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LULU'S AUTOBAHN FUELS AND LULU'S OSTRICH RANCH
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Cononco,s Fuel Payment Pan.
October 27,1998 Farmco Transport LLC d.b.a. Action Petroleum 16500 San Pedro, Ste 450 Son Antonio TX 79232 Subject: 135 & Walnut, Now Braunfels TX Dear Brian William, Conoco's interest in the rebuild plan for the existing Conoco unit at I35 and
Walnut is very high. We would very much like to see you and William Hayward successfully
complete this project. Below I have recapped Conoco's incentive program for this unit
based on 75M gpm. Conoco's new build program would apply 3-2-2-1. Simply put that's 3 cpg
up-front based on 75M gpm followed by 2 cpg at end of 1st year, Another 2 cpg a
end of 2nd year and finally 1 cpg at end of 3rd year. Conoco's program pays a
total of 9 cpg over a three year period. All payments except for the AM 3 cpg are based on
actual volume of gasoline sold. The first payment from Conoco Inc. would be $27,000 paid
up-front based on 3 cpg. Also, Conoco will pay $2,500 per MPD for installation of card
readers. In addition to the above Conoco will pay half of the she survey cost of $2,500
at the completion of the project. Also, Conoco will contribute $1,000 toward a grand
opening of the new unit. Let we know if I can be of any Anther assistance. Sincerely, Jeffery W. Smith Conoco Inc. Acct. Mgr. ** TOTAL PAGE.001 ** |