Cities Index.
Attachment A - Cost Proposals

Victorville City Council
October 15, 2024

Document
Attachment A - Cost Proposals
Meeting
October 15, 2024
Body
Victorville City Council
Original file
2.5 MB
Text extracted from the city's file for reading and search. Open the original on victorvilleca.primegov.com. That file is the official record.

ATTACHMENT A
Cost Proposals

Project:

ORDER TO PLACE PROPOSAL
City of Victorville
E2307267 Rev4 – BBR4-10715
Randy Smithwick
March 19, 2024

Atlas Copco Compressors, LLC Page 1/30

Dear City of Victorville,

Thank you for the opportunity t o present feasibility budget pri cing for your CNG project.

Our proposal has focused in line to the specifications for the packaged system while presenting solutions that are commercially practical. The design of our so lution places an emphasis on simplified customer tie- in, consistent performance and ongoing maintainability.

Proposal includes:

CNG Compressor – BBR4-107 15-1904501 154 (std)

Please do not hesitate to contact with any questions. Thank you again for your time and consideration. I look forward t o our continued discussions.

Kind Regards,

Randy Smithwick
Sales Manager, Atlas Copco GPP
Phone: 803-817-9449
[email protected]

Atlas Copco Compressors, LLC Page 2/30

Atlas Copco Proposal
Atlas Copco is a world leading provider of CNG refueling soluti ons with and experience of over 35 years in CNG compressor de velopment. Atlas Copco provid es complete solutions for refueling stations through i ts wide range of products acqui red through strategic acquisitions of companies like Intermech and Greenfield Compres sion. Our natural gas products and services include ele ctric and gas driven on-line c ompressor packages, mother - daughter station systems, meter ed and non-metered trailer fil ling dispensers, storage units and ancillary equipment as well as related aftermarket se rvices and spares.

1. Codes and Standards
The following codes / standa rds have been considered:
 Electrical equipment: Class 1 Div. 2
 Pressure vessels design code: ASME, U Stamp
 Atlas Copco is certified accordin g to ISO9001, ISO 14001 and OHS AS18001  Compressor Block as per manufacturer standard.

2. Compressor Design and Performance
Electrical Voltage
 Instrumentation 120 VAC ± 5% / 24 VDC
 Frequency 60 Hz ± 2%
 Execution Ex acc. Zone 1
 Drive motor 3 Phase 460-480 VAC ± 5%
 Motor Speed 1785 RPM
 Frequency 60 Hz ± 2%
 Execution Class 1 Div. 2
On Site Installation and Operating Conditions
 Altitude: 1640ft. above sea level
 Ambient temperature: min. 32 F, max. 104 F
 Suction Gas temperature: min. 39 F, max. F 80
 SG Gas taken Standard: 0.60
 Application: Fast Fill or Slow Fill

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Block Performance BBR 4-10715 4 Stage
Condition 1
Gas Temperature: 68°F
Ambient Temperature: 68°F
BBR4-10715-1785rpm-4500psiG Discharge Pressure
Suction
Pressure
(psig)
Suction
Pressure
(barg)
Capacity
(Nm3/h)
Capacity
(Sm3/h)
Capacity
(Scfm)
Shaft
Power
(KW)
Shaft
Power
(HP)
Motor
Rating
19 1.29 775 819 482 184 242
300HP
20 1.36 800 845 497 188 247
21 1.43 824 871 513 192 252
22 1.5 849 897 528 197 259
23 1.56 872 921 542 201 264
24 Need to use PRV
* Capacity Calculation +/-5% is based on 68°F ambient & 68°F gas temperature. The RH considered is 70% and site altitude as 500masl
Gas 0.6 SG

Note:

Capacity calculations are based on 0.60 SG and gas/ambient temp of 68F/68F & 1640 ft ASL with an accuracy of ±5%
Allowable percentage of H2S in Natural Gas should not exceed 10 ppm(V) **Please note: Due to the high HS 2 (34 PPM) Atlas Copco Compres sors can not offer our standard warranty of this unit.

Allowable percentage of H2O in Natural Gas should not exceed 50 mgH2O/std.m³

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Package Summary BBR4-10715 4 Stage
Clarification/ Deviation Sheet
Sr. SUBJECT CLARIFICATION FROM ATLAS COPCO INDIA LIMITED 1 Scope of Supply ACIL scope of supply will be identical to past executed Probe Machine.
2 Guaranteed Flow
The flow of 482 SCFM will be provided on 19psiG at
68°F Gas Suction temperature & 68°F ambient
temperature with 70% RH & 1640ft. asl elevation.
3 Gas Composition Gas Composition of SG 0.6
4 Suction Gas Temperature Range S uction Gas Temperature is considered as 68°F 5 Ambient Temperature Range Ambient Temperature is considered as 68°F 6 H2S Percentage Allowable percentage of H2S in Natural Gas should not exceed 10 ppm(V)
7 H20 Percentage Allowable percentage of H2O in Natural Gas should not exceed 50 mgH2O/std.m³
8 Temperature Difference
Temperature Difference between ambient
temperature and gas temperature should not
exceed 10°C
9 Noise Level Noise level will be 75 dB +/- 3 dBA @ 1m distance from compressor package, in Free field condition.
10 Cables Power cable is in Customer Scope.
11 Vibration As there is no specified requirement on Vibration levels, Standard ACIL package will be provided.
12 Motors & panel Starter 250HP NEMA motor will be supplied, starter will be VFD. Motor will be 4P motor.
13 Pressure Vessels Pressure Vessels are provided with ASME with U- stamp
14 Coolers Coolers are prov ided ASME without U-stamp
15 Noise Dampening
As Atlas Copco Indian Standard machine which has
Rockwool in Canopy & as discussed same is
acceptable to USA customer.
16 Mass flow meters Suction, Discharge & Thermal Mass flow meters are not in ACIL scope as not required by customer.
17 Gas Detector Qty 1 of Gas detector will be provided in Compressor Package
18 Flame Detector & CO2 flooding
System
Flame Detector & CO2 flooding system is not in ACIL
scope.
19 Priority Panel Priority Panel is not in ACIL scope.

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20 Suction Gas Filter
In order to have clean gas at compressor Inlet so
Suction Gas Filter of 5 micron to be installed at
upstream of the package to safeguard the block
internal parts. This is a standard practice we follow
for Indian package. This Filter is need to be installed by "Customer".
21 Process Control Platform
Schneideror Siemens make PLC will be supplied. The
control cum VFD starter panel will be placed in safe
area installation.
22 Package Footprint & Shipping
The Package footprint will be 3.5m X 2.5m X 3.5m
(LXBXH) approximately, so special shipment will be
required.
23 Submittals
There will not be any specific requirement of List of
makes, Quality assurance plan, documentation
submission, so no document approval cycle is
applicable.
24 Quality Assurance As there is no specific quality requirement, standard quality documentation will be provided.

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3. BBR Compressor Features
This section focuses on the CNG Compressor details. It provides a detailed description of the design, engineering, fabrication, testing and scope of supp ly for CNG Compressor.

These compressors are the latest machines specially developed f or CNG applications and have unique features designed to give you the most optimum perf ormance.

Shown Indicative only without included enclosure

Compressor Features
 Dynamically Balanced, BBR block 4 Stage
 Horizontal, reciprocating type, min oil lubricated, fast fill  Lowest oil consumptio n, 5 PPM GUARANTEE
 Pressurized Crankcase up to 362 Psig ZERO leakage to atmosphere  Inter cooling and after cooling (air cooler type) heat exchange rs eliminating water quality problems and extra installation
 Blow down on Inlet with Pressure Indicator
 Final filtration system up to 4-m icron filtration. Additional F ilter for < 5ppm

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 Instrument panel mounted in stainless steel box showing all tem peratures and pressures on the skid and visibl e through the canopy sight glas s at all times  Pressure relief valves on every stage discharge.
 Integrated Blow Downs and vibrati on dampers (pulse vessels) wit h PLC controlled auto- draining condensates every 90 minutes.
 Control Cabinet with complete Siemens PLC module.
 Full tool kit for installation operation and commissioning  Package and compressor marked as per customer requirements  Crankshaft driven lubrication.
 Non lubricated, flange bolted, Direct Drive coupling
 Compact design.
 Discharge Gas Temperature is max of 10 C (50 F) above ambient t emperature.

Compressor mounted on skid base with un-loaded start and auto-d rain  Fin-fan heat exchangers never need Replacement.

**** GAS TIGHT CRANKCASE (No Fugitive Emissions):

One of the more unique advantages of all Atlas Copco CNG compre ssor packages is the gas tight, pressurized crankcase. This means there is no gas vented to atmosphere. Any gas leakage in the system is recuperated and directed back to the i nlet. Our competition does not utilize a pressurized crankcase, which means all gas leakag e into the crankcase must be vented to atmosphere.

Reciprocating compressors in the natural gas industry leak natu ral gas during normal operation. The highest volume of gas loss is associated with pi ston rod packing systems.

Packing systems are used to mai ntain a tight seal around the pi ston rod, preventing the gas compressed to high pressure in the compressor cylinder from lea king back into the crankcase, while allowing the rod to move freely.

All packing systems leak under normal conditions, the amount of which depends on cylinder pressure, fitting and a lignment of the packing parts, and amount of wear on the rings and rod shaft. As the syst em ages, leak rates will increa se from wear on the packing rings and piston rod.

Besides the safety and environme ntal impact of this leaked gas being vented to atmosphere, there is obviously s ignificant cost associated with this lost gas.

Again, Atlas Copco CNG compressors utilize a gas tight, pressur ized crankcase: NO natural gas is vented to atmosphere! NO lost costs or revenues and NO g reenhouse gas emissions from venting.

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4. Compressor Package Technical Specifications and Data Site condition
Ambient temperature °F 32 to 104
Frequency Hz 60 ± 2%
Voltage V 460-480± 5%
Installation TBD
Gas Type Natural Gas
Gas properties Sp .gravity 0.6
Operating suction pressure Psig 19

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Compressor Configuration
Model INTERMECH BBR-4 Stage
Drive 300HP Class1 Div 2, 4 POLE,
NEMA
Number of stages 4 Stage 2 throw
Cooling and lubrication Air cooled – force feed

Design condition
Ambient temp °F 68
Inlet gas temp °F 68
Inlet pressure Psi(g) 19
Outlet pressure Psi(g) 4500
Performance
Capacity (ea. Unit) SCFM 482
Motor output Hp 300
Gas temp. (outlet) °F Approx. 18 °F above ambient Tolerance on capacity and power consumption ± 5 %

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Compressor Heat Exchanger
Atlas Copco heat exchangers produ ce dense, cool gas ensuring sa fe filling of all storage cylinders and more standard cubi c meters filled into each vehic le or trailer. Air cooled heat exchangers are reliable and straightforward to maintain pr oviding trouble free running without the need for removal of water fouling or mainta ining water jackets, cooling towers or water pumps.

Shown Indicative only

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Compressor Safety Valve
Atlas Copco supplies safety relief valves on all stages of ever y compressor, ensuring the safe operation of the station. T he Pressure Relief Valves are “ State of the Art” in soft seat, high flow rate, pressure relieving devices. UV Stamp.

 Shown Indicative only
 Designed with Auto Seat Technology
 Consistent Set Pressures allowing repeatable uses without repai r or resetting.  Open, Close, Seat and Seal
 Fully guided disk keeps the disk properly aligned, opening and closing, helping to reseat the valve.
 Mechanical Stop prevents wear on parts and controls valve lift.  Low rated and fully guided spring allows for more consistent se t pressures from pop to pop.
 Pop Action relief allows valve to go to full lift at set pressu re. Helps with DOT regulated applications.
 Non-rising stems allowing valves to be installed in small areas .

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Drive Motor
Design to Class 1 Div. 2 means t hat a flammable atmosphere is l ikely to occur in normal operation (more than 10 hours per year, but less than 1,000 hou rs per year) and thus all components must be Class 1. To ac hieve Class 1 there are severa l solutions but at Atlas Copco we have adopted to use Exd . This provides a fail-safe ass urance of safety as it does not rely on any sensors to ensur e gas is either purged or press urized out of the environment where a spark may form.

We are providing Explosion Proof motor for use in Class 1 Div. 2

Shown Indicative only

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Final Filtration System fo r Oil and Liquide Removal
 Filtration protection to remove liquid aerosols
 Oil is removed from the gas discharged from Atlas Copco package s by two means  Inter-stage separators
 Final finite filters on high pressure discharge line
Inter-stage Separators
Atlas Copco inter-stage separators clean the gas at every stage and are drained automatically to holding vessels e very 50 min according to the PLC program of the package. This ensures minimal oil ever reaches the final filtra tion system at the discharge. These separators als o serve the dual purpose of prov iding gas pulsation dampening.

Final Finite Filters on High Pressure Discharge Line:

Atlas Copco uses finite ‘Grade 4’ final filtration media in the filtration filter which removes 99.9% of liquid aerosols i n the 0.3 to .0.6 micron rang e. For most systems the Grade 4 coalescing media is reco mmended. However, to ensure the efficiency and reliability of the system Atlas C opco also adds a pre-coalescin g filter on all its packages which is required only if more t han 50ppm of oil or 25ppm of wa ter is present in the gas stream. Pre-coalescing involves twin stage filtration. A finite “J” series filter with Grade 10 media is used to remove the gross aerosols. Then a second “J ” Series filter with Grade 4 media is placed after the Grad e 10 filter to clean up the rem aining aerosols.

Type Pre-coalescing and coalescing
Media Grade 10μm (pre-coalescing) 4 μm (coalescing)
Flow Capacity > 2000 SCFM at 4500 psig
Filtration Level < 5ppm of water and oil vapors or aerosols Max Working Pressure 345bar (6000psi)

Coalescing filter housing (2 units supplied per package)

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Controls and Instrumentation
Instrumentation and metering panel is integrated on the compres sor package. It consists of:
 Transmitters
 Inlet pressure to the compressor
 Inlet temperature to compressor
 Discharge pressure each stage
 Discharge temperature each stage
 Lube oil temperature and pressure
 Emergency stop button
 Start and stop key
 In addition, vibration switch an d lube oil switch are locally m ounted  Gas detector
 Motor Starter NEMA 4 Panel in a safe area consists of,  Main isolating switch
 Emergency stop push button
 Power Meter for (KW, KVAR, Hz, etc.) (optional)
 Hour meter
 DOL for fan motor
 Soft Starter for the Main Motor
 ESD Emergency Stop
 Manual Shutdown Switch PLC electronic controller Consisting of:
 CPU- S7-1200
 Input output modules
 Intrinsically safe barriers
 LCD Display panel – 10” inch screen
*Typical PLC Control will be as per PID. Please refer PID.

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Instruments
 Pressure and temperature transmi tters/sensors, weatherproof con struction Instruments will be supply accordin g to EEx IIB T3/T4 in compli ance with Class 1 Div2.
 Pressure gauge in Stainless Steel
 Temperature gauge in Stainless Steel
 Thermowell in Stainless Steel for temperature instruments  Tubing, fitting and 2-way manifold valve (2 way + 1 manual drai n) for pressure gauge in Stainless Steel Output 4-20 mA
 Functions of instruments: see P& I Diagram. Process connection: screw type  Instruments according to Standard Manufacturer for Class 1 Div. 2  Pressure transmitters
 Temperature transmitters
 Differential pressure transmitters
 Junction boxes
 Solenoid valves
 Cable glands

Instrument Vendor List

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 Transmitter: Danfoss or Emerso n Rosemount or WIKA OR ABB  Level switch: Emerson Rosemount a nd/or MAGNETROL or Equivalent  Solenoid valve: Danfoss and /or Asco Jouco and/or M&M  Pressure gauge: Bourdon and/or WIKA and/or Ashcroft/Midwest  Temperature gauge: Bourdon and/or WIKA and/or Ashcroft Honeywell Gas Detection
Flammable, toxic and oxygen gas d etector for industrial applica tions comprehensive monitoring of flammable, toxic and O2 gas hazards in potentiall y explosive atmospheres, both indoors and outdoors. Users can modify detect or operation using the LCD and magnet switches witho ut ever needing to open the un it. This enables one- man, non-intrusive operation and reduces routine maintenance ti me and costs.

Features and Ratings
 Compliant with UL, Class1 Div1, INMETRO, ATEX, IECEx, CSA, KTL, PA, GB and CCCF standards
 IP66 as standard
 Selectable sink or source 4-20mA output

5. Testing

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 All Compressor packages and other related equipment are tested as per Atlas Copco test standards of 4 Hours to ensure that the guaranteed p arameters are verified
 These tests consist of mechanica l running test and testing of m echanical and Electrical functionality
 Standard performance test
 Performance test at final pressu re with verification of contrac tually guaranteed data by means of flow measurement

6. Painting
 Priming
o Basis Epoxy 2-component paint
o Coat thickness min. 40 micron
 Topcoat outside surfaces
o Basis Polyurethane 2-component paint
o Coat thickness min. 40 micron
o Color shade, RAL 7030/7011 (stone grey)
o Lead Chromium and Cadminum Free

7. Documentations
Technical documentation
The technical documentation is p rovided in electronic format on ly. The supply includes following documents:

Instruction book consisting of,
 GA drawing
 P&ID
 Installation guidelines
 Electrical single line diagrams
 Trouble shooting procedures
 Part list Quality documentation
 Standard ACIL Quality Assurance Plan will be provided.

Quality Assurance
Atlas Copco is offering ISO9001, 14000 accredited QA system for the equipment described above. Our standard quality plan includes a series of sub vendor audits, incoming inspections, in-process tests and hold- points to ensu re that the final product is defect-free.

8. Atlas Copco Scope / Customer Scope

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ACIL Scope
Sl No ACIL Scope
1 Mechanical Parts
Compressor Block BBR4-10715
2 Coolers (Local Fin tubes)- without U-stamp
3 Aux. Oil pump
Manifold for Aux Oil Pump
4 Baseframe
5 Fan Impeller
6 Fan Plenum
7 Fan cowl
8 Kit Vessels ASME with U-stamp
9 Kit Piping -ASME
11 Safety Valve ASME
13 Filter element
14 Kit Actuator
15 JB Junction Boxes
16 Canopy Canopy
17 Control Panel
Control Panel PLC base soft starter
Hooter
ESD
Flameproof lamps
18 Instruments
Instruments

18.1 Pressure Gauge

18.2 Pressure Tramsmiters

18.3 RTD

18.4 Gas detector Catalyst Type

18.5 Vibration switch - Murphy Make

18.6 Solenoid valve

18.7 Thermowell
19 Kit SS fittings Parker

Customer Scope

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1 Power Cabling
Power Cabling for main motor, from Control panel to CNG compressor
Power cabling from Fan Motor,Aux. pump motor,Heater -
From junction box to SAFE area control panel.
2 Tubing
Priority Panel to dispenser
Storage Cascade to Priority panel
Air compressor to actuators within Compressor Package if required
3 Cabling Cabling outside CNG package (Field cabling), a) JB to Main panel in control room, b) Power cabling, c) Heater Cabling 4 Piping
Following Piping in Customer Scope

1. Piping from Customer Inlet Gas Connection till Compressor Inlet Flange

2. Compressor Discharge Connection to Cascade/Dispenser Piping between Suction filter + PRV + Strainer & its
interconnecting piping to be done at site.

9. Exclusions
Sr No Description

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1 Utility Air Compressor + Dryer for utility Air
2 Utility Air Receiver for utility Air
3 Mobile Phone and Laptop for PLC communication
4 UPS for PLC
5 Suction PRS skid & its instrumentation
6 Co2 Flooding System
7 Tarpulin Cover
8 PRS INSTRUMENTS AND FITTINGS
9 Valves & Loose Valve
10 Fire Extinguisher
11 Flame Detector
12 6 Inch Inlet Valve
13 CNG Storage Cascade cylinders
14 Mass Flow meters-Suction Discharge & Vent Mass flow meter 15 Piping Cabling outside CNG Package
16 Tubing Outside CNG Package
17 a) Priority Panel to Cascade,
18 b) Priority Panel to Dispenser
19 c) Air compressor to CNG compressor
20 d) CNG compressor to CO2 system
21 e) CNG compressor to Priority Panel
22 Shipping (Freight Charges)
23 Cabling outside CNG package (Field cabling), a) JB to Main panel in control room, b) Power cabling
24 Portable Fire extinguishers
25 Civil work
26 Freight Charges
27 LD & any other penalty
28 Power cabling (for Main motor, Fan motor, lube oil motor & Heaters )
29 SCADA Software
30 Remote Monitoring
31 Field Cabling (Outside Package)
32 Erection & commissioning
33 Site Acceptance Test
34 Priority Panel
35 Storage Cascade

10. Remarks
 Customer to include 3kVA UPS and not an undersized one at custo mer end  Local rules and regulations of USA are not considered

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Other Notes to be noted during execution :
 Any scope change apart from whatever is mentioned in this proposal shall lead to cost implication.
 Delivery date is based on SDRL d ata and documents customer resp onse  Documents are issued max 2 times for customer approval.

In case a document has to be issued more often and/or response time is exceeded, Atlas Copco will be r elieved from liquidated damag es for this period.

11. Atlas Copco After Market Support:

Atlas Copco as always is looking to exceed customer expectation in all areas of its business units, focus has always been orientated to customer ca re. Atlas Copco has recently made a number of investments, significantly the appoin tment of regional aftermarket Managers who are dedicated to your area, their remi t is ensuring that your requirements are met and offering the best Atlas Copco tot al responsibility packages.

12. Commissioning Contract COMM-1-
Scope
CNG Compressor. Commissioning of packages will be carried out a s per Atlas Copco standards subject to the completion of all the Pre commissionin g works, as per Atlas Copco’s check list.

Estimated Duration- 4/5 day per unit.

13. Commercial Offer
 Basis of pricing is as follows:
 Confirmation of site conditions m ust be made prior to order pla cement.

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EQUIPMENT Qty Unit (USD) TOTAL
USD
Compressor
10 BBR4-10715,4 Stage Electric compressor package for
pressure range of avg. flow of 482 SCFM @ 19 Psig @ 68°F, 300HP Class1 Div 2 Motor, 4 POLE and NEMA 4 Control
Panel Included for Safe Area
1 $238,984 $238,984

Grand Total (excluding VAT) USD 1 $238,984 $238,984

Startup & Project Documents Qty Unit (USD) TOTAL
USD
20 Startup & Training - after installation is complete & by others 1 $12,000 $12,000

OPTIONAL EQUIPMENT Qty Unit (USD) TOTAL
USD
30 NA

14. Payment & Delivery Conditions
Quote validity: 30 days
Installation: Not included unless otherwise noted
Warranty: See Standard Conditions of Sale
Payment terms: Progress Payments - 45 Days Net
Incoterms & location: FOB - US Port of Entry
Delivery: Compressors Ex Works India Factory: 23-25 wks. + Ship 5wks, ARO

DELIVERY MISC: Equipment will be delivered in our standard pack aging unless otherwise stated (off- loading and positioning to be done by others). Optional items m ay impact delivery. D elivery time can be confirmed upon acceptance of your order/final instructions to p roceed.

PLEASE NOTE: Delivery timing beg ins upon receipt and acceptance of confirming purchase order by Atlas Copco Compressors LLC. (Acceptance includes an agreement by bot h parties, in writing, on the final Terms and Conditions of Sale).

CREDIT APPROVAL:

This quotation is subject to Atl as Copco Conditions of Sale (at tached) and credit approval.

15. Standard Conditions of Sale

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GENERAL – Unless otherwise expre ssly agreed in writing by a dul y authorized representative of Atlas Copco these terms and conditions supersede all other c ommunications and agreements and notwithstanding any conflicting or different ter ms and conditions in any order or acceptance of Purchaser, all sales and shipments shall exclusively be governed by these terms and conditions. Whe n used herein “affiliates” shal l mean Atlas Copco AB and its wholly-owned subsidiaries. Sec tion headings are for purposes o f convenience only. “Products” as used herein shall include products, parts and acc essories furnished Purchaser by Atlas Copco. Orders shall be subject to acceptance at Atlas Copco Compressors LLC’s principal corporate offices in Rock Hill, South Carolina.

DELIVERY – Unless otherwise agreed in writing, Products manufac tured, assembled or warehoused in the continental Un ited States are delivered F.O.B . shipping point, and Products shipped from outside the continental United States are delivered F.O.B. point of entry. Where the scheduled deliv ery of Products is delayed by Purchaser or by reason of any of the contingencies referred to in Section 5. Atlas Copco may deliver such Products by moving it to storage for the account of and at the risk of Purc haser. Shipping dates are approximate and are based upon prompt receipt of all necessary information and approvals from Purchaser. Atlas Copco reserves the right to make deliver y installments.

SECURITY AND RISK OF LOSS - Upon request from Atlas Copco, Purc haser agrees to execute a security agreement covering the Products sold or other assets a nd to perform all acts which may be necessary to perfect and assure a security position of A tlas Copco. Notwithstanding any agreement with respect to de livery terms or payment of tran sportation charges, the risk of loss or damage shall pass to Purchaser and delivery shall be deemed to be complete upon delivery to a private or common carrier or upon moving into sto rage, whichever occurs first, at the point of shipment for Products assembled, manufactured o r warehoused in the continental United States or at the point of entry for Products shipped from outside the continental United States.

PAYMENT – If Purchaser fails to pay any invoice when due, Atlas Copco may defer deliveries under this or any other contract with Purchaser, except upon re ceipt of satisfactory security for or cash in payment of any such invoice.

A service charge of the lesser of 1% per month or the highest r ate permitted by applicable law shall be charged on all overdue accounts. Failure on the p art of Purchaser to pay invoices

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when due shall, at the option of Atlas Copco, constitute a defa ult in addition to all other remedies Atlas Copco may have u nder these conditions of sale or applicable law. If, in the judgment of Atlas Copco, the financial condition of Purchaser a t any time prior to delivery does not justify the terms of pa yment specified. Atlas Copco m ay require payment in advance or cancel any outstanding order, whereupon Atlas Copco shall be entitled to receive reasonable cancellation charges. If delivery is delayed by Pur chaser, payment shall become due on the date Atlas Copco is p repared to make delivery. Shou ld manufacture be delayed by Purchaser, pro rata payments shall become due if and to the ext ent required at Atlas Copco by its contracts with the manufacturer. All installment delive ries shall be separately invoiced and paid for without regard to subsequent deliveries. Delays i n delivery or non-conformities in any installment shall not re lieve Purchaser of its obligatio ns to accept any pay for remaining installments.

FORCE MAJEURE – Atlas Copco sha ll not be liable for loss, damag e, detention, or delay, nor be deemed to be in default from causes beyond its reasonable contr ol including but not limited to acts of God, fire, storm, strike or other concerted action o f workmen, act or omission of any governmental authority or of Purchaser, compliance with imp ort or export regulations, insurrection or riot, embargo, qu arantine, epidemic, pandemic, delays or shortages in transportation, or inability to obtain necessary engineering ta lent, labor, materials, or manufacturing facilities from usu al sources. In the event of d elay due to any such cause, the date of delivery will be postponed by such length of time as ma y be reasonably necessary to make up for such delay.

NEW PRODUCT WARRANTY – Atlas Copco warrants to the Purchaser th at all stationary compressors, portable compressors , compressed air dyers, Atlas Copco-designed compressor parts and other Products manufac tured by Atlas Copco and affili ates shall be free of defects in design, material and workmanship for a period of fifteen (15 ) months from date of shipment to Purchaser, or twelve (12) months from date of initi al start-up, whichever occurs first, except as set forth below or in the New Products Warrant y attached hereto.

Should any failure to conform with this warranty appear prior to or after shipment of the Product to Purchaser during the specified periods under normal and proper use and provided the Product has been properly st ored, installed, handled and ma intained by the Purchaser, Atlas Copco shall, if given prompt notice by Purchaser, repair or replace, the non-conforming Product or authorize repair or replacement by the Purchaser at Atlas Copco’s expense.

Replaced Products become the property of Atlas Copco.

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Atlas Copco warrants Products or parts thereof repaired or repl aced pursuant to the above warranty under normal and proper u se, storage, handling, instal lation, and maintenance, against defects in design, workmanship and material for a perio d of thirty (30) days from date of start-up of such repaired or replaced Products or parts ther eof or the expiration of the original Product warranty, whichever is longer.

When the nature of the defect i s such that it is appropriate i n the judgment of Atlas Copco to do so, repairs will be made at the site of the Product. Repair or replacement under applicable warranty shall be made at no charge for replacement parts, F.O. B. Atlas Copco Warehouse, warranty labor, serviceman transportation and living costs, whe n work is performed during normal working hours (8 a.m. to 4:30 p.m. Monday through Friday , exclusive of holidays).

Labor performed at other times w ill be billed at the overtime r ate then prevailing for services of Atlas Copco personnel.

The Atlas Copco warranty does n ot extend to Products not manuf actured by Atlas Copco or affiliates. As to such Products , Purchaser shall be entitled to proceed only upon the terms of that particular manufacturer’s warranty. The Atlas Copco warra nty does not apply to defects in material provided by Purchaser or to design stipulated by Pu rchaser.

Used Products, Products not manufactured by Atlas Copco or affi liates and Products excluded from the above warranties are sold AS IS with no representation or warranty, and ALL WARRANTTIES OF QUALITY, WRITTEN, ORAL, OR IMPLIED, other than m ay be expressly agreed to by Atlas Copco in writ ing, INCLUDING WITHOUT LIMITATI ON WARRANTIES OF MERCHANTIABILITY OR FITNESS, ARE HEREBY DISCLAIMED.

Any services performed by Atlas Copco in connection with the s ale, installation, servicing or repair of a Product are warranted to be performed in a workmanl ike manner. If any nonconformity with this warrant y appears within 45 days after t he services are performed, the exclusive obligation of Atlas Copco shall be to re-perform the services the services in a conforming manner.

THE FOREGOING WARRANTIES ARE EXC LUSIVE AND IN LIEU OF ALL OTHER WARRANTIES OF

QUALITY, WRITTEN, ORAL OR IMPLI ED, AND ALL OTHER WARRANTIES, IN CLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCH ANTABILITY OR FITNESS ARE HEREB Y DISCLAIMED.

Correction of nonconformities as provided above shall be Purcha ser’s exclusive remedy and shall constitute fulfillment of all liabilities of Atlas Copco (including any liability for direct, indirect, special, incidental or consequential damage) whether in warranty, strict liability, contract, tort, negligence, or o therwise with respect to the qu ality of or any defect in Products or associated services delivered or performed hereunde r.

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LIMITATION OF LIABILIT Y – IN NO EVENT SHALL ATLAS COPCO BE LIAB LE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUE NTIAL DAMAGES, however arising, whether in warranty, strict liability, contract, tort, negligence or otherwise, incl uding but not limited to loss of profits or revenue, loss of total or partial use of the Product s or facilities or services, downtime cost, or claims of the Purchaser for such or other dam ages whether on account of Products furnished hereunder or d elays in delivery thereof or s ervices performed upon or with respect to such Products. A tlas Copco’s liability on any claim whether in warranty, strict liability, contract, tort, negligence or otherwise for any los s or damage arising out of, connected with, or resulting from this contract or the performa nce or breach thereof, or from the design, manufacture, sale, de livery, resale, repair, replac ement, installation, technical direction of installation, inspec tion, servicing, operation or use of any Product covered by or furnished under this contract sh all in no case (except as provi ded in the section entitled “Patent Indemnity”) exceed the p urchase price allocable to the Product or Part thereof which gives rise to the claim.

All causes of action against Atlas Copco arising out of or rel ating to this contract or the performance hereof shall expire unless brought within one year of time of accrual thereof.

PRICES – Prices to the Purchaser shall be the Atlas Copco list price in effect at time of order.

Atlas Copco may, upon thirty (30) days prior written notice to Purchaser, change prices, or other terms of sale affecting th e Products, by issuing new pric e schedules, bulletins or other notices.

This contract applies to new Pr oducts only. Purchases of used equipment shall be on terms to be agreed upon at time of sale to Purchaser.

This price does not include any Federal, state or local propert y, license, privilege, sales, service use, excise, value adde d, gross receipts, or other like taxes which may now or hereafter by applicable to, measu red by or imposed upon or with respect to this transaction, the property, its purchase, sale, replacement, value, or use, o r any services performed in connection therewith. Purchaser agrees to pay or reimburse Atl as Copco, its subcontractors or suppliers any such taxes, whic h Atlas Copco, its subcontract ors or suppliers are required to pay or collect or which are requi red to be withheld by Purchase r.

The price shall also be subject to adjustment in accordance wit h the published Price Adjustment Clauses, which price adjustment information shall su persede the terms of this Section 8, where inconsistent herewith.

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INFORMATION FURNISHED PURCHASER – Any design, manufacturing dra wings or other information or materials submitte d to the Purchaser and not int ended for dissemination by Purchaser remain the exclusive property of Atlas Copco and may not, without its consent, be copied or communicated to a third party.

PATENT INDEMNITY – For purposes o nly of this Section 10, where used, the designation “Atlas Copco” shall be deemed to mean Atlas Copco North America Inc. and its subsidiaries.

Atlas Copco shall at its own expense defend any suits or procee dings brought against purchaser insofar as based on an allegation that Products furni shed hereunder constitute an infringement of any claim of any patent of the United States of America, other than a claim covering a process performed by said Products or a product prod uced by said Product, provided that such Products are manufactured by Atlas Copco, ar e not supplied according to Purchaser’s detailed design, ar e used as sold by Atlas Copco. Purchaser shall have made all payments then due hereunder, and Atlas Copco is notified prompt ly in writing and given authority, information and assistance for the defense of said s uite or proceeding; and Atlas Copco shall pay all damages and c osts awarded in any suit or pr oceeding so defended, provided that his indemnity shall not extend to any infringemen t based upon the combination of said Products or any portion thereof with other Products or things not furnished hereunder unless Atlas Copco is a contributory infringer. Atlas Copco sh all not be responsible for any settlement of such suit or proceeding made without its written consent. If in any suit or proceeding defended hereunder any Product is held to constitute infringement, and its use is enjoined, Atlas Copco shall, at i ts option and its own expense, either replace said Products with non-infringing Products; or modify them so that they becom e non-infringing; or remove them and refund the purchase price and the transportation costs thereof. THE FOREGOING

STATES THE ENTIRE LIABILITY OF A TLAS COPCO AND AFFILIATES WITH RESPECT TO PATENT INFRINGEMENT.

To the extent that said Products o r any portion thereof are sup plied according to Purchaser’s detailed design or instructions, or modified by Purchaser, or c ombined by Purchaser with equipment or things not furnishe d hereunder, except to the exte nt that Atlas Copco is a contributory infringer, or are us ed by Purchaser to perform a p rocess, or produce a product, and by reason of said design, instructions, modification, combi nation, performance or production, a suit or proceeding is brought against Atlas Copco , Purchaser agrees to indemnify Atlas Copco in the manner and to the extent Atlas Cop co indemnities Purchaser in this Section 10 insofar as the terms hereof are appropriate.

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ASSIGNMENT – Any assignment of this contract or any rights here under, without prior written consent of Atlas Copco by a duly authorized representative ther eof shall be void.

TERMINATION – Any order or contr act may be cancelled by Purchas er only upon payment of reasonable charges (including an allowance for profit) based up on costs and expenses incurred, and commitments made by Atlas Copco.

PARTIAL INVALIDITY – If any provi sion herein or portion thereof shall for any reason be held invalid or unenforceable, such invalidity or enforceability sha ll not affect any other provision or portion thereof, but these conditions shall be construed as if such invalid or unenforceable provision or portion thereof had never been contained therein.

REMEDIES – The remedies expressl y provided for in these conditi ons shall be in addition to any other remedies, which Atla s Copco may have under the Unifor m Commercial Code or other applicable law.

SMARTLINK: The equipment may include a data monitoring service called SMARTLINK. The data received by Atlas Copco may be used by Atlas Copco and cer tain third party distributors and contractors for the purpose o f increasing overall customer service. Atlas Copco will use commercially reasonable efforts to ensure that Purchaser’s data is kept confidential.

Purchaser acknowledges that the use of the SMARTLINK is provide d “as is”, that use of the service is entirely at Purchaser’s risk, and that Atlas Copco m ay discontinue the SMARTLINK service at any time. Purchaser m ay request discontinuance of t he SMARTLINK service at any time.

NOTE: Sale of the equipment or services described or referred to herein at the price indicated is expressly conditioned upon the terms and condition s set forth on the front and back of this page. Any confirmat ory action by the Purchaser he reunder, or any acceptance of such equipment of services, shall constitute assent to said ter ms and conditions. Any additional or different terms or conditions set forth in the Pu rchaser’s order or other communications are objected to b y Seller and shall not be effec tive or binding unless assented to in writing by an aut horized representative of Selle r.

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Payment Terms
Unless expressly agreed to in writing on a specific contract or order, our standard payment terms are:

For orders under $100,000 the payment terms shall be Net 30 day s from date of shipment.

For orders over $100,000 or with lead times greater than six mo nths the following terms shall apply:

1. Domestic Shipments
A. 30% of order value 30 Days from date of customer’s purchase order.

B. 30% of order value after passage of 1/3 of the time from dat e of customer’s order to the originally scheduled shipment date.

C. 30% of order value after passage of 2/3 of the time from dat e of customer’s order to the originally scheduled shipment date.

D. 10% of order value, net 30 days from date of shipment.

In those cases where progress p ayments are required, all work o n the order will cease if payment is not received in accordance with the payment schedule .

2. Export Shipments
All export shipments are subject to purchaser arranging for an irrevocable letter of credit in favor of Atlas Copco Compressor s LLC, from a recognized America n bank.

Should the order fall in a category that requires progress paym ents, the letter of credit shall be arranged to release payment in accordance with the agreed pa yment schedule.

3. Payment Retention
Payment retention will not be allo wed. An irrevocable bank lett er of credit will be furnished at Atlas Copco’s expense in lieu of retention.

4. Credit Approval
All terms are subject to credit approval by Atlas Copco Compres sors LLC.

Cancellation schedule

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Definitions:

Standard Stocked Equipment - equipment as shown in the current catalog and available for shipment from the US Distribution Center.

Standard Non-Stocked Equipment - equipment as shown in the curr ent catalog but not currently stocked at the US Distribution Center.

Engineered Equipment - equipment requiring customized features not shown in the current catalog.

Orders for Standard Stocked Equipment
* 20% of equipment price
Orders for Standard Non-Stocked Equipment
A) Prior to release for manufacturing:
* 20% of equipment price
B) After production has started:
* 40% of equipment price
C) After production has been completed:
* 60% of equipment price
Orders for Engineered Equipment
A) Prior to release for manufacturing:
* 20% of the purchase price
B) After production has started
* 40% of the base compressor price
* 40% of optional equipment of purchased materials will be char ged C) After production has completed
* 60% of the base compressor price
* 100% of optional equipment

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