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Resolution No. 79831 2 3 4 5 6 7 8 9 10 11 IWA 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 . + ' e � e ♦..' a e� . RESOLUTION NO. 7983 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN EQUIPMENT PURCHASE CONTRACT BY AND BETWEEN THE CITY OF VERNON AND PERRY EQUIPMENT CORPORATION WHEREAS, the City's Utilities Department has determined that the City needs to purchase two dry gas vertical filters and the necessary auxiliary equipment (the "Gas Filters") to be utilized in the removal of entrained fine sand and particulates from natural gas transported through the pipelines for the Malburg and H. Gonzales Generating Stations; and WHEREAS, since the Utilities Department determined that the expedited purchase of the Gas Filters will assist Vernon in meeting its short and long term electricity goals and is in the public interest, staff sought informal quotes for the purchase of the Gas Filters; and WHEREAS, on March 26, 2002, the Finance Committee recommended that the City Council approve the recommendation of Bruce V. Malkenhorst, Director of Finance, dated March 21, 2002, that the Gas Filters be purchased from Uniflow Systems (Perry Equipment Corporation) and that an equipment purchase contract be approved and executed; and WHEREAS, the City Council of the City of Vernon has determined that, pursuant to the provisions of subsection (a) of Section 2.27 of the Vernon City Code, it is in the public interest and necessity to enter into a contract with Perry Equipment Corporation for the purchase of the Gas Filters to enhance services provided to the Vernon community. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: 1 SECTION 1: The City Council of the City of Vernon hereby 2 finds and determines that the recitals contained hereinabove are true 3 and correct. 4 SECTION 2: The City Council of the City of Vernon hereby 5 approves the Equipment Purchase Contract with Perry Equipment 6 Corporation, a copy of which is attached hereto as Exhibit "A" and 7 made a part hereof. 8 SECTION 3: The City Council of the City of Vernon hereby 9 authorizes the Mayor and the City Clerk to execute said Contract for, 10 and on behalf of, the City of Vernon. 11 SECTION 4: The City Council of the City of Vernon hereby 12 directs the City Clerk, or his designee, to send one fully executed 13 Contract to: 14 Perry Equipment Corporation 15 Attn. Sam Singleton, Application Engineer P.O. Box 640 16 Ft. Wolters Industrial Park Mineral Wells, TX 76068 17 SECTION 5: The City Clerk of the City of Vernon shall 18 certify to the passage of this resolution, and thereupon and 19 thereafter the same shall be in full force and effect. 20 APPROVED AND ADOPTED this 5th day of June, 2002. 21 22 23 LEONIS C. MAL RG, Mayor 24 ATTEST: 25 26 q/ 9 27 BRUCE V. MALKENHORST, City Clerk 28 2 _ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 7983, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, June 5, 2002, and thereafter was duly signed by the Mayor of the City of Vernon. (SEAL) BRUCE V. MALKENHORST, City Clerk - 3 - EXHIBIT 0 1 EQUIPMENT PURCHASE CONTRACT 2 3 THIS CONTRACT is made, entered into and executed in duplicate 4 originals, either copy of which may be considered and used as the 5 original hereof for all purposes, as of this day of June, 2002, in 6 the City of Vernon, County of Los Angeles, California 7 BY AND BETWEEN The City of Vernon (hereinafter referred to as "City") 8 4305 Santa Fe Avenue 9 Vernon, CA 90058 10 AND Perry Equipment Corporation (hereinafter referred to as 11 "PECO" ) P.O. Box 640 12 Industrial Park Mineral Wells, TX 76068 13 14 RECITALS 15 WHEREAS, City's Utilities Department has determined that the 16 City needs to purchase two dry gas vertical filters and the necessary 17 auxiliary equipment to be utilized in the removal of entrained fine 18 sand and particulates from natural gas transported through the 19 pipelines for the Malburg and H. Gonzales Generating Stations; and 20 WHEREAS, on February 8, 2002, PECO prepared a Proposal 21 (hereinafter the "Proposal"), which was submitted on March 27, 2002 by 22 Uniflow Systems, 6773 Sierra Court, Suite D, Dublin, CA 94568, its 23 distributor, in response to City Specification No. MGS-C-01; and 24 WHEREAS, PECO specializes in filtration solutions for oil, 25 gas and industrial applications and has advised City that it can. 26 provide the gas filters and auxiliary equipment set forth in the 27 Proposal and which meets City's specifications; and 28 WHEREAS, City desires to enter into an agreement with PECO to 1 PA 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 19 20 21 22 23 24 25 26 27 28 provide for the purchase, design, shop -testing, inspection and delivery of the filters and auxiliary equipment for the Malburg and H. Gonzales Generating Stations as specified in Specification No. MGS-C-01. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET 11FORTH HEREIN: 1. Purchase. PECO agrees to sell, design, shop -test, inspect and deliver the Dry Gas Vertical Filters and Auxiliary Equipment as set forth and described in detail in the Proposal, a copy of which is attached hereto as Exhibit "A" and incorporated herein by reference, and the Specification for Purchase of Gas Filters for Malburg and H. Gonzales Generating Stations, Specification No. MGS-C-01, a copy of which is attached hereto as Exhibit `°B" and incorporated herein by reference. In the event of a conflict between the Proposal and this Contract, the terms of this Contract shall prevail. 2. Time of Performance. PECO's performance as identified herein shall commence upon the signing of this Contract and shall be completed by PECO, unless otherwise terminated pursuant to Paragraph 6 or extended by mutual agreement of the parties to the Contract. 3. Price. PECO agrees to sell, design, shop -test, inspect and deliver the Dry Gas Vertical Filters and Auxiliary Equipment described in its Proposal for the total amount of Twenty -Four Thousand One Hundred Ninety -Six Dollars and No Cents ($24,196.00), excluding freight costs and tax. PECO is only authorized to charge and collect sales and use taxes imposed by the State of Texas. If other sales taxes are applicable, the City will report and pay such taxes to the appropriate - 2 - 1 taxing entity. 2 4. Payment Terms. 3 City agrees to pay PECO net thirty (30) days after City's 4 receipt of an invoice, delivery and City's acceptance of the equipment, 5 the total amount due under the Contract. PECO shall be responsible for 6 paying any subcontractors used in the performance of this Contract; 7 subcontractors shall not bill the City directly. 8 City shall address its purchase order to PECO c/o Uniflow 9 Systems, 6773 Sierra Ct., Suite D, Dublin, CA 94568. 10 5. Change and Extra Services. 11 City reserves the right to request changes in the equipment 12 design, delivery dates, or additions to or deletions from the equipment 13 purchased from PECO. All such changes shall be incorporated in written'' 14 change orders executed by City and PECO and shall specify the changes 15 ordered and the adjustment of prices, delivery schedules and 16 warranties. Any equipment or services added under this section shall 17 be executed under all applicable conditions of this Contract. No claim 18 for additional compensation or extension of time shall be recognized 19 unless contained in a duly executed change order. 20 6. Cancellation/Default. 21 In the event that PECO commits a breach of a material 22 condition of this Contract, City shall notify PECO in writing of said 23 breach and if PECO has not cured or begun reasonable efforts to cure 24 after fifteen (15) days of receipt of said notice, and fails to 25 diligently pursue corrective action, City shall have the right to 26 cancel this Contract for cause based on PECO's default. PECO shall be 27 responsible for any direct costs due to City's re -procurement of the 28 equivalent of the equipment or services cancelled from PECO. PECO's - 3 - 1 liability for these excess costs shall not exceed the value of the 2 Purchase Order. Termination without cause or for the convenience of 3 the City will be subject to PECO's cancellation policy as set forth in 4 Paragraph 10 of the Addition Terms and Conditions. 5 7. Confidential Information. 6 A. Access to Confidential Information. City may provide 7 PECO with, or allow PECO' access to, certain information not available 8 to the public concerning, but not limited to City, or businesses 9 located in City. The information may include, but is not limited to, 10 company information, taxes, sales, value of assets, utility usage, or 11 other such information. All such information shall be known as 12 "Confidential Information" and may not be used to circumvent the 13 responsibility of either party to this Contract. 14 B. No Disclosure. Except as expressly permitted, PECO 15 shall not disclose, permit the disclosure of, release, disseminate, or 16 transfer, whether orally or by any other means, any part of such 17 Confidential Information to any other person or entity, whether 18 corporate, governmental, or individual, without the express prior 19 written consent of an authorized representative of City. DECO shall 20 return any written Confidential Information and all copies made of such 21 items to City upon City's written request, but in any event not later 22 than the date that PECO has performed all services to be performed 23 pursuant to this Contract. PECO hereby agrees that such Confidential 24 Information and any documents provided may be used by PECO only as 25 authorized by City. PECO shall take reasonable measures to avoid any 26 disclosure of any such Confidential Information to any unauthorized 27 person. 28 / / / - 4 - 1 C. Court Ordered Disclosure. PECO shall immediately notify 2 City of any court order or subpoena requiring disclosure of 3 Confidential Information, and shall cooperate with legal counsel in the 4 appeal or challenge of any such order or subpoena. Recipient may only 5 disclose Confidential Information required to be disclosed pursuant to 6 court order or subpoena after legal counsel has exhausted any lawful 7 and timely appeal or challenge. 8 D. Remedies. In addition to any other remedies that it may 9 have at law or in equity, City shall be entitled to a temporary and 10 permanent injunction by a court of competent jurisdiction against any 11 breach or threatened breach of the Confidential Information provisions 12 of this Contract. PECO acknowledges that in case of such breach or 13 threatened breach of said provisions, City would have no adequate 14 remedy at law. 15 8. Warranties. 16 PECO warrants title to the equipment purchased hereunder and 17 any part thereof to be free of any claim of any security interest, lien, 18 or any encumbrance. PECO also warrants that the equipment will be 19 delivered new and shall be free from defects in material and 20 workmanship for the warranty period of twelve months (12) after being 21 placed in operation or eighteen (18) months after being received at the 22 jobsite, whichever occurs first. All manufacturers' warranties, any 23 warranties typically provided by DECO and any other warranties made 24 applicable by law shall apply to the parts and labor provided by PECO. 25 9. Compliance with Laws. 26 PECO shall strictly observe and comply with all applicable 27 federal, state, and local laws, ordinances and regulations governing 28 this sale, including but not limited to any permit or license - 5 - 1 requirements of the United States Department of Commerce, as well as 2 any laws of the United States of America. 3 10. Governing Law. 4 The validity, interpretation and performance of this Contract 5 shall be controlled and construed under the laws of the State of 6 California. 7 11. Forum Selection. 8 Any action brought relating to this Contract shall be brought 9 and held exclusively in a State Court in the County of Los Angeles, 10- California. 11 12. Notices. 12 Notices to the parties, unless otherwise requested in 13 writing, shall be sent to: 14 City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST 15 CITY ADMINISTRATOR 4305 SANTA FE AVENUE 16 VERNON, CA 90058-0805 17 PECO: PECO EQUIPMENT CORPORATION 18 c/o UNIFLOW SYSTEMS ATTN: CRAIG JACKSON 19 6773 SIERRA CT., SUITE D DUBLIN, CA 94568 20 21 13. General Provisions. 22 A. Independent Contractor. 23 At all times during the term of this Contract, PECO shall be 24 an independent contractor and shall not be an employee of City. City 25 shall have the right to control PECO only insofar as the results of 26 PECO services rendered pursuant to this Contract; however, City shall 27 not have the right to control the means by which PECO accomplishes 28 services rendered pursuant to the Contract except to the extent that - 6 - 1 such services involve the use of City property or Confidential 2 Information. 3 B. PECO Not Agent. 4 Except as City may specify in writing, PECO shall have no 5 authority, express or implied, to act on behalf of City in any capacity 6 whatsoever as an agent.. PECO shall have no authority, express or 7 implied, pursuant to this Contract to bind City to any obligation 8 whatsoever. 9 C. Indemnification. 10 PECO shall indemnify, defend, protect and hold City and its 11 officers, agents and employees, free and harmless from and against any 12 and all claims, demands, losses, damages, liabilities, fines, charges, 13 penalties, orders, judgments and all costs and expenses incurred in 14 connection therewith, including reasonable attorney's fees and costs of 15 defense arising out of the use of the equipment PECO has provided under 16 this Contract, where the City substantiates that the equipment is the 17 primary contributor to a failure of the filtration system or the cause 18 of the damage sustained, except to the extent arising from or caused by 19 the sole negligence or willful misconduct of City, its officers, agents 20 or employees. PECO will not be responsible to the City for any 21 consequential incidental damage or losses resulting from the 22 performance of the equipment sold under this Contract. PECO's 23 liability for damages and/or indemnity shall not exceed the value of 24 the purchase order. 25 D. Comprehensive General and Automobile Insurance. 26 PECO agrees to provide insurance during the entire term of 27 the Agreement, in the amounts and forms specified in Exhibit `°C," which 28 is attached hereto and made a part hereof by reference. The general 7 - 1 liability policy shall contain an endorsement naming the City of 2 Vernon, its officers and employees as additional insureds, an 3 endorsement providing the City of Vernon thirty (30) days notice of 4 cancellation or material reduction of coverage, and an endorsement 5 providing coverage for all operations under this Agreement. For each 6 policy, a notarized letter from the underwriter or carrier certifying 7 that the coverage and statements in the standard certificate of 8 insurance are true and correct and that the signator is an officer 9 authorized to so certify. Comparable coverage shall be provided for 10 each subcontractor used in the performance of this Agreement. PECO 11 shall submit to the City documentation indicating compliance with these 12 minimum requirements no less than one (1) day prior to the beginning of 13 performance under this Agreement. PECO shall not commence performance 14 of its services under this Agreement until the above insurance has been 15 obtained and proof of insurance has been filed with and approved by the 16 City. 17 E. Entire Agreement. 18 This Contract constitutes the complete and final expression 19 of the agreement of the parties and is intended as a complete and 20 exclusive statement of the terms of their agreement and supersedes all 21 prior and contemporaneous offers, promises, representations, 22 negotiations, discussions, communications and agreements which may have 23 been made in connection with the subject matter hereof. All exhibits 24 are incorporated by reference. PECO represents that in entering into 25 this Contract it has not relied on any previous representations or 26 understandings of any kind or nature. 27 F. Partial Invalidity. 28 Wherever possible, each provision hereof will be interpreted 8 1 in such manner as to be effective and valid under applicable law, but 2 in case any one or more of the provisions contained herein will, for 3 any reason, be held to be invalid, illegal or unenforceable in any 4 respect, such provision will be ineffective to the extent, but only to 5 the extent of such invalidity, illegality or unenforceability without 6 invalidating the remainder of such provision or provisions or any other 7 provision hereof, unless such a construction would be unreasonable or 8 contrary to the parties' intent as expressed in this Contract. 9 G. Time of the Essence. 10 Time is of the essence in the performance of this Contract 11 and of each and every provision hereof. City's waiver of any breach or 12 breaches hereof shall not be deemed, nor shall the same constitute, a 13 waiver of any subsequent breach or breaches. 14 I. Risk of Loss. 15 Title and risk of loss or damage shall pass to City FOB 16 Mineral Welss, Texas. Delivery shall be deemed to be complete upon 17 receipt at jobsite or upon moving into storage at City's request, 18 whichever occurs first. 19 J. Attorneys' Fees. 20 If it becomes necessary for either party to this Contract to 21 enforce any of the Contract provisions, the parties agree that a court 22 of competent jurisdiction may determine and fix reasonable attorney's 23 fees to be paid to the successful litigant. 24 K. Benefit of Agreement. 25 This Contract shall bind and benefit the parties hereto and 26 their heirs, successors, and permitted assigns. 27 L. Force Majeure. 28 Neither party shall be considered to be in default in any of - 9 - 1 its obligations under this Contract when a failure of performance shall 2 be due to an uncontrollable force. The terms "uncontrollable force" 3 shall mean any cause beyond the control of the party affected, 4 including, but not restricted to, flood, earthquake, storm, fire, 5 lightening, epidemic, war, riot, civil disturbance or disobedience, 6 sabotage, federal, state, or municipal action, statute, ordinance, or 7 regulation, embargoes or the United States Government or any other 8 government, which by exercise of due diligence such party could not 9 reasonably have been expected to avoid and by exercise to due diligence 10 has been unable to overcome. Either party rendered unable to fulfill 11 any of its obligations under this Contract by reason of an 12 uncontrollable force, shall give written notice within five (5) 13 business days of such fact to the other party and shall exercise due 14 diligence to remove such inability with all reasonable dispatch. 15 M. Waiver. 16 Any waiver at any time by either party of its rights with 17 respect to a default under this Contract, or with respect to any other 18 matters arising in connection with this Contract, shall not be deemed a 19 waiver with respect to subsequent default or other matter. 20 21 22 23 24 25 26 27 28 - 10 - 8 9 10 11 12 13 14 15 16 17 18 19, 20 21 22 23 24 25 26 27 28 N. Amendment. All changes or modifications to this Contract shall be in.a writing stating that it is an amendment to this Contract and shall be signed by both parties or their duly authorized agents. This Contract shall not be modified through course of dealing, usage or trade. IN WITNESS WHEREOF, the parties have caused this Contract to be executed by and through their authorized officers on the date, month and year first written above. ATTEST: BRUCE V. MALKENHORST, City Cler APPROVED AS TO FORM: EDUARDO OLIVO, City Attorney CITY OF VERNON By: LEONIS C. MALBURG, Mayor PECO EQUIPMENT CORPORATION By: Title: By: Title: EXHIBIT A Feb•11 '2002 °2:37PM , r ' Raymundo Engineering 488 No. Wiget Lane Walnut Creek, CA 94598 Attn: Karli K. Maeda Fax: 925-968-0174 No•4039 P' Perry Equipment Corporation PO Box 640 Wolters Industrial Park Mineral Wells, TX 76068 Fax: (940) 325-4622 Tel: (940) 325-2575 Project: Malburg Generating Station Quote Number: QF063833 Revision: 0 Date: February 8, 2002 cc: Uniflow Systems, Becker Tech We are pleased to present our proposal for the following PECO filtration equipment: Item 1 Qty. (2) 70V-5-336-16-720 Dry Gas Vertical Filter Auxiliary Equipment We would appreciate the opportunity to provide any assistance necessary to complete your evaluation of this proposal. If you have any questions or require additional information do not hesitate to contact the undersigned. Sincerely, Perry Equipment Corporation __e Sam ton Applications Engineer E-mail: ssingleton@pecousa.com SPECIALIZING INFILTRATION SOLUTIONS FOR OIL & GAS AND INDUSTRIAL APPLICATIONS VISIT OUR WEB SITE AT: WWW.PECOUSA.COM Feb • t 1 .' im - 2: 38PM Perry Equipment Corporation No•4039 P. 2/5' Quote Number: QF063833 Revision: 0 PRICING EQUIPMENT Item Q Description Unit Price Extension 1 2 70V-5-336-16-720 $ 9,996.00 $ 19,992.00 2 AuxiliM Equipment $ 2,102.00 $ 40204.00 TOTAL PRICE F.O.B, Larado, Texas I S 24,196.00 SPARES FOR START-UP & COMMISSIONING Description Price Each Extension Filter Element, PSFG-336 10 $ 74.00 $ 740.00 Closure Gasket, 16"Buna 2 $ 25.00 $ 50.00 TOTAL PRICE EX -WORKS I $ 790.00 Auxiliary Equipment: Qty 1 Midwest Model 120-SA-00-01A, Differential Indicating Switch with 5-way manifold AGCO M6AVDC-4 Qty 1 Relief Valve, AGCO 83CM68-4 Qty 2 Ashcroft Model 1279SS-04L Pressure Gauge Qty 1 Drain Check Valve, 2" KF DELIVERY Approval Drawings: 2-3 weeks after receipt of order Equipment: 8-10 weeks after receipt of final approved drawings and resolution of all changes Quoted delivery is standard for the proposed equipment. If this does not meet your project schedule, please contact us and we will do everything possible to meet your specific needs. TERMS & CONDITIONS 1. Payment terms are net 30 days. 2. Equipment may be fabricated at Perry Equipment Corporation's facility in Mineral Wells, Texas or Queretaro, Mexico. Delivery will be Ex -Works Mineral Wells, Texas or Ex - Works Laredo, Texas respectively. 3. In order to meet specified delivery schedule, PECO reserves the right to subcontract all or a portion of the vessel fabrication. All subcontractors have been pre -qualified by PECO's quality Assurance Department in accordance with our ISO-9001 procedures. Mechanical and process design and internals supplied by DECO. 4. Quotation is valid for 90 days from today's date and prices are firm for the duration of the order. Page 2 Feb.il,.' 2002 • 2:38PM Perry Equipment Corporation Quote Number: Revision: No•4039 P. 3/5, QF063333 0 5. Equipment is quoted packed for domestic inland shipment by truck. 6. PECO Standard Terms and Conditions and Additional Terms and Conditions apply. COMMENTS TO PURCHASER'S TERMS & CONDITIONS There are no commercial comments or clarifications. TECHNICAL COMMENTS / CLARIFICATIONS 1. PECO is able to verify the performance of it's equipment at actual operating conditions after installation using PECO's Direct Contaminant Measurement System (DCM). Contact the Application Engineer that prepared this proposal for more information on this service. 2. Quotation is based on the use of existing PECO welding procedures and welder qualification. APPLICABLE SPECIFICATIONS We certify that the proposed equipment and services comply with the following customer specifications: Specification for Purchase of Gas Filters for Malburg and H. Gonzales Generating Stations City of Vernon Data Sheet No other customer specifications have been considered including any that may have been referenced in the specifications listed above. DECO reserves the right to review and revise this proposal accordingly if any additional requirements are submitted. PECO certifies that the equipment meets all applicable U.S. laws, statutory regulations and codes that have been brought to our attention. However, PECO makes no such certifications regarding laws, statutory regulations and codes outside the U.S.. ATTACHMENTS 1. Vessel Drawings 2. Data Sheets Page 3 hP(- LUUZ4.04FM UW LOW SYSTEMS N rry Equipment Corporation No.0512 . P. 3 PECO STANDARD CONDITIONS OF QUOTATION In order to schedule the fabrication of your vessel properly and allow for your inspection points, while maintaining our delivery promises, we must include the following procedures: 1. PECO allows two (2) weeks for approval drawings to be returned by you. In order to meet original delivery dates, if approval drawings are not returned to PECO within two (2) weeks, and you have not asked for an extension, we will consider the drawings approved as sent and proceed with manufacturing according to the drawings. 2. All PECO equipment is thoroughly inspected during fabrication by our quality assurance group and by a resident ASME Code Inspector, if the equipment is to be built to ASME Code. The following will apply if additional inspection is required by you. NOTE: When third party inspection is required, PECO must be promptly, notified after receipt of order as to the inspection company appointed. Delay in notification may affect delivery and hold points may be missed. If PECO is advised that inspection hold points are required, prior to beginning of manufacture, DECO will advise you three to five days prior to each inspection point, when the vessel will be available for your inspection. A pre -production meeting is recommended for all vessels requiring extensive in - process inspection points. This meeting will help everyone schedule convenient inspection dates_ In the event your inspectors cannot arrange to view the equipment on the date set, and no waiver can be issued by you for that inspection hold point, then the equipment delivery may be jeopardized. If two (2) weeks pass after the scheduled inspection data and no inspection has taken place or no waiver has been received, PECO will invoice you for the portion of the work done. In order to insure scheduled delivery, PECO reserves the right to subcontract portions or all of this quotation. Subcontractors selected have been pre -qualified by PECO Quality Control department. In the event it is necessary to use a sub -contractor to assure on -time delivery, we will notify and request you permission prior to proceeding. 04/01/02 KON 17:29 [TX/RX NO 81031 Q 003 Aur. i. 1UUZ 4:J4NM UNIFLOW SYSTEMS No•0512 P. 4 Nay Equipment Corporation ADDITIONAL TERMS AND CONDITIONS I. All quotations art for prompt acceptance and subject to change without notice. Quotations are based on the total quantity quoted. Increases or decreases in quantity and specifications may affect prices. Quoted prices are predicated on labor costs at straight -tune rates. Premium or overtime costs shall be added to the prices quoted herein when overtime or weekend work is requested. 2. Prices are exclusive of sales, excise, federal, state or local taxes now in effect, and/or which may be later imposed. Shipping promises on all order are contingent upon fires, strikes, accidents or other causes beyond our control. 3. Shipment and delivery dates are estimated only, are based on current conditions and our ability to secure labor, materials and parts, and where applicable are estimated from the date approved shop drawings are received from purchaser. Delivery is subject to any and all requisitions, priorities, allocations, restrictions, or controls now or hereafter established by Federal, State or Municipal Authority. There shall be no penalty for delay. 4. Stenographic or clerical errors are subject to correction. 5. All shipping promises are estimated and cannot be guaranteed. 6. Any increase in freight charges on or after date of this quotation shall be for purchaser's account. Material quoted F.O.B. destination is predicted on shipping cheapest way unless specifically stated to the contrary. Any shipping instructions resulting in higher transportation costs will be for purchaser's account. 7. Each item covered in the quotation may, at our opinion, be invoiced separately upon completion, or, if for reasons beyond our control completion is delayed, that portion of the work completed during any given month may be invoiced. 8. The seller warrants its product against defective workmanship and material under normal and proper use in service for one (1) year from date of invoice when owned by the original purchaser and only when subjected to operating conditions outlined by purchaser when order is place; EXCEPT THAT: a) PECO makes NO WARRANTY OF FITNESS EXCEPT THAT THE PART OR PARTS SHALL BE OF THE QUALITY SPECIFIED HEREIN, and shall be implied by law. Final determination of the suitability of the material or parts for the use contemplated by the Buyer is the sole responsibility of the Buyer, and PECO shall have no responsibility for such determination. b) There is no guarantee against corrosion or erosion caused by acids, chemicals, their fumes, or the like. c) There is no guarantee of any kind on used or second-hand material or equipment. d) There is no guarantee of any kind on articles or equipment where the purchaser's specifications will not meet Underwriters, American Society of Mechanical Engineers, American Petroleum Institute, American Standards Association, Federal, State, Municipal, or other applicable official codes and requirements. 04/01/02 MON 17:29 1TX/RX NO 81031 Q 004 Hur. ;. �UU� 4.JOPM UNIFLOW SYSILMS Perry Equipment Corporation No.0512 '. P. 5 Except as otherwise expressly stipulated herein, seller does not warrant that goods covered by this order are fit for any particular purpose. Any action based on breach of warranty, express or implied, arising from any transaction or sale related to or incorporating this quotation shall be commended within one year after such cause of action has accrued and not thereafter_ NO WLIED WARRANTIES OF MERCHANTABILITY OR HAPLIED WARRANTS OF FITNESS FOR A PARTICULAR PURPOSE SHALL EXTEND BEYOND THE DESCRIPTION CONTAINED HEREIN. Replacements required by the purchaser will be shipped and billed as repairs. If the purchaser desires to make a claim, be shall notify the seller before making any repairs or alterations of any kind, and if so instructed by the seller, he shall ship the part claimed to be defective to the seller, under seller's shipping instructions and by freight prepaid and if it is found to be defective, credit will be issued by the seller to charge for replacement. Any article not of seller's manufacture included in this proposal -is sold under such warranties only as the makers give us and we are able to enforce, and is not guaranteed by us. The seller's liability for damages caused by defective workmanship or material shall be limited to repairing or replacing the defective part or parts, and no allowance will be granted for repairs or alterations made by the purchaser without the seller's written consent. The seller shall not be liable under any circumstances for the loss of fluids, gases, or substances, nor for damages in transit, nor for indirect or consequential damages of any nature. 9. No responsibility will be accepted for the infringement of chemical, process or flow patents that the material furnished by us may be designed for or used in connection with. 10. This quotation is made for specially constructed equipment, and order once entered can not be canceled nor can quantities or specifications be changed, except upon an agreement which will insure against loss on a pro rata basis for labor or engineering done, material used, costs accrued, and commitments made up to the time of receipt by our office of written notice of cancellation or change. 11. No claims will be allowed resulting from any purchases, returned material, labor done, materials used, repairs or alterations on material shipped without our written consent. 12. Customer inspection if required shall be performed at our plant. Any materials or equipment subsequently rejegted after receipt by customer at destination may be replaced or repaired at our option; however, all transportation charges ensuing will be for customer's account. 13. The seller shall have no liability, directly or indirectly, for loss or delay, or for the failure to perform or make delivery, due to strikes, differences with workmen, fires, floods, losses of merchandise in transit, embargoes, postponements or suspension in sailing of vessels; freight car or truck shortages, Acts of God or public enemies or secret agents, wars, riots, civil commotion, malicious damage, requisition or destruction of or damage to goods or merchandise by virtue of public authority, acts of civil or military authorities, quarantine restrictions, delay or failure in any type of transportation, shortage of transportation or fuel or power or labor or materials, or to any circumstances or accident beyond the control of seller. 14. Unless authorized by an executive officer of the company in writing, no change or modification of the above terms will be recognized. 04/01/02 MON 17:29 1TX/RX NO 81031 Q 005 Feb.'II'. 2002 2:38PM No.4039 ,P. 0 Perry Equipment Corporation P.O. Box 640, Wolters Industrial Park Mineral Wells, Texas 76068 USA Unfired Pressure Vessels Vessel Data Sheet For Vertical Dry Gas Filter I I-Feb-02 Pg 1 Of I Pr 'd b : SS Customer Ref: No.: PECO Ref. No.: QF063833 Customer: Raymundo Engineering TAG NO.: F-10I/102 Q : 1 PECO Model No.: 70V-5-336-16-740 DESIGN CONDITIONS MATERIALS OF CONSTRUCTION Pressure 740 PSIG Shell SA106-B Temperature 100 Deg F Heads SA516-70/SA234-WPB Corrosion Allow. 1/8" inch Flanges SAWS Code ASME SeCLV1lI, Div.1 Pie SA106-B ACE MR-01-75 No Couplings SA105 OPERATING CONDITIONS Weld Fittings SA234-WPB Pressure 200.0 PSIG Riser Assy Stainless Steel Temperature 100 Deg F Ext'1 Bolts SA193-137 Type Gas Natural Gas Ext'i Nuts SA194-2H Gas Flow Rate 33.0 MMSCFD Attachments A36 / A516-70 Gas Spec, Gravity 0.59 SCHEDULE OF OPENINGS Service Qty Size Rating Facing VESSEL DIMENSIONS (Approx.) Inlet 1 8" 300# ANSI RFWN Shell Diameter 161, In, Outlet I 8" 300# ANSI RFWN Shell L th Sm-Sm 64" In. Vent 1 2" 300# ANSI- RFWN Weight Empty 1,804 lb DPI 2 1/2" 6000# n t cplg Drain 2 2" 6000# n t cplg Valve Taps 2 1/2" 6000# npt cplg TESTING Relief 1 1" 6000# n t c l H drotest Yes Radiograph Yes, 100% Ultrasonic No Ma . Particle Yes Dye Penetrant No WHT No PAINTING SPECIFICATIONS Hardness No Internal: ILight None Charpy Impact No Oil PERFORMANCE External: Qty. Filter Elements 5 Sandblasting SSPC-SP-5-63 Flow/Element 5.54 JACFS Primer PECO Standard Delta P. Fig-Flg 1.70 si Intermediate N/A Efficiency 98% solids I µ and larger Finish N/A EXTERNALS CLOSURE Supports Skirt e PECO OOCA Lifting Lugs Yes Size 161, Insulation rings No Gasket Typc O-RingAnchor Bolts No Gasket Material Buua-N Earthing Lugs No CALCULATIONS ASM.E Strength INTERNALS Element Model PSFG-336 Total Surface Area NOTES: eo • i'i LUUL`• Z:3yNM No.4039®P 5/5- 315° 16" Z ma i.. 16" 46° p' O Z DRAIN J �DRAIN(BTM) / BOLT HOLE ,/,�i(/ DAVIT, YOKE GUSSET o ., AND BOLT HOLES INLET 270° ,UTLET -- go° 225° 135° 180° NAME IE & LIFTING LUGS TRUE ORIENTATION ELEVATION M M� M (4 EA) 7/8" DIA BOLT HOLES LOCATED AT 46° OFF VESSEL j C9 z a r-- z) OI>lo Ix r m W S d U O 0 N O Z O cs W Q 0 a 0 Owf-� U�U;_j Z U W ! w < S a� 4- Zz g C o w e X � m W CL z w N N LLI LvQH Qin M W Lt N L. I. tr. N -i 4A z Q V p0 o CL o EXHIBIT B R� I RAYMUNDO ENGINEERING I. SCOPE 2. SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON Doi 0 speafication No. MGS-C-O'I Page t- 1 0179 Issue Date 12/13/01 Rev. No. 0 Date 12/13/01 1.1 This Specification covers the minimum requirements for the design, performance, fabrication, shop testing, inspection and shipment of gas filters. Filters shall be supplied complete with all equipment and accessories necessary for testing, routine maintenance, and automatic and unattended operation unless specific exception is specified in this document or in the Purchase Order. 1.2 This Specification covers gas filters that are intended to remove entrained fine sand and other particulates from natural gas transported through pipelines. This Specification prescribes minimum requirements; therefore, compliance with this Specification does not relieve supplier of the responsibility to design and supply all material and components not specified or indicated, but which are necessary for a complete, safe and properly operating unit. CODES AND STANDARDS 2.1 Filters shall be designed, fabricated, inspected and tested in accordance with the latest edition of the following industry codes and standards, unless more stringent requirements are specified in this document or in the Purchase Order. American National Standards Institute, ANSI B 16.5 — Pipe Flanges & Flanged Fittings American Society of Mechanical Engineers (ASME) B31.8 — Gas Transmission & Distribution Piping Systems Boiler & Pressure Vessel Code (ASME B&PV Code) Sections II, V, VIII & IX American Society for Testing and Materials (ASTM) Federal Pipeline Safety Regulations, 49 CFR Part 192 Federal and State Occupational Safety and Health Act Structural Steel Painting Council, SSPC SP-10 Structural Steel Painting Council, SSPC PA-1 National Electric Code (NEC) 2.2 ASME Code stamp is required for all pressure vessels. DESIGN 3.1 General 3.1.1 The filter shall be of the type indicated in the attached Equipment Specification Data Sheet (Data Sheet) and shall meet the project performance requirements at the process and design conditions specified. 3.1.2 The filters shall have full end opening closures for access to the replaceable filter elements. The opening must be of a size and arrangement to allow for replacement of the filter elements without physical entry into the vessel. 3.1.3 Mesh and vane elements shall be stainless steel. 3.1.4 The filter elements shall be designed to remove particles as specified in the Data Sheet. ` Indicates revised paragraph, this Rev. No. RAYMUNDO ENGINEERING SPECIFICATION -FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON [vIGS-C-0 I Paps 2 of 9 Issue Data 12/13/01 Ray. No. ' 0 �o'te 12/13/01 3.1.5 Inlet gas flow shall not impinge directly on the filter elements or cause erosion of the elements. The inlet nozzle shall be located on the side of the vessel in the orientation specified in the Data Sheet. Outlet nozzle shall be located at the end of the vessel. 3.1.6 Drain openings other than siphon drains shall be trimmed flush with the inside of the vessel. 3.1.7 All electrical components shall be listed for use in hazardous locations by a national recognized laboratory. 3.1.8 All electrical devices shall be wired to a single junction box and terminated on a `Barrier" type terminal strip. All control wiring shall be minimum No. 14 AWG, type THHW. All power wiring shall be a minimum of 12 AWG, type THHW. Conduit and wiring methods and materials shall comply with NEC Article 500. 3.1.9 The vessel shall be designed as a self-supporting unit. Vertical vessels shall be supported with skirts. Horizontal vessels shall be supported with two (2) saddle supports and legs. 3.1.10 Vessels designed for internal pressure shall also be designed to withstand a minimum of 2.5 psig external pressure, but do not have to be ASME Code stamped for the external pressure. 3.1.11 A corrosion allowance, if specified on the Data Sheet, shall be applied in addition to the calculated wall thickness of the vessel. Internals shall be designed with a corrosion allowance on both sides of pressure retaining plates or parts. 3.1.12 No permanent internal backing or chill rings shall be allowed. 3.1.13 Internal components shall be supported such that they will not be damaged or fail due to liquid slugs, gas velocities up to 1.5 times the maximum specified velocity or vibration due to the gas passing through the internals. 3.1.14 Pressure drop from inlet flange to outlet flange on a new, clean, fully assembled vessel shall be less than 2 psi. 3.1.15 The vessel's nameplate shall include all data required by the ASME B&PV Code, the buyer's Purchase Order and vessel tag number. Nameplate shall be made of stainless steel. 3.2 O nin s 3.2.1 All inlet and outlet openings necessary for testing, operation, and maintenance of the unit shall be provided. All reinforcement calculations shall be in accordance with the ASME B&PV Code. Reinforcement of openings shall not limit the maximum working pressure of the vessel. 3.2.2 Openings 1-1/2" NPS and smaller shall be made with forged steel couplings, ANSI B16.11, Class 3000, except that, when specified, 2" NPS threaded connections shall be used for liquid level controllers having internal floats and 2" NPS threaded connections. No threaded connection shall be made directly into any part of the vessel other than telltale holes in pads and stud holes in pad attachments. Solid steel, hex -head plugs shall be supplied for all threaded openings. 3.2.3 Raised -faced flanged connections shall be used for all openings 2" NPS and larger except for closures and liquid level controllers having threaded connections. Slip on flanges shall not be * Indicates revised paragraph, this Rev. No. 14. aa RAYMUNDO ENGINEERING SPECIFICATION -FOR PURCI4ASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON apecdw,an«, No.MGS-C-01 Page 3 of 9 IS" one 12/13/01 Rev. No. 0 Date 12/13/01 used for flanged connections with ratings of ANSI Class 300 and above. All flanges shall be two - holed on the vertical or horizontal centerline of the vessel, i.e., boltholes shall straddle centerline. 3.2.4 Drain openings other than siphon drains shall be trimmed flush with the inside of the vessel. 3.2.5 Handholds and man ways shall be provided in accordance with ASME B&PV Code requirements. Handholds shall be 6" nominal. Man ways, if required, shall be 20" nominal with davited covers. MATERIALS 4.1 All materials used for fabrication shall be new and conform to the specifications given in the ASME B&PV Code. Shell and heads shall be normalized steel plate ASME SA 516 Grade 70, fabricated, inspected, tested and found acceptable in accordance with the latest edition of the ASME B&PV Code. 4.2 Pipe shall be seamless ASTM A 106 Grade B, ASTM A333 Grade 6, ASTM A381 or API 5L. Pipe 2" NPS and smaller shall be Schedule 80. 4.3 All valves 2" and larger shall be manufactured in accordance with API-61). All valves less that 2" shall be manufactured in accordance with MSS-SP-84 or MSS-SP-99. 4A Flanges and couplings shall be ASME SA 350, Grade LF2 or equivalent in compatibility with ASME SA 516-70 used for the shell and heads. 4.5 Mill test reports on all pressure containing materials used shall be provided to buyer. FABRICATION 5.1 Charpy V-notch impact testing shall be performed, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Test information on at least three specimens of material used shall be furnished when Charpy testing is performed. Full size specimens (10 nun x 10 mm x 55 mm) shall be used. The test shall be conducted. in accordance with ASME B&PV Code. 5.2 Any preheat treatment shall be in accordance with the ASME B&PV Code. 5.3 Pressure vessel shall be fully postweld heat -treated, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Postweld heat treatment shall be performed in accordance with the ASME B&PV Code. 5.4 The use of Gas Metal Arc Welding (GMAW) process in the short circuiting mode is not permitted except only for root passes of joints welded from both sides and where the GMAW short -arc root is completely removed by grinding prior to backwelding of the second side. Backwelding with GMAW in the short- circuiting arc mode is not permitted. 5.5 When using Shielded Metal Arc Welding (SMAW) process for joining carbon or alloy steel, only low hydrogen electrodes shall be used. Low hydrogen electrodes shall meet the procurement, storage and issuance requirements of subsection 4.5 of the latest revisions of the A WS D 1.1 Structural Welding Code. INSTRUMENTS AND CONTROLS s Indicates revised paragraph. this Rev. No. 17. RAYMUNDO ENGINEERING No. SPECIFICATION FOR PURCHASE OF pa" GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON Date no. MGS-C-71 4 of 9 12/13/01 0 12/13/01 6.1 Instruments and controls, such as liquid level controller, high liquid level alarm or shutdown devices; differential pressure gauge and switch, level gauges and instrument air or gas supply regulators shall be provided as indicated in the Data Sheet and shall be of the type, manufacturer and model specified. 6.2 Isolation valves shalLbe provided for all controls. 6.3 Overpressure protection shall be provided on the vessel unless otherwise specified in the Data Sheet. Relief capacity shall be based on thermal and fire requirements per ASME B&PV Code, unless specified otherwise. All relief valves shall be provided with pressure indicator and a lockable full port ball valve on the inlet. 6.4 All pressure gauges shall be minimum 4-1/2" in diameter and accurate to 12 % of full scale. 6.5 Internal parts and components that are in contact with natural gas shall not contain more than 60% copper. 6.6 All electrical components shall be listed for use in hazardous locations by a national recognized laboratory. TESTING AND INSPECTION 7.1 All welded joints shall be fully (100%) examined by radiograph. Radiographic examination shall be in accordance with ASME B&PV Code. Double loaded film cassettes with Type 1 films shall be used for radiographs, if specified on the Data Sheet. The duplicate set of radiographs shall become the property of Buyer. All radiograph films shall be made available to Buyer's inspector. 7.2 Prior to testing, the Seller shall prepare and furnish to Buyer's Inspector a diagram showing clearly the location of each weld and its corresponding radiograph. Low stress stamps shall be used to mark the zero location with an arrow showing the direction of location markers. A copy of the diagram shall be kept with the radiographs. 7.3 All welds on pressure vessel and pressure retaining steel components other than piping shall be radiographed where accessible. Inaccessible welds shall be magnetic particle examined Welds shall be examined whether required or not required by the ASME B&PV Code, if specified in the Data Sheet. Magnetic particle examinations and examiner and procedure qualifications shall be performed in accordance with the ASME B&PV Code. 7.4 All welds on pressure retaining stainless steel components other than piping shall be examined by liquid penetrant, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Penetrometers shall be placed on the source side. Liquid penetrant examinations and examiner and procedure qualifications shall be performed in accordance with the ASME B&PV Code. 7.5 All vessels shall be hydrostatically tested at a minimum pressure of 1.5 times the design pressure in accordance with the ASME B&PV Code. The test pressure must be held for a minimum duration of eight (8) hours, unless otherwise specified in the Data Sheet. SURFACE PREPARATION 8.1 EXTERIOR SURFACE 8.1.1 All surfaces shall be cleaned, dried, and free of oil and grease before the required coating is applied. All heavy slag accumulations, metal leaves or blisters, weld splatter, or other s Indicates revised paragraph, this Rev. No. Specification No. MGS 4 10. R ( SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON RAYMUNDO ENGINEERING 5 of 9 12/13/01 Rev. No. Q Dace 12/13/01 irregularities shall be removed by appropriate mechanical means after which all mill scale, rust and old paint shall be removed by sandblasting in accordance with the latest edition of Structural Steel Painting Council Standard SSPC SP-10 (near -white blast). Sandblast profile shall be between 2 mils and 3 mils. 8.1.2 Within 24 hours after sandblasting or before re -oxidation can take place, the surface shall be primed with one or more coats of inorganic zinc primer manufactured by Ameron, Devoe or Carboline. 8.1.3 Dry film thickness shall be minimum 3 mils and maximum 4 mils. Coating thickness shall be maintained over welds, edges of plates, or other sharp projections or rough areas. All painting shall be done in accordance with the Steel Structures Painting Council Standard SSPC PA-1, Paint Application Specifications. 8.2 INTERIOR SURFACE 8.1.4 All internal surfaces shall be cleaned and dried. All heavy slag accumulations, metal leaves or blisters, weld splatter, or other irregularities shall be removed by appropriate mechanical means after which all mill scale, rust and old paint shall be removed by blast cleaning in accordance with the latest edition of the Steel Structures Painting Council Standard SSPC SP-5 for Power Tool Blast Cleaning. After cleaning, the vessel shall be thoroughly cleared of all sand and foreign matter. 8.1.5 All internal surfaces shall be applied with a heavy coating of Freedom Valvoline Oil Company's Tectyl 502.0 oil soluble inhibitor, or approved equal. 8.1.6 Immediately after approval of buyer's inspector, all openings shall be covered and securely sealed to prevent reentry of dust, dirt and moisture. SHOP INSPECTION 9.1 Welding procedures qualification, welder's qualifications, test procedures, quality assurance and control procedures, test procedures, materials, fabrication and testing shall be subject to Buyer's approval and inspection at the Seller's shop, at no additional cost to Buyer. 9.2 Approval or waiver of inspection shall not relieve the Seller from meeting the requirements of the ASME Code and this Specification. PREPARATION FOR SHIPMENT 10.1 Vessel shall be adequately protected to prevent damage to the exterior coating during shipment and storage outdoors at the job site before installation. 10.2 All openings shall be covered to prevent dirt and moisture from entering the vessel and to protect mating surfaces. Flanges shall be protected with bolt -on covers; couplings shall have 3000 pounds screwed steel hex head plugs and all machined steel surfaces shall be protected with a suitable rust inhibitor. 1E •••»•d —• u Paragrapn, rots Kev. NO. RE I RAYMUNDO ENGINEERING SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON SPSCftatKM No. MGS-C_01 Paps 6 of 9 Issue Date 12/13/01 Rev. Date 0 12/13/01 10.3 All controls, gauges, auxiliary equipment and related items such as valves, pipe & tube fittings, tubing and nipples are to be removed and shipped with the vessel. All connection ports shall be protected and covered. 10A All spare parts are to be shipped with the vessel. 10.5 The vessel and all loose equipment, devices and parts shipped with the vessel shall be tagged, properly packed and securely anchored to prevent damage during shipment and storage outdoors at the job site before installation. 10.6 Seller shall notify Buyer in writing no less than two weeks before equipment is to be shipped. 11, SPARE PARTS Proposal shall include the following spare parts: 2 qty: Gaskets for Full End Opening Enclosure 1 set of Filter Elements 12. SUBMITTALS AND DOCUMENTATION 12.1 Seller shall submit three copies the following documents with their proposal: 12.1.1 Equipment outline, cross-section and elevation drawings with dimensions and anchoring details. 12.1.2 An itemized list of all valves, controls and accessories, identified by manufacturer's model, size, material and the service they accomplish. 12.1.3 Size, ratings and orientation of all nozzles and couplings. 12.1.4 Capacity curves showing maximum capacity of the filters over the operating range. 12.1.5 Percentage of solids removed in relation to particle size. 12.1.6 Pressure drop at rated capacity and pressure. 12.1.7 Dead weight, shipping weight and size. 12.1.8 Delivery date of shop drawings for approval. 12.1.9 Delivery date of equipment after approval of drawings. 12.1.10 Spare parts list and cost. 12.1.11 Seller shall clearly state if any exception to the specification is being taken. 12.2 Seller shall supply the following sets of shop drawings and Manufacturer's Data Sheets: three (3) sets for approval, six (6) sets of certified and six (6) sets as -built Printed materials shall be of legible quality and « Indicates revised paragraph, this Rev. No. 3. SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON RAYMUNDO ENGINEERING SpedricaWn "----r- No MGS-C-0`1 Page 7 of 9 Issue Date 12/13/01 Rev. No. 0 Date 12/13/01 suitable for reproduction. No fabrication shall start until Buyer has approved the shop drawings, unless otherwise approved by Buyer in writing. 12.3 Seller shall submit to Buyer for approval all WPS and all supporting Procedure Qualification Records (PQR), including subcontractors', and weld schedule referencing each welding procedure to the type of joint. The document shall also specify what preheat, postweld heat treatment and nondestructive examination outside of visual is required, for each referenced joint. 12.4 Seller shall supply eight (8)sets of the following document with the final sets of "as -built" shop drawings: 12.4.1 Manufacturer's data -report, Form U-1, for unfired pressure vessels. 12.4.2 Post weld treatment charts, if post welding is performed. 12.4.3 Hydrostatic test charts for vessels tested at 1.5 times the design pressure. 12.4.4 Charts showing filters capacity from 200 to 1000 prig. 12.4.5 Final dimensional drawings for filters, stamped and certified. 12.4.6 Complete specification of all materials, assemblies, and equipment. 12.4.7 The Charpy V-notch impact test report, if Charpy Impact Testing is performed. 12.4.8 Complete operating instructions and maintenance recommendations, 12.4.9 Installation instruction for all instruments and materials shipped loose. 12.4.10 Manufacturer's recommended spare parts list. 12.5 All submittals must include the Purchase Order number, equipment tag, and revision number and date. CORRESPONDENCE AND INQUIRIES 13.1 Correspondence shall bear reference to the specification number, equipment tag number and station name. 13.2 Correspondence and inquiries shall be addressed to: John Byme/Karli Maeda Raymundo Engineering Co., Inc. 488 North Wiget Lane P.O. Box 30425 Walnut Creek, CA 94598 Phone: (925) 988-0172 Fax: (925)988-0174 E-mail: i >nt T—wnundo.com E-mail: kkmnu,raymundo.com " Indicates revised paragraph, this Rev. No. RAYMUNDO ENGINEERING SPECIFICATION'FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON EQUIPMENT SPECIFICATION DATA SHEET Location: Malburg & H. Gonzales Generating Station Vemon CA Requisition No. Project: Install Meter and Reeulator Station w/ Filter Project No. Prepared By. Karli K. Maeda Approved By: Date: 1-28-02 Revision: Revised Date No of Units Required: Service: Vessel Type: Filter Type: Elements: Manufacturer: Support: Gas Conditions: Flow: Pressure: Temperature: Gas Analysis (Mole %) H2 He 02 CO2 sp.a NO. MGS, C-01 pap 8 of 9 ftsw t 12/13/01 Rev. Na. O Date 12/13/01 DESIGN REQUIREMENTS Equipment Tags: F-101 and F-102 Natural Gas [ X ] ASME [ X ] Pressure [ ] Vacuum [ ] Mesh Scrubber [ ] Vane Scrubber [ ] Centrifugal Scrubber { X J Filter [ X J Vertical [ ] Horizontal [ ] Coalescing [ ] Mesh [ ] Vane Model: Type: Skirt Wind Load (MPH): 70 Earthquake Zone: 4 Gas Processed: Natural Gas Normal 30 MMSCFD @ 300 psig & 60 OF Maximum33 MMSCFD @ 200 psig & 105 OF Design 740 -Sig Operating 275-400 psig Design. -20 to 120 OF Operating 50 to 100 OF N2 C3H8 nc5H12 H2S IC4H 10 C61­114 CH4 Nc4HIO C71­116 C2H6 ICSH12 Total Specific Gravity 0.585 (Air = 1.0) Performance Requirements: Solids removed at 0-100 % of rated flow: 99.98 % of particles 1.0 microns & larger Max. Allowable Pressure Drop with Liquid Storage Capacity: clean elements: 2.1 PSI Corrosion Allowances for shell & pressure retaining internals: 1/8 inch Post Heat Treatment: [ ) Yes [X] Per ASME Code Charpy Impact Test: [ J Yes [X] Per ASME Code Magnetic Particle Exam: [ ) Yes ( X] Per ASME Code Liquid Penetrant Exam: [ ) Yes [X] Per ASME Code Radiograph Inspection: [X) 100 % [ ] Per ASME Code AUXILIARY EQUIPMENT & OPTIONS PER UNIT ( ]Level controllers ( ] Choke nipples [ )Dump valves [ ] Liquid Level Switch [X ] Drain check valves (1 ) 2"KF7679-A5139K191 [ )Level gauges &cocks [ ] Gas supply [ X ] DP Indicating Switch (1 ) Midwest 120-SA-00-OJA [ X ] Pressure gauges (2 ) Ashcroft 1279SS-04L [ ] Block & bleed valves [ X J Relief valve (1 ) AGCO 83CM684 [ ) Block valves [ ] Block & bypass valves [X 15-way manifold (1 )AGCO M6AVDC-4 [X ] Lifting lugs REMARKS [ X }Grounding lugs « Indicates rcviscd paragraph. this Rev. No. c DAT.E(hiMIDD/YY) . u A CORDTw :.. Y Will 04/19/02 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Aon Risk Services, Inc. of Texas ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE 301 Commerce Street HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR Suite 2101 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Fort Worth TX 76102 COMPANIES AFFORDING COVERAGE COMPANY PHONE -(817) 810-4000 FAX - (817) 339-2019 A Colonial County Mutual Ins Co INSURED Perry Equipment Corporation COMPANY Wausau Underwriters Ins Co B COMPANY C United States Fire Insurance Co. P O Box 640 Mineral Wells TX 76067 USA COMPANY D THIS IS TO CERTIFY THAT THE POLICES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO LTR TYPE OF IIVSURANCE POLICY POLICYEFFECTIVE DATE (hM/ODNY) POLICYEXPIRATION DATE 0,11"DI Y) �M C GENERAL LIABILITY 5430879045 06/01/01 06/01ro2 GENERAL AGGREGATE $3,006,000 PRODUCTS - COMP/OP AGG $2,000,000 X COMMERCIAL GENERAL LIABILITY PERSONAL 3 ADV 94MRY $1,000,000 CLAIMS MADE FX-1 OCCUR EACH OCCURRENCE $1,000,000 OWNER'S S CONTRACTOR'S PROT FIRE DAMAGE(Anv one fire) $50,000 MED EXP (Am/ one person) $5.000 A AUTOMOBILE LIABILITY ASNZ91506661011 06/01/01 06/01/02 COMBINED SINGLE UMn' $1,000,000 X ANY AUTO BODILY FdJURY ALL OWNED AUTOS SCHEDULED AUTOS (Perperson) BODILY INJURY HIRED AUTOS NON -OWNED AUTOS (Per accident) PROPERTY DAMAGE GARAGE LIABILITY AUTO ONLY - EA ACCIDENT ANY AUTO OTHERTHAN AUTOONLY: V EACH ACCIDENT AGGREGATE EXCESS LIABILITY EACH OCCURRENCE AGGREGATE UMBRELLA FORM OTHER THAN UMBRELLA FORM B WORKERS COMPENSATION AND EMPLOYERT LIABILITY WCJZ91506661021 06101/01 06/01/02 X WC STATU- OTR EL EACH ACCIDENT $1,000,000 THEPROPRIETOR/ X INCL PARTNERS/EXECUTIVE EL DISEASE -POLICY LIMIT $1,000,000 EL DISEASE -EA EMPLOYE $1,000,000 OFFICERS ARE ECCL DESCRIPTION OF OPERATIONSILOCATIONSIVEHICLEWSPECIAL ITEMS CITY OF VERNON IS INCLUDED AS ADDITIONAL INSURED REGARDING THE GENERAL AND AUTO LIABILITY POLICY'S BUT ONLY TO THE EXTENT REQUIRED BY WRITTEN CONTRACT AND SUBJECT TO THE POLICY TERMS AND CONDITIONS. CANCELLATION PROVISION SHOWN IS SUBJECT TO SHORTER TIME PERIODS DEPENDING ON THE JURISDICTION OF, AND REASON FOR, THE CANCELLATION. SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE CITY OF VERNON EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 4305 SANTA FE AVENUE 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. VERNON CA 90058 USA BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE COMPANY. ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE . iS�7r6 1� .�dseoGCdd A& !dL�d. %MG. R 13 Certificate No: 570002576351 Holder Identifier: SUPPORTING DOCUMENTS s d Iti r 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EQUIPMENT PURCHASE CONTRACT THIS CONTRACT is made, entered into and executed in duplicate originals, either copy of which may be considered and used as the t original hereof for all purposes, as of this{U day of June, 2002, in the City of Vernon, County of Los Angeles, California BY AND BETWEEN The City of Vernon (hereinafter referred to as "City") 4305 Santa Fe Avenue Vernon, CA 90058 RN Perry Equipment Corporation (hereinafter referred to as "PECO") P.O. Box 640 Ft. Wolters Industrial Park Mineral Wells, TX 76068 WHEREAS, City's Utilities Department has determined that the City needs to purchase two dry gas vertical filters and the necessary auxiliary equipment to be utilized in the removal of entrained fine sand and particulates from natural gas transported through the pipelines for the Malburg and H. Gonzales Generating Stations; and WHEREAS, on February 8, 2002, PECO prepared a Proposal (hereinafter the "Proposal"), which was submitted on March 27, 2002 by Uniflow Systems, 6773 Sierra Court, Suite D, Dublin, CA 94568, its distributor, in response to City Specification No. MGS-C-01; and WHEREAS, PECO specializes in filtration solutions for oil, gas and industrial applications and has advised City that it can provide the gas filters and auxiliary equipment set forth in the Proposal and which meets City's specifications; and WHEREAS, City desires to enter into an agreement with PECO to r � r •1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22, 23 24 25 26 27 28 provide for the purchase, design, shop -testing, inspection and delivery of the filters and auxiliary equipment for the Malburg and H. Gonzales Generating Stations as specified in Specification No. MGS-C-01. NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS SET. (FORTH HEREIN: 1. Purchase. PECO agrees to sell, design, shop -test, inspect and deliver the Dry Gas Vertical Filters and Auxiliary Equipment as set forth and described in detail in the Proposal, a copy of which is attached heretoi as Exhibit "A" and incorporated herein by reference, and the Specification for Purchase of Gas Filters for Malburg and H. Gonzales Generating Stations, Specification No. MGS-C-01, a copy of which is attached hereto as Exhibit "B" and incorporated herein by reference. In the event of a conflict between the Proposal and this Contract, the terms of this Contract shall prevail. 2. Time of Performance. PECO's performance as identified herein shall commence upon the signing of this Contract and shall be completed by PECO, unless otherwise terminated pursuant to Paragraph 6 or extended by mutual agreement of the parties to the Contract. 3. Price. PECO agrees to sell, design, shop -test, inspect and deliver the Dry Gas Vertical Filters and Auxiliary Equipment described in its Proposal for the total amount of Twenty -Four Thousand One Hundred Ninety -Six Dollars and No Cents ($24,196.00), excluding freight costs and tax. PECO is only authorized to charge and collect sales and use taxes imposed by the State of Texas. If other sales taxes are applicable, the City will report and pay such taxes to the appropriate M= ;1 taxing entity. 2 4. Payment Terms. 3 City agrees to pay PECO net thirty (30) days after City's 4 receipt of an invoice, delivery and City's acceptance of the equipment, 5 the total amount due under the Contract. PECO shall be responsible for 6 paying any subcontractors used in the performance of this Contract; 7 subcontractors shall not bill the City directly. 8 City shall address its purchase order to PECO c/o Uniflow 9 Systems, 6773 Sierra Ct., Suite D, Dublin, CA 94568. 10 5. Change and Extra Services. 11 City reserves the right to request changes in the equipment 12 design, delivery dates, or additions to or deletions from the equipment 13 purchased from PECO. All such changes shall be incorporated in written 14 change orders executed by City and PECO and shall specify the changes 15 ordered and the adjustment of prices, delivery schedules and 16 warranties. Any equipment or services added under this section shall 17 be executed under all applicable conditions of this Contract. No claim 18 for additional compensation or extension of time shall be recognized 19 unless contained in a duly executed change order. 20 6. Cancellation/Default. 21 In the event that PECO commits a breach of a material 22 condition of this Contract, City shall notify PECO in writing of said 23 breach and if PECO has not cured or begun reasonable efforts to cure 24 after fifteen (15) days of receipt of said notice, and fails to 25 diligently pursue corrective action, City shall have the right to 26 cancel this Contract for cause based on PECO's default. PECO shall be 27 responsible for any direct costs due to City's re -procurement of the 28 equivalent of the equipment or services cancelled from PECO. PECO's - 3 - c i r 1 liability for these excess costs shall not exceed the value of the 2 Purchase Order. Termination without cause or for the convenience of 3 the City will be subject to PECO's cancellation policy as set forth in 4 Paragraph 10 of the Addition Terms and Conditions. 5 7. Confidential Information. 6 A. Access to Confidential Information. City may provide 7 PECO with, or allow PECO access to, certain information not available 8 to the public concerning, but not limited to City, or businesses 9 located in City. The information may include, but is not limited to, 10 company information, taxes, sales, value of assets, utility usage, or 11 other such information. All such information shall be known as 12 "Confidential Information" and may not be used to circumvent the 13 responsibility of either party to this Contract. 14 B. No Disclosure. Except as expressly permitted, PECO 15 shall not disclose, permit the disclosure of, release, disseminate, or 16 transfer, whether orally or by any other means, any part of such 17 Confidential Information to any other person or entity, whether 18 corporate, governmental, or individual, without the express prior 19 written consent of an authorized representative of City. PECO shall 20 return any written Confidential Information and all copies made of such 21 items to City upon City's written request, but in any event not later 22 than the date that PECO has performed all services to be performed 23 pursuant to this Contract. PECO hereby agrees that such Confidential 24 Information and any documents provided may be used by PECO only as 25 authorized by City. PECO shall take reasonable measures to avoid any 26 disclosure of any such Confidential Information to any unauthorized 27 person. 28 / / / - 4 - 1 C. Court Ordered Disclosure. PECO shall immediately notify 2 City of any court order or subpoena requiring disclosure of 3 Confidential Information, and shall cooperate with legal counsel in the 4 appeal or challenge of any such order or subpoena. Recipient may only 5 disclose Confidential Information required to be disclosed pursuant to 6 court order or subpoena after legal counsel has exhausted any lawful 7 and timely appeal or challenge. 8 D. Remedies. In addition to any other remedies that it may 9 have at law or in equity, City shall be entitled to a temporary and 10 permanent injunction by a court of competent jurisdiction against any 11 breach or threatened breach of the Confidential Information provisions 121 of this Contract. PECO acknowledges that in case of such breach or 13 threatened breach of said provisions, City would have no adequate 141 remedy at law. 15 8. Warranties. 16 PECO warrants title to the equipment purchased hereunder and 17 any part thereof to be free of any claim of any security interest, lien 18 or any encumbrance. PECO also warrants that the equipment will be 19 delivered new and shall be free from defects in material and 20 workmanship for the warranty period of twelve months (12) after being 21 placed in operation or eighteen (18) months after being received at the 22 jobsite, whichever occurs first. All manufacturers' warranties, any 23 warranties typically provided by PECO and any other warranties made 24 applicable by law shall apply to the parts and labor provided by PECO. 25 9. Compliance with Laws. 26 PECO shall strictly observe and comply with all applicable 27 federal, state, and local laws, ordinances and regulations governing 28 this sale, including but not limited to any permit or license - 5 - r 1 requirements of the United States Department of Commerce, as well as 2 any laws of the United States of America. 3 10. Governing Law. 4 The validity, interpretation and performance of this Contract 5 shall be controlled and construed under the laws of the State of 6 California. 7 11. Forum Selection. 8 Any action brought relating to this Contract shall be.brought 9 and held exclusively in a State Court in the County of Los Angeles, 10 California. 11 12. Notices. 12 Notices to the parties, unless otherwise requested in 13 writing, shall be sent to: 141 City: THE CITY OF VERNON ATTN: BRUCE V. MALKENHORST 15 CITY ADMINISTRATOR 4305 SANTA FE AVENUE 16 VERNON, CA 90058-0805 17 PECO: PECO EQUIPMENT CORPORATION 18 c/o UNIFLOW SYSTEMS ATTN: CRAIG JACKSON 19 6773 SIERRA CT., SUITE D DUBLIN, CA 94568 20 21 13. General Provisions. 22 A. Independent Contractor. 23 At all times during the term of this Contract, PECO shall be 24 an independent contractor and shall not be an employee of City. City 25 shall have the right to control PECO only insofar as the results of 26 PECO services rendered pursuant to this Contract; however, City shall 27 not have the right to control the means by which PECO accomplishes 28 services rendered pursuant to the Contract except to the extent that - 6 - r 1 such services involve the use of City property or Confidential 2 Information. 3 B. PECO Not Agent. 4 Except as City may specify in writing, PECO shall have no 5 authority, express or implied, to act on behalf of City in any capacity 6 whatsoever as an agent. PECO shall have no authority, express or 7 implied, pursuant to this Contract to bind City to any obligation g whatsoever. 9 C. Indemnification. 10 PECO shall indemnify, defend, protect and hold City and its 11 officers, agents and employees, free and harmless from and against any 12 and all claims, demands, losses, damages, liabilities, fines, charges, 13 penalties, orders, judgments and all costs and expenses incurred in 14 connection therewith, including reasonable attorney's fees and costs of 151 defense arising out of the use of the equipment PECO has provided under 16 this Contract, where the City substantiates that the equipment is the 17 primary contributor to a failure of the filtration system or the cause 18 of the damage sustained, except to the extent arising from or caused by 19 the sole negligence or willful misconduct of City, its officers, agents 20 or employees. PECO will not be responsible to the City for any 21 consequential incidental damage or losses resulting from the 22 performance of the equipment sold under this Contract. PECO's 23 liability for damages and/or indemnity shall not exceed the value of 24 the purchase order. 25 D. Comprehensive General and Automobile Insurance. 26 PECO agrees to provide insurance during the entire term of 27 the Agreement, in the amounts and forms specified in Exhibit "C," which' 28 is attached hereto and made a part hereof by reference. The general I - 7 - 1 liability policy shall contain an endorsement naming the City of 2 Vernon, its officers and employees as additional insureds, an 3 endorsement providing the City of Vernon thirty (30) days notice of 4 cancellation or material reduction of coverage, and an endorsement 5 providing coverage for all operations under this Agreement. For each 6 policy, a notarized letter from the underwriter or carrier certifying 71 that the coverage and statements in the standard certificate of 8 insurance are true and correct and that the signator is an officer 9 authorized to so certify. Comparable coverage shall be provided for 10 each subcontractor used in the performance of this Agreement. PECO 11 shall submit to the City documentation indicating compliance with these 12 minimum requirements no less than one (1) day prior to the beginning of 13 performance under this Agreement. PECO shall not commence performance 14 of its services under this Agreement until the above insurance has been 15 obtained and proof of insurance has been filed with and approved by the 16 City. 17 E. Entire Agreement. 18 This Contract constitutes the complete and final expression 19 of the agreement of the parties and is intended as a complete and 20 exclusive statement of the terms of their agreement and supersedes all 21 prior and contemporaneous offers, promises, representations, 22 negotiations, discussions, communications and agreements which may have 23 been made in connection with the subject matter hereof. All exhibits 24 are incorporated by reference. PECO represents that in entering into 25 this Contract it has not relied on any previous representations or 26 understandings of any kind or nature. 27 F. Partial Invalidity. 28 Wherever possible, each provision hereof will be interpreted - 8 - i 1 in such manner as to be effective and valid under applicable law, but 2 in case any one or more of the provisions contained herein will, for 3 any reason, be held to be invalid, illegal or unenforceable in any 4 respect, such provision will be ineffective to the extent, but only to 5 the extent of such invalidity, illegality or unenforceability without 6 invalidating the remainder of such provision or provisions or any other 7 provision hereof, unless such a construction would be unreasonable or 8 contrary to the parties' intent as expressed in this Contract. 9 G. Time of the Essence. 10 Time is of the essence in the performance of this Contract 11 and of each and every provision hereof. City's waiver of any breach or 12 breaches hereof shall not be deemed, nor shall the same constitute, a 13 waiver of any subsequent breach or breaches. 14 I. Risk of Loss. 15 Title and risk of loss or damage shall pass to City FOB 16 Mineral Wells, Texas. Delivery shall be deemed to be complete upon 171 receipt at jobsite or upon moving into storage at City's request, 18 whichever occurs first. 19 J. Attorneys' Fees. 20 If it becomes necessary for either party to this Contract to 21. enforce -any of the Contract provisions, the parties agree that a court 22 of competent jurisdiction may determine and fix reasonable attorney's 23 fees to be paid to the successful litigant. 24 K. Benefit of Agreement. 25 This Contract shall bind and benefit the parties hereto and 26 their heirs, successors, and permitted assigns. 27 L. Force Majeure. 28 Neither party shall be considered to be in default in any of - 9 - 1 its obligations under this Contract when a failure of performance shall 2 be due to an uncontrollable force. The terms "uncontrollable force 3 shall mean any cause beyond the control of the party affected, 4 including, but not restricted to, flood, earthquake, storm, fire, 5 lightening, epidemic, war, riot, civil disturbance or disobedience, 6 sabotage, federal, state, or municipal action, statute, ordinance, or 7 regulation, embargoes or the United States Government or any other 8 government, which by exercise of due diligence such party could not 9 reasonably have been expected to avoid and by exercise to due diligence 10 has been unable to overcome. Either party rendered unable to fulfill 11 any of its obligations under this Contract by reason of an 12 uncontrollable force, shall give written notice within five (5) 13 business days of such fact to the other party and shall exercise due 14 diligence to remove such inability with all reasonable dispatch. 1 15 M. Waiver. 16 Any waiver at any time by either party of its rights with 17 respect to a default under this Contract, or with respect to any other 18 matters arising in connection with this Contract, shall not be deemed a 19 waiver with respect to subsequent default or other matter. 20 21 22 23 24 25 26 27 28 - 10 - 1 N. Amendment. 2 All changes or modifications to this Contract shall be in a 31 writing stating that it is an amendment to this Contract and shall be 4 signed by both parties or their duly authorized agents. This Contract 5 shall not be modified through course of dealing, usage or trade. 6 IN WITNESS WHEREOF, the parties have caused this Contract to 7 be executed by and through their authorized officers on the date, month 8 and year first written above. 9 101 CITY OF VERNON 11 ' By: ` 12 EONIS C. MALB G, May r 13 ATTEST: 14 15 BRUCE V. MALKENHORST, City Clerk 16 17 APPROVED AS TO FORM: 18 19 EDUARDO OLIVO, City Attorney 20 21 FECO EQUIPMENT CORPORATION 22 23 By: 24 Title: 25 By: 26 C Fb Title: 27 28 ,reo- i F. [UUt( [;J/FM N 0 - 4 U J y F" I/D Perry Equipment Corporation PO Box 640 Wolters Industrial Park Mineral Wells, TX 76068 Fax: (940) 325-4622 Tel: (940) 325-2575 Raymundo Engineering 488 No. Wiget Lane Walnut Creek, CA 94598 Attn: Karli K. Maeda Fax: 925-968-0174 Project: Malburg Generating Station is Quote Number: QF063833 Revision: 0 Date: February 8, 2002 cc: Uniflow Systems, Becker Tech We are pleased to present our proposal for the following PECO filtration equipment: Item 1 Qty. (2) 70V-5-336-16-720 Dry Gras Vertical Filter Auxiliary Equipment We would appreciate the opportunity to provide any assistance necessary to complete your evaluation of this proposal. If you have any questions or require additional information do not hesitate to contact the undersigned, Sincerely, Perry Equipment Corporation Sam ton Applications Engineer E-mail: ssingleton@pecousa,com SPECIALIZING IN FILTRATION SOLUTIONS FOR OIL ec GASAND INDUSTRIAL APPLICATIONS VISIT OUR WEB SITE AT: WWW.PFCOUSA.COM f•0-1*1- Muz Z:38FM Perry Equipment Corporation N0-4M F. Zl�,• Quote Number: QF063833 Revision: 0 PRICING EQUIPMENT Item Qty Description Unit Price Extension 1 2 70V-5.336-16-720 $ 9,996.00 $ 19,992.00 2 Auxili Equipment $ 2,102.00 $ 4,204.00 TOTAL PRICE F.O.B, Larado, Texas $ 24,196.00 SPARES FOR START-UP & COMMISSIONING Description Price Each Extension Filter Element, PSFG-336 10 $ 74.00 $ 740.00 Closure Gasket, 16" Buns 2 $ 25.00 $ 50.00 TOTAL PRICE EX -WORKS 790.00 Auxiliary Equipment: Qty 1 Midwest Model 120-SA-00-01A, Differential Indicating Switch with 5-way manifold AGCO M6AVDC-4 Qty 1 Relief Valve, AGCO 83CM68-4 Qty 2 Ashcroft Model 1279SS-04L Pressure Gauge Qty 1 Drain Check Valve, 2" U DELIVERY Approval Drawings: 2-3 weeks after receipt of order Equipment: 8-10 weeks after receipt of final approved drawings and resolution of all changes Quoted delivery is standard for the proposed equipment. If this does not meet your project schedule, please contact us and we will do everything possible to meet your specific needs. TERMS & CONDITIONS 1. Payment terms are net 30 days. 2. Equipment may be fabricated at Perry Equipment Corporation's facility in Mineral Wells, Texas or Queretaro, Mexico. Delivery will be Ex -Works Mineral Wells, Texas or Ex - Works Laredo, Texas respectively. 3. In order to meet specified delivery schedule, PECO reserves the right to subcontract all or a portion of the vessel fabrication. All subcontractors have been pre -qualified by PECO's quality Assurance Department in accordance with our ISO-9001 procedures. Mechanical and process design and internals supplied by PECO. 4. Quotation is valid for 90 days from today's date and prices are firm for the duration of the order. Page 2 reD. r7 . 1uu°[ L:3upm ~Perry Equipment Corporation No.4039 P. 3/5% Quote Number: QF063833 Revision: 0 5. Equipment is quoted packed for domestic inland shipment by truck. 6. PECO Standard Terms and Conditions and Additional Terms and Conditions apply. COMMENTS TO PURCHASER'S TERMS & CONDITIONS There are no commercial comments or clarifications. TECHNICAL COMMENTS / CLARIFI ATION 1. PECO is able to verify the performance of it's equipment at actual operating conditions after installation using PECO's Direct Contaminant Measurement System (DCM). Contact the Application Engineer that prepared this proposal for more information on this service. 2. Quotation is based on the use of existing PECO welding procedures and welder qualification. APPLICABLE SPECIFICATIONS We certify that the proposed equipment and services comply with the following customer specifications: Specification for Purchase of Gas Filters for Malburg and H. Gonzales Generating Stations City of Vernon Data Sheet No other customer specifications have been considered including any that may have been referenced in the specifications listed above. PECO reserves the right to review and revise this proposal accordingly if any additional requirements are submitted. PECO certifies that the equipment meets all applicable U.S. laws, statutory regulations and codes that have been brought to our attention. However, PECO makes no such certifications regarding laws, statutory regulations and codes outside the U.S.. ATTACHMENTS 1. Vessel Drawings 2. Data Sheets Page 3 HVt •• I IUVL '►•)grIY1 UI4IrLV4Y JTJItMJ Perry Equipment Corporation No.Ub11 .P. 3. DECO STANDARD CONDITIONS OF QUOTATION In order to schedule the fabrication of your vessel properly and allow for your inspection points, while maintaining our delivery promises, we must include the following procedures: 1. PECO allows two (2) weeks for approval drawings to be returned by you. In order to meet original delivery dates, if approval drawings are -tot returned to PECO within two (2) weeks, and you have not asked for an extension, we will consider the drawings approved as sent and proceed with manufacturing according to the drawings. 2. All PECO equipment is thoroughly inspected during fabrication by our quality assurance group and by a resident ASUM Code Inspector, if the equipment is to be built to ASME Code. The following will apply if additional inspection is required by you. NOTE: When third party inspection is required, PECO must be promptly notified after receipt of order as to the inspection company appointed. Delay in notification may affect delivery and hold points may be missed. If PECO is advised that inspection hold points are required, prior to beginning of manufacture, PECO will advise you three to five days prior to each inspection point, when the vessel will be available for your inspection. A pre -production meeting is recommended for all vessels requiring extensive in - process inspection points. This meeting will help everyone schedule convenient inspection dates_ In the event your inspectors cannot arrange to view the equipment on the date set, and no waiver can be issued by you for that inspection hold point, then the equipment delivery may be jeopardized. If two (2) weeks pass after the scheduled inspection data and no inspection has taken place or no waiver has been received, PECO will invoice you for the portion of the work done. In order to insure scheduled delivery, PECO reserves the right to subcontract portions or all of this quotation. Subcontractors selected have been pre -qualified by PECO Quality Control department. In the event it is necessary to use a sub -contractor to assure on -time delivery, we will notify and request you permission prior to proceeding. 04/01/02 MON 17:29 lTX/RX NO 81031 Q 003 r+Ni •• i LUUL 't•J4r1Yi UIVIrLUMY JrJItMJ Perry Equipment Corporation No•Obl2 ••P• 4 ADDITIONAL TERMS AND CONDIr`TIONS I. All quotations are for prompt acceptance and subject to change without notice. Quotations are based on the total quantity quoted. Increases or decreases in quantity and specifications may affect prices. Quoted prices are predicated on labor costs at straight -time rates. Premium or overtime costs shall be added to the prices quoted herein when overtime or weekend work is requested. 2. Prices are exclusive of sales, excise, federal, state or local taxes now in effect, and/or which may be later unposed. Shipping promises on all order are contingent upon fires, strikes, accidents or other causes beyond our control. 3. Shipment and delivery dates are estimated only, are based on current conditions and our ability to secure labor, materials and parts, and where applicable are estimated from the date approved shop drawings are received from purchaser. Delivery is subject to any and all requisitions, priorities, allocations, restrictions, or controls now or hereafter established by Federal, State or Municipal Authority. There shall be no penalty for delay. 4. Stenographic or clerical errors are subject to correction. 5. All shipping promises are estimated and cannot be guaranteed. 6. ,Any increase in freight charges on or after date of this quotation shall be for purchaser's account. Material quoted F.O.B, destination is predicted on shipping cheapest way unless specifically stated to the contrary. Any shipping instructions resulting in higher transportation costs will be for purchaser's account, 7. Each item covered in the quotation may, at our opinion, be invoiced separately upon completion, or, if for reasons beyond our control completion is delayed, that portion of the work completed during any given month may be invoiced. S. The seller warrants its product against defective workmanship and material under normal and proper use in service for one (1) year from date of invoice when owned by the original purchaser and only when subjected to operating conditions outlined by purchaser when order is place; EXCEPT THAT: a) PECO makes NO WARRANTY OF FOSS EXCEPT THAT THE PART OR PARTS SHALL BE OF THE QUALITY SPECIFIED HEREIN, and shall be implied by law. Final determination of the suitability of the material or parts for the use contemplated by the Buyer is the sole responsibility of the Buyer, and PECO shall have no responsibility for such determination. b) There is no guarantee against corrosion or erosion caused by acids, chemicals, their fiunes, or the like. c) There is no guarantee of any kind on used or second hand material or equipment. d) There is no guarantee of any kind on articles or equipment where the purchaser's specifications will not meet Underwriters, American Society of Mechanical Engineers, ,American Petroleum Institute, American Standards Association, Federal, State, Municipal, or other applicable official codes and requirements. 04/01/02 RON 17:29 (TX/RX NO 81031 Q 004 hNr -• i • zY uz 4.3urm uivirLuw �Y�I s No. Obl2 •• P- 5. Perry Equipment Corporation Except as otherwise expressly stipulated herein, seller does not warrant that goods covered by this order are fit for any particular purpose. Any action based on breach of watx=ty, express or implied, arising from any transaction or sale related to or incorporating this quotation shall be commended within one year after such cause of action has accrued and not thereafter_ NO IMPLIED WARRANTIES OF MERCHANTABIMY OR R"LIED WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE SHALL EXTEND BEYOND THE DESCRIFUON CONTAINED HEREIN. Replacements required by the purchaser will be shipped and billed as repairs. If the purchaser desires to make a claim, be shall notify the seller before making any repairs or alterations of any kind, and if so instructed by the seller, he shall ship the part claimed to be defective to the seller, under seller's shipping instructions and by freight prepaid and if it is found to be defective, credit will be issued by the seller to charge for replacement. Any article not of seller's manufacture included in this proposal is sold under such warranties only as. the makers give us and we are able to enforce, and is not guaranteed by us. The seller's liability for damages caused by defective workmanship or material shall be limited to repairing or replacing the defective part or parts, and no allowance will be granted for repairs or alterations nmde by the purchaser without the seller's written consent. The seller shall not be liable under any circumstances for the loss of fluids, gases, or substances, nor for damages in transit, nor for indirect or consequential damages of any nature. 9. No responsibility will be accepted for the infringement of chemical, process or flow patents that the material furnished by us may be designed for or used in connection with. 10. This quotation is made for specially constructed equipment, and order once entered can not be canceled nor can quantifies or specifications be changed, except upon an agreement which will insure against loss on a pro rata basis for labor or engineering done, material used, costs accrued, and commitments made up to the time of receipt by our office of written notice of cancellation or change. 11. No claims will be allowed resulting from any purchases, returned material, labor done, materials used, repairs or alterations on material shipped without our written consent. 12. Customer inspection if required shall be performed at our plant_ Any materials or equipment subsequently rejected after receipt by customer at destination may be replaced or repaired at our option; however, all transportation charges ensuing will be for customer's account. 13. The seller shall have no liability, directly or indirectly, for loss or delay, or for the failure to perform or make delivery, due to strikes, differences with workmen, fires, floods, losses of merchandise in transit, embargoes, postponements or suspension in sailing of vessels; freight car or truck shortages, Acts of God or public enemies or secret agents, wars, riots, civil commotion, malicious damage, requisition or destruction of or damage to goods or merchandise by virtue of public authority, acts of civil or military authorities, quarantine restrictions, delay or failure in any type of transportation, shortage of transportation or fuel or power or labor or materials, or to any circumstances or accident beyond the control of seller_ 14. Unless authorized by an executive officer of the company in writing, no change or modification of the above terms will be recognized. 04/01/02 MON 17:29 [T%/RX NO 81031 16005 i reu.•ri • LU,OL z;arm NO.4V3y i- 4/O,• e Penetrant No WHT No PAINTING SPECIFICATIONS Hardness No Internal: lNone Charpy Impact No ILight Oil PERFORMANCE External; Qty. Filter Elements 5 Sandblasting SSPC-SP-5-63 Flow/Element 5.54 JACFS Primer PECO Standard Delta P. Fig -Fig 1.70 1psi Intermediate N/A Efficiency 98% Solids 114 and larger Finish N/A EXTERNALS , reo • ar . an z: jjFm— No.4U39—k'•• 5l5 w 3150 on 16" ° 16" 460 Z O DRAIN J (BTM) X y -L.'-_ DRAIN 4 � BOLT HOLE DAVIT, YOKE GUSSET o g AND BOLT HOLES I ww 1- W D q INLET 27(r in b UTLET 9Q° 225° 135° ,Boo Cr NAME IE & LIFTING LUGS TRUE ORIENTATION ELEVATION C, (4 EA) 7W DIA BOLT HOLES LOCATED AT 46° OFF VESSEL 4 r m 0 a m in N Z C7 Z zzm L O Z 0 d CL N of U O w F' Iz N zQu! LL! � z a t1. g "I z cy LL! � e ' OC uj CL In Z Q us Z w O I� _W �a n � UJI L'J MIA Z o EL� RAYMUNDO ENGINEERING 1. SCOPE SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON &M® 0 No. DIGS-C-DI Page i of 9 Issue Date 12/13/01 Rev. No. 0 Date 12/13/01 1.1 This Specification covers the minimum requirements for the design, performance, fabrication, shop testing, inspection and shipment of gas filters. Filters shall be supplied complete with all equipment and accessories necessary for testing, routine maintenance, and automatic and unattended operation unless specific exception is specified in this document or in the Purchase Order. 1.2 This Specification covers gas filters that are intended to remove entrained fine sand and other particulates fiom natural gas transported through pipelines. This Specification prescribes minimum requirements; therefore, compliance with this Specification does not relieve supplier of the responsibility to design and supply all material and components not specified or indicated, but which are necessary for a complete, safe and properly operating unit. CODES AND STANDARDS 2.1 Filters shall be designed, fabricated, inspected and tested in accordance with the latest edition of the following industry codes and standards, unless more stringent requirements are specified in this document or in the Purchase Order. American National Standards Institute, ANSI B 16.5 — Pipe Flanges & Flanged Fittings American Society of Mechanical Engineers (ASME) B31.8 — Gas Transmission & Distribution Piping Systems Boiler & Pressure Vessel Code (ASME B&PV Code) Sections II, V, VIII & IX American Society for Testing and Materials (ASTM) Federal Pipeline Safety Regulations, 49 CFR Part 192 Federal and State Occupational Safety and Health Act Structural Steel Painting Council, SSPC SP-10 Structural Steel Painting Council, SSPC PA-1 National Electric Code (NEC) 2.2 ASME Code stamp is required for all pressure vessels. DESIGN 3.1 General 3.1.1 The filter shall be of the type indicated in the attached Equipment Specification Data Sheet (Data Sheet) and shall meet the project performance requirements at the process and design conditions specified. 3.1.2 The filters shall have full end opening closures for access to the replaceable filter elements. The opening must be of a size and arrangement to allow for replacement of the filter elements without physical entry into the vessel. 3.1.3 Mesh and vane elements shall be stainless steel. 3.1.4 The filter elements shall be designed to remove particles as specified in the Data Sheet. * Indicates revised paragraph, this Rev. No. No. MGS-0:01 C1 SPECIFICATION•FOR PURCHASE OF Page l GAS FILTERS FOR 2 of 9 MALBURG AND H. GONZALES GENERATING STATIONS 1-W Date RAYMUNDO CITY OF VERNON 12/13/01 Rev. No. Caro � 12/13/01 ENGINEERING 3.1.5 Inlet gas flow shall not impinge directly on the filter elements or cause erosion of the elements. The inlet nozzle shall be located on the side of the vessel in the orientation specified in the Data Sheet. Outlet nozzle shall be located at the end of the vessel. 3.1.6 Drain openings other than siphon drains shall be trimmed flush with the inside of the vessel. 3.1.7 All electrical components shall be listed for use in hazardous locations by a national recognized laboratory. 3.1.8 All electrical devices shall be wired to a single junction box and terminated on a `Barrier" type terminal strip. All control wiring shall be minimum No. 14 AWG, type THHW. All power wiring shall be a minimum of 12 AWG, type THHW. Conduit and wiring methods and materials shall comply with NEC Article 500. 3.1.9 The vessel shall be designed as a self-supporting unit. Vertical vessels shall be supported with skirts. Horizontal vessels shall be supported with two (2) saddle supports and legs. 3.1,10 Vessels designed for internal pressure shall also be designed to withstand a minimum of 2.5 psig external pressure, but do not have to be ASME Code stamped for the external pressure. 3.1.11 A corrosion allowance, if specified on the Data Sheet, shall be applied in addition to the calculated wall thickness of the vessel. Internals shall be designed with a corrosion allowance on both sides of pressure retaining plates or parts. 3.1.12 No permanent internal backing or chill rings shall be allowed. 3.1.13 Internal components shall be supported such that they will not be damaged or fail due to liquid slugs, gas velocities up to 1.5 times the maximum specified velocity or vibration due to the gas passing through the internals. 3.1.14 Pressure drop from inlet flange to outlet flange on a new, clean, fully assembled vessel shall be less than 2 psi. 3.1.15 The vessel's nameplate shall include all data required by the ASME B&PV Code, the buyer's Purchase Order and vessel tag number. Nameplate shall be made of stainless steel. 3.2 0 RLnin_qs 3.2.1 All inlet and outlet openings necessary for testing, operation, and maintenance of the unit shall be provided. All reinforcement calculations shall be in accordance with the ASME B&PV Code. Reinforcement of openings shall not limit the maximum working pressure of the vessel. 3.2.2 Openings 1-1/2" NPS and smaller shall be made with forged steel couplings, ANSI B16.11, Class 3000, except that, when specified, 2" NPS threaded connections shall be used for liquid level controllers having internal floats and 2" NPS threaded connections. No threaded connection shall be made directly into any part of the vessel other than telltale holes in pads and stud holes in pad attachments. Solid steel, hex -head plugs shall be supplied for all threaded openings. 3.2.3 Raised -faced flanged connections shall be used for all openings 2" NPS and larger except for closures and liquid level controllers having threaded connections. Slip on flanges shall not be * Indicates revised paragraph, this Rev. No 5. 6. RAYMUNDO ENGINEERING 3.2.4 SPECIFICATION•FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON NO. MGS-C-01 pap 3 of 9 Issue Date 12/13/01 Rev. No. 0 Date 12/13/01 used for flanged connections with ratings of ANSI Class 300 and above. All flanges shall be two - holed on the vertical or horizontal centerline of the vessel, i.e., boltholes shall straddle centerline. Drain openings other than siphon drains shall be trimmed flush with the inside of the vessel. 3.2.5 Handholds and man ways shall be provided in accordance with ASME B&PV Code requirements. Handholds shall be 6" nominal. Man ways, if required, shall be 20" nominal with davited covers. MATERIALS 4.1 All materials used for fabrication shall be new and conform to the specifications given in the ASME B&PV Code. Shell and heads shall be normalized steel plate ASME SA 516 Grade 70, fabricated, inspected, tested and found acceptable in accordance with the latest edition of the ASME B&PV Code. 4.2 Pipe shall be seamless ASTM A 106 Grade B, ASTM A333 Grade 6, ASTM A381 or API 5L. Pipe 2" NPS and smaller shall be Schedule 80. 4.3 All valves 2" and larger shall be manufactured in accordance with API-61). All valves less that 2" shall be manufactured in accordance with MSS-SP-84 or MSS-SP-99. 4.4 Flanges and couplings shall be ASME SA 350, Grade LF2 or equivalent in compatibility with ASME SA 516-70 used for the shell and heads. 4.5 Mill test reports on all pressure containing materials used shall be provided to buyer. FABRICATION 5.1 Charpy V-notch impact testing shall be performed, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Test information on at least three specimens of material used shall be famished when Charpy testing is performed. Full size specimens (10 mm x 10 mm x 55 mm)shall be used. The test shall be conducted in accordance with ASME B&PV Code. 5.2 Any preheat treatment shall be in accordance with the ASME B&PV Code. 5.3 Pressure vessel shall be fully postweld heat -treated, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Postweld heat treatment shall be performed in accordance with the ASME B&PV Code. 5.4 The use of Gas Metal Arc Welding (GMAW) process in the short circuiting mode is not permitted except only for root passes of joints welded from both sides and where the GMAW short -arc root is completely removed by grinding prior to backwelding of the second side. Backwelding with GMAW in the short- circuiting arc mode is not permitted. 5.5 When using Shielded Metal Arc Welding (SMAW) process for joining carbon or alloy steel, only low hydrogen electrodes shall be used. Low hydrogen electrodes shall meet the procurement, storage and issuance requirements of subsection 4.5 of the latest revisions of the A WS D 1.1 Structural Welding Code. INSTRUMENTS AND CONTROLS * Indicates revised paragraph, this Rev. No. RAYMUNDO ENGINEERING KIGS-C-n1 SPECIFICATION FOR PURCHASE OF Page GAS FILTERS FOR 4 of 9 MALBURG AND H. GONZALES GENERATING STATIONS tw,a °ae CITY OF VERNON 12/13/01 Rev. No. 0 oar 12/13/01 6.1 Instruments and controls, such as liquid level controller, high liquid level alarm or shutdown devices, differential pressure gauge and switch, level gauges and instrument air or gas supply regulators shall be provided as indicated in the Data Sheet and shall be of the type, manufacturer and model specified. 6.2 Isolation valves shall be provided for all controls. 6.3 Overpressure protection shall be provided on the vessel unless otherwise specified in the Data Sheet. Relief capacity shall be based on thermal and fire requirements per ASME B&PV Code, unless specified otherwise. All relief valves shall be provided with pressure indicator and a lockable full port ball valve on the inlet. 6.4 All pressure gauges shall be minimum 4-1/2" in diameter and accurate to 1/2 % of full scale. 6.5 Internal parts and components that are in contact with natural gas shall not contain more than 60% copper. 6.6 All electrical components shall be listed for use in hazardous locations by a national recognized laboratory. 7. TESTING AND INSPECTION 7.1 All welded joints shall be fully (100%) examined by radiograph. Radiographic examination shall be in accordance with ASME B&PV Code. Double loaded film cassettes with Type 1 films shall be used for radiographs, if specified on the Data Sheet. The duplicate set of radiographs shall become the property of Buyer. All radiograph films shall be made available to Buyer's inspector. 7.2 Prior to testing, the Seller shall prepare and furnish to Buyer's inspector a diagram showing clearly the location of each weld and its corresponding radiograph. Low stress stamps shall be used to mark the zero location with an arrow showing the direction of location markers. A copy of the diagram shall be kept with the radiographs. 7.3 All welds on pressure vessel and pressure retaining steel components other than piping shall be radiographed where accessible. Inaccessible welds shall be magnetic particle examined Welds shall be examined whether required or not required by the ASME B&PV Code, if specified in the Data Sheet. Magnetic particle examinations and examiner and procedure qualifications shall be performed in accordance with the ASME B&PV Code. 7.4 All welds on pressure retaining stainless steel components other than piping shall be examined by liquid penetrant, whether required or not required by the ASME B&PV Code, if specified on the Data Sheet. Penetrometers shall be placed on the source side. Liquid penetrant examinations and examiner and procedure qualifications shall be performed in accordance with the ASME B&PV Code. 7.5 All vessels shall be hydrostatically tested at a minimum pressure of 1.5 times the design pressure in accordance with the ASME B&PV Code. The test pressure must be held for a minimum duration of eight (8) hours, unless otherwise specified in the Data Sheet. SURFACE PREPARATION 8..1 EXTERIOR SURFACE 8.1.1 All surfaces shall be cleaned, dried, and free of oil and grease before the required coating is applied. All heavy slag accumulations, metal leaves or blisters, weld splatter, or other * Indicates revised paragraph, this Rev. No. - Specification No. MGS-C-01 Ci SPECIFICATION FOR PURCHASE OF pa" 1 11LL::!! GAS FILTERS FOR 5 of 9 MALBURG AND H. GONZALES GENERATING STATIONS fss" Daft CITY OF VERNON 12/13/01 RAYMUNDO Rev. No. 0 ENGINEERING Date 12/13/01 irregularities shall be removed by appropriate. mechanical means after which all mill scale, rust and old paint shall be removed by sandblasting in accordance with the latest edition of Structural Steel Painting Council Standard SSPC SP-10 (near -white blast). Sandblast pr6file shall be between 2 mils and 3 mils. 8.1.2 Within 24 hours after sandblasting or before re -oxidation can take place, the surface shall be primed with one or more coats of inorganic zinc primer manufactured by Ameron, Devoe or Carboline. 8.1.3 Dry fthn thickness shall be minimum 3 mils and maximum 4 mils. Coating thickness shall be maintained over welds, 'edges of plates, or other, sharp projections or rough areas. All painting shall be done in accordance with the Steel Structures Painting Council Standard SSPC PA-1, Paint Application Specifications. 8.2 INTERIOR SURFACE 8.1.4 All internal surfaces shall be cleaned and dried. All heavy slag accumulations, metal leaves or blisters, weld splatter, or other irregularities shall be removed by appropriate mechanical means after which all mill scale, rust and old paint shall be removed by blast cleaning in accordance with the latest edition of the Steel Structures Painting Council Standard SSPC SP-5 for Power Tool Blast Cleaning. After cleaning, the vessel shall be thoroughly cleared of all sand and foreign matter. 8.1.5 All internal surfaces shall be applied with a heavy coating of Freedom Valvoline Oil Company's Tectyl 502.0 oil soluble inhibitor, or approved equal. 8.1.6 Immediately after approval of buyer's inspector, all openings shall be covered and securely sealed to prevent reentry of dust, dirt and moisture. SHOP INSPECTION 9.1 Welding procedures qualification, welder's qualifications, test procedures, quality assurance and control procedures, test procedures, materials, fabrication and testing shall be subject to Buyer's approval and inspection at the Seller's shop, at no additional cost to Buyer. 9.2 Approval or waiver of inspection shall not relieve the Seller from meeting the requirements of the ASME Code and this Specification. 10. PREPARATION FOR SHIPMENT 10.1 Vessel shall be adequately protected to prevent damage to the exterior coating during shipment and storage outdoors at the job site before installation. 10.2 All openings shall be covered to prevent dirt and moisture from entering the vessel and to protect mating surfaces. Flanges shall be protected with bolt -on covers; couplings shall have 3000 pounds screwed steel hex head plugs and all machined steel surfaces shall be protected with a suitable rust inhibitor. ' Indicates revised paragraph, this Rev. No. specification No. MGS-C-01 M C1 SPECIFICATION FOR PURCHASE OF Page lj- GAS FILTERS FOR 6 of 9 MALBURG AND H. GONZALES GENERATING STATIONS RAYMIJNiiU CITY OF VERNON 12/13/01 Rev. No. ENGINEERING DM 0 12/13/01 10.3 All controls, gauges, auxiliary equipment and related items such as valves, pipe & tube fittings, tubing and nipples are to be removed and shipped with the vessel. All connection ports shall be protected and covered. 10.4 All spare parts are to be shipped with the vessel. 10.5 The vessel and all loose equipment, devices and parts shipped with the vessel shall be tagged, properly packed and securely anchored to prevent damage during shipment and storage outdoors at the job site before installation. 10.6 Seller shall notify Buyer in writing no less than two weeks before equipment is to be shipped. 11. SPARE PARTS Proposal shall include the following spare parts: 2 qty: Gaskets for Full End Opening Enclosure 1 set of Filter Elements 12. SUBMITTALS AND DOCUMENTATION 12.1 Seller shall submit three copies the following documents with their proposal: 12.1.1 Equipment outline, cross-section and elevation drawings with dimensions and anchoring details. 12.1.2 An itemized list of all valves, controls and accessories, identified by manufacturer's model, size, material and the service they accomplish. 12.1.3 Size, ratings and orientation of all nozzles and couplings. 12.1.4 Capacity curves showing maximum capacity of the filters over the operating range. 12.1.5 Percentage of solids removed in relation to particle size. 12.1.6 Pressure drop at rated capacity and pressure. 12.1.7 Dead weight, shipping weight and size. 12.1.8 Delivery date of shop drawings for approval. 12.1.9 Delivery date of equipment after approval of drawings. 12.1.10 Spare parts list and cost. 12.1.11 Seller shall clearly state if any exception to the specification is being taken. 12.2 Seller shall supply the following sets of shop drawings and Manufacturer's Data Sheets: three (3) sets for approval, six (6) sets of certified and six (6) sets as -built Printed materials shall be of legible quality and • Indicates revised paragraph, this Rev. No. SPECIFICATION FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON RAYMUNDO ENGINEERING NO.MGS-C-01 Page 7 of 9 Issue cote 12/13/01 3/01 suitable for reproduction. No fabrication shall start until Buyer has approved the shop drawings, unless otherwise approved by Buyer in writing. 12.3 Seller shall submit to Buyer for approval all WPS and all supporting Procedure Qualification Records (PQR), including subcontractors', and weld schedule referencing each welding procedure to the type of joint. The document shall also specify what preheat, postweld heat treatment and nondestructive examination outside of visual is required, for each referenced joint. 12.4 12.5 Seller shall supply eight (8)sets of the following document with the final sets of "as -built" shop drawings: 12.4.1 Manufacturer's data -report, Form U-1, for unfired pressure vessels. 12.4.2 Post weld treatment charts, if post welding is performed. 12.4.3 Hydrostatic test charts for vessels tested at 1.5 times the design pressure. 12.4.4 Charts showing filters capacity from 200 to 1000 psig. 12.4.5 Final dimensional drawings for filters, stamped and certified. 12.4.6 Complete specification of all materials, assemblies, and equipment. 12.4.7 The Charpy V-notch impact test report, if Charpy Impact Testing is performed. 12.4.8 Complete operating instructions and maintenance recommendations. 12.4.9 Installation instruction for all instruments and materials shipped loose. 12.4.10 Manufacturer's recommended spare parts list. All submittals must include the Purchase Order number, equipment tag, and revision number and date. 13. CORRESPONDENCE AND INQUIRIES 13.1 Correspondence shall bear reference to the specification number, equipment tag number and station name. 13.2 Correspondence and inquiries shall be addressed to: John Byrne/Karli Maeda Raymundo Engineering Co., Inc. 488 North Wiget Lane P.O. Box 30425 Walnut Creek, CA 94598 Phone: (925) 988-0172 Fax: (925)988-0174 E-mail: kt@,Mymundo.com E-mail: kkm(a�raymundo.com * Indicates revised paragraph, this Rev. No. RAYMUNDO ENGINEERING SPECIFICATION'FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON EQUIPMENT SPECIFICATION DATA SHEET Location: Malbu 2 & H. Gonzales Generating Station Vernon CA Requisition No. Project: Install Meter and Reeulator Station w/ Filter Project No. Prepared By: Karli K. Maeda Approved By: Date: 1-28-02 Revision: Revised Date No of Units Required: Service: Vessel Type: Filter Type: Elements: Manufacturer: Support: Gas Conditions: Flow: Pressure: Temperature: DESIGN REQUIREMENTS F- Natural Gas NO.MGS-C-41 Page 8 of 9 Issue Date 12/13/01 Rev. No. 6- Date 12/13/01 [ X ] ASME [ X ] Pressure [ ] Vacuum [ ] Mesh Scrubber [ ] Vane Scrubber [ ] Centrifugal Scrubber [ X ] Filter [ X ) Vertical [ ] Horizontal [ ] Coalescing [ ] Mesh [ ] Vane Model: Type: Skirt Wind Load (MPH): 70 Earthquake Zone: 4 Gas Processed: Natural Gas Normal 30 MMSCFD @ 300 prig & 60 OF Maximum 33 MMSCFD @ 200 psig & 105 OF Design 740 psig Analysis (Mole H2 He 02 O2 (Specific Gravity: Operating - 275-400 . psig Design. -20 to 120 OF Operating 50 to 100 °F N2 C3H8 H2S IC4H10 CH4 Nc4H10 C2H6 1C5HI2 Performance Requirements: Solids removed at 0-100 % of rated flow: Max. Allowable Pressure Drop with clean elements: Liquid Storage Capacity: Corrosion Allowances for shell & pressure retaining internals: Post Heat Treatment: [ ] Yes [X) Per ASME Code Charpy Impact Test: (] Yes [X] Per ASME Code Magnetic Particle Exam: [ ] Yes [X] Per ASME Code Liquid Penetrant Exam: [ ] Yes [X] Per ASME Code . Radiograph Inspection: [X] 100 % [ ] Per ASME Code nc5H12 C6H 14 C7H16 Total 0.585 (Air = 1.0) 99.98 % of particles 1.0 microns & larger 2.1 PSI 1/8 inch AUXILIARY EQUIPMENT & OPTIONS PER UNIT [ ) Level controllers [ ] Choke nipples [ ) Dump valves { ) Liquid Level Switch [X ] Drain check valves (1 ) 2"KF7679-A5139K 191 [ ) Level gauges & cocks [ ]Gas supply [X ] Pressure gauges (2 )Ashcroft 1279SS-04L [X jDP Indicating Switch (I )Midwest 120-SA-00-0JA [ ]Block & bleed valves [X ] Relief valve . (1 ) AGCO 83CM68-4 [ ] Block valves [ ) Block & bypass valves [X ] Lifting lugs [X 15-way manifold (1 )AGCO M6AVDC-4 [X) Grounding lugs REMARKS * indicates revised paragraph, this Rev. No. 4 RAYMUNDO ENGINEERING & Risers 304 SS SA 105 Buna SPECIFICATION' FOR PURCHASE OF GAS FILTERS FOR MALBURG AND H. GONZALES GENERATING STATIONS CITY OF VERNON EQUIPMENT SPECIFICATION DATA SHEET continued MATERIALS bpecmcawn No. MGS-C-01 9of9 Issm to 12/13/01 R'". Na. 0 Date I^iI-111ni Heads SA516-70 Pipe SA 106-B Couplings SA 105 Supports Carbon Steel Nuts SA 194-2H OPENINGS j rer IA j l ablet0rawing Below,[ ]Attached Dwg. No. [ j Seller Design A Main Gas Inlet 1 *• ANSI 300 RF B Main Gas Outlet 1 ** ANSI 300 RF C Vent 1 2" 3000# RF D Drain/CO 1 2" 3000# RF E DP Taps 2 K" 3000# NPT F Valve Tap 1 /," 3000# NPT i F-Val ve Tap 1 1" 3000# NPT Coupling H Relief Valve 1 1" 3000# NPT Coupling REMARKS * If required for thermal fire requirements. NONE ** Determined by Supplier I. For both filters the inlet shall be on eastern side and the outlet shall be no the western side. The differential Pressure taps and s;auge will be on the northern face of the vessel for filter 101 and on the southern face for filter 102. 2. Seller shall provide all of the information pertinent*to the material and equipment beint; supplied 3. Dimensions and tap locations are shown in the drawing below. )RAWING INLET F ❑r a * Indicates revised paragraph. this Rev. No. -� ,_�+CORD,w � ;. DATE(M PRdDU R -- - OM19/02 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Apn Aisk Services, Inc. of Texas ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE ' 1-Commerce Street HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR -§uite 2101 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Fort Worth TX 76102 COMPANIES AFFORDING COVERAGE PHONE -(817) 810-4000 COMPANY FAX - (817) 339-2019 A Colonial County Mutual Ins Co INSURED COMPANY Wausau Underwriters Ins Co Perry Equipment Corporation B P O Box 640 COMPANY Mineral Wells TX 76067 USA United States Fire Insurance Co. COMPANY D THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMBS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. Do LtR TYPE OP II�SURANCE POLiCYNUMINBR POLICrEPFBCUVE NOI.ICYM IRAMON LIMN S DA1E 0OVDDIM DATE 04"DA-i) C GENERAL LIABILITY5430879045 06/01/01 06/01/02 GENERAL AGGREGATE $3.00000 ,0 PRODUCTS - COMP/OP AGG $2,000,000 X COMMERCIAL GENERAL LIABILITY CLAIMS MADE X] OCCUR PERSONAL 6 ADV E IJURY $1,000,000 EACH OCCURRENCE $1 ,000 000 OWNERS 6 CONTRACTORS PROT FIRE DAMAGE(Any one fire) $50,000 MED EXP (Arw one Person) $5,000 A AUTOMOBILE LIABILITY ASNZ91506661011 X ANY AUTO 06/01 /01 06/01/02 COMBINED SINGLE LIMIT $1,000,000 ALL OWNED AUTOS BODILY INJURY SCHEDULED AUTOS (Perperson) HIRED AUTOS BODILY INJURY NON -OWNED AUTOS (Per=idena PROPERTY DAMAGE GARAGE LIABILITY AUTO ONLY - EA ACCIDENT ANY AUTO OTHER THAN AUr0 0M EACH ACCIDENT AGGREGATE EXCESS LIABILITY EACH OCCURRENCE UMBRELLA FORM AGGREGATE OTHER THAN UMBRELLA FORM rrvrucerisc014tPENSATroNAND WCJZD1506661021 ••"'"•� 4 g EMPLOYERS' U#'BILI Y 06/01/01 06/01/02 EL EACH ACCIDENT $1,000,000 THEPR)PRIETOR/ ELOISEASE-POLICYLIMIT $1,000,000 PARTNERS/IXECUiNE �' OFFICERS ARE XEXCL EL DISEASE -EA EMPI OYER 1;1 (INN) (Inn DESCRIPTION OF OPERATIONS/LOCATIONSIVEHICL.ES/SPECIAL f am CITY OF VERNON IS INCLUDED AS ADDITIONAL INSURED REGARDING THE GENERAL AND AUTO LIABILITY POLICY'S BUT ONLY TO THE EXTENT REQUIRED BY WRITTEN CONTRACT AND SUBJECT TO THE POLICY TERMS AND CONDITIONS. CANCELLATION PROVISION SHOWN IS SUBJECT TO SHORTER TIME PERIODS DEPENDING ON THE JURISDICTION OF, AND REASON FOR, THE CANCELLATION. CITY OF VERNON 4305 SANTA FE AVENUE VERNON CA 90058 USA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY AUTHORIZED REPRESENTATIVE I Certificate No: 570002576351 Holder Identifier: