Resolution No. 6917
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RESOLUTION NO. 6917
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
3 VERNON APPROVING AND AUTHORIZING THE EXECUTION
OF A LETTER OF ASSIGNMENT OF A NATURAL GAS SALES
4 AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND
PAN ENERGY GAS SERVICES, INC. TO PANENERGY
5 TRADING AND MARKET SERVICES, LLC
6 WHEREAS, the city Council of the City of Vernon by
7 Resolution No. 6821 on July 19, 1996, approved and authorized the
8 exeoution of a Natural Gas Sales Agreement with PanEnergy Gas
9 Services, Inc. for the period August 1, 1996 to July 31, 1997; and
10 WHEREAS, PanEnergy Gas Services, Inc. and Mobil Natural
11 Gas, Inc. have formed a joint venture energy services partnership
12 (limited liability company) named PanEnergy Trading and Market
13 Services, LLC ("PTMS") to perform the services provided for in
14 said Agreement; and
15 WHEREAS, Pan Energy Gas Services, Inc. has assigned its
16 rights and obligation~ under the Natural Gas Sales Agreement to
17 PTMS and has requested the city to consent to the assignment of
18 said Agreement pursuant to Section 12 thereof; and
19 WHEREAS, the Director of Light and Power of the City of
20 Vernon has recommended that the assignment from PanEnergy Gas
21 Services, Inc. to PTMS be approved, effective August 1, 1996.
22 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
23 CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the City of Vernon does
25 hereby find and determine that the recitals contained hereinabove
26 are true and correct.
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SECTION 2: The City Council of the City of Vernon hereby
28 approves the Letter of Assignment dated August 1, 1996, a copy of
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which has been presented to the City Council concurrently with
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this resolution, and the City Council hereby orders said Letter of
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Assignment to be received and filed by the city Clerk.
SECTION 3: The City Council of the city of Vernon hereby
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5 authorizes the Mayor and the City Clerk to execute said Letter of
6 Assignment for, and on behalf of, the City of Vernon.
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SECTION 4: The City Clerk of the City of Vernon shall
8 certify to the passage of this resolution, and thereupon and
9 thereafter the same shall be in full force and effect.
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APPROVED AND ADOPTED this 18th day of February, 1997.
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ATT~. :
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BRUCE V.
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MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA
2 COUNTY OF LOS ANGELES
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I, BRUCE V. MALKENHORST, city Clerk of the City of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6917, was duly adopted by the City Council of the
City of Vernon at a regular meeting of the City Council duly held
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on Tuesday, February 18, 1997, and thereafter was duly signed by
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the Mayor of the City of Vernon.
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BRUCE V. MALKENHORST, City Clerk
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i;~//O. Mobil
August 1, 1 996
FEB · G 1987
City of Vernon, California
Attn: Leonis C. Malburg, Mayor
4305 Santa Fe Avenue
Vernon, CA 90058
Re: PanEnergy No. GSA 272, Dated July 8, 1996
Pan Energy Gas Services, Inc. ("PGS") desires to assign the above referenced
contract (the "Contract") to PanEnergy Trading and Market Services, LLC ("PTMS"),
a Delaware Limited Liability Company, effective August 1, 1996. PTMS will be
managed and owned sixty percent (60%) by a wholly-owned PanEnergy company.
Mobil Natural Gas, Inc. ("Mobil") will own the remaining forty percent (40%). Since
the Contract may be interpreted to require your consent to such assignment, we ask
that you sign a copy of this letter in the space provided below indicating your consent
to the assignment in all respects.
PTMS shall be responsible for all duties, obligations, and responsibilities, and
shall be entitled to all rights and benefits, of PGS arising under the Contract from and
after August 1, 1996. PGS will continue to be responsible for all of its duties,
obligations, and responsibilities, and entitled to all of its rights and benefits, arising
under the Contract prior to August 1, 1996.
To assure continuity and ease of service, all addresses, payments, accounts,
and nomination and operational contacts shall remain the same under the Contract.
You will continue to deal with substantially the same people with whom you have
dealt in the past. This is essentially nothing more than a name and ownership change.
Currently, Mobil and PanEnergy are working together to obtain an independent
credit rating for PTMS, which will exceed that previously enjoyed by PGS. This will
be achieved soon after PTMS commences operation at the beginning of August 1996.
We look forward to continuing our business with you.
F:.. . .,wpdatalstt'.mlseltrslasignltr. vea
PanEnergy Trading and Market Services, L.L.C.
We Bong Energy to Everythmg You 00""
A Pan Energy and Mobil Company
4 Tnad Cenler, Suile 1000
Sail Lake Citv. Utah 84180
801 531-4400 Fax: 801 531.5470
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City of Vernon, California
Assignment Letter for GSA 272
Dated August 1, 1996
Page 2
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Please return an executed copy of this letter to our address as reflected on this
letterhead. Your cooperation in this matter is appreciated. Please call us if you have
any questions.
Consent granted:
City of Vernon, California
Sincerely,
Pan Energy Gas Services, Inc., on behalf of
itself and PanEnergy Trading and Market
Services, LLC
By:
/IU~ W(~fl~
Steve B. VanLeer
Managing Director
Southwest Division
By: _~~_./h'_ f) .
Name: LEONIS C. MALBURG
Its: Mayor
ATTES/(
By: () ~~
BRUCE V. MALKENHORST,
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City Clerk
APPROVED AS TO FORM:
By: \)~\2,\)~
DAVID B. BREARLEY, cit . Attorney