City of Santa Rosa, California - Page 7
Legal Research Home >
US Tax Court > 2003 > City of Santa Rosa, California - Page 7
- 7 -
pipeline.7 Company will own or lease the geyser steamfield, the
facilities for injecting the wastewater into the ground, the
facilities for generating electricity, and the electric supply
facilities for the pumping stations.
According to the agreement, a failure by either party to
receive or deliver the obligated amounts of wastewater will
require mediation. If mediation fails, the nondefaulting party
can either declare the defaulting party in breach of the contract
or seek specific performance.8 If Company should breach the
contract within the first 20 years of its term, petitioner can
terminate the contract and collect liquidated damages of $3
million for each year remaining on the contract up to a maximum
of 10 years. During the last 10 years of its term, Company can
terminate the contract at any time provided it gives notice to
petitioner and pays $3 million for each year remaining in the
contract’s term. Petitioner does not expect that the contract
with Company will be breached by either party or that Company
will pay petitioner any liquidated damages.
7The agreement states: “[Company] shall provide the
electricity, at no cost to * * * [petitioner], to operate pumping
stations two, three and four, or any substitute stations.” The
three pumping stations will pump the wastewater uphill to the
point of delivery.
8A nondefaulting party can request a temporary restraining
order and a preliminary injunction to prevent a default under the
agreement or to compel performance.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011