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CORE NATURAL GAS SALES AND AGGREGATION AGREEMENT <br />This Core Natural Gas Sales and Aggregation Agreement, hereinafter "Agreement", is made and <br />entered into as of this 15th day of September, 1997 by and between the Association of Bay Area <br />Governments, a California joint powers agency, hereinafter "ABAG", and the City of San Leandro, a <br />Municipal Corporation, hereinafter "Public Agency". <br />The parties hereby agree as follows: <br />1. Eligibility: Public Agency is a member or cooperating member of ABAG. ABAG shall <br />provide directly, or at its option, shall contract to provide coordination services for the purchase and <br />management of a natural gas program for members and cooperating members of ABAG participating in <br />said program [Participant(s)]. <br />2. Authorities: Public Agency is a customer of an entity providing natural gas services, hereinafter <br />"Utility", under the jurisdiction of the California Public Utilities Commission, hereinafter "CPUC." <br />Public Agency appoints ABAG as its exclusive agent to coordinate its participation in the Utility's Natural <br />Gas Aggregation Program for core transport customers, hereinafter "Program", on behalf of Public <br />Agency for the facilities listed in Exhibit A, which is attached hereto and incorporated herein. All parties <br />understand and agree that the authority for the Program is granted by and subject to the CPUC, as <br />initially authorized by CPUC Decision No. 91-02-040 and modified through CPUC Decision No. 94-04- <br />027 and Decision No. 95-07-048. This agreement is pursuant to the Utility Aggregation Tariff Rate <br />Schedule(s), Tariff Rules and terms and conditions set forth in such agreement. Public Agency <br />represents and warrants that any prior aggregator authorizations which Public Agency may have executed <br />will be terminated effective no later than the date of this authorization. <br />Services: ABAG shall deliver, or cause to delivered, the following services to Public Agency: <br />3.1 Analyze and evaluate natural gas supply and transportation strategies; <br />3.2 Negotiate and implement natural gas purchase, transportation and other similar gas <br />services for Participants; <br />3.3 Forecast estimated monthly gas requirements of Public Agency; <br />3.4 Negotiate prices and quantities for natural gas purchases by Public Agency which may <br />include a bid or request for proposal process; <br />3.5 Perform nominations of gas purchased and transportation services for Public Agency; <br />3.6 Monitor gas account imbalances with transporters; <br />3.7 Provide for the delivery of natural gas to Participants' facilities as listed in Exhibit A and <br />for storage as permitted by the Utility. <br />-1- <br />