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Natural Gas Purchase Contract: ACAP IN ACAP V 1.1(m)
<br />For Office Use: ToP-xl
<br />Seller: Interstate Gas Supply, Inc. Fax: 614-659-5126
<br />Attn: Commercial & Industrial Sales, 6100 Emerald Parkway, Dublin, Ohio 43016 Phone: 877-923-4447
<br />Buyer: The City of South Bend Contact Name Adam Parsons
<br />Confirmation Email aparsons@southbendin.gov Phone 574-235-9302 Fax
<br />Street Address City State Zip
<br />Mailing 1045 West Sample South Bend IN 46601
<br />Billing Same as Mailing
<br />Facility See Exhibit A See Exhibit A See Exhibit A See Exhibit A
<br />Account Number/s See Exhibit A or see the attached Exhibit A
<br />This Confirmation is subject to the attached Terms and Conditions (“Contract”), which is incorporated in its entirety herein.
<br />Natural Gas Distribution Company (“NGDC”) Northern Indiana Public Service Company
<br />Initial Term: This Contract will begin with the April 2023 NGDC billing cycle and continue through the March 2024 NGDC billing cycle.
<br />Buyer understands that there may be delays in starting gas service under this Contract and will not hold Seller responsible
<br />for any such delay.
<br />Secondary
<br />Term/Renewal:
<br />This Contract may automatically renew for additional one year Terms in one of two ways, each constituting a “Secondary
<br />Term,” for a maximum total Term of five years, unless either party provides written notification to the other party of its
<br />intent not to renew this Contract at least 30 days prior to the end of any Term:
<br />(a)If Seller communicates a Fixed Adder change described below in the Secondary Term Purchase Price paragraph, this
<br />Contract will be renewed for the additional year in which the new Fixed Adder is applicable; or (b) If Seller does not
<br />communicate any Fixed Adder changes to the Buyer as described below in the Secondary Term Purchase Price para-
<br />graph, upon the expiration of any Term, this Contract will automatically renew for one year at a Purchase Price based on
<br />the then current Fixed Adder. The automatic renewal date will be the last calendar day of the month at the end of the
<br />applicable Term.
<br />Initial Term
<br />Purchase Price:
<br />Price per DTH shall be determined for each month by the following calculation: {[(Hedged Vol. x Wtd. Avg. Hedged
<br />Price)/Estimated Usage] + [(Variable Vol. x NYMEX Settlement Price)/Est. Usage] + Fixed Adder}, wherein “Hedged Vol.”
<br />is the amount of gas hedged by Seller on behalf of Buyer, “Wtd. Avg. Hedged Price” is the average price per DTH for
<br />hedged volumes, and “Variable Vol.” is the volume of gas consumed by Buy er but not hedged by Seller. “NYMEX Set-
<br />tlement Price” shall be determined by either the utility’s deadline or NYMEX monthly settlement for that month, whichever
<br />comes first. “Fixed Adder” for the Initial Term will be $0.05. Price per DTH shall include cost of gas, basis, applicable
<br />shrink/fuel to the delivery point, BTU conversion, Seller’s margin, and broker commissions (if applicable). In addition,
<br />Seller will charge Buyer for interstate transportation and storage at a rate of $0.79 per Dth. Taxes (where applicable),
<br />distribution fees, and/or other utility charges may also apply. For all services provided under this agreement, Buyer will
<br />continue to be responsible for all charges assessed by the NGDC including any other fees or taxes associated with
<br />providing Buyer service.
<br />Secondary Term
<br />Purchase Price:
<br />Seller reserves the right to change the Fixed Adder, lower or higher, for any future Secondary Term with proper advance
<br />notice to Buyer. Seller will communicate Fixed Adder changes to the Buyer via the Confirmation Email address identified
<br />above. Changes to the Fixed Adder will be binding without conflicting communications provided by Buyer within 3 business
<br />days of the notice of change. Buyer understands and agrees that notice of change to the Fixed Adder for a Secondary
<br />Term will cause the Contract to automatically renew as described above.
<br />Gas Procurement
<br />Procedure:
<br />Buyer explicitly permits Seller to purchase gas on a forward basis in order to mitigate risks associated with the
<br />volatility of the natural gas market. Buyer understands and agrees that forward purchases may be made for any
<br />Secondary Term for which a Fixed Adder has already been established and communicated to Buyer as set forth
<br />above. Forward purchases will be communicated with Buyer via the Confirmation Email address identified above and will be
<br />binding without conflicting communications provided by Buyer within one business day.
<br />Early Termination
<br />Damages:
<br />Hedged Volumes: At the end of this Contract, whether expired, terminated, or a party has provided notice of its intent
<br />not to renew, Buyer will be responsible for the positive difference, if any, between Seller’s cost for all hedges during the
<br />current Term and any future Terms (including but not limited to NYMEX and basis) purchased by Seller on behalf of
<br />Buyer minus the then-current market price.
<br />The Estimated Usage is calculated using each Account’s historical monthly consumption, as provided to Seller by the NGDC, mul tiplied by
<br />weather normalization factors and are set forth in the table below.
<br />Estimated Usage in DTH at the Burnertip
<br />Month Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
<br />20,103 17,873 16,798 7,416 5,206 2,682 2,669 2,680 2,888 5,116 8,135 12,798
<br />This Contract, including any Exhibit(s) may be signed in counterparts. If Buyer and Seller execute more than one Contract with respect to any
<br />Account(s), the terms of the most recent Contract will supersede and take priority over all previous Contracts with regard to the same Account(s).
<br />Any signature on this Contract and any Exhibit(s) will be considered valid for all purposes and have the same effect whether it is an ink -signed
<br />original, e-signed, a photocopy, or a facsimile representation of the original document.
<br />Buyer agrees and consents to receive electronically any notices from Seller via the Confirmation Email address identified above in
<br />connection with this Contract. Buyer may withdraw this consent to receive notices electronically by contacting Seller at ACAP@igsen-
<br />ergy.com. The signers below personally certify that they have all requisite authority to sign and enter into this Contract on behalf of
<br />the parties identified adjacent to their signatures. Further, they acknowledge that on behalf of their respective parties, th ey have read,
<br />understood, and voluntarily agreed to every provision of this Contract, the attached Terms and Conditions, and any Exhibit A.
<br />Accepted by Buyer:
<br />Name: Board of Public Works Title Date
<br />Accepted by Seller: VP of C&I Sales
<br />Name: Scott Arthur Title Date
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