HomeMy WebLinkAboutSTANDARD TEXTILE AUGUSTA CANAL
September _28, 2006
AGREEMENT
FOR DELIVERY OF WATER THROUGH
THE AUGUSTA CANAL
STATE OF GEORGIA,
COUNTY OF RICHMOND
11-
~I THIS AGREEMENT made and entered into this ~ day of
IVPv~Je~, 2006, by and between AUGUSTA, GEORGIA, a political
subdivision of the State of Georgia, hereinafter referred to as
"Grantor", and STANDARD TEXTILE AUGUSTA, INC. a corporation
organized and existing under the laws of the State of Georgia;
hereinafter referred to as "Grantee";
WITNESSETH:
WHEREAS, the Grantor owns and operates the Augusta Canal
and the dam at the head of said Canal; and
WHEREAS, Grantee operates a mill located adjacent to the
aforesaid Canal and desires to enter into an agreement with the
Grantor whereby Grantor agrees to supply certain amounts of water
to Grantee through said Canal; and
WHEREAS, the Augusta-Richmond County Code provides
certain terms, conditions, restrictions and limitations relating to
the use of the water channeled through the aforesaid Canal; and
WHEREAS, the parties desire that additional terms,
conditions and restrictions relating to the use of this water be
set forth.
NOW, THEREFORE, for and in consideration of the mutual
promises and covenants contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
SECTION I.
GRANT OF RIGHT; TERM.
Grantor herein does hereby grant and lease to the
Grantee, the right of using and deriving water power from water
channeled through the Augusta Dam and Canal for a period ending
December 31, 2011, in accordance with the following terms,
conditions, restrictions and limitations.
1
SECTION II.
BULKHEADS:
Grantee shall draw water from the Canal to Grantee's
operations through a bulkhead. All bulkheads hereafter constructed
or all existing bulkheads hereafter repaired by the Grantee shall
be constructed or repaired in accordance with plans approved in
advance by the Augusta Utilities Department (the "Utilities
Department") . Grantee shall have on site, at all times during
which a bulkhead is being constructed or work is being performed on
a bulkhead, a qualified inspector who has been approved by the
Utilities Department. The Utilities Department shall have the
right to inspect any such work performed under this Section at any
time deemed necessary.
SECTION III.
INDEMNITY BOND:
Prior to commencing any work on the Canal or any
appurtenances thereto, Grantee shall execute in favor of Augusta,
Georgia, an indemnity bond in an amount and on a form approved by
the City Attorney. Said bond shall by its terms and conditions
agree to indemnify and hold Augusta, Georgia safe and harmless
against any loss or damage to any person or property occasioned by
such work. Said bond shall also by its terms and conditions agree
to reimburse the Grantor for any repairs necessitated to the Canal
as a result of any such work done by Grantee.
SECTION IV.
TOWING PATH:
Grantee shall not erect any building or other fixture of
any type or description on the land immediately adjacent to the
Canal, from the Harrisburg Bridge to Coleman's Branch, within
ninety (90) feet of Canal water or the first level of said Canal,
all of said land being part of a public road known as the "Towing
Path"; provided, however, nothing herein shall prevent the
maintenance or repair of all existing buildings or fixtures. This
ninety foot strip shall be reserved for a highway and towing path
and any water herein granted to the Grantee shall be conveyed from
Grantee's bulkhead in such a way as not to interfere or obstruct
passage along and over the aforesaid Towing Path. Any and all
pipes or other means of conveying water from the Grantee's bulkhead
under the aforesaid Towing Path shall be constructed in a good and
workmanlike manner free of all leaks and kept in good repair by the
Grantee. Additionally, Grantee agrees to keep all pipes or other
methods of conveyance of said water from the Grantee's bulkhead to
Grantee's turbines free of leaks and in good repair and in the
event any leaks should occur in any of the structures through which
water is conveyed to Grantee, Grantee shall immediately cease
obtaining or conveying any water from the Canal until said leaks
are repaired.
2
SECTION V. TAIL RACES:
All tail races conveying water for Grantee's turbines
shall be maintained by Grantee. (Grantee shall keep all tail races
maintained and cleaned such that no more water than is allocated to
and necessary for Grantee shall be used. The Utilities Department
shall have the right to inspect all tail races as it deems
necessary in order to ensure compliance with this Section.
SECTION VI.
RIGHT OF ENTRY FOR INSPECTION:
The Grantee grants unto Grantor the right to enter at any
and all times upon Grantee's premises for the purpose of inspecting
the bulkhead cylinders, forbays, flumes, turbines, water gates,
tail races and each and every other structure connected with the
use of water from the Canal and conveyance of said water to the
Grantee's premises and from the Canal.
SECTION VII. DETERMINATION OF THE AMOUNT OF POWER USED:
The amount of power used by the Grantee shall be
determined by utilizing the rated horsepower of the turbines used
by Grantee.
SECTION VIII. CONSTRUCTION OF GRANT AND MAINTENANCE OF DAM AND
CANAL:
The grant of power made by the Grantor herein is subject
to all prior grants made by the Grantor and to the natural and
providential changes in the River and to all other reservations as
provided for herein. The Grantor does not intend to nor does the
Grantor grant anything beyond the capabilities of the Dam or the
head of the Canal and the Canal, both of which the Grantor herein
agrees to maintain.
SECTION IX. RESERVATION OF WATER FOR USE BY THE GRANTOR:
The Grantor hereby reserves for the use of the Grantor
enough water from the first and second levels of the Canal to drive
the pumps of the Grantor's waterworks and to supply the reservoir
of the Waterworks with water at all times. These rights shall have
precedence over all the grants of water made by the Grantor on the
first and second levels of such Canal. The Grantor also reserves
the right to supply all of the needs of Grantor for water for any
purpose from any level of the Canal and this right shall have
precedence over all the grants made by Grantor over any level of
the Canal.
SECTION X. RIGHT OF GRANTOR TO CAUSE SHUTDOWN:
Grantor reserves the right to cause a shutdown of
3
Grantee's access to water from the Canal for a period chosen by
Grantor and which period shall not exceed two (2) weeks in
duration. Grantor shall provide Grantee with written notice of any
two-week shutdown period no later than 30 days prior to the
beginning of said period.
SECTION XI. ADJUSTMENT OF RATES FOR GRANTEE DOWNTIME:
Grantor recognizes that certain periods of downtime may
occur during the term of this Agreement due to outages or
maintenance requirements. Grantor agrees that Grantee's rates as
set out herein shall be adjusted on a per horsepower basis for any
such downtime.
SECTION XII. INSPECTION OF FACILITIES AND AMOUNT OF WATER USED:
The Grantor is hereby granted the right to inspect all of
the facilities of the Grantee used in connection with the taking of
water by Grantee from the Canal and to prevent, by any lawful
means, the Grantee from using any facility that is capable of
drawing or discharging more water than Grantee is entitled to draw
under this grant. No increase in the amount of water used is to be
permitted to Grantee pursuant to the terms of this agreement and
any such contemplated increase must be negotiated with the Grantor
and reflected in an entirely new agreement.
SECTION XIII. EXPLOSIVES; NUISANCES:
No part of the premises bordering the Canal or the
ninety-foot strip designated as a Towing Path shall be used for the
storage or manufacture of explosive fluids, mixtures or substances
of any kind, or for any purpose that shall be a nuisance.
SECTION XIV. MEANING OF SURFACE OF CANAL; LOWERING THE ESTABLISHED
SURFACE WATER LINE.
The surface of the Canal mentioned in this section is
understood to be the established surface water line as hereinafter
described. If at any time the water shall not be kept up to the
established line and it shall be found by the Grantor impossible to
maintain that line while granting to all franchisees of the Grantor
the right to use the volumes of water as contained in their grants,
then it is agreed that Grantor may establish a different surface
water line at a lower elevation and the Grantee shall only be
entitled to draw such quantity of water so as to enable Grantor to
give each grantee their same proportion of the total that each had
at the higher elevation.
SECTION XV. ESTABLISHED SURFACE WATER LINE:
4
The established surface water line in the Canal is to be
an inclined plane having the spill of the Dam across the River for
its summit and from thence falling at the rate of one hundredth of
a foot per one hundred feet to the lower end of the Canal.
SECTION XVI. CLEARANCE OF OBSTRUCTIONS AND REPAIRS OF THE CANAL
ETC:
Notwithstanding any provisions herein to the contrary,
the Grantor hereby reserves the right at any time to draw as much
water as necessary from the Canal when Grantor in its sole
discretion deems it necessary to clear out any obstructions in the
Canal, to repair or improve any part of the Canal, or at any other
time or for any other purpose when Grantor deems it necessary or in
its best interest or in the best interest of the Canal to draw said
water out, and Grantor shall not be liable for any damages to the
Grantee for drawing water out of the Canal as provided for above.
Grantor shall provide Grantee no less than 10 days' notice should
it intend to exercise the right reserved in this Section, except in
the case of emergency.
SECTION XVII. KEEPING CANAL SUPPLIED WITH WATER:
Except as otherwise herein provided the Grantor shall
keep the Canal supplied with water in a quantity sufficient to
supply all grantees with all the water granted to the grantees by
Grantor, so far as the water in the River above the Dam will fill
the Canal to the established surface water line above mentioned,
subject to any limitations, requirements, or limitations proposed
by the Federal Energy Regulatory Commission.
SECTION XVIII. AMOUNT OF WATER GRANTED TO GRANTEE:
The amount of water conveyed to Grantee at any time shall
not exceed a maximum volume rate of fifty-two thousand eight
hundred sixty cubic feet per minute, except as may be changed
pursuant to other provisions herein.
SECTION XIX. RESTRICTION ON USE:
Any power generated by Grantee pursuant to the terms and
conditions of this agreement shall be generated for use only in
connection with Grantee's business operations located at King Mill,
1701 Goodrich Street, Augusta, Georgia. Grantee shall not sell,
assign or otherwise transfer any power generated pursuant to the
terms and conditions of this agreement to any other entity
whatsoever without the consent of Grantor; provided, however,
nothing herein shall prohibit Grantee from selling excess power to
the Georgia Power Company or other electric utility company.
SECTION XX. PAYMENTS AND RATES:
5
For and in consideration of the power granted under this
agreement, the Grantee shall pay Grantor a flat fee per day or part
day for use of the water channeled to Grantee through the Augusta
Canal. Said rate shall be calculated at a rate of 89 per rated
horsepower (3300) for each day for use of the water channeled to
Grantee through the Augusta Canal. The fee to be paid to Grantor
pursuant to this agreement shall be paid quarterly on the first day
of January, April, July and October for the preceding quarter.
Payments as required hereunder shall be made to the Utilities
Department.
SECTION XXI. VENUE:
All claims, disputes and other matters in question
between the parties hereto arising out of or relating to this
Agreement, or the breach thereof, shall be decided in the Superior
Court of Richmond County, Georgia. Grantee, by executing this
Agreement, specifically consents to venue in Richmond County,
Georgia and waives any right to contest venue in the Superior Court
of Richmond County.
SECTION XXII. TERMINATION:
This agreement may be terminated by either party hereto
upon twenty-four (24) months written notice given to the other
party.
[SIGNATURES ON NEXT PAGE]
6
WHEREFORE, the parties have set their hands and seals as
of the date first above written.
Attest, /)chfY IJ ~
~. Clerk
AUGUSTAj2GEORGIA
By, { ~4.#-
As its Ma r
~
Sworn to and subscribed before
me this L1fL. day of .5"Ah,...he/ , 2006.
~/k- L ~
NOTARY PUBLIC,
MY COMMISSION EXPIRES: N/4
.~,a,,,'I1'..r"IP'r..
.....:{,~f\IAL S~""
/~o '1;\
I >0.; \ WALTER ERIC SPIEGEL
! ! Attorney at law
\ ! Notary Public. state of Ohio
\.\$1 I My Commission Has No Expiration
"'~ Of '/ Section 147.03 R.C.
........".,.,...."'"
7
ng BURNSIDE WALL LLP
IlADATTORNEYS AT LAW
Thomas R. Burnside, Jr., P.c.
James B. Wall, P.c.
James W. Ellison
Thomas R. Burnside, III
Mark B. Williamson
P.O. Box 2125
~ugusta,(J~.30903
Telephone:(706) 722-0768
Facsimile: (706) 722-5984
www.burnsidewall.com
OFFICE:
454 (Jreene Street
Robert C. Daniel, Jr.
(1943-1993)
November 22,2006
Mr. Walter E. Spiegel
Vice-President and General Counsel
Standard Textiles Co., Inc.
One Knollcrest Drive
P. O. Box 371805
Cincinnati, Ohio 45222
RE: Agreement between Augusta and Standard Textile Augusta, Inc.
Dear Walter:
. I am enclosing an original fully executed copy of the Agreement for Delivery of Water
Through the Augusta Canal which was approved by the Commission on November 9,2006.
With best personal regards, I am
Yours very tDlly,
JBW/sjp
Enclosure
cc: Mr. Drew Goins (with enclosure)
Mr. Dayton Sherrouse (with enclosure)
Mr. Steve Shepard (with enclosure
Ms. Lena Bonner (w/o enclosure)