the Purchaser's property during the life of this Contract. ~' Fina17/07/04 -5- 12. The Seller and the Purchaser agree to work cooperatively to efFciently provide water at the quantities the Purchaser desires. The Purchaser shall notify the Seller 30 days in advance of any anticipated increase in demand that will cause the Purchaser's water usage for the upcoming month to exceed 1/12 of its maximum yearly allotment, even if, at the time notice is given, the Purchaser's total water usage is below its maximum pro rata allotment. If the Purchaser anticipates an increase in demand in excess of 125% of its maximum monthly pro rata allotment, Purchaser shall notify Seller 270 days in advance of any such increase in demand. 13. In the event that the Seller is unable to deliver noticed demands in accordance with paragraph C(12) above, the Purchaser shall be allowed, for the duration of this contract, to satisfy its additional demand through alternate sources. If Seller later becomes capable of satisfying this additional demand, Purchaser shall have the option to either purchase such additional water from Seller, or to continue to satisfy its additional demand through its alternative sources. Under no circumstances shall the Purchaser mix or commingle the Seller's water with altemate source water without the required Seller-approved equipment to insure the safety of the City of Canton's water supply. The Purchaser shall provide the Seller with notice and reasonable time to inspect all of the Purchaser's equipment prior to any mixing or co-mingling of City of Canton water with water from an alternate source. 14. The Seller and the Purchaser agree that the schedule of rates for water under the terms of this Contract may be amended and adjusted from time to time over the life of this Contract. The parties agree that the initially attached rate schedule shall not be adjusted for a period of 36 months from the date of this Contract's execution. Rate adjustments following the initial 36-month period shall be made no mare often than every 24 months throughout the remaining life of the Contract. Any increase or decrease in the rates shall be based on a demonstrable increase or decrease in the Seller's costs of production. Purchaser shall have the right to terminate this Contract in the event the amended and adjusted scheduled rate for water exceeds $1.88 per 100 cubic feet of water, unless the Seller provides water of a higher quality so that Purchaser's effective price, after adjustment for a decrease in water treatment costs, is $1.88 or less per 100 cubic feet of water. 15. In the event that the Seller's water source requires volume subsidization through the use of wells during periods of low water levels, the Purchaser shall be assessed aper-unit surcharge during that period. This surcharge shall be entitled "supplemental well surcharge" and shall be reflected on the rate schedule. The supplemental well surcharge shall be assessed for each supplemental well used by the Seller; however, it shall not exceed the rate set for the Seller's industrial and bulk- volume customers. The Seller retains the sole right to make any and all determinations in the use and length of use of supplemental wells. The surcharge will not be assessed for those times of normally scheduled testing or maintenance of wells. Fina17/07/04 -6- 16. The parties acknowledge that the Seller shall incur no financial liability, whether actual or implied, associated with the construction of the necessary water lines or associated equipment. Purchaser agrees to indemnify and hold Seller harmless from any and all claims for damages, including reasonable attorney fees, during the construction of the necessary water lines or associated equipment provided the claims for damages are not due to the City's own negligence. The Purchaser will convey the line to the Seller free of any and all encumbrances, after which the Seller shall assume all responsibility for maintenance of the water lines. 17. Seller agrees to accept Purchaser's reverse osmosis reject water at its East Side Waste Treatment Plant at the price to be paid by Purchaser that is set forth on the rate schedule attached as Exhibit A. The Purchaser shall install a meter to measure the amount of reverse osmosis discharge. This price shall be reduced to the extent that the operating costs for the East Side Waste Treatment Plant are reduced as a result of accepting Purchaser's reverse osmosis reject water. For an annual fee of $10,000, Purchaser shall have the right to locate its water treatment equipment at the East Side Waste Treatment Plant and pump treated water to its facility on East County Highway 6. The specific location of the water treatment equipment at the East Side Waste Treatment Plant shall be specified by Seller. Purchaser shall bear all costs and expense associated with its water treatment equipment, operating costs, utilities, maintenance, easements and pipeline costs, including installation of all necessary booster pumps and chlorinators. The Seller and Purchaser shall execute a License Agreement, which shall provide the Purchaser with 24-hour access to its reverse osmosis water treatment equipment seven days a week. If Purchaser elects to place its water treatment equipment at the East Side Waste Treatment Plant, the water line to be built by Purchaser, described in paragraph A(3) above, shall be a 16-inch water line for the Seller's cold lime softened water and a 6- inch water line for Purchaser's treated water. Purchaser will convey the lines to Seller, free and clear of any and all encumbrances, upon successful passage and issuance of the inspections, testing, permits and licenses described in paragraph A(3) above. 18. This Contract shall be assignable to the Purchaser's Lender as collateral security for the financing of the Project. 19. This Contract shall be governed by the laws of Illinois. D. Mutual covenants between Seller and Property Owner. 1. To the extent that Seller is capable of supplying the water demands of all future entities and/or processes located on the Property Owner's original 2801 acres and within the City of Canton/Fulton County Enterprise Zone, it shall be the exclusive Fina17/07/04 -7- supplier of water to Property Owner's property during the life of this Contract. This provision shall be included in all subsequent deeds conveying the Property or through covenants recorded with respect to the Property. IN WITNESS WHEREOF, the parties, acting under authority of their respective governing bodies, have caused this Contract to be duly executed in two counterparts, each constituting an original document. SELLER (CITY OF CANTON) Jerry ohler, Mayor ATTESTED: Nancy White ity Clerk CENTRAL ILLINOIS ENERGY COOPERATIVE Michael mith, President CENTRAL ILLINOIS ENERGY, L.L.C. ~~ Michae Smi h 6~~` ~i(,q,,R,,a,~Q Fina17107/04 -8- EXHIBIT A Water Rate Schedule: The minimum monthly charge for water services shall be two dollars fifty cents ($2.50). In addition to such minimum charge, the following rates shall be charged for water metered. AMOUNT METERED For each 100 cubic feet of water or portion thereof PRICE $1.57 APPLICABLE SURCHARGES Supplemental Well Surcharge REVERSE OSMOSIS DISCHARGE PRICE $0.40 per 100 cubic feet metered multiplied by the number of wells used $1.30 per 100 cubic feet metered Fina17/07/04