ASSOCIATION OF BAY AREA GOVERNMENTS CORE NATURAL GAS SALES

• • total monthly usage of Participants. Transportation and administrative charges will be allocated to each Participant based on gas'usage. 11.2 Annual Report. Each year, ABAG POWER will provide each Participant with a report showing that ParticipantPs total costs for natural gas, including transportation charges and administrative fees, and utility charges ~t a per therm cost for each category. 11.3 Gas Purchasing. Under the policy direction of the Board, ABAG staff will regularly canvas the natural gas market and enter into contracts to acquire natural gas for, among others, fixed price, indexed price and variable price with a minimum and/or maximum. ABAG staff, under the policy direction of the Board, has the power to execute all contracts reasonably necessary to deliver natural gas to each Participant. 12. Change of Regulations: Any future change in law, rule or regulation, or utility practice which prohibits or frustrates ABAG POWER or the Public Agency from carrying out the terms of this Agreement shall excuse 'both parties from their obligations, other than the obligation of Public Agency to make payments due for gas and services received. 13. Cancellation of Service: 13.1 Cancellation by Public Agency: Public Agency may cancel the Agreement by giving ABAG POWER written Notice by June 1 of its intent to terminate on June 30 of the third year following the date notice was given. 13.2 Cancellation by ABAG POWER: Actions by the utilities and/or CPUC to develop rules which are in conflict with sound business practices, or impose unnecessary risk on either party to this Agreement, or substantially prevent ABAG POWER from performing its functions under this Agreement may result in'~,the cancellation of this Agreement by ABAG POWER. ABAG POWER shall give Public Agency written notice ninety (90) days prior to such cancellation and both parties shall work diligently to minimize the negative effects on ABAG POWER and the Public Agency of such cancellation. 13.3 Working capital Deposit: Within ninety (90) days after cancellation, ABAG POWER will pay to Public Agenc+~ the amount of its working capital as modified pursuant to Paragraph 9.2, less any debits imposed pursuant to Paragraph 9.1 and less any outstanding Actual Charges owed by Public Agency. 14. ABAG POWER Board of Directors: Scott R. Baker (Name of Public Agency Representative) shall be '',the Public Agency's representative to the Board. The Board shall provide policy direction for the Ph~ogram. The Board's powers shall include admission of new Participants and the extension of any contracts for the purchase of natural gas and/or related services under rules and procedures adopted by the Board. 15. Approvals: Thy Public Agency Representative may grant any approval, or give any direction required by this Agreement, in writing or orally. Written approvals or directions may be transmitted physically, by facsimile or electronically. Oral approvals will be confirmed in writing by either party. -~- Revised Core Agreement - 2004