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