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<br />however, this rate structure under the Agreement has been <br />modified recently. The term of the Agreement is for at least <br />five years. A copy of the Agreement is attached hereto as <br />Exhibit A. <br />6. Payment terms of the Agreement require CF&I Steel <br />to pay Coastal twice a month, on the fifteenth and on the final <br />day of the month. The average semi-monthly postpetition payments <br />for gas under the Agreement have been approximately $438,000. <br />7. After recent negotiations, Coastal has agreed to <br />reduce the rates under the Agreement from the contractual rate of <br />$2.10 per MCF to $1.975 per MCF. This rate reduction is <br />effective through September 30, 1991. See Letter from Coastal to <br />CF&I, Exhibit B. After September 30, 1991, the reduced rate will <br />serve as the base rate under the Agreement. CF&I Steel believes <br />this rate modification will result in an annual savings to CF&I <br />Steel in excess of $450,000. The new rates under the Agreement <br />become effective the first day of the month after the Court <br />approves the assumption of the Agreement. See Affidavit of Earl <br />Emery, Q 6, Exhibit C. <br />Assumption of the Agreement <br />8. On or about November 30, 1990, this Court approved <br />an "An Agreed Order Setting Deadline for Assumption or Rejection <br />of Executory Contract." This order required CF&I Steel to file a <br />motion to assume or reject the Agreement by January 31, 1991. An <br />copy of the order is attached hereto as Exhibit D. <br />9. CF&Z Steel believes that it is in the best <br />interest of its estate, the creditors of its estate, and the <br />3 <br />