Preferred Purchaser Pricing Agreement

PREFERRED PURCHASER PRICING AGREEMENT

Company: Ferrellgas, L.P. (hereinafter referred to as "Company")

Mailing Address: 65 Glen Carran Circle, Sparks, NV 89431

 

Company: Virginia City Highlands Property Owners’ Association (hereinafter referred to as "Association")

Mailing Address: P.O. Box 636, Virginia City, NV 89440

PROPANE SUPPLY: The Association requests that the Company act as a preferred provider of LP gas service at the Virginia City Highlands community and provide for use, at that location, propane containers and related equipment for the use of the Association and Virginia City Highlands residents.

The Association and all residents that receive the Company’s service must sign the Company’s standard form Equipment Rent and Gas Sale Agreement (LEG 1011). With reference to the second paragraph "Bulk Service" of said form; the words, "current LP gas price", for the purposes of this Agreement, refers to paragraph (3) of this Agreement. In case of any inconsistency or conflict between the terms of this Agreement and LEG 1011, the provisions of this Agreement shall govern.

TERM: This Agreement shall remain in effect for a period of (5) years. Absent the Company or the Association seeking renegotiations at the end of the five-year period, this Agreement shall automatically renew thereafter at the rate of one-year increments.

PRICE: The price of propane sold hereunder shall be the per gallon amounts noted below, plus the average weekly Sparks, Nevada price as posted in the BPN (hereinafter referred to as "the basing point"). The Association will be provided with a copy of the BPN newsletter on a weekly basis. All propane sold to the Association or residents of Virginia City Highlands shall be priced according to the following schedule (Note – required numbers may be a combination of Virginia City Highlands Property Owners Association and Highland Ranches Property Owners Association customers):

  • $.55 per gallon over the basing point if less than 100 Virginia City Highlands residents elect to choose the Company as their propane provider.

  • $.50 per gallon over the basing point if 101 – 200 Virginia City Highlands residents elect to choose the Company as their propane provider.

  • $.45 per gallon over the basing point if 201 or more Virginia City Highlands residents elect to choose the Company as their propane provider.

MAINTENANCE AND REPAIR: Absent intentional damage or tampering, maintenance and repair of all Company owned propane equipment will be performed by the Company, upon notice by residents, the Association or Company employees, at no charge. When needed, the Association and resident-customers may choose to have the Company perform maintenance and repair on Association or (resident) customer-owned propane equipment. The current Company labor rates shall be applied to maintenance and repair of Association or (resident) customer-owned propane equipment. The Company reserves the right to charge for after-hours emergency service which are not directly related to Company equipment or services.

When Virginia City Highlands residents elect to choose the Company as their propane provider, tank switch-outs shall be performed at no charge to the resident. In addition the resident shall be afforded 25 gallons of free propane and not be charged for their first full year of tank rent. The Company will also provide residents with a copy of the State of Nevada’s Propane Customer Bill of Rights and a copy of this Agreement. The Company reserves the right to create future time-specific incentives to market this Agreement to Virginia City Highlands residents.

The Company’s LP gas equipment is not to be moved, handled, disconnected, modified or tampered with in any manner by anyone not authorized in writing by the Company. The Company must be called if maintenance or repairs are necessary.

LPG STORAGE TANKS: Subject to the terms and conditions contained in the above-mentioned Equipment Rent (LEG 1011), the tank rent fee for the Association and Virginia City Highlands resident-customers shall be $69 per year for tank sizes up to and including 500 gallons. Per Association CC&R’s, all tanks installed in Virginia City Highlands by the Company shall be light green in color.

WINTER MONTHS DELIVERY SERVICE: Under this Agreement the Company will deliver propane to Virginia City Highlands residents during winter months provided:

  • Involved roads and driveways have been plowed (cleared of snow).

  • Company’s delivery truck can safely park within 125 feet of the propane tank.

  • There is no involvement of standing water or mud, which would cause the delivery vehicle to become stuck.

  • There is an absence at the time of delivery of heavy weather conditions, i.e. white-out, flooding or visibility conditions which make road travel unsafe.

For Virginia City Highlands resident-customers who choose "Keep Full Service", the Company will be responsible for automatic deliveries. Under this Agreement and while in the "Keep Full- Service" status, the Company has the authority to fill Virginia City Highlands resident-customer’s tanks without considering how much propane is in the tank at the time of the delivery. Considering 1) through 4) above, and while in the "Keep Full Service" status, the Company will respond to an out of gas situation at Virginia City Highlands resident-customers tanks within 8 hours of notification and without charging trip or out of route fees. The Company will not be responsible for failure to provide "Keep Full" service in the event that such failure is caused by the involved Virginia City Highlands resident-customers failure to provide, within their property, clear access to within 125 feet of the tank.

Virginia City Highlands resident-customers who choose "Will Call" service, will have the responsibility to call the Company’s Reno District Office to arrange for propane deliveries. After notification, and considering 1) through 4) above, Company will respond to fill the involved tank within 7 days with no trip or out of route charges being added. With 1) through 4) above governing; current trip or out of route charges will be applied to any Virginia City Highlands "Will Call" resident-customer who demands a delivery of propane which does not conform to the 7 day delivery period.

CFN FUELING CARD: The Company has the ability to offer its customers a Commercial Fueling Network account for purchasing refined fuels. Details on this offer are pending and may be offered in the near future to the Virginia City Highlands Association and it’s residents.

DISCLAIMER: The Association shall have no responsibility regarding disputes of any kind between the Company and resident-customers of the Virginia City Highlands. The Association shall have no financial liability for any services provided by the Company pursuant to this Agreement.

ASSIGNMENT: In the event the Company sells or otherwise transfers its business, this Agreement will be assigned to the purchasing entity.

REMOVAL FROM SERVICE: The Company reserves the right to immediately terminate any resident-customers service if the individual dwelling fails to meet the safety requirements of the Company, any relevant governmental body or for non-payment of bills.

GENERAL PROVISIONS: The provisions of this Agreement are separate and severable and do not have to be enforced at all times to preserve the right to enforce any other provision of this Agreement. This Agreement contains all the terms and conditions between the parties and no change in the terms of the Agreement shall be valid unless made in writing and signed by both parties. This Agreement shall be governed by and construed under the laws of the State of Nevada. This Agreement shall be assignable by Company only.

Signed this ______ day of ________, 2001

 

FERRELLGAS, L.P. Virginia City Highlands Property Owners’ Association

 

By: ____________________________ By: ______________________________

________________________________ ______________________________

( Print Name) ( Print Name)

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( Title ) ( Title )