On 1st August, 2013, Save The World Air, Inc. (STWA) entered into an equipment lease/option to purchase agreement with TransCanada Keystone Pipeline, L.P. by its agent TC Oil Pipeline Operations, Inc., dated effective as of 17th July, 2013. In accordance with the terms and conditions of the agreement, TransCanada has agreed to lease, install, maintain, operate and test the effectiveness of STWA’s Applied Oil Technology (AOT) and equipment on one of TransCanada’s operating pipelines.
The agreement provides for, among other things, STWA to deliver the equipment to TransCanada, at TransCanada’s expense, to a location designated by TransCanada, by a date no later than 13th January, 2014, and for the equipment to be installed and placed in operation by TransCanada, at TransCanada’s expense, on a date estimated to be no later than 1st March, 2014.
The initial term of the agreement is six months. On 60 days of written notice prior to the expiration of the initial term, TransCanada has an option to extend the lease for an additional 84 months.
The agreement further provides that TransCanada, during the initial term and any extended term, shall have an option to purchase the equipment for a fixed price during the initial term of US$ 4 300 000, and a price during the extended term of the greater of US$ 4 300 000 or fair market value. Lease payments shall commence on the commencement date and be made during both the initial and extended terms of the lease at the rate of US$ 60 000/month.
World Pipelines subscribers can log in here to view the January 2013 issue, which includes an article written by STWA CEO Cecil Bond Kyte, regarding the company’s AOT oil pipeline efficiency technology.