Document rB9d22ERk6NjvjK3boRae5eK7

CONTRACT FORM 6643-5 LIT H O IN U.S.A. SC : AoO SMSET'NS V/CRKS ENG : prr.. ep-w HAY i 8 1S84 ' Yj\?':-Ai-vi'Jis. ALUS-CHALMERS DMART314 \ ALLIS-CHALMERS Contract Contract No. R6 3-16591 Your 541 Date-----November 11. 1981 TO_____________Asarco Incorporated. El Paso Plant address_______P. 0. Box 1111. El Paso Texas 79999 (Purchaser) attfmtiom Mr. R. 0. Covington_____________________ Allis-Chalmers Corporation (Company) agrees to sell to Purchaser and Purchaser agrees to purchase from Company the product(s) described below. PRODUCT(S): 1 EACH - Convertor Shell Assembly Will be completely shop assembled and dismantled for shipment. This assembly will consist of the following: -- - 1 EA. - Shell to be of a welded (not riveted) construction The basic plate thickness is 1" and will include 1" thick spout for the following; end plates, riding rings and end plate mounting outside rings. Not furnished by Allis Chalmers are; bustle pipe brackets, Tuyere reinforcing plates, false bottom plate and false bottom support castings as shown on your drawing E-13588. 2 EA. - End plates will have three (3) 17" dia. hole cut outs and cutouts on outside for pipe clearance per your drawing 3313 1/2. 2 EA. - End plate mounting outside ring fabricated from steel plate not a casting but per dimensions shown on your drawing 3313 1/2. 1 LOT - Buckstay hardware per Allis-Chalmers design. includes 56 bolts, nuts and springs with 128 washers. 1 LOT - End plate mounting outside ring hardware includes __ 112 - 1 1/2 x 6 bolts and nuts grade 5. 1 EA. - Riding ring - opposite gear end to be of AllisChalmers design of fabricated steel with dimensions shown on your drawing 3314-1. FOIM 4526-11 MINTED IN U.S.A, Page. 1 ,of_ 4 Pages ALLIS-CHALMERS Contract . Contract No._ R63-16591 Your 541 natp November 11, 198T PRODUCTS, Continued: 1 EA. - Riding ring - gear end to be of `Allis-Chalmers design of fabricated steel with dimensions shown on your drawing 3314-1. 4 EA. - Filler plates under riding rings to be 1" thick x 14" x 17" as shown on your drawing 3314-1. 44 EA. - Filler plates under riding rings to be 1" thick x 10" x 17" as shown on your drawing 3314-1. 1 LOT - Riding ring mounting hardware includes 192 1 1/2 x 6 bolts and nuts grade 5. 1 EA. - Spur Gear - Allis-Chalmers design of fabricated steel gear to be in two halves in lieu of 6 segments to have the following characteristics: 140 teeth, 4.5 circular pitch, 13" face. and 200.535 pitch diameter. --- hi. 1 LOT - Gear mounting hardware, includes 12 - 1 1/2 x 6 3/4" turned bolts and 40-1 1/2 x 6 3/4" bolts and nuts grade 5. 1 EA. - Spur pinion to match spur gear above. Pinion to have the following characteristics: 17 teeth, 4.5" circular pitch, 13" face, and 24.350" pitch diameter, pinion to be bored to suit your existing pinion shaft. We will require shaft diameter under pinion when this becomes an order. FO R M 5431-10 L IT H O IN U .S .A Page 2_of _4 Pages ALLIS-CHALMERS Contract PRICE(S): Contract No., R63-16591 .Your--541 Date--Novginhfir n , iqri TOTAL PRICE: $470,900.00 APP TAXES: Any applicable duties or sales, use, excise, value-added, or similar taxes will be added to the price and invoiced separatelv . (unless acceptable exemption certificate is furnished). price policy clause: Due to inability to obtain firm prices of materials at this time, any item herein with price designated "APP" is priced at todays price but will be invoiced at price' in effect at time of shipment. - > TERMS OF PAYMENT: Ten (10) percent cash upon order acceptance. Twenty (20) percent three months after order acceptance. Seventy (70) percent upon shipment or offered for shipment. terms of payment: See above Unless otherwise stated, all payments shall be in United States dollars, and a pro rata payment shall become due as each shipment is made. If shipment is delayed by Purchaser, date of notice of readiness for shipment shall be deemed to be date of shipment (or payment purposes. On late payments, the contract price shall, without prejudice to Company's right to immediate payment, be increased b\ 1'/2% per month on the unpaid balance, but not to exceed the maximum permitted by law. If at any time in Company's judgment Purchaser may be or may become unable or unwilling to meet the terms specmed. Company may require satisfactory assurances or full or partial payment as a condition to commencing or continuing manuiacture or majcing shipment: and may, if shipment has been made, recover the product(s) from the carrier, pending receipt ot such a.sju'rances. shipping date: Nine (9) to ten (10) months after order acceptance. DELIVERY TERMS: FOB Shipping Point OTHER TERMS: This offer will remain in effect for ____ 10____ _ days, unless changed in the interim upon written notice from Company. Documents and. related correspondence shall be sent to the Allis-Chalmers office at: FORM 4527.13 MINTED IN U.5.A. Field services furnished by Company employees, whenever specilied, are governed by the provisions of Company form 5090. This document and any other documents specifically referred to as being a part hereof, constitute the entire contract on the subject matter, and it shall not be modified except in writing signed by both parties. cc: THIS CONTRACT INCLUDES THE GENERAL PROVISIONS ON THE REVERSE SIDE. A. C. Lamberson Tucson S.O. A. K. Bcsshardt Page 3 of 4 Pages General Provisions 1. WARRANTY -- Company warrants title to the product(s) and, except as noted below with respect to items not of Company's manufacture, also warrants the product(s) on date of shipment to Purchaser, to be of the kind and quality described herein, merchantable, and free of defects in workmanship and material. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WAR RANTIES, INCLUDING BUT NOT LIMITED TO IMPLIED WARRAN TIES OF MERCHANTABILITY AND FITNESS, AND CONSTITUTES THE ONLY WARRANTY OF COMPANY WITH RESPECT TO THE PRODUCT(S). If within one year from date of initial operation, but not more than eighteen months from date of shipment by Company of any item of product(s), Purchaser discovers that such item was not as warranted above and promptly notifies Company in writ ing thereof. Company shall remedy such nonconformance by, at Company's option, adjustment or repair or replacement of the item and any affected part of the product(s). Purchaser shall assume all responsibility and expense for removal, reinstal lation, and freight in connection with the foregoing remedies. The same obligations and conditions shall extend to replace ment parts furnished by Company hereunder. Company shall have the right of disposal of parts replaced by it. ANY SEPARATELY LISTED ITEM OF THE PRODUCT(S) WHICH IS NOT MANUFACTURED BY COMPANY IS NOT WARRANTED BY COMPANY, and shall be covered only by the express war ranty, if any, of the manufacturer thereof. THIS STATES PURCHASER'S EXCLUSIVE REMEDY AGAINST COMPANY AND ITS SUPPLIERS RELATING TO THE PROD UCTS!, WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY, AND WHETHER ARISING OUT OF WARRANTIES, REPRESENTATIONS, INSTRUCTIONS, INSTAL LATIONS OR DEFECTS FROM ANY CAUSE. Company and its suppliers shall have no obligation as to any product which has been improperly stored or handled, or which has not been operated or maintained according to instructions in Company or supplier furnished manuals. 2. PATENTS -- Company shall pay costs and damages finally awarded in any suit against Purchaser or its vendees to the extent based upon a finding that the design or construction of the product(s) as furnished infringes a United States patent (except infringement occurring as a result of incorporating a design or modification at Purchaser's request) provided that Purchaser promptly notifies Company of any charge of such infringement, and Company is given the right at its expense to settle such charge and to defend or control the defense of any suit based upon such charge. THIS PARAGRAPH SETS FORTH COMPANY'S EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS. 3. PURCHASER DATA -- Timely performance by Company is con tingent upon Purchaser's supplying to Company, when needed, all required technical information, including drawing approval, and all required commercial documentation. 4. NUCLEAR -- Purchaser represents and warrants that the prod uces! covered by this contract shall not be used in or in con nection with a nuclear facility or application. 5. NONCANCELLATION -- Purchaser may not cancel or terminate for convenience, or "direct suspension oT manufacture, except on mutually acceptable terms. 6. DELAYS -- If Company suffers delay in performance due to any cause beyond its contrdTTTncluding but not limited to act of God, war, act or failure to act of government, act or omission of Purchaser, fire, flood, strike or labor trouble, sabotage, or delay in obtaining from others suitable services, materials, components, equipment or transportation, the time of performance shall be PURCHASER'S ACCEPTANCE The foregoing is hereby accepted. (Name of Purchaser) extended a period of time equal to the period of the defay ' and its consequences. Company will give to Purchaser notice in writing within a reasonable time after Company becomes aware of any such delay. 7. STORAGE -- Any item of the product(s) on which manufacture or shipment is delayed by causes within Purchaser's control, or by causes which affect Purchaser's ability to receive the product(s), may be placed in storage by Company for Purchaser's account and risk. 8. SHIPMENT -- The term "shipment" means delivery to the initial carrier in accordance with the delivery terms of this order. The shipping date is based upon conditions at the factory on the date hereof, and is subject to revision to meet conditions on date of Purchaser's acceptance. Company may make partial shipments. Company shall select method of transportation and route, unless terms are f.o.b. point of shipment and Purchaser specifies the method and route and is to pay the freight costs in addition to the price. When terms are f.o.b. destination or freight allowed to destination, "destination" means common carrier delivery point (within the continental United States, ex cluding Alaska) nearest the destination. For movement outside the United States, Company shall arrange for inland carriage to port of exit and shall cooperate with Purchaser's agents in mak ing necessary arrangements tor overseas carriage and preparing necessary documents. 9. SPECIAL SHIPPING DEVICES -- On shipments to a destination in the continental United States or Canada. Company has the right to add to the invoice, as a separate item, the value of any special shipping device (oil barrel, reel, tarpaulin, cradle, crib and the like) used to contain or protect the productfsl in voiced, while in transit. Except as to oil barrels, full credit will be given on the return to Company of the device in areusable condition, f.o.b. destination, freight prepaid. As to oil barrels, arrangement for return and credit must be made by purchaser with the refiner. _ 10. TITLE AND INSURANCE -- Title to the productlsi ancf risk of loss or damage shall pass to Purchaser at the f.o.b. point, ex cept that a security interest in the product!;- and proceeds and any replacement shall remain in Company, regardless ot mode of attachment to realty or other property, until the full price has been paid in cash. Purchaser agrees to do all acts necessarv to perfect and maintain said security interest, and to protect Company's interest by adequately insuring the products against loss or damage from any external cause with Company named as insured or co-insured. 11. GENERAL --NEITHER COMPANY NOR ITS SUPPLIERS SHALL BE LIABLE, WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY, FOR LOSS OF USE, REVENUE OR PROFIT, OR FOR COST OF CAPITAL OR OF SUBSTITUTE USE OR PERFORMANCE, OR FOR INCIDENTAL, INDIRECT. SPECIAL OR CONSEQUENTIAL DAMAGES. OR FOR ANY OTHER LOSS OR COST OF SIMILAR TYPE, OR FOR CLAIMS BY PURCHASER FOR DAMAGES OF PURCHASER'S CUSTOMERS. Likewise. Com pany shall not, under any circumstances, be liable for the tault, negligence, or wrongful acts of Purchaser or Purchaser s em ployees, or Purchaser's other contractors or suppliers. Company will comply with all laws applicable to Company. Compliance with OSHA or similar federal, state or local laws during any operation or use of the product(s) is the sole re sponsibility of Purchaser. The laws of the State of Delaware shall govern the validity, interpretation and enforcement of any contract of which these provisions are a part. Assignment may be made only with written consent of both parties. TC-3 ALLIS-CHALMERS CORPORATION By______________________________ Title____________________________ Date_____________ _______________________ Paee 4 of ALUS-CHALMERS Contract Contract No. 'R63-16591 Your 54T Dale___ November 11. 1 Qfli TOAsarco Incorporated, El Paso Plant(Purchaser ADDRESSP. 0. Box 1111. El Paso Texas 79999______________________________________ ATTCMnnM Mr. R. 0. Covington Allis-Chalmers Corporation (Company) agrees to sell to Purchaser and Purchaser agrees to purchase from Company th product(s) described below. PRODUCT(S): 1 EACH - Convertor Shell Assembly Will be completely shop assembled and dismantled for shipment. This assembly will consist of the following: _ j, -- f- 1 EA. - Shell to be of a welded (not riveted) constructio: The basic plate thickness is 1" and will include 1" thick spout for the following; end plates, riding rings and end plate mounting outside rings Not furnished by Allis Chalmers are; bustle pipe brackets, Tuyere reinforcing plates, false bottom plate and false bottom support castings as shown on your drawing E-13588. 2 EA. - End plates will have three (3) 17" dia. hole cut outs and cutouts on outside for pipe clearance per your drawing 3313 1/2. 2 EA. - End plate mounting outside ring fabricated from steel plate not a casting but per dimensions shown on your drawing 3313 1/2. _-- ___ l LOT - Buckstay hardware per Allis-Chalmers design. includes 56 bolts, nuts and springs with 128 washers. 1 LOT - End plate mounting outside ring hardware includes 112 - 1 1/2 x 6 bolts and nuts grade 5. 1 EA. - Riding ring - opposite gear end to be of AllisChalmers design of fabricated steel with dimensions shown on your drawing 3314-1. FORM 4524*11 PRINIEO IN U .J.A. Page___1_ of_ 4 Pages ALLIS-CHALMERS Contract I * Contract No.. R63-16591 Your 541 Date November 11, 1981 PRODUCTS, Continued: 1 EA. - Riding ring - gear end to be of Allis-Chalmers design of fabricated steel with dimensions shown on your drawing 3314-1. 4 EA. - Filler plates under riding rings to be i" thick x 14" x 17" as shown on your drawing 3314-1. 44 EA. - Filler plates under riding rings to be 1" thick x 10" x 17" as shown on your drawing 3314-1. 1 LOT - Riding ring mounting hardware includes 192 1 1/2 x 6 bolts and nuts grade 5. 1 EA. - Spur Gear - Allis-Chalmers design of fabricated steel gear to be in two halves in lieu of 6 segments to have the following characteristics: 140 teeth, 4.5 circular pitch, 13" face..' and 200.535 pitch diameter. ^ T. 1 LOT - Gear mounting hardware, includes 12-1 1/2 x 6 3/4" turned bolts and 40-1 1/2 x 6 3/4" bolts and nuts grade 5. 1 EA. - Spur pinion to match spur gear above. Pinion to have the following characteristics: 17 teeth, 4.5" circular pitch, 13" face, and 24.350" pitch diameter, pinion to be bored to suit your existing pinion shaft. We will require shaft diameter under pinion when this becomes an order. Page 2 of _4 Pages ALLIS-CHALMERS Contract PRICE(S): Contract No. R63"16591_____ Ynnr 541___________________ Date____ NnvpmhAr 1 1 f__ TQfil TOTAL PRICE: $470,900.00 APP TAXES: Any applicable duties or sales, use, excise, value-added, or similar taxes will be added to the price and invoiced separately (unless acceptable exemption certificate is furnished). price policy clause: Due to inability to obtain firm prices of materials at this time, any item herein with price designated "APP" is priced at todays price but will be invoiced at price in effect at time of shipment. 2t TERMS OF PAYMENT: Ten (10) percent cash upon order acceptance. Twenty (20) percent three months after order acceptance. Seventy (70) percent upon shipment or offered for shipment. terms of payment: See above Unless otherwise stated, all payments shall be in United States dollars, and a pro rata payment shall become due as each shipment is made. If shipment is delayed by Purchaser, date of notice of readiness for shipment shall be deemed to be date of shipment for payment purposes. On late payments, the contract price shall, without prejudice to Company's right to immediate payment, be increased by Vh% per month on the unpaid balance, but not to exceed the maximum permitted by law. If at any time in Company's, judgment Purchaser may be or may become unable or unwilling to meet the terms specified. Company may require satisfactory assurances or full or partial payment as a condition to commencing or continuing manufac ture or making shipment: and may, if shipment has been made, recover the product(s) from the carrier, pending receipt ot such .assurances. shipping date: Nine (9) to ten (10) months after order acceptance. delivery terms: FOB Shipping Point OTHER TERMS: This offer will remain in effect for ____ 10____ _ days, unless changed in the interim upon written notice from Company. Documents and related correspondence shall be sent to the Allis-Chalmers office at: FORM 4 S 2 M 3 PRINTED IN U.S.A, Field services furnished by Company employees, whenever specified, are governed by the provisions of Company form 5990. This document and anv other documents specificallv referred to as being a part hereof, constitute the entire contract on the sub|ect matter, and it shall not be modified except in writing signed by both parties. cc: THIS CONTRACT INCLUDES THE GENERAL PROVISIONS ON THE REVERSE SIDE. A. C. Lamberson Tucson S.O. A. K. Bcszhardt Page 3 of 4 Pages 1 General Provisions 1. WARRANTY -- Company warrants title to the product(s) and, except as noted below with respect to items not of Company's manufacture, also warrants the product(s) on date of shipment to Purchaser, to be of the kind and quality described herein, merchantable, and free of defects in workmanship and material. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WAR RANTIES. INCLUDING BUT NOT LIMITED TO IMPLIED WARRAN TIES OF MERCHANTABILITY AND FITNESS, AND CONSTITUTES THE ONLY WARRANTY OF COMPANY WITH RESPECT TO THE PRODUCT(S). If within one year from date of initial operation, but not more than eighteen months from date of shipment by Company of any item of product(s). Purchaser discovers that such item was not as warranted above and promptly notifies Company in writ ing thereof, Company shall remedy such nonconformance by, at Company's option, adjustment or repair or replacement of the item and any affected part of the product(s). Purchaser shall assume all responsibility and expense for removal, reinstal lation, and freight in connection with the foregoing remedies. The same obligations and conditions shall extend to replace ment parts furnished bv Company hereunder. Company shall have the right of disposal of parts replaced by it. ANY SEPARATELY LISTED ITEM OF THE PRODUCT(S) WHICH IS NOT MANUFACTURED BY COMPANY IS NOT WARRANTED BY COMPANY, and shall be covered only by the express war ranty, if any, of the manufacturer thereof. THIS STATES PURCHASER'S EXCLUSIVE REMEDY ACAINST COMPANY AND ITS SUPPLIERS RELATING TO THE PROD UCTS). WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY, AND WHETHER ARISING OUT OF WARRANTIES, REPRESENTATIONS, INSTRUCTIONS, INSTAL LATIONS OR DEFECTS FROM ANY CAUSE. Company and its suppliers shall have no obligation as to any product which has been improperly stored or handled, or which has not been operated or maintained according to instructions in Company or supplier furnished manuals. 2. PATENTS -- Company shall pay costs and damages finally awarded in any suit against Purchaser or its vendees to the extent based upon a finding that the design or construction of the product(s) as furnished infringes a United States patent (except infringement occurring as a result of incorporating a design or modification at Purchaser's request) provided that Purchaser promptly notifies Company of any charge of such infringement, and Company is given the right at its expense to settle such charge and to defend or control the defense of any suit based upon such charge. THIS PARAGRAPH SETS FORTH COMPANY'S EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS. 3. PURCHASER DATA -- Timely performance by Company is con tingent upon Purchaser's supplying to Company, when needed, all required technical information, including drawing approval, and all required commercial documentation. 4. NUCLEAR -- Purchaser represents and warrants that the prod uct^) covered by this contract shall not be used in or in con nection with a nuclear .facility or application. 5. NONCANCELLATION -- Purchaser may not cancel or terminate for convenience, or direct suspension of manufacture, except on mutually acceptable turns. 6. DELAYS -- If Company suffers delay in performance due to any cause beyond its control, including but not limited to act of God, war. act or failure to act of government, act or omission of Purchaser, fire, flood, strike or labor trouble, sabotage, or delay in obtaining from others suitable services, materials, components, equipment or transportation, the time pf performance shall be PURCHASER'S ACCEPTANCE The foregoing is hereby accepted. (Name of Purchaser) Bv_____________________________ _ Title__________________ __________________ Date____________________________________ extended a period of time equal to the period oi trip .dilay and its consequences. Company will give to Purchaser notice" in writing within a reasonable time after Company becomes aware of any such delay. 7. STORAGE -- Any item of the product(s) on which manufacture or shipment is delayed by causes within Purchaser's control, or by causes which affect Purchaser's ability to receive the prod uct^), may be placed in storage by Company for Purchaser's account and risk. 8. SHIPMENT -- The term "shipment" means delivery to the initial carrier in accordance with the delivery terms of this order. The shipping date is based upon conditions at the factory on the date hereof, and is subject to revision to meet conditions on date of Purchaser's acceptance. Company may make partial shipments. Company shall select method of transportation and route, unless terms are f.o.b. point of shipment and Purchaser specifies the method and route and is to pay the freight costs in addition to the price. When terms are f.o.b. destination or freight allowed to destination, "destination" means common carrier delivery point (within the continental United States, ex cluding Alaska) nearest the destination. For movement outside the United States, Company shall arrange for inland carriage to port of exit and shall cooperate with Purchaser's agents in mak ing necessary arrangements for overseas carriage and preparing necessary documents. 9. SPECIAL SHIPPING DEVICES -- On shipments to a destination in the continental United States or Canada, Company has the right to add to the invoice, as a separate item, the value of any special shipping device (oil barrel, reel, tarpaulin, cradle, crib and the like) used to contain or protect the product(s) in voiced, while in transit. Except as to oil barrels, fuircredit- will be given on the return to Company of the device tn_ a" reusable condition, f.o.b. destination, freight prepaid. As_to joil barrels, arrangement for return and credit must be made bf Purchaser with the refiner. 10. TITLE AND INSURANCE --Title to the productisi and risk of loss or damage shall pass to Purchaser at the f.o.b. point, ex cept that a security interest in the productisi and proceeds and any replacement shall remain in Company, regardless ot mode of attachment to realty or other property, until the full price has been paid in cash. Purchaser agrees to do all acts necessarv to perfect and maintain said security interest, and to protect Company's interest by adequately insuring the productisi against loss or damage from any external cause with Company named as insured or co-insured. 11. GENERAL --NEITHER COMPANY NOR ITS SUPPLIERS SHALL BE LIABLE. WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY. FOR LOSS OF USE, REVENUE OR PROFIT, OR FOR COST OF CAPITAL OR OF SUBSTITUTE USE OR PERFORMANCE. OR FOR INCIDENTAL. INDIRECT. SPECIAL OR CONSEQUENTIAL DAMAGES, OR FOR ANY OTHER LOSS OR COST OF SIMILAR TYPE, OR FOR CLAIMS BY PURCHASER FOR DAMAGES OF PURCHASER'S CUSTOMERS. Likewise. Com pany shall not, under any circumstances, be liable tor the fault, negligence, or wrongful acts of Purchaser or Purchaser s em ployees, or Purchaser's other contractors or suppliers. Company will comply with all laws applicable to Companv. Compliance with OSHA or similar federal, state or local laws during any operation or use of the productisi is the sole re sponsibility of Purchaser. The laws of the State of Delaware shall govern the validity, interpretation and enforcement of any contract of which these provisions are a part. Assignment may be made only with written consent of both parties. TC-3 ALLIS-CHALMERS CORPORATION ' Supervisor, Parts Sales ALLIS-CHALMERS Contract Contract No. R63 --16591--A __________Your 541 natp June 4, 1982 TO_____ ADDRESS ASARCO INCORPORATED____________ El Paso Plant P. 0. Box 1111, El Paso, TX 79999 (Purchaser) AjTCMTiriM Mr. R. 0. Covington Allis-Chalmers Corporation (Company) agrees to sell to Purchaser and Purchaser agrees to purchase from Company the product(s) described below. PRODUCT(S): 1 Each - Convertor Shell Assembly Will be completely shop assembled and dismantled for shipment. This assembly will consis of the following: ___ ITEM A Il 1 Each - Shell to be of a welded (not riveted) construction. The basic plate thickness is 1.25" and will include 1" thick spout reinforcing plate for the following; end plates, riding rings and end plate mounting outside rings. Not furnished by Allis-Chalmers are; bustle pipe brackets. Tuyere reinforcing plates, false bottom plate and false bottom support castings as shown on your drawing E-13588. 4 Each - Filler plates under riding rings to be 1" thick x 14" x 17" as shown on your drawing 3314-1. 44 Each - Filler plates under riding rings to be 1" thick x 10" x 17" as shown on your drawing 3314-1. TOTAL PRICE FOR ITEM A---------------------- $186,200.00 ITEM *B~ - 2. Each - End plates will have three (3) 17" dia. hole cut outs and coutouts on outside for pipe clearance per your drawing 3313-1/2. 2 Each - End plate mounting outside ring fabricated from steel plate not a casting but per dimensions shown on your drawing 3313-1/2. FORM 4326-11 MINTED IN U.S.A. Page_l___ of___ 5 Pages ALLIS-CHALME Contract Contract No_ R63-16591-a . _________Your 541 Dale________ June 4, 1982 ITEM B, Continued 1 Lot -- Buckstay hardware per Allis-Chalmers design. Includes 56 bolts, nuts and springs with 128 washers. 1 Lot -- End plate mounting outside ring hardware. Includes 112 - 1-1/2 x 6 bolts and nuts grade 5. TOTAL PRICE FOR ITEM B---------------------- $77,600.00 ITEM C 1 Each - Riding ring - opposite gear end to be of AllisChalmers design of fabricated steel with dimensions shown on your drawing 3314-1. TOTAL PRICE FOR ITEM C----------------------$72,590.00 --~- ITEM D 1 Each - Riding ring - gear end to be of Allis-Chalmers design of fabricated steel with dimensions shown on your drawing 3314-1. 1 Lot -- Riding ring mounting hardware includes 192 1-1/2 x 6 bolts and nuts grade 5. TOTAL PRICE FOR ITEM D---------------------- $84,890.00 ITEM E 1 Each - Spur Gear - Allis-Chalmers design of fabricated steel gear to be in two halves inlieu of 6 segments to have the following characteristics; 140 teeth, 4 .'5-circular pitch, 13" face and 200.535 pitch diameter. 1 LoF -- Gear mounting hardware, includes 12 - 1-1/2 x 6-3/4" turned bolts and 40 - 1-1/2 x 6-3/4" bolts and nuts grade 5. TOTAL PRICE FOR ITEM E---------------------- $74,100.00 Page _2___of Pages ALUS - CHALM E'' Contract Contract No., Date R63-16591-A Your 541 June 4, 1982 ITEM F 1 Each - Spur pinion to match spur gear above. `Pinion to have the following characteristics; 17 teeth, 4.5" circular pitch, 13" face, and 24.350" pitch diameter pinion to be bored to suit your existing pinion shaft. We will require shaft diameter under pinion when this becomes an order. TOTAL PRICE FOR ITEM F---------------------- $10,000.00 NOTE: Allis-Chalmers will not take responsibility of the support mechanisms due to the weight increase. However, Allis-Chalmers would be willing to review and comment only. Allis-Chalmers will require your drawings of the support mechanisms should you wish ~~ Allis-Chalmers to review these mechanisms. There would be no charge for this review. ; j; ( C Page 3 of 5 Pages ALLIS-CHALr *RS Contract C PRICE(S): See Preceeding Pages Co ..actNo. R63-16591-A ___________Your 541 Da,e---------- June 4, 1982 TOTAL PRICE: $507,100.00 TAXES: Any applicable duties or sales, use, excise, value-added, or similar taxes will be added to the price and invoiced separately (unless acceptable exemption certificate is furnished). PRICE POLICY CLAUSE: Firm TERMS OF PAYMENT: 10% cash upon order acceptance. 20% three months after order acceptance. 70% upon shipment or offered for shipment. terms of payment: See Above Unless otherwise stated, all payments shall be in United States dollars, and a pro rata payment shall become due as each shipment is made. If shipment is delayed by Purchaser, date of notice of readiness for shipment shall be deemed to be date of shipment for payment purposes. On late payments, the contract price shall, without prejudice to Company's right to immediate payment, be increased by V/2% per month on the unpaid balance, but not to exceed the maximum permitted by law. If at any time in Company's judgment Purchaser may be or may become unable or unwilling to meet the terms specified, Company may require satisfactory assurances or full or partial payment as a condition to commencing or continuing manufac ture or making shipment;-and may, if shipment has been made, recover the product(s) from the carrier, pending receipt of such assurartces. shipping DATE: Nine (9) to ten (10) months after order acceptance. DELIVERY TERMS: F.O.B. Shipping Poine OTHER TERMS: This offer will remain in effect for 3 0______ days, unless changed in the interim upon written notice from Company. Documents and related correspondence shall be sent to the Allis-Chalmers office at: 1802 W. Grant Rd . , Suite 124, Tucson, AZ 85745, Attn: A. C. Lamberson Field services furnished by Company employees, whenever specified, are governed by the provisions of Company form 5990. This document and any other documents specifically referred to as being a part hereof, constitute the entire contract on the subject matter, and it shall not be modified except in writing signed by both parties. THIS CONTRACT INCLUDES THE GENERAL PROVISIONS ON THE REVERSE SIDE. cc: A. C. Lamberson A. K. Boszhardt 0P,a,,g,,e- 4 of 5 Pages FORM 6527-13 PRINTED IN U.S.A. General Provisions 1. WARRANTY -- Company warrants title iO the produces) and, except as noted below with respect to items not of Company's manufacture, also warrants the product(s) on date of shipment to Purchaser, to be of the kind and quality described herein, merchantable, and free of defects in workmanship and material. THIS WARRANTY IS EXPRESSLY IN LIEU OF ALL OTHER WAR RANTIES. INCLUDING BUT NOT LIMITED TO IMPLIED WARRAN TIES OF MERCHANTABILITY AND FITNESS. AND CONSTITUTES THE ONLY WARRANTY OF COMPANY WITH RESPECT TO THE PRODUCT(S). If within one year from date of initial operation, but not more than eighteen months from date of shipment by Company of any item of product(s), Purchaser discovers that such item was not as warranted above and promptly notifies Company in writ ing thereof, Company shall remedy such nonconformance by, at Company's option, adjustment or repair or replacement of the item and any affected part of the product(s). Purchaser shall assume all responsibility and expense for removal, reinstal lation, and freight in connection with the foregoing remedies. The same obligations and conditions shall extend to replace ment parts furnished by Company hereunder. Company shall have the right of disposal of parts replaced by it. ANY SEPARATELY LISTED ITEM OF THE PRODUCT(S) WHICH IS NOT MANUFACTURED BY COMPANY IS NOT WARRANTED BY COMPANY, and shall be covered only by the express war ranty, if any, of the manufacturer thereof. THIS STATES PURCHASER'S EXCLUSIVE REMEDY AGAINST COMPANY AND ITS SUPPLIERS RELATING TO THE PRODUCT(S), WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY, AND WHETHER ARISING OUT OF WARRANTIES, REPRESENTATIONS, INSTRUCTIONS, INSTAL LATIONS OR DEFECTS FROM ANY CAUSE. Company and its suppliers shall have no obligation as to any product which has been improperly stored or handled, or which has not been operated or maintained according to instructions in Company or supplier furnished manuals. 2. PATENTS -- Company shall pay costs and damages finally awarded in any suit against Purchaser or its vendees to the extent based upon a finding that the design or construction of the product(s) as furnished infringes a United States patent (except infringement occurring as a result of incorporating a design or modification at Purchaser's request) provided that Purchaser promptly notifies Company of any charge of such infringement, and Company is given the right at its expense to settle such charge and to defend or control the defense of any suit based upon such charge. THIS PARAGRAPH SETS FORTH COMPANY'S EXCLUSIVE LIABILITY WITH RESPECT TO PATENTS. 3. PURCHASER DATA -- Timely performance by Company is con tingent upon Purchaser's supplying to Company, when needed, all required technical information, including drawing approval, and all required commercial documentation. 4. NUCLEAR -- Purchaser represents and warrants that the product(s) covered by this contract shall not be used in or in con nection with a nuclear facility or application. 5. NONCANCELLATION--Purchaser may riot cancel or terminate for convenience, or direct suspension of manufacture, except on mutually acceptable terms. 6. DELAYS -- If Company suffers delay in performance due to any cause beyond its control, including but not limited to act of God, war, act or failure to act of government, act or omission of Purchaser, fire,-flood, strike or labor trouble, sabotage, or delay in obtaining from others suitable services, materials, components, equipment or transportation, the time of performance shall be PURCHASER'S ACCEPTANCE The foregoing is hereby accepted. (Name of Purchaser) extended a period of time equal to the period of the flgTay* and its conseque Company will give to Purchaser notice in writing within . reasonable time after Company becomes aware of any such delay. 7. STORAGE -- Any item of the product(s) on which manufacture or shipment is delayed by causes within Purchaser's control, or by causes which affect Purchaser's ability to receive the product(s), may be placed in storage by Company for Purchaser's account and risk. 8. SHIPMENT -- The term "shipment'Cmeans delivery to the initial carrier in accordance with the delivery terms of this order. The shipping date is based upon conditions at the factory on the date hereof, and is subject to revision to meet conditions on date of Purchaser's acceptance. Company may make partial shipments. Company shall select method of transportation and route, unless terms are f.o.b. point of shipment and Purchaser specifies the method and route and is to pay the freight costs in addition to the price. When terms are f.o.b. destination or freight allowed to destination, "destination" means common carrier delivery point (within the continental United States, ex cluding Alaska) nearest the destination. For movement outside the United States, Company shall arrange for inland carriage to port of exit and shall cooperate with Purchaser's agents in mak ing necessary arrangements for overseas carriage and preparing necessary documents. 9. SPECIAL SHIPPING DEVICES -- On shipments to a destination in the continental United States or Canada, Company has the right to add to the invoice, as a separate item, the value of any special shipping device (oil barrel, reel, tarpaulin, cradle, crib and the like) used to contain or protect the product(s) in voiced, while in transit. Except as to oil barrels, full predit will be given on the return to Company of the device in a reusable condition, f.o.b. destination, freight prepaid. As to oil barrels, arrangement for return and credit must be madc-by ^Purchaser with the refiner. 10. TITLE AND INSURANCE -- Title to the product(s) and risk of loss or damage shall pass to Purchaser at the t.o.b,. point, ex cept that a security interest in the product(s) and proceeds and any replacement shall remain in Company, regardless 01 mode of attachment to realty or other properly, until the full price has been paid in cash. Purchaser agrees to do all acts necessary to perfect and maintain said security interest, and to protect Company's interest by adequately insuring the product(s) against loss or damage from any external cause with Company named as insured or co-insured. 11. GENERAL --NEITHER COMPANY NOR ITS SUPPLIERS SHALL BE LIABLE. WHETHER IN CONTRACT OR IN TORT OR UNDER ANY OTHER LEGAL THEORY, FOR LOSS OF USE. REVENUE OR PROFIT, OR FOR COST OF CAPITAL OR OF SUBSTITUTE USE OR PERFORMANCE. OR FOR INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES. OR FOR ANY OTHER LOSS OR COST OF SIMILAR TYPE, OR FOR CLAIMS BY PURCHASER FOR DAMAGES OF PURCHASER'S CUSTOMERS. Likewise. Com pany shall not, under any circumstances, be liable tor the fault, negligence, or wrongful acts of Purchaser or Purchaser's em ployees, or Purchaser's other contractors or suppliers. Company will comply with all laws applicable to Company. Compliance with OSHA or similar federal, state or local laws during any operation or use of the product(s) is the sole re sponsibility of Purchaser. The laws of the State of Delaware shall govern the validity, interpretation and enforcement of any contract of which these provisions are a part. Assignment may be made only with written consent of both parties. TC-3 ALLIS-CHALMERS CORPORATION ByTitle. Date // T. Brennan, Supervisor-Parts Sales SOLIDS PROCESS EQUIPMENT DIVISION GC Asarco /, New York Office Jffice of the Secretary I f<:> (V ft kf /* \ received APR 71982 W. * KEtLt 3JU A* SBAftE April 2, 1982 Mr. W. R. Kelly: The following appropriation was approved at the Advisory - Committee meeting held March 24, 1982: - El Paso New York Ho. 5657 Plant No. 677 Enlarged Converter Shell. Replacement. $ 950,000 FJG:dap Enc. cc: A. L. F. R. W. A. VI. T. A. 0. Labbe/L. C. Travis McAllister - w/enc. Bennis - w/enc. Sweat Marsh, Jr. F. J. Goldthwait Assistant Secretary w/enc. c February 9, 1982 El Paso, Texas c Mr. Lee C. Travis, General Manager Western Department New York, N. Y. APPLICATION FOR PROPERTY APPROPRIATION CONVERTER SHELL EL PASO PLANT NO. 677 - $950,000 The No. 1 converter at El Paso was installed in 1913. In 1955 the converter was com pletely re-bricked. However, in the 70 years since installation, numerous burn-outs and hot spots have warped the shell and weakened it to such an extent that it is start ing to bow in the center of the converter. The condition of the shell is such that there is a large substantial difference in the elevation of the tuyeres which makes it extremely difficult to punch with the automatic puncher. Plates have been rolled and scabbed in various spots in an attempt to strengthen it but have been unsuccessful in maintaining the configuration of the converter. - The El Paso Plant uses three converters in order to obtain the maximum converter sagacity of having two in the stack at one time. Experience has taught us that a tuyere line- lasts 10 or 11 months, which means either three or four tuyere line repairs a year. With only two converters available, this would mean that during the course of a year, 30-35 con verter days would be lost during tuyere line repairs which would greatly restrict the production in the Copper Department. In addition, a new shell would eanble the operators to get a better seal between the converter shell and the hood, which.would greatly reduce the leakage and restrict the amount of flow going to the acid plant, as well as increasing the steam flow in the con verter boilers. The installation of a 35-foot converter will enable the Plant to produce a converter charge that will make one anode charge instead of requiring two converter charges to fill the anode. By filling the anode completely with one converter charge, the tempera ture of the copper will remain higher enabling the refiners to skim the anode furnace cleaner and to produce anodes faster. In addition, there will be less downtime for turn arounds because of the larger converter. By placing the orefeV for the shell in early 1982, the delivery will be some time after September 1982, and the payments required on the construction of the shell would not be due until the summer of 1982. I request approval of this appropriation in order that the productivity of the Copper Department wilT'Temain. WRK: gp Ends. cc: W. T. Sweat - Ends W. R. KELLY REQUEST FOR CAPITAL APPROPRIATION FORM 302 ( view Request | X | "" Supplemental Request | Scope Change I | I I. DESCRIPTION OF PROPOSAL AND REASONS FOR MAKING REQUEST: #1 Converter Shell N. pp. or Supp. No------- 5657 Plant App. No.677 _________ _ Plant or Unit Name El Paso Plant Unit No7819_________________ _______ DateFebruary 9, 198? II. ADVANTAGES TO BE DERIVED FROM ADOPTION OF THE PROPOSAL: Replacement of a converter shell that has been installed since 1913 with a larger converter enabling the Plant to produce copper faster. III. ESTIMATED EXPENDITURES: Current Request Capital Expenditures Working Capital S950,000 Capitalized Interest Other Expenditures Total S950,000 Appropriations Previous $ $ Total $ 950,000 $ 950,000 TOTAL AMOUNT REQUESTED WITH THIS APPROPRIATION IV. EVALUATION OF PROPOSAL Internal Rate of Return: Excluding Tax Credits (38) Including Tax Credit: Estimated Useful Life>-*20 % % Start Date ^FCll 1982 Completion Date December 31, 1982 Previously FnrprastprT? $750,000______ Available Investment Tax Credit $95,000 Available Energy Tax Credit $_______ "______ V. APPROVAL AND REVIEWSIGNATURES: Nature of Current Request: Maintenance Legislative New Project Automobiles Total Approved by Advisory Committee: MfiR 2 4 19R?. Reviewed by___ Reviewed by___ Charge to Accts. Treasurer Controller Approved by Board of Directors: Secretary: Date: COST DISTRIBUTION Form 302 A 9* r -N.Y p. or Supp. No.._____________ b t>5V Plarn App. No._________ 677 __________ _ Plant or Unit Name El Paso Plant Unit No7819 DateFebruary Q| log? l project description: 1 II. CAPITAL EXPENDITURES: #1 Converter Shell*_____________________________________________________ Years (1) 2 3 4 5 Total Lives 20 Amounts S950.000 i Non-dcprcciable Total 5950,000 Note (1): If project expenditures extend beyond five years, use additional pages and show entire cost distribution by year. R. L. VoTlmer Prepared by 2/9/82 Date $950,000 $ 142,500 142,500 6 5 ,5 5 0 Nofes: (1) If projV_extends beyond five years, use additional copies and show entire project life by year. CD t9o: 8 o b* <n o cc# no cn cn o o oo (X Vcn cn cn o .. wJi a _4 cn J*. CO ro o CO CD o> r3J 33 ro tomX too roc Q. to5* ro<o 5>* o <5 Q. w o03 to >a. a > . J3r CD D* GO *TJ . a> o7C o fD 33 a a 9*. fg* mX 0> o O* ca. 3 O CO 0O) X* OCD *o fD O of o 3 5* X m (D 3 5' ccao mX ZJ* lO o (0 Q. i P o O <0 5c *o 3* a> to o' O3 fi) m1 S o CO Q. to sf 0C}T <D OfD CL Co z fD 3O m03 OfD *o 0> 3 i} ItQo #r--*s oto fO O "S Si' o' 3 o<(DDi ftoi) o (D fD TJ 5* <D o* 3 o0to> 3* O O o o5* ov3) 2. f0D3 <D aCOD <0 5' 0Cto)i O' to CD g 3 o' to0oJ to 3* *O0 O to w *9. 5 03 gro O Kto a 0 > 05 1 "0 33 o o m m O C/5 B 33 33 03 u ro _* oLt r aJ <u O03 O. f PC o0) p. > X) o mX o 18 o 3CL 5>` C o' 3 3to 33 fD ST 5' (nD' a <o O 03 gp CD g <to0 33 a> JcO ST *mX0 C3D Q. 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CO CO o> ro 3 c; <1 c+ 'K^'4 INTERNAL RATE OF RETURN WORKSHEET Form 302 C c I. project description:_________#1 Converter Shell W.Y ). or Supp. No..________ hKtV? Plarw npp. No.______ 677_______________ Plant or Unit Name FI Pa<;n Plant Unit No7819_________________________ DateFebruary 9, 1982 II. CALCULATION: Check One: y | Excluding Tax Credits [ | Including Tax Credits (1) Year 0 1 2 3 4 5 Form 302 B Estimated Expenditures $(950,000) Form 302 A Less Capitalized Interest _ Form 302 B Net Cash Expenditures Cash Proceeds $(950,000) $ 65,550 96.140 91,770 91.770 91,770 Net Cash Flow $(884,450) 96.140 91.770 91.770 91,770 Discount Factor (38)0/0 1.000 Present Value $(884,450) 1.380 132.673 1.904 _m.76-7 2.628 3.627 -2^1.178 335,826 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Totals - (950,000 (2) t ) (2) ( 950,000 ) $ 437,000 $(513,000) (3,006) (3) Notes: (1) I! project life extends beyond 20 years use additional forms. For calculation purposes the first year of the project should be regarded as year 0 with a 1.000 discount factor. (2) Must agree with form 302 and for calculation purposes show all expenditures as negative numbers. (3) The sum of all annual present valuo numbers is the net present value, which should bo as close to zero as possible. The interest rote at which tho net present value is zero is defined as the internal rate of return. INTERNAL RATE OF RETURN WORKSHEET Form 302 C c t. project description:________________ #1 Converter Shell N.Y. . or Supp. No____ 7 Plant *pp. No. 677 Plant or Unit Name El Paso Plant Unit No__________ 7819_____________ Date_____________ February 9, 1982 II. CALCULATION: Check One: [ | Excluding Tax Credits | y | Including Tax Credits Form 302 B (1) Year 0 1 2 3 4 5 Estimated Expenditures $(950,000} Form 302 A Less Capitalized Interest Form 302 B Net Cash Expenditures Cash Proceeds $(950,000} $ 160.550 96,140 Net Cash Flow $(789,450} 96,140 91,770 91,770 91,770 ____ 91,770 91.770___ 91.770 Discount, *,/ Factor (ySJ/j 636}0/0 Present Value 1.000 1.330 $(789,450} 127,866 1.769 7.353 3.129 -16-,332 12.16 r901 287.149 6 7 8 9 .10 11 ' 12 13 14 15 16 17 18 19 20 Totals ^_ ( 950,000 ) (2) . (2) (950,000 ) $ 532,000 $(418,000} $ 3,798 (3) Notes: (-1) If project life extends beyond 20 years use additional forms. For calculation purposes the first year of the project should be regarded as year 0 with a 1.000 discount factor. (2) Must agree with form 302 and for calculation purposes show all expenditures as negative numbers. (3) The sum of all annual present value numbers is the net present value, which should be as close to zero as possible. Tho interest rate at which the net present value is zero is defined as the internal rate of return. CCST E-ST I MATE i '' i` JO -c. -------rr'. r....... O.... ........... PLANT .....5?-,.. J03 NO...... .................................. AUTH. NO. ...... ........ .. DRAWING NOS........ WADE BV rf... DATE ..... <Lr~L.r.'y.. .. CHECKED BY.......... DATE. r , CLAES: F ! EE MATERIAL CrUAM1iCt EST`d. EM' i-ft UN`I T PRICES LI FE Or'.TL. WAT! t 1 A l L> HO* ESTIMATED cost WA T f 1 Al 1 A Oft ! total I ESTIMATED COST 11 i ............ ...kC?... ........ -................................................ 1 ......... i.... 11 ... i........... ........ -- V-ON(: "V.-f 'mi lilOjOc. iy 1? -v=". - i \Q !S> .. 1 'vXO ! S25.r-.-v~ \S-....... .'......... ..... .................. i i li ^TTrCii Cri^T'L'bS .. 7 300^5 .... :/q2q... 1 ?>3COO 1 .......... 1 I......... --i n ... .... 3j%jo_ .... 1 //Coo !.................... 1 ..5h./.u5j...................................... ............... r\ .......... ...i..... .... ' i1 ......ZESd... issE P- )1cto=> - ii- j` 1^ ........................... i............... .......................I............... 1 1 ^roo i 1 Loao i J aCCOOtS 1! II 1 ij 1! 1 i i j- i DSLico ...... __________ ____ __i................. 1 ........... ____________ 1________ I! N-^rLSi ' I CSrZo*e ...I ...... -r--............ ........... ji.......... II li li i...!.co-op. i1 ..... b.eo^ ' ! 1 hO 003 1! i ...... ......... i... O ^ 3 1......lko.3.3.... 1 ... ........................................... ............... ............ 1! ......... t... ! 1 s3ci ......... ...........II.......... i i.................i................... II i i i Yjoso -3 -O-Jt........... -- ~\ ... t. 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